Netcompany Group Aktie

Welcome to Netcompany's Interim Report for the first 3 months of 2026. Today's call is being recorded. If you have any objections, please disconnect at this time. [Operator Instructions] I would like to introduce CEO, André Rogaczewski; and CFO, Thomas Johansen. You may please begin.

Good day, and welcome to this presentation of Netcompany's results for Q1 2026. My name is André Rogaczewski, and I'm the CEO and Co-Founder of Netcompany. I'm joined today by our CFO, Thomas Johansen. And before we get going, there are some important disclosures that I need you to read through. So could we please have Slide #2. I will pause for 30 seconds here and let you all have a read-through of these important disclosures. And with that, can we please go to Slide #3. The topic of today's presentation is our performance for Q1 2026. I'll start by walking you through the business highlights for the first quarter. And once I'm done, Thomas will go through the financial performance of the quarter before we can open the call up for questions. Can we have the next slide, please?

So the first quarter of '26 marked the beginning of a new and a very exciting era for Netcompany. Here, I'm not only referring to the recent announced AI partnership with INEOS Grenadiers, which I promise I will give you some more comments on later in this presentation, but also to the potential we believe we can help customers unleash with our AI-embedded products and platforms. Since the introduction of our go-to-market strategy 3 years ago, our market-leading products and platforms combined with embedded AI capabilities have given us a truly unique position in the market, a position visible in our results for the first quarter of this year, where we delivered growth of more than 38%, of which 13% was organic.

One of the highlights of the quarter is our performance in the U.K., the largest market for IT services in Europe. Here, we saw very strong demand for our product and platform offerings, leading to more than 50% growth in top line. And in Q1, we also finally got to announce our partnership with Heathrow Airport. In the end of March, we lifted our EBITDA margin guidance for 2026, a result of the promising output we see from our investments in embedding AI into our products and platforms with Feniks AI. And can I have the next slide, please?

Today, we launched a white paper on Feniks AI, focusing on Feniks Build and the specific benefits it allows organizations to harvest when applied in combination with our products and platforms.

Agentic AI is fundamentally changing the way software is delivered. In complex and regulated environments, AI only creates value when it's combined with control, security and deep domain expertise. With Feniks Build, we are providing this balance and making it possible as the first of its kind in Europe. With accelerated investments into Feniks AI, we enable sovereign and secure agentic AI delivery across some of Europe's most demanding enterprise and government projects, reducing IT development time by up to 45% when using Netcompany products and platforms. While the potential of implementing agentic AI is significant, unregulated use of AI introduces substantial risks, especially in large enterprises and public sector systems where control, stability and quality is crucial.

What we see in such scenarios with unregulated use of AI is that AI generates code in vacuum where it does not account for the many nonfunctional requirements essential in complex systems. And while this may work well for smaller applications in mission-critical systems, it creates serious challenges without the proper governance as solutions risk to be poorly constructed and not optimized and therefore, very difficult to maintain over time. For both private and public solutions, scalability, performance, stability, security, interoperability and data protections are essential. And when using agentic AI, they do not emerge automatically. The implementation of agentic AI and AI in general, therefore, requires a structured approach where AI is guided through clear frameworks and governance to allow for the benefits to be fully realized.

And as a part of the Feniks AI framework, the Feniks Build approach guardrails the AI. It enables organizations to capture efficiency gains without taking unacceptable risks. At Netcompany, we help organizations embrace AI in a way that is not only faster, but also safer, smarter and better aligned with the realities of mission-critical delivery. And as you can hear, I'm excited about the opportunities ahead and Netcompany's crucial role in building European sovereignty in the age of AI. Can we have the next slide, please?

Another exciting news took place last week as we announced the AI partnership with INEOS Grenadiers. The establishment of Netcompany INEOS Cycling Team showcases our PULSE AI technology by enabling world-class athletes to perform at their best. A high-performance environment where precision, performance and continuous improvement are essential for winning. Our PULSE platform is already implemented in airports around Europe under the name AIRHART, where raw operational data is orchestrated in real-time data platform, helping to predict and optimize decision-taking using AI.

Through 3 dimensions of data, the platform will unify rider conditions, logistics around the team and tactics into one AI platform, optimizing planning and predictions around the team. The partnership with the most successful cycling team ever based in the U.K. with the ambition to continue to deliver extraordinary results, strengthens the awareness of Netcompany, not only in the U.K., but in all of Europe, and it reinforces our position as the best-in-class AI partner and supports our ambition to drive European digitization and competitiveness. I look forward to follow the team to the Giro d'Italia start on Friday, where the team officially will ride under the name Netcompany INEOS. And with that, I will now pass on the word to Thomas, who will go through the numbers. Please go ahead, Thomas.

Thank you for that, André. I will now go through our financial performance for Q1 2026 and our guidance for 2026, too. So if we move past the breaking Slide #7 and straight into Slide #8 in one go, please. As already mentioned by André, we've had a strong start to the year with organic revenue growth of 13.1% in constant currencies compared to Q1 2025. Currencies impacted revenue growth negatively by 0.3 percentage points in the quarter, resulting in reported organic revenue growth of 12.8%. Organic growth was driven by 10.1% growth in the public sector and 19.5% growth in the private sector. Revenue growth was driven by a combination of new wins related to our products and platforms and from existing customers buying additional services with all segments contributing to the growth, most significantly in Netcompany U.K. and in Netcompany SEE & EUI.

Group revenue grew by 38.7%, of which 25.6 percentage points were nonorganic related to the inclusion of Netcompany Banking Services. Netcompany Denmark increased revenue 1.6% compared to Q1 2025, driven by 16% growth in the private sector with contribution from multiple different verticals. Netcompany SEE & EUI grew revenue 18.6% compared to the same period last year, which was actually a tough comparable as Q1 2025 included close to DKK 42 million in license revenue, and the growth was driven by both the public sector, including the EU and the private sector, which grew 15% and 32.6%, respectively.

Netcompany U.K. continued its strong growth path from last year and grew revenue by a staggering 51.4% compared to Q1 2025. The growth was driven by both the public and the private sector as a result of increased engagements with both existing and new customers adopting our products and platforms. In particular, the TSS win from December 2025 and continued increase in the utilization of the DALAS framework supported this strong growth. In Netcompany Banking Services, revenue increased 10.1% compared to pro forma revenue in SDC in Q1 2025. In Netcompany Norway, revenue increased by 2.1% and in Netcompany Netherlands, revenue increased by 21.5% compared to the same period last year. And can we move to the next slide, please?

In Q1 2026, organic adjusted EBITDA before allocated headquarter cost was 16.4%, a decrease of 2.1 percentage points to the same quarter last year, all in constant currencies. The decrease was a result of lower license revenue, which had a dilutive impact on margin of 1.7 percentage points and investments into our product development unit to accelerate the adoption of agentic AI in all of our offerings, which had a dilutive impact on margin of 2.1%, split between increased costs impacting margin 0.7 percentage points and foregone revenue impacted organic margin 1.4 percentage points. Hence, in a "like-for-like" scenario, margin in Q1 2026 increased from 18.5% last year to 20.2% in Q1 2026.

Group adjusted EBITDA before allocated headquarter costs increased 12.1% to DKK 362 million in Q1 2026. In Netcompany Denmark, adjusted EBITDA margin decreased 4.7% to 17.4% in Q1 2026. The decrease was a result of the transfer of 150 client-facing FTEs into product development that led to higher costs related thereto and foregone revenue, which in total had a dilutive impact on margin in Q1 2026 of 3.5 percentage points. And hence, on a "like-for-like" basis, margin in Denmark was 20.9% compared to 22.1% in Q1 2025. In Netcompany SEE & EUI, adjusted EBITDA margin was 16.3% in Q1 '26 compared to 17.5% same quarter last year. The decrease in margin was a result of lower license revenue income recognized this quarter compared to the same period last year. On a like-for-like basis, adjusting for the lower license revenue in Q1 2026, margins would have been 4.5 percentage points higher and yielding a 20.8% margin in SEE & EUI for Q1 2026.

In Netcompany U.K., adjusted EBITDA margin increased by 5.5 percentage points to 16.5% in the quarter, an improvement reflected by improved utilization, larger projects delivered on Netcompany fixed fee basis and better project execution. In Netcompany Norway, adjusted EBITDA margin was 4.1% in Q1 '26 and Netcompany Netherlands margin increased 2 percentage points to 23.3%. In Netcompany Banking Services, the adjusted EBITDA margin was 8.8% in the quarter compared to pro forma adjusted EBITDA margin of 3.2% in SDC in the same quarter last year. The integration of Netcompany Banking Services is progressing as anticipated, and we are starting to see the impact from synergies materializing. Can we have the next slide, please?

In Q1 2026, we employed an average of 9,845 FTEs, equal to an increase of 1,695 FTEs or 20.8% compared to Q1 2025, of which around half was nonorganic related to the inclusion of Netcompany Banking Services in the numbers. To enhance and streamline our product and platform offerings and to further embed AI capabilities into these, all efforts around product and platform development as well as all AI initiatives previously anchored with business segments in Denmark and Southeast Europe was moved into one central unit, product development as of January 1, 2026.

During the first quarter, an additional 52 FTEs were transferred to product development to accelerate the adoption of agentic AI. At the end of Q1, the total amount of resources working within product development totaled 459 FTEs compared to 302 FTEs in the first quarter last year, an increase of 51.8%, underpinning our commitment to invest in this area. Most of the increase in FTEs are reallocated resources from the Danish business segment. Non-client-facing employees amounted to 545 for the entire group in Q1 2026, an increase of 13 compared to the same period last year. This means that the proportion of admin and support staff declined from 6.5% of all employees last year to 5.5% in Q1 2026, a relative reduction of 15%. The attrition rate for the last 12 months was 16.4% for the group compared to 18% in the same period last year. And can we go to the next slide, please?

Free cash flow was negative DKK 305 million in Q1 '26 compared to DKK 67.9 million in Q1 2025. The negative free cash flow in Q1 '26 was driven by 2 main factors in our working capital, development in trade receivables and work in progress. The increased trade receivables were impacted by the timing of more than DKK 200 million in payments, which were expected to be paid on 31st of March, but was not received until the beginning of April. Further, work in progress increased as a number of the large ongoing projects under the so-called Recovery and Resilience Facility will not reach payment milestones until Q2 and Q3 in connection with their ongoing completion.

Such lumpiness in the process from work in progress to accounts receivables to cash received occur from time to time, and it is indeed a pattern we have experienced before with the large and complex multiyear fixed fee contracts. The funding for the projects are guaranteed by the EU under the special RRF program, and there are no counterparty risks associated with the buildup of the work in progress experienced in Q1 2026 that is expected to normalize throughout the year. Can we have the next slide, please?

Revenue visibility at the end of Q1 '26 for the group, excluding Netcompany Banking Services, amounts to DKK 6.190 billion, an improvement of 10% compared to Q1 2025 with an improvement in visibility in the public segment of more than 13% compared to last year. Revenue visibility for Netcompany Banking Services amounts to DKK 1.024 billion and are solely related to the private sector. Can we move to the next slide, please?

On March 26, we updated our financial margin guidance for the full year, and we now expect an adjusted EBITDA margin, excluding Netcompany Banking Services, between 17% and 20%, previously 16% to 19%. The announced AI partnership with INEOS Grenadiers, creating Netcompany INEOS Cycling Team will not lead to diluted margin expectations in 2026 or in subsequent years for that matter. We maintain our full year guidance for revenue growth of between 15% and 20%, including Netcompany Banking Services, and revenue growth of between 5% and 10%, excluding Netcompany Banking Services based on realized revenue in the first quarter, current backlog and the revenue visibility. With that, the presentation of the detailed financial performance is concluded, and we'll open up the call for Q&A. So if you move to the Q&A slide, please, and open up the call. Thank you.

[Operator Instructions] The first question is from the line of George Webb.

I've got a few questions, please. Firstly, starting with the growth outlook for the year. As you mentioned, Thomas, the kind of revenue visibility ex the Banking Services is tracking 10%. The organic Q1 growth was clearly double digits. The organic full year guide 5% to 10%. Is there anything in the mix for Q1, particularly on the U.K. or SEC and EUI side that's less sustainable as you look through the rest of the year?

Secondly, on the Cycling partnership, could you share any details around how that deal is being structured? You mentioned no financial impact on the aspirations you've set out or no impact on the financial aspirations you've set out. And the press reports are that it's a relatively significant cost item. And I guess it's a little bit difficult to decipher the magnitude from within the guidance range for 2026, given it's a fairly wide margin guidance range. So anything you can do with kind of understanding the bridge within the mix of how that's coming through both in '26 and beyond would be very helpful.

And then just lastly, just on the free cash flow. Cash conversion wasn't great last year, soft start to Q1. I appreciate those swing factors you talked about, Thomas. Is there anything you can give us with regards to how we should be thinking about a very broad picture for free cash flow conversion for 2026 as a whole?

Thanks, George. I'll start with the growth outlook, and André will take the cycling and then I'll follow up with the cash flow. So as you indeed rightfully say, 13% organic revenue growth, second to none in the industry and also 10% growth in revenue visibility and what was -- then leaves us for the 5% to 10% revenue growth guidance for the organic part of the business. What we can say at this point in time is that it's still early on in the year, and we feel very comfortable with the top line guidance that we have given. We are not seeing any deterioration in our pipeline. On the contrary, especially with the launch that we've done, and we will talk more about that with Feniks Build. So at this point in time, we feel very comfortable with the outlook. It's still early days in the year, and I'll leave it at that. And then André, maybe a couple of words on INEOS.

Of course, this is a significant deal, but it's not that we didn't plan with such a thing. We assembled and gathered many of our branding and marketing costs into this. So that's why we also, 3 months ago, came up with an even better margin prediction for this year. So it's been planned from the beginning, and it's actually just a concentration -- a better concentration of our efforts in the area and to get our name out there so that when we are -- which we are in some of the big European countries, we are contenders. Now we also are much more known in the ballrooms. So -- and there's also a license fee for the product. I mean the team is going to use PULSE AI, and that is also a part of the deal. So it will not affect our margins.

And then on cash flow, as you rightfully stated, George, to the soft side in Q1, mainly as we are seeing some timing differences in working capital, receivables just dropping into April have been collected. So that will normalize. If you look at the accounts receivables, they are building up and they were building up and that will normalize during the year. And the same goes for work in progress. Work in progress increased net by close to DKK 400 million, mainly driven by RRF projects. Now we've seen that build up a couple of years ago before. And at that point in time, if you want to go back and look and check, the conversion of work in progress did indeed happen to receivables that were then subsequently collected.

And it has to do with the stipulated milestone payments that are in the fixed fee contracts under the RRF, and that means that we are currently building up in work in progress. So long answer basically to say that we expect to see a normalization of cash conversion during the year. It's going to be gradual into Q2, Q3 and the rest of the year.

That's very clear. If I just think about the midterm target to be above 20% on EBITDA. I guess since you said that, you've obviously given us the agentic benefit or the AI benefit, which you talked about that prerelease in March. And I guess that -- I guess on a multiyear view, you would expect that to still be there. It wouldn't be completed away. And then maybe there's an offset within that mix from the Cycling deal. Was that the right way to think about it?

There's no doubt that we're going to see substantial benefit in our midterm and long-term margin from all the investments that we are putting into our business. We're going to see the benefit in twofold. First, we believe that we can serve our customers much better with better solutions faster, secure, and there's a value to that. And of course, there's also a benefit to Netcompany, which will help fund the increased investment into Netcompany A/S and then also have a net positive impact on margin even after those costs being accounted for.

The next question comes from the line of Mads Quistgaard from DNB Carnegie.

Also a couple of questions from my side. I will start with on Denmark. So can you maybe elaborate on whether the expected reuse of product development work will translate into revenue growth in future quarters? Because I guess right now, there's a double whammy effect in the first quarter.

It's true that there's a double line effect, both in terms of increased costs, but also in terms of "foregone" revenue with those people being allocated from the Danish market unit into product division. When you look at the overall visibility for the public sector, and I know that, that's in all the markets, and we don't give that per se by individual markets. But the overall visibility in public sector is 13% up compared to the same period last year. So we do expect some revenue to pick up during the year. And whether that is going to be Q2, Q3, we'll be able to tell you more about when we report Q2 and Q3, but we do expect it to pick up during 2026.

Perfect. Makes sense. And then a question on FTE growth because I can see FTE growth was up 1% Q-o-Q, while client-facing FTEs declined by 3%. So this AI strategy, does this imply that overall FTE growth will eventually align with client-facing FTE trends?

Well, it's a good question, Mads. There's no doubt that it's affecting the entire industry. Agentic AI is affecting the entire industry. And actually in 45 minutes or less than that, we're going to issue a white paper where we describe how you can actually deliver parts of the development process 45% -- up to 45% faster to clients. And without compromising on security, on compliance, on -- and even the EU Act. This is what we are investing into. And everything we see right now is suggesting that we can do more with less resources. And everything we do is also suggesting that customers with the great part of legacy renovation and old systems that need to have access to agentic AI are really, really interested in this. So it's actually extremely promising and also a very exciting development within our industry.

Perfect. And then my final question on this PULSE platform, is this applicable in other sports areas? Because as I recall, this has been designed in the Formula One industry. And if so, would this require additional investments into sponsorships? Or can you build anything organic here? And finally, maybe also here, how do you measure the return on investment when you spend, let's say, price is right, DKK 750 million?

It's true that Formula One is even more adequate as a sport in terms of online AI platforms. But I think the investment we've made is in regards to our European strategy and not being bound to any particular other sports teams. I think what is most important here is that it's an international investment. We have riders from every country and the team comes from the U.K. And with this investment, we are positioned right in Europe at the moment. We don't have other plans in that regard.

And when we talk about the ROIs on an investment like this, Mads, we clearly have an expectation that this will increase the awareness of Netcompany and the Netcompany brand, particularly in the U.K., which is the biggest market for IT services in Europe and where we see 51% growth. So to stand even stronger in the U.K., we are certain it will support our continued growth in the U.K., but it will also build awareness of Netcompany throughout Europe, which is where we will have to see our significant growth in the years to come. So we do expect that the investment will lead to better name recognition and that in itself will lead to better growth opportunities for Netcompany in Europe without giving you a specific ROI number, but this is how we think about it. So the investment is, in our view, also an economically financially sound decision to do, and you'll be able to see that in our continued long-term growth and our commitment to the markets on that.

Perfect. Maybe just one bookkeeping question. So the provision you have in NBS of DKK 62 million, is that part of COGS, which also triggers a higher COGS in NBS in the quarter?

Part of what did you say?

The provision you have -- I think you have a provision in NBS of DKK 62 million. Is that included in your cost of sales in the quarter?

No, it's from last year's. So it was part of the -- when we took over SDC, as you very well will recall, we made a special item adjustment of DKK 352 million for various -- both -- certain payments, but also adjustment to value on different assets in SDC. So that's part of last year's special item sitting in the balance sheet.

Okay. So the project provision you have of DKK 62 million that's included in special items. I'm talking about referring to Note 8 in the report.

Yes.

The next question is from the line of Poul Jessen from Danske Bank.

A few questions first on the INEOS. When you say that it's not impacting long-term aspirations, I was just wondering if you could give an indication if that's because you expect a higher growth rate in revenue through 1, 2, 3 years out in the future than without the contract or if it's because it's being funded by reallocation of internal costs mainly. That's number one.

Number two is on public sector Denmark. Does it have any impact now that we have been waiting for government for 6 weeks and it might take quite a long time and then we go into the summer period and then it soon out to be August before it's normal business. Will that have a negative versus the thought you have when you started the year? And then finally, on the U.K., the strong growth in Q1, does that include any one-time payments or revenue recognition?

Thanks for that, Poul. I'll take the first and the last question and André will talk to the public sector in the middle. Now on the long-term guidance and the implication of Netcompany INEOS, we maintain our long-term growth targets of 5% to 10%. That's also what's still said. But would we like to see increased awareness leading to increased opportunities for Netcompany? Yes. And do we think that, that will also happen? Yes. But as with the question from George in terms of our full year guidance of 5% to 10% and trying to square that with 13% organic and 10% increase in visibility, where I said it was early days, it's even more early days to have an opinion on the long-term growth trajectory for Netcompany with the impact of Netcompany INEOS.

We do this because we are absolutely certain that it will increase the awareness of Netcompany. Now with the investment and the stand we take later on today in agentic, we think that, that will accelerate even further. What that then means on long-term growth rates, we'll come back to later on.

Yes. And when it comes to the government public sector in Denmark, it's mostly because some of the larger tenders moved a bit to the right side. So we are -- some of our largest clients are a little delayed, but many of the budgets have been given already before the election. So the election is not really having that profound effect. Obviously, you can find small customers where the farming is a bit slower because of the election, but it's not what we see. And we're not too worried about it. There's a lot of digitization going on in many of our largest clients. And overall, we expect that the visibility we have will be materialized over the year.

Yes. And then you had one more question on one-offs in U.K. Q1. And was the question whether there was any one-offs in Q1?

Yes. It's any revenue recognition, which has been delivered over time and then you take it as a one-off...

No -- none of that. It's a good old traditional classic Netcompany style revenue-generated activity. So that means it's really a very, very, very rapid ramp-up on TSS. So the big contract we won in the U.K. in December, that is ramping up extremely fast and probably one of the quickest ramps that we've seen, also being helped by good colleagues from both Denmark and Greece since this is on . And then also DALAS is stepping up. When we won the DALAS framework a couple of years ago, we were very excited. And I think a lot of the investor base was excited too and then nothing happened for a year or 1.5 years, but HMRC have now found out how to really utilize the DALAS framework.

So that is ramping up very fast also. And then, of course, finally, the ramp-up on Heathrow. So there's no special one-offs. There's no licenses in the U.K., and that's also why we are so excited about the growth and the 600 basis points margin improvement in Q1 compared to last year. We've been in the U.K. for many years, and a lot of you have been with us since the IPO. And we have had many discussions about when is things happening in the U.K.. And we think we are at a true inflection point right now that we can also back with performance in the numbers.

So it's fair to assume that the Q1 revenue number is a good base for predicting the rest of the year?

I didn't hear that was the question. So I think you are making your own assumptions now on my answer. I'm not going to comment further on that.

Okay. A short final one. I can see that the number of FTEs in NBS is increasing sequentially. I would have assumed that you were taking out costs.

And...

Why are they increasing?

We are. But sometimes you have to invest a little bit to really reap the benefits. And there are specific areas in NBS that we need to strengthen very much around operations. So we have strengthened them to be able to really accelerate the synergies that we've put forward. Then there's also some timing in terms of when the collective bargaining agreement was concluded and when we will then see the reduction in headcount. So that is a temporary timing, and you'll see headcount coming down in the quarters to come.

Building more automation.

Building as André said, that's an important part. There's a lot of automation to be built for sure.

[Operator Instructions] The next question comes from the line of Claus Almer from Nordea.

Yes, I will ask you a few questions. So the first goes to these AI investments. And first of all, congratulation or thanks for the improved clarity about these investments. Going forward, should we expect this level to increase further or decrease, stay stable? How should we think about that? That will be the first one.

Well, thank you, Claus. And it's true that we have been providing more clarity about it, and I think it's more important than ever. We have some of the -- I can say, some of the best people working on this, and we are doing true progress. I don't think we will see larger investments, but we will also be investing on the same level going forward because there's so much interesting potential. So I think what we're seeing at the moment is the right level.

In absolute terms or relative to the revenue, and I know this is more an analyst question, but more trying to figure out.

Well, if anything that we say is true, then there can only be one answer to that, right? That means that it would be an absolute number.

Absolute number.

Okay. The second question goes to Denmark and the private sector. So first of all, do you start to see more of these AI-driven projects? And how does the pipeline look like?

Yes. So this is actually what we see, and we also see a very good interest in our platforms because they guardrail the AI and actually give benefits. And we see even further interest in renovating all the systems. So a very interesting pipeline, strategic partnerships emerging, both on our offerings using AI.

The next question comes from the line of Daniel Djurberg from Handelsbanken. No, it seems Daniel dropped out of the line. [Operator Instructions] We will continue to the next question from Poul Jessen from Danske Bank.

Just a small one on Smarter Airports now that you have taken full control of the unit. Should we see any operational differences on Smarter Airports that you invest in more go-to-market? Or is it more or less business as usual just for you as a full owner?

It's not business as usual because with the Heathrow win, we have more interest than ever, but we're not going to change the approach. We have a mature offering. And what we need to do now is to accelerate the selling and scaling this business, and we believe that the company is the adequate owner to do so.

And further to what André is saying, what we also believe we can do is to add better efficiency by owning Smart Airports 100%. It is inherently easier to manage when you own it 100% than when it is in a full 50-50 joint venture. So expect to see accelerated top line and also better efficiency, i.e., margins in Smart Airport.

The next question comes from Daniel Djurberg from Handelsbanken.

Amazing. It was the third time actually I tried to do this, but I got muted and then unmuted again. But nevertheless, now I am here. I would like to start with the banking services as you have this OBOS deal and you are going to develop this credit solution development. Can you comment a little bit on this project and how it is developing so far and if it's impacting margin profile in any way so far.

Yes. Well, it's true that we are working with OBOS up in Norway, an exciting project that we announced, I think, to the back end of last year. That project is progressing as planned. We are together with OBOS fleshing out and making sure that the capabilities for the -- specifically for the credit process is being optimized. And the credit process in Norway is different from the credit process in Denmark, believe it or not, but it is. So there are some functionalities that will be added to the solution, which we believe will make Netcompany Banking Services even more competitive in a market that is really dominated by one big player in Norway, which is our peer up there. So we believe that we will have something pretty soon that is much more appealing to the Norwegian market, too, that will accelerate the continued success of Netcompany Banking Services under our ownership.

Perfect. May I also ask you on the quite nice increase in organic growth despite that you moved so much people over to the R&D side in Denmark. For how long should we expect this internal development phase to continue? Will it like come back or normalize in 12 months? Or -- and also on that topic, last time you used internal consultants for platform R&D work, you swiftly brought them back and got a good utilization rate in Denmark. Could you see that these internal R&D is also kind of they get educational or also that it's an investment in -- and that could also support the attractiveness of these consultants in the market after these projects? Long question.

Yes. Thank you for that question. No, no, it's okay. It's -- and you're absolutely right. Obviously, we're building up a great set of both platforms, products in AI, but also competencies. And these people are obviously also could also be pivotal in many of our projects. So it is investment into that as well, definitely.

And we will -- as we answered in one of the questions before, we will -- we've increased the headcount in Product division to 450, and that's going to stay most likely at that level for some time. That's not the same to say that there cannot be efficiencies to be had other places. But we have seen really, really interesting results as of now with our investment into agentic, and André will talk a little more about that. The results are staggering. And we're quite sure that with the head start we have and with our products and platforms, we are in a truly unique position in the market, and we want to make sure that we capitalize on that and make the gap to our peers even further. And that's exactly what we will say more about in the white paper that's coming out here in, what, 15 minutes.

Perfect. And may I also take the last question here on the Smart Airport and the AIRHART. Now you have Munich and Heathrow. And is it fair to assume that you will need to finalize these large -- super large projects before you can continue? Or do you have more potential in this to speak?

We don't need to finalize these projects. And actually, I think many of these projects will run for a long, long time because they kind of continue to add more and more sources. They never really finish. So what we will do in parallel, of course, is to -- we need to materialize the pipeline, which is growing rapidly with other airports. So that's the short answer to that. And we can.

Thanks for being persistent, even though we took 3 times.

The next questioner, please state your name and company before asking your question.

This is Aditya from Bank of America. It's a bit of a follow-up on the product development unit, which you discussed a bit of that earlier. But if you look at last year as well, you had some FTEs which have moved from client-facing roles into more product development and a mix of, of course, some M&A related to SDC. But again sort of moving people from client-facing into product development this year. Can you just talk about incrementally what's different? Is this more specifically focused on that agentic AI tools, and that's why you're having to do this again in some sense? And then again, I think sort of relating to that going forward, do you see some part of that 450 million eventually also being billable or client-facing as well to some degree? Or is that going to be strictly sort of internal R&D?

No, no, no. I mean what is happening in agentic AI, especially over the last -- we started with the Feniks thing 1.5 years ago. But what is happening to agentic AI now, it empowers our platforms even more. And we've decided to invest further into these agentic capabilities into our platforms and the tool sets that we have. And that comes in lumps. I think this is -- it's been a great investment. And with the launch of Feniks Build today and the white paper, we have something that is truly differentiating us from competitors. I don't think we need in absolute numbers to invest further into this. And I also believe that many of the competencies we've been building just by setting this up can be used crucially in some of our projects and client-facing activities.

And to elaborate further on what André is saying here, of course, we are putting all the learnings we can get from agentic into our products and platforms. And the reason why we have gathered everybody in the same unit now under the same leader is that we want to take our products and platforms also to a level where they are commercially ready to be sold and where we can then in a greater way than what we've done previously, start to charge licenses for our products and platforms, including our services on AI. So that is, of course, why we make this investment also to be able to commercialize and capitalize on these products and platforms that we, in all humbleness, feel are quite unique in the market space. And with the added investment, we are very close to be able to accelerate our capitalization and monetization of these products and platforms, i.e., to start to see meaningful license revenue coming from these.

Got it. Maybe a quick follow-up on that last point then in terms of monetization because that is something that you talked about at the Capital Markets Day last year as well. How should we think about the time line for that, the opportunity for that in terms of when we should start to -- when that becomes maybe a bit more meaningful?

We believe that you'll start to see some numbers already for 2026, but clearly accelerating in '27 and onwards. And it all ties into Feniks Build. It all ties into Feniks Learn. It all ties into the capabilities of the product platforms now being much more mature. And then there is a little bit of lead time, of course, to make sure that we then also get that monetized with our clients, but we think we have a great opportunity to do that. So we'll start to see some of that this year, but more meaningfully in '27 and accelerating from there.

The next question comes from the line of Mads Quistgaard from DNB Carnegie.

Two follow-up questions from my side. First, on SEE & EUI, given you don't book any -- well, insignificant license fees in the quarter, you managed to grow the segment 15% -- sorry, 18%, 19%. Public sector in here is up 15% year-over-year. Can you clarify whether this is sustainable throughout the year?

So without giving specific guidance on a country-by-country, Mads, clearly, when we look at the revenue visibility for the remaining part of the year, increasing by 10% and the magnitude of the SEE & EUI business to the group for the Q1 in terms of how much revenue is generated there, you would need to see a continued strong performance to get to a 10% growth, and that's as far as I can go.

Fair enough. And then maybe on the license contribution because I guess there will be some from INEOS in Q2 meaning that the margins will come significantly up alone based on license fees. Do you see any potential license projects in the remaining part of the year? I know in the past, license fees has accounted for around close to 1% of group sales for the year.

It's true that the INEOS license will hit our books in a positive way, of course, right? But it's going to be over Q2, Q3 and Q4. So it's not going to be a one big lump sum. There are also other projects that we're working on that have an element of license in different parts of our product suite. So we would expect that to materialize also. And whether that's then going to equate to 1% or 0.8% or 1.2% or 1.5%, I'll be silent on at this point in time, but we do have a good pipeline of projects, including licenses for the remaining part of the year.

And maybe if I can add to that, not giving any numbers away or anything. But with Feniks and with the platforms we have, in order to benefit and get the efficiencies that we're talking about up to 45% faster deliveries, the customers have to choose our platforms, products or Feniks, right? So it's not that we have a magic pill and now you can get anything cheaper or faster. Here, in order to get the benefits, you need to go in and buy our platform products and our Feniks framework. Obviously, that's a benefit for the customer, but it's also a benefit for us. In that sense, I think we will see -- systematically, we'll see more and more projects being a mixture of licenses and consultancy.

Makes sense. Finally, from my side, on Netcompany Banking Services, 10.1% pro forma growth. Is that the result? Or how much impact do you see for the launch of the 2 new AI projects -- products you did in Q1?

Well, we've launched a couple of AI agents into NBS. That's absolutely true, Mads. That is not really what's driving it. But there is a huge potential in AI. I think André can speak more to that.

Yes. So again, like with everything else we do with our client side, we need to get access to the systems and then we can start building the AI. We're already doing so. So it's -- we are investing into automation adding NBS, but we're also investing into AI. And we're doing that in combination with also client projects from our banks. So it looks promising, but it's a combination of renovating, automating and investing into AI.

As there are no further questions, I will hand it back to André for any closing remarks.

Well, thank you so much for joining in today, and don't forget to read that white paper and watch the video because we're issuing it in 5 minutes.

Good afternoon. Good morning, if you're joining us from the U.S. Hello, and welcome. Thank you for joining us today. My name is Aditya Buddhavarapu, and I cover European IT services at Bank of America in London. It is my pleasure to host Andre Rogaczewski, the CEO and Co-Founder of Netcompany, to discuss how AI is affecting the IT services and both the tech industry.

Andre, thank you so much for taking the time today.

Thank you, Aditya. Great to be here.

It's a pleasure, as I said. Before I start, this is an in fact, session. So we will open the call for Q&A towards the end, but we will start off with a few introductory remarks from Andre and then Q&A from myself.

So without any further ado, I'll turn the floor over to you, Andre.

Thank you so much, Aditya. And my name is Andre Rogaczewski. I'm the CEO and Co-Founder of Netcompany. My background originally, I'm very technical. I started math and computer science back in the '80s and '90s and actually looked at AI even in those days, but we didn't have the computing power, started Netcompany in 2000 and 25 years down the road, we are almost 10,000 people. We are a system integrator of bringing our own software and platforms with us, and we are definitely utilizing all the possibilities for Agentic AI as possible as much as we can.

And let me just give you a short intro and then we'll do some more Q&As as well on this subject that I think in all industries, but specifically also in the IT industry is of great interest. Now it's not that Agentic AI is a complete surprise for the industry. It is not. I think most of it expected it to come, but it's like with all technologies, when they actually arrive, it's still a mind blessing how much they can actually do and what they're used for. Now the big difference between the AI you know from probably using ChatGPT and other algorithms is that Agentic AI is just one step further down the road. You have agents that can plan tasks and execute on tasks and actually even solve larger issues or problems.

And when you think about AI being utilized by, for instance, journalists in a newspaper, journalists write text, write code is also text. So what we're seeing at the moment, there's a lot of algorithms being used for writing code and it makes the life for many programmers much easier. So this is definitely a very interesting development, and it is also something that will change the business. So people in the IT industry saying that this is not something -- this is not disrupting the industry or it's not that interesting, but they're wrong.

This is disrupting the industry. And it's going to disrupt basic programming. It's going to disrupt smaller software companies making simpler applications. And it's going to disrupt the companies who are primarily selling resources to do programming in the simple areas. It will also change the career model of programmers and technical programmers.

We will still need to learn how to program and understand programming, but many of us have to do orchestration of programming instead and think orchestration more than actually programming. So it will change the career models as well. I'll go into further details on that later on when we do the questioning. But to be quite frank about this, I mean, looking into what the models can do at the moment and probably the next 1 to 2 years, this will affect basic programming and it will affect smaller software products that are peripherical or isolated from the kernel or the transactional kernel of enterprises.

So what protects you against this disruption is if you're working primarily with talking to customers about their requirements and adjusting your system landscape inside their companies. So if you spend 80% of your time not programming, you're probably doing the right thing. If you are spending time in a regulated industry where there's a lot of legislation, high complexity, hundreds of integrations, high demands to technical performance and security and the sovereignty issue about where data is.

And if you're able to host yourself and you know about data ownership and you're in some verticalized industry where you have a platform or product, you're probably fine and maybe this is good for you. If you're not, if you're selling hours, if you do have a lot of Java programmers just programming, doing the tasks that they're set to almost on a daily basis or weekly basis, then you probably need to change your business model. If you do have a product that is quite simple in its nature, that product will probably be able to be rebuilt by an algorithm or your product will become an algorithm that goes for simple CRM systems, ticket management systems, could be BI systems, where the algorithm will now read basic information and raw data and come up with the functionality you need instead of you having to build the interface towards the customer. So this will affect both software and consulting companies.

And I think a good way to think about it is also to think about sea where you have different fish swimming around. So -- and this has a lot of impact on productivity. So if you have 10 people, very good programmers, they can probably program as much as 100 people can do today in, say, 3 or 6 months. And if you have 100 people, they can probably program or build what maybe 500 or 1,000 people can do today. And that's the way you should look at it. So the competition will not come from someone above you probably, but it would come from some smaller fish. And that fish would be able to build faster than yourself if what you do is basically programming.

And to call the winners in this industry because most -- maybe half of the companies, they would just see a declining revenue over time. And they will have to fight for more customers and the prices will go down in this area. So to figure out who is going to be the winners in this -- with this disruption going on, you need to go to look for growth and EBITDA at the same time coming up. Winners are going to be the companies who are able to deliver fixed price outcome-based domain knowledge, systems and platforms with a lot of embedded AI hosting inside of it. And I think there's a whole new market appearing because if you look at a company like ours, we are what you probably will call in global terms, midsized with 10,000 people. We do a lot of very, very domain-specific systems.

We deliver regulated systems for airports, for governments, for tax and customs. For us, this is great because we can now compete with some of the biggest companies in the business, the ones who've had these systems for 30 or 40 years, always difficult to go into that domain because they build the systems, they own the systems. If you have enough domain knowledge and you have enough skills on the particular subjects and the technical skills with this technology, you can go in and rebuild some of the older systems. It will take time. But instead of it takes like 4 or 5 years to replace a legacy system, now you can maybe do it in 9 months or 12 months, and you can do it with less risk if you embed AI into your delivery model.

So the winners in our industry are the ones who will change the career model, so they encompass the competencies I'm talking about, change their delivery model to become AI delivered still with a great focus on domain integrations, sovereignty, legislation. So the ones who can do that using AI and convince the customers that what they're getting is just as good as what they got -- just as good as what they had before. And to some extent, we're going to see a shift. I think you're going to see the C level shift. So some vendors will go up and become bigger in the terms of what they can deliver, not necessarily in terms of how many they are, but they will definitely grow in revenue, and they will also -- because they're so good at delivering fixed price in these domains, they will become very successful in getting the right margins as well.

And the ones who do not shift are going to stay where they are and slowly, but surely over the next 1 to 2 years, you will see them have a declining revenue and even struggling with profitability and having a lot of layoffs. So it is a disruptive force, but it's also, as always, with new technology, a great opportunity for many IT players.

I think that's my introduction. And then let's have a lot of questions, and let's have a dialogue about this because the devil lies in the detail. And I think there's a lot of different types of both business models and software products and vendors out there we can discuss.

Great. Thank you, Andre. There's a lot we can think of there. Maybe to take a step back and set the scene, where are we in the Agentic AI adoption cycle? 2026 has been called the year of Agentic AI, the year where you will see a mainstreaming of AI usage for knowledge workers. Is that something that you are seeing right now already with your customers? And if so, which areas are you seeing that in?

No, we are -- there's no doubt. This has been taken down and people see, especially the last 3 months, even the last 2 months, Agentic AI has proven to be -- it's just better and better every version we get, and this is happening. So I think within the next 6 months, most programmers in the world will know and understand this. You don't understand it before you tried it. I have spoken with very experienced both architects and programmers and remember, I'm a programmer myself originally, you don't understand the power of this before you actually sit there and do it yourself.

And I think in 3 to 6 months, most of us on this call will be able to build our own apps on to our telephones and even build our own websites without programming in one single line. So for all these small applications, workflow applications, things that you need -- I mean, even user interfaces, GUI and stuff like that, that will already by the next 3 to 6 months be done by algorithms. So this is happening.

Understood. And so to follow up on that, when we think about the different functions that IT services vendors are doing, whether that's in pure system integration or ERP migrations, engineering, R&D, BPO, et cetera, which parts of the value chain do you think are actually going to see a meaningful shift over the next, as you said, 6 months or maybe even 12, 24 months? And which types of work do you think will be more defensible? If you can maybe expand a bit more on that?

I think -- I mean, you're already starting to see it. If you have, say, large programming outsourcing centers where people are working, I mean, what the methodology and this system is set up, like you get a ticket for performing a certain task or even a set of tasks that you have to do in some system that you are maintaining. And then if you say you find another job and another programmer takes over from you, which happens all the time in those centers. These centers will not be having that many people around anymore. You still need someone to control them and run them, but the programmers are going to be substituted by algorithms and it's already happening.

So outsourcing centers where you work almost by the hour or by the day, programming Java or .NET or whatever you're programming and you're just one piece of a bigger machine where programming is the thing. I mean that's going to be disrupted over the next 3 to 6 to 9 months. And many of these centers are typically placed in cheap labor countries. The same thing goes for -- if you're working on user interface, say, you have some websites or you have a CRM system or you have a ticket management system or you have a BI application, and it's not the core of your business, but still you need it. You might hire, you say, 3 or 5 people to change it here and there. That's going to be done by algorithms or people having algorithms with them, right?

So it's not that people are going to be replaced by computers, People are going to be replaced by fewer people using algorithms in those areas. And that's happening already. You don't -- you will not see any effect on -- I think, on the IT vendors doing more complex stuff. In fact, you might see them produce what they do faster and hence, get a better margin because they are all running on agreements or contracts that were put in place over the last 1, 2 years. So in the beginning, you might even see some of them slowly but surely get rid of some of their programmers and then their margin will go up. But over time, if they don't change their -- entirely their delivery model, they will also get disrupted. But that's going to happen in maybe 1, 2, 3 years.

You need -- if you are delivering more complex application in a legislative world with a lot of integrations, you need to start -- you actually need to do that now, change your delivery model. So machines and people will work side by side, delivering those complex models. You still have people doing a lot of the work, making sure that legislation is followed, making sure that all the integrations are in place, orchestrating the tests, but you're not going to need as many people on the ground as before. And customers buying these systems will be very curious to whether they could even get rid of their old systems using a vendor who knows how to use these tools because the reason why we're not getting rid of so many legacy systems is because the effort and the risk is too big.

With these tools and the right vendors, some of the old incumbents owning systems that are 30 and 40 years old could be in danger. That's something I really think is interesting, of course, being in a company.

Got it. You just highlighted a very interesting dynamic here. So on one hand, the productivity of a developer or an engineer will go up meaningfully as a result of using AI tools. On the other hand, you're seeing clients might actually decide to modernize the legacy systems even more. So how are clients responding to this increased productivity? Are they using those savings to ask for better terms on pricing, faster delivery times? Or actually, are they reallocating some of those to other higher value-add digital transformation work, modernizing some of the systems, which they haven't got to so far, which aspect -- which perspective are they taking?

Look, I mean, our customers -- all customers are also looking at this, and they will be using AI or Agentic AI inside their business processes, right? And the reason why they can't use AI and get all those benefits is because their IT systems are old. So they use AI on the side, like we all do sometimes, get our answers and we try to put it into our old systems, and we try to do the work that AI should actually be doing. So I think a lot of -- I mean, the intelligent IT vendor would take the product -- the short-term productivity gains and invest them into platforms and software products that has embedded AI in it.

So you can give customers an offering, which is much more compelling than it is today, right? So imagine most systems will help users throughout the entire business process and some of the user interfaces will even disappear. Some of the screens will disappear. Some of the graphs will disappear because you can just ask the algorithm to draw up a graph. It's a question of getting the data in, in a legislative way and making sure that you can manage the data correctly. And for that, you need the platforms and the products that are able to do so. And if you have the data there and you're living up to all the things I mentioned before, then you can ask AI to help you doing a lot of stuff that is done by humans today.

So I think the intelligent IT vendor should modernize their platforms and use those platforms to replace existing old systems in order to set their customers free. And the ones who are only doing programming or sitting on the side doing peripherical systems, the ones only selling ours or consultancy because they're good programmers of technicians, they will have a harder time for sure. I think that business model is under scrutiny, yes.

And one question that the IT services industry faces as a result of this productivity gains is the impact on pricing models. And so do you -- are you seeing customers already moving from a time and material pricing to more of an outcome or use-based pricing? I know for you, it's a bit different, but in general, do you think that will be the shift you see in the industry as a result of AI over the mid- to long term?

Yes. I mean many customers -- I mean, this happens also in customers' IT departments. And it's really interesting to see this dynamic because if you're a customer -- if you have a company with, let's say, a big IT department, maybe you're used to having that department there with hundreds and hundreds of employees and sometimes you might think what am I actually getting out of this? I'm paying a lot to just have the lights on, right, operating these systems and having all these IT. But what are these guys really doing?

And if you have a CIO that's not protecting his IT department, but using Agentic AI, he will actually be able -- he or she will actually be able to show you a better throughput than before with less people. That will, of course, also influence your procurement of consultants and how much external help you need. So overall, yes, the short answer is an hour of programming on an hour of Java expertise, on hour of some programming expertise is definitely going to -- is not going to be worth the same.

On the other hand, if you can take on risk, if you can take on total delivery responsibility, fixed price and you can actually get rid of some of the older systems, this is a great market for you. If you have the tools and you have the platforms and the products or software that you bring in is AI embedded already or prepared for AI, this is a great market because most customers, most enterprises are looking at AI as a very huge accelerator for their business processes.

You can probably save up to 20%, 30%, 40% of the time spent, even get accuracy up, become much more closer to your customers if you use AI the right way. And I think most CEOs, COOs, Board of Directors, they know this now. They didn't 2 years ago, but now they know. And they see the IT department as an obstacle to get there if they don't follow suite. I mean -- so this is a time of change. But the cost of pure hourly programming is, of course, something that will go down. I mean that is -- I mean, people are saying something different. I find it very difficult to understand that.

So it's all about now to -- and another very interesting thing about that is actually if you have a lot of bad code or your system landscape is very fragmented and you have what popularly is called spaghetti bolognese, you have -- there's a big mess in many of your architectural layers and the code that is there to bring in AI and think that, that's going to solve your problem? No, it's not. And we already see that in some cases, using Agentic AI just produces enormous amounts of code, but it doesn't solve your problem.

So the winners here are the ones who systematically have platforms, delivery methodology, a very, very structured model. And for them, AI is going to be a huge enabler to deliver even faster, replacing the old spaghetti. But for the ones who are in the middle of this old code, AI is probably not the solution. They have to replace most of what they have with AI. And when they've done so, they will be able to -- I mean, it's going to be a completely different world. So looking at the IT space, simple products will be replaced by algorithms, simpler companies selling consultancy hours will be replaced by smaller companies selling code by -- made by algorithms.

However, the big complex solutions, the enterprise solutions, the solutions for governments, solutions for regulated industries, they are going to be not affected to start with. And then slowly but surely, you see maybe a different vendor space coming up and biting the existing old ones a little bit in the -- coming from smaller companies, smaller. I mean they're still big. But compared to the global huge ones, I think they have to change very fast in order to follow this exciting development.

Very interesting. And given what you said earlier about the career model of developer changing and the skill set changing as well, how do you think about the talent mix for IT service companies evolving as AI becomes more embedded and how you deliver your offering? Does the industry going forward need fewer engineers or maybe with different skills? Or is there just an upskilling that will happen with the existing talent pool?

Yes. So same thing goes in any other industry, right? So as people say, well, we don't need programmers then, we only need architects, right? And if you look at the way people are changing, even -- I mean, you see it already in the U.S. and some European countries already that people are changing their titles. So instead of saying lead architect or lead programming or some whatever, it says AI orchestration architect or something like that. So everybody is trying to move away from the code and to become more an orchestrator or someone who's in charge of optimizing code and running digital agents.

Now I think a person who knows about AI and has discipline and works in the right company can become extremely productive with several digital assistants already after a year or 2 years. So we don't need to have 10 years of experience to become a great orchestrator in this area. You can be one of the best if you have 10 years of experience, but we are all human beings. And to my knowledge and experience, I have to say some people who's been in the industry for 15 years, they are too stubborn and too religious about what they've done. They think programming is art. They see themselves as artists. You find them in many IT departments, too. They will not -- I mean, these are not the people you want.

On the other hand, you can find some really great experienced people who with this tool set and the right attitude could even -- could deliver as much as 20x, 30x, 40x more as what they deliver today. So I think you have to look at this as a new breed of IT people. And the companies who have a career model, I mean, we've changed ours, right? So if you look at Netcompany career model, we hire about 800,000 people a year. And if you look at who we hired 2 years ago, they spent maybe the first 6, 12 months being on some programming, at least part of what they did was a lot of programming. That's going to change, right? It's already changed. So of course, they have to know about programming. They have to know about what it is, and they have to have some basic skills.

But very, very, very soon, they will be set into a position where they're going to be both doing design, programming and test using agents, digital agents. And there's nothing wrong with having a young, intelligent, skillful person to do that. I mean, they become productive extremely fast. So I know there's a lot of people saying it's only going to be the old engineers sitting there orchestrating all these agents and all the young ones will not have a chance and you as a junior will not -- it's going to be difficult for you to find a job. I don't buy entirely into that. There might be a reaction like the first 3 or 6 months, 9 months.

But at the end of the day, the company that survives and thrives is the one that also creates talent and has the talent, and that's not only old programmers or architects. It's also -- it's a good mixture of both, but you need to change your delivery model. They need to know they need to have discipline, very important. Everyone needs to know what -- who is doing what. It's not that AI is going to solve that. A clear methodology. Where does data reside? What does legislation say? What does the customer want? How many interfaces do we have? What are technical performance requirements? What are functional performance requirements? What about sovereignty? Who controls the algorithm, who controls the solution in the very end?

And when we want to change it and maintain it, how are we going to do that without messing it up and rebuilding everything again? Can we just do it in a closed loop, having AI helping us? So if I change something because of a functional or business requirement, can they both change the code and the documentation? And can I explain that to the customer and deliver that within, say, weeks maybe even days instead of months. And the way you're going to judge companies because there's going to be winners and losers here. The ones who -- I mean, let's be honest, could we have one Netcompany? Obviously, we are very well known in Scandinavia and also because we came from Denmark, we are one of the biggest, if not the biggest IT company in Denmark.

But could we have won Heathrow Airport or the TSS thing in the U.K. where we deliver a custom solution for the U.K. of that criticality, societal criticality like an airport or custom solutions without having the platforms, without having embedded AI, without having this methodology and being able to deliver it, say, in a year's time instead of what would normally be 3 years, No, then we wouldn't have won it. So that's how you look at it. If you can win things that before took 3 years to do, you can deliver the same thing in 1 year, take the risk, deliver fixed price and guarantees the quality, you have a good -- we are in the right spot because you're spending most of your time discussing with the customer how it works and not so much time on actually coding or programming it, but rather spending the time in putting it in there and integrating it with what is there already.

And that is truly exciting. It's going to change the industry for sure. It's going to be a better world because we're going to build systems much faster than before and also the systems that before were almost impossible to renew or replace or even change. So we can spend our funding and our investments into new and exciting stuff then rather than just maintaining old stuff, which I find really, really interesting.

That is interesting indeed. I do want to get into a bit more on Netcompany's approach to all of this. But before that, maybe on a slightly related note, where do you stand on the entire debate around the depth of software and SaaS because of all the concerns around that, that you're seeing today. Do you think enterprise will still use their software vendors who can maybe continue to innovate and sustain their presence? Or do you think you'll see more enterprise going towards tools from the foundational model providers who then -- who are all coming up with their own plug-ins for various functions?

I think the one-size-fits-all software era is gone. It's going to disappear, right? So there was a time -- I think it was really irritating as well, but there was a time where everyone said this standard has to be a standard system. I think that terminology is misunderstood today, and I think it's going to change. So yes, you need a foundation, you need a platform and you definitely need to standardize what is -- where you don't differentiate. But the differentiation comes from where your business processes are different from others, and that can be digitized really fast now. So I think SaaS products that are simple, very simple and one-size-fits-all will and can be substituted by algorithms.

Give you an example. You have -- let's say, you have 50 salespeople working for you and they have to report to you on progress with their customers. And normally, you would buy a small CRM system probably in the cloud or whatever, and they have to report on 10 metrics. Now you would just have an algorithm listening to what they tell you after the meeting. So whenever they tell that algorithm that they had a meeting with this customer and the algorithm will ask them for the information it needs if they don't bring -- if they don't give it to the algorithm. And then you, as the sales leader or a sales director will ask the algorithm, how do we do today? How do we did last week? Can you draw me a curve of -- you can make your own views.

You don't have to have people programming those views because the algorithm will draw it up for you. So you will have an algorithm talking to your salespeople getting the information it needs to report to you, and you will tell the algorithm how you want that reporting done, and you can change that reporting on the fly, right? So in this particular isolated example in this, I would say, peripherical usage of IT and if this system is a stand-alone system and it's a one-size-fit-all because it has a lead list, it has opportunity list and it has a graph of backlog and pipeline, for instance.

If you can get an algorithm doing what I just said and it's cheaper and simpler, maybe even better for you, why not, right? Whereas if you are working -- if this system had 100 integration points, and it was crucial for your transactions, and it was the very heart of your business. You probably wanted to renew that system for it to be AI-enabled. So you could ask all the questions, I'm just saying right now, it may be even in real time. Most companies are operating not near real time, but on a monthly basis or even a quarterly basis. The -- it's all been about reporting and administration. Most of the systems we put in place over the last 30, 40 years had to live up to a lot of legislation and of course -- but also a lot of history in the sense in the way we've been administrating the world with pen and paper.

So now for the first time in human history, the interface between computers and people is becoming humanized. That brings -- that is such a big change, fundamental change. But for it to work in your core systems, you need to change your core systems. They're too old. They can't do it. So -- and there's going to be at least 5 or 10 years of work moving those old systems into newer landscapes where you can start utilizing the fact that you have intelligence that the gap between computers and people is becoming smaller and smaller and smaller.

And hence, you can become that sales director that sits there and asks all these different types of questions about his sales team. Imagine if you could do that for your entire enterprise across all your systems, knowing exactly what's going on now or yesterday in the last 3 hours or the last 2 days and compare it to the same period last year. And you can even have systems reacting when they see things. And so I think it's -- I'm not going to get too philosophical here. But for the simple systems, the simple SaaS models, one size fits all solutions that you just buy off the shelf for maybe even reasonable price, they're all going to be replaced by algorithms very, very soon. And so will simple apps, companies building websites. I mean, all of you guys are going to build apps and websites in 1, 2 months from now without being programmers.

Got it. Thanks, Andre. Maybe briefly, do you want to just expand on how Netcompany is positioned in this context and what actually maybe you spend most of your time on today as a business?

Yes, it's interesting because I know I said I had a technical background, and I have a technical background. But the last maybe 5 years, I've been spending most of my time building the platforms and products that we needed in order to replace older systems. We launched a product called Phoenix 9 months ago to use AI to figure out how does the old system work and how can we replace it with a new platform. So I've always been interested in exactly this, and I'm spending, of course, most of my time driving the business. I'm still the CEO of a 10,000 people company. But I must say the last 6 months, I've been spending 2 hours every day just trying to understand all that's going on within the Agentic AI specifically because right now, the development is really, really fast.

And how to embrace that into our entire delivery model and our sales model, but also on everything. So -- and I think if you don't do that right now, you're really going to miss a big opportunity. You can build a very, very compelling demo in a few days. You can have things put into place working in production if you have your hosting center if you have all the competencies that you need. You can build something in 9, 12 months today that normally would have taken 3 or 4, 5 years. And that for me is truly interesting. For us, it's an opportunity. And that's also why we're so -- I think we're very fortunate and that we have our platforms and that we have our industrial focus, building solutions like the one for Heathrow, building tax and customs, digital government system, the whole transportation business, the energy business, the utility business that we are in.

I think these are the sectors where if you come with the vertical AI embedded solution to replace all the old stuff there, you are relooking into a very, very interesting market. So I spend most of my time -- actually, I mean, I spend most of my time 2, 3 hours a day just looking into what's possible and how we can become even more powerful with what we do. Yes. I think if you're a software consultancy company without platforms or products, you might need to change your ways because to get the benefits out of this, it's not enough just to use AI for, say, for instance, producing code. I mean, everyone will do that. It's not going to differentiate you and then you're going to end up in this Red Sea, right?

I think in more traditional times, you had independent -- you had software -- I mean, you had software vendors producing software, enterprise software, and then you had system integrators. And then the system integrator allied with the software product and then they went together to the customer and the project was just the analysis phase was like 6, 12 months, and you had to write many reports and you had to plan and you did this journey 3 and 5 years and this that. Today, if you come as a -- if you have this mixture of being a system integrator and a platform vendor, you can really go far because then you have the skill sets and the technology where you can replace this heavy process of delivering regulative systems.

I mean, every time we replace a tax system or we replace a Heathrow like an airport system or a transportation hub or you go in and you replace the system for a huge utility or an energy company or government systems. I mean, it takes years, right? That's not necessarily the case anymore. You might be able to do it in half or even 1/3 of the time and still get a very good price for it and have a good margin on that. And that's disrupting the existing incumbents for sure, especially if their line of living is selling ours.

You can have a look at your invoices. If your invoice is saying, that many hours for this person -- that many hours, this person were coding and you might need to rethink your business model. I don't think customers are going to -- I don't think customers -- I mean, 6, 12 months from now, they rather see outcomes and you taking more risk. And if you do, they will reward you for it because they are paying so much for existing old IT systems, you can't believe it. Many companies, enterprise companies have a huge IT budget where they're spending most of it, up to 80%, 90%, just paying for old systems running, doing basically what they did for 10, 20, 30 years. This is the market space that we are addressing.

Got it. Maybe we can take one question from the audience. Operator, do you want to maybe open up the line?

[Operator Instructions]

There are no raised hands on the webinar at present.

All right. Well, Andre, okay, it looks like there's one hand that's been raised actually. Maybe we can just take this question. Warren, do you want to go ahead and mute yourself.

Warren, please ask you question.

Sorry, can you hear me now?

Yes.

Perfect. It's kind of a 3-part question. I'm just picking any company just as a way of reference. We're just going to pick Accenture, for example. The one thing I'm trying to understand is the first part is like when you think about a lot of your clients out there and a lot of companies that want to adopt AI, like how good is the current data? Like are we at a process where like the data is in good enough form in -- like in the correct format that they can use AI? Or are we still in the very initial stages still where like you've got a lot of disparate data and they're going to need the help of consulting firms, whether it's Accenture, whoever they may be, to get their data ready to really leverage AI. That's my first question. And then I'll let you -- then I'll follow up with the second question.

Yes. So I think the question is, yes, I understand the question. You don't need a large analysis phase or to think again about your data because I think most companies actually did. What you need is probably some platform that can go in and on top of your data, even be built in parallel to what you have. So you'll be looking for vendors who can do that instead of trying yet another time to clean up your data. So I would look into building in parallel a system that takes over parts or whole parts of your legacy system. And that's the way to go.

Remember that to build a system now is easier, will be easier and is easier than it was just a few years ago. So if you want to replace the old system with a new one, you can build a new one pretty fast. And then, of course, you need to figure out which data you want to bring over to the new system, which one you want to keep in the old. But I'm not sure it's beneficial for you to stay too long in this old -- I mean, in this analysis phase that you've probably been through many times before.

Okay. Perfect.

Does it make sense?

That makes sense. It makes sense. In terms of if we think about like BPO separately from consulting and obviously, so when you think about like the disruption on the BPO part of companies' businesses, whoever that may be versus consulting, like where in your mind is like most at risk short term versus long term when you think about what companies are looking to tackle sooner rather than later in terms of reducing their costs.

Well, business process outsourcing. I mean, you already see it, right? So all the simple tasks, including programming, but also call centers or stuff like that, I mean you will pay less for that. So any -- as I started up with any large programming centers or BPO centers where the tasks are very systematized and well described, they will be using AI very, very soon, if not already. So the price for that should go down.

We have no further questions on the webinar.

Great. Thank you. And we are out of time. So thanks so much, Andre, for taking time to share your insights, and thank you all for joining. I hope you all have a good day. And if you have any questions, feel free to reach out to us.

[Operator Instructions] I'd now like to introduce CEO, Andre Rogaczewski; and CFO, Thomas Johansen. Speakers, you may now begin.

Thank you. Good day, and welcome to this presentation of Netcompany's results for Q4 and full year 2025. My name is Andre Rogaczewski, and I'm the CEO and Co-Founder of Netcompany; and I'm joined today by our CFO, Thomas Johansen.

And before we get going, there are some important disclosures that I need you to read through. So could we have Slide #2, please. I will pause for 30 seconds here and let you all have a read-through of these important disclosures.

And with that, can we go to Slide #3, please. The topic of today's presentation is our performance for Q4, full year '25 and financial guidance for '26. I'll start by walking you through the business highlights for Q4 and '25 in general. And once I'm done, Thomas will go through the financial performance, including our guidance for 2026 before we can open the call for questions. And can we have the next slide, please?

Over the past year, we've navigated a landscape defined by geopolitical uncertainty. In times like these, the call for resilient, secure and digitally sovereign Europe has never been more urgent. At Netcompany, we are not just observing these changes. We are actively building the solutions that Europe needs to thrive. For both governments and private enterprises, the path forward is clear. We must move beyond legacy systems, streamline administration and responsibly embrace the power of AI.

Why? Because technology that truly works and deliver tangible benefits is the single most important force that can bring Europe to a competitive edge. It's what will strengthen our position in the global race, a race where we, as a continent, stand for true democratic values. We have clearly differentiated our offerings from our peers, which is also why we continue to grow by using platforms and products and AI will become a force in the industry and someone other vendors strive to become.

At the crucial and complex space where we operate developing regulated IT solutions that truly matter, we have a clear and ambitious goal to become a European tech giant. That is the future we are building. We will get there by accelerating growth and profitability by transitioning from a pure IT service model to a hybrid model, driving expansion through a portfolio of scalable products and platforms and related expertise. The future does not belong to traditional IT consultancy companies building solutions from scratch, but rather to European platform companies using components and products and AI to deliver in a fast, reliable and responsible way. And in 2023, we launched a product and platform strategy embracing this development, and we are strongly positioned to take market share from the more traditional players.

Our talented employees embrace this development, and we continue to look at how we can become better in everything we do. To us, this is not a threat but an opportunity. And in 2025, we realized an eNPS of 32 compared to 22 in 2024, highlighting that the trajectory we are on is supported by our employees, too.

With the combination of our products, platforms, AI and talented employees, I believe that Netcompany is the most modern and future-pointing company in our sector. That is why when I look to 2026 and see the uncertain global geopolitics that the world finds itself in, I'm comforted by knowing that Netcompany will raise the challenge and enable that we digitize Europe responsibly making us stronger, more competitive and resilient.

To get there, first, we need to show velocity. Europe's legacy needs to be replaced and new systems designed to embrace and embed AI must be put in place. Our dedication and skills combined with our platforms and products will get us there. Secondly, we need to show determination by consistently delivering on time, at budget and within the required quality. This is how we'll continue to stay competitive by acting intelligently, by reusing as much as possible, adhering to our methodology, we will show the way.

We are uniquely combining our own platforms and products with our abilities as a system integrator. This gives us the edge. This is how we will prevail. This is how we're different. We are confident in our direction and immensely proud to be at the forefront, building the digital foundation for a strong, independent and prosperous Europe. And we will continue the momentum we've built to push even further in '26. Europe needs us more than ever. And can we have the next slide, please?

And 2025 was also the year we cemented our position in the financial services industry with the merger of SDC into Netcompany Banking Services. The integration has moved swiftly and since the beginning of this year, all employees of Netcompany Banking Services have been integrated at our headquarter office in Copenhagen, fostering closer collaboration with colleagues from across the group. We have launched the first new modules for our Netcompany Banking Services customers, and we will continue with ongoing new releases. During the second half of 2025, we have seen a significant improvement in margins, and we expect more to come as synergies will be realized. The integration is progressing faster than initially anticipated and the synergy targets announced in connection with the Capital Markets Day remain unchanged. And can I have the next slide, please?

That our purpose and ambition for a prosperous and digital sovereign Europe have had merits with clients in both the private and public segments in our markets is supported by continued contract wins throughout the quarter. In the U.K. public sector, we have been selected by HMRC to implement and operate the next phase of the Trader Support Service, TSS. The solution will be built on a market-proven ERMIS customs product and our AMPLIO platform. Netcompany Banking Services was selected by OBOS-Banken in Norway for the delivery and maintenance of the new core banking system. The agreement is a testimony to Netcompany Banking Service approach to open architecture, flexible integration and a high degree of automation.

In the Danish private sector, we've expanded our agreement with Forca bringing Festina alongside to deliver the pension solution for the future with OpenAdvisor. The implementation of OpenAdvisor platform from Festina will be a part of the complete pension solution delivered to Forca and its customers.

And can we have Slide #7, please? In the Danish public sector, Netcompany has been selected as a vendor under a framework agreement with the Danish Agency for IT and Learning. The framework covers development and maintenance of a portfolio of critical education and grant administration systems. And in the private sector in Greece, we have secured a 3-year extension with Cosmote Payments. The extension includes development, maintenance and operational support across the full Cosmote Payment ecosystem. Furthermore, in the private sector in Greece, we have been awarded a contract by the National Bank of Greece covering several key strategic areas, including the development of the bank's AI framework.

And with that, I will now pass on the word to Thomas, who will go through the numbers. Please, Thomas, go ahead.

Thank you for that, Andre. Like already mentioned, I am the CFO of Netcompany, and I will go through our financial performance for Q4 and for the full year 2025. So if we move past the breaking Slide #8 and straight into Slide #9, please.

We ended 2025 with a strong quarter and grew organic revenue in constant currencies by 10% compared to Q4 2024. Currencies impacted revenue growth negatively by 0.5 percentage points in the quarter, resulting in reported organic revenue growth of 9.5%. Organic growth was driven by 20.7% growth in revenue from the private sector and 5.2% growth in revenue from the public sector. Revenue growth was driven by a mix of new wins related to our products and platforms and revenue generated from existing customers with contributions from all segments. Group revenue grew 35.5% in the quarter, of which 25.4 percentage points were nonorganic related to the inclusion of Netcompany Banking Services. Continued the strong performance in Q3, Netcompany Denmark revenue increased 10.2% compared to Q4 2024, mainly driven by 27.9% growth in the private sector with contribution from multiple verticals, most notably in the financial services industry with both new and existing customer engagements.

Netcompany SEE & EUI grew revenue 6.9% compared to the same period last year. The growth was driven by both the public sector, including the EU and the private sector, which grew 4.9% and 12.7%, respectively.

Netcompany U.K. also continued its strong growth from the previous quarters and grew revenue 28.1% compared to Q4 '24. The growth was driven by both the public and private sector with increased engagements within Tax and Customs and Defense and Resilience.

In Netcompany Banking Services, revenue decreased 3.9% compared to pro forma revenue in SDC in Q4 2024. SDC results in Q4 last year were positively impacted by one-off revenues from customer "outconversions" and exit fees. In Netcompany Norway, revenue increased by 7.4% compared to the same quarter last year. And in Netcompany Netherlands, revenue was in line with the same quarter last year.

And can we move to the next slide, please? During a year when most of our peers have seen little to no growth, Netcompany grew organic revenue by 7.9% in constant currencies compared to 2024, fully in line with our guidance given at the beginning of the year. Organic growth was driven by both public sector, including EU that grew 7.4% in '25 and the private sector that grew revenue 8.4%. Growth in both segments was supported by our go-to-market strategy, focusing on dedicated industry verticals, combined with our embedded AI product and platform solutions. Group revenue grew 20.8% in 2025, of which 13 percentage points were nonorganic related to Netcompany Banking Services.

And can we move to the next slide, please? In Q4 2025, organic adjusted EBITDA, that means excluding NBS, before allocated headquarter cost increased 21.3% to DKK 346.4 million, yielding an organic adjusted EBITDA margin of 18.8%, an increase of 1.7 percentage points compared to the same quarter last year, all in constant currencies. Group adjusted EBITDA before allocated headquarter costs increased 41.2% to DKK 403 million in Q4, yielding an adjusted EBITDA margin for the group of 17.7% compared to 17% in Q4 2024, even with the inclusion of Netcompany Banking Services, which actually impacted margin negatively by 1 percentage point.

In Netcompany Denmark, adjusted EBITDA margin increased 4.7 percentage points to 26.2% in Q4. The significant development was a result of improved utilization and our continued focus on scaling revenue without a one-to-one relation in FTE growth, underpinned by a 2.5% increase in client-facing FTEs compared to double-digit revenue growth in the quarter. In Netcompany SEE & EUI, adjusted EBITDA margin was 13.3% in Q4 2025 compared to 15.5% in the same quarter last year. The decrease in margin was a result of lower license revenue income recognized in this quarter compared to the same quarter last year.

In Netcompany U.K., adjusted EBITDA margin increased by 4.4 percentage points to 14% in Q4, an improvement reflected by better project execution as well as continuing focus on converting freelancers into own employees and especially public deliveries. In Netcompany Norway, adjusted EBITDA margin was breakeven in Q4. And in Netcompany Netherlands, margin decreased to 18.8% based on timing events. In Netcompany Banking Services, the adjusted EBITDA margin was 13.3% in the quarter compared to pro forma adjusted EBITDA margin of 6.4% in SDC in the same quarter last year.

On a sequential basis, margin in Netcompany Banking Services more than doubled compared to Q3 as the integration is progressing faster than anticipated, and we're starting to see the impact from synergies materializing. The performance in Q4 2025 fully supports and validates our expectations for synergies. And with the recent win of OBOS in Norway, we are confident that Netcompany Banking Services will be able to take market shares going forward. Can we have the next slide, please?

For the full year 2025, organic adjusted EBITDA margin before allocated headquarter cost was 17.8% compared to 17.6% last year despite increased time spent on product and business development during the first half of the year as well as time spent on preparation for the SDC integration. Group adjusted EBITDA margin before allocated cost from headquarter was 16.9% compared to 17.6% in the same period last year. The lower margin was fully attributed to the inclusion of Netcompany Banking Services into the group. Can we have the next slide, please?

In Q4 2025, we employed an average of 9,752 FTEs, equal to an increase of 1,500 FTEs or 18.2% compared to Q4 2024. Of this, 7.8 percentage points were organic and 10.4 percentage points were nonorganic as a result of including Netcompany Banking Services into the total number. Attrition rate for the last 12 months was 18.1% for the organic part of the group, which was in line with Q4 2024. Netcompany Banking Services is right now in the initial phase of a significant structural reorganization. Stand-alone attrition rate for Netcompany Banking Services was 27.5% for the last 6 months. And can we go to the next slide, please?

Along with previous years, a continued focus within our group is that of working capital management. And while our cash conversion ratio was lower at 98% compared to 147% in 2024, we are still satisfied with our result. First of all, we are comparing against an extraordinarily high cash conversion ratio in 2024. Secondly, two of the most important metrics indicating whether we are on the right track in our focus on working capital management, both improved in 2025. The relative share of net work in progress and accounts receivables combined relative to revenue decreased compared to last year as did days of sales outstanding.

We ended the year with DKK 287 million of cash at hand, up slightly from last year. Our leverage was 1.6x, naturally impacted by the acquisition of SDC, but still at a level giving us strong balance sheet momentum into 2026. During the year, we have executed share buybacks of DKK 500 million, bringing our accumulated share buyback to DKK 1.3 billion in the period 2024 to '25. We canceled 2.5 million shares in March 2025, and we plan to cancel another 1.5 million shares in connection with the upcoming AGM, reducing our outstanding capital by more than 8% over the last years. To complete our 3-year committed share buyback program of DKK 2 billion, we have today initiated another share buyback program of DKK 750 million, of which DKK 700 million are to be executed in the calendar year 2026. And can we have the next slide, please?

Revenue visibility for the group, excluding Netcompany Banking Services for 2026 amounts to DKK 5.3 billion, an improvement of 8.1% compared to 2025. Revenue visibility for Netcompany Banking Services for 2026 amounts to DKK 1.4 billion and solely relates to the private sector. And can we go to the next slide.

Taking the current macro and geopolitical uncertainty into perspective and observing pipeline and revenue stability at the beginning of the year, we expect our group revenue to grow between 15% and 20% measured in constant currencies in 2026, including Netcompany Banking Services. Excluding Netcompany Banking Services, we expect revenue to grow between 5% and 10%. From a margin perspective, we expect to deliver adjusted EBITDA margin between 15% and 18%, also in constant currencies and also including Netcompany Banking Services. Excluding Netcompany Banking Services, we expect adjusted EBITDA margin between 16% and 19%. Based on our market position, our superior product and platform offerings, we remain committed to our long-term targets, and we expect to keep winning market shares in existing and new markets in the years to come.

And with that, we've concluded the presentation of Q4 and the annual report. And if we move to the Q&A slide and open the call for questions. Thank you.

[Operator Instructions] The first question will be from the line of Daniel Djurberg from Handelsbanken.

Congrats to a solid year-end. I have two questions, if I may. And I could start off with a little bit on how to think of the license revenue. I think it was roughly 1% of group's organic revenue in '25, in line with '24. But now we also have the banking services and the OBOS deal, et cetera. But should we still expect the license revenue to account for roughly 1% of the group also for '26, '27? That's my question.

Yes, I can start with that, Daniel, and thanks for the question. We don't give specific guidance on the different revenue lines in our group. But it's clear that with the focus we have on our products and platforms and with the maturing and commercialization of these, we would expect license revenue to be a larger and larger percentage of our total group. So without giving you any number, which you know what you asked for, but without giving you any specific number, we would expect that relative share to increase in the years to come.

That's fair enough. And if I may ask you on -- you have increased the organic growth in client-facing FTEs, while you have had a reduction in non-client facing, partly due to internal work made in early '25. But my question is, is the mix now between the non-client and the client-facing FTEs now is at the optimal level or if you could ask for more improvements or have to think?

I'm quite sure that both Andre and I agree on this answer. So I'm going to give it because otherwise, Andre is going to give it for me. We would expect the level of non-client-facing FTEs that is the administrative part. We will expect that to continue to come down as it should.

Yes.

Perfect. And may I also ask you a little bit on the geopolitical opportunity, if you call it. Recently, EU took a little bit more clear view on the need for the growing digital sovereignty and push towards tech funds and infrastructure funds, et cetera. But have you seen anything more taking place so far from this?

Yes. I think you can say that our dialogues with both governments and large enterprises are obviously affected by the whole movement towards more resilient and a much more strategically independent solutions in the EU space. That goes for both public and private solutions. Now all the new platforms we have been launching in the last 3 or 4 years, they've been launched in a way where they can be moved and they're very flexible and containerized. So in that sense, many of the customers are truly interested in using our technology.

The next question will be from the line of Claus Almer from Nordea.

Also from my side, congratulations with a strong Q4. The first question goes to Denmark and the private sector. You had a very solid growth in Q4. To what degree does this come from, let's call it, AI-based projects? That would be the first one.

Yes. Thank you, Claus. That's a great question. Now what we see is that we don't sell AI like an independent offering. We sell AI as embedded offering. And that's something that's happened over the last 1 to 2 years. So customers are really interested in our experience and knowledge about specific industrial processes, for instance, in the financial industry. If you know something about life and pension or insurance or you know something about banking, that's the entrance ticket. But then at the same time, you have to show AI capabilities and treating that data with high levels of confidentiality and track where you use AI and why. If you're able to do that, you have a very compelling offering, and that's what we've been doing in Denmark. And that's what we see happening in the private sector. I hope that was answering your question. Yes.

Yes, it definitely did. Then coming to the MPS division. It seems like your synergies is coming in a bit faster than initially communicated at least. Should we also expect that compared to the split you did at the CMD that you might be a little more front-end loaded? And then secondly, what about the commercial opportunities? I think, Thomas, you said you expect to take market shares. Have you been more confirmed about your potential or it's more following the business plan? That will be the second question.

I'll start with the first part of the question, Claus, and Andre will take the second part of the question. When it comes to realization of synergies, what we can say at this point in time is that we reconfirm the plan that was laid out in connection with the Capital Markets Day, which is DKK 300 million to DKK 350 million, more or less evenly split over the years to come. And then with that said, we'll see how fast it goes. But as of now, there's nothing in our performance in Q4 that leads us to be worried about our ability to execute on that promise given earlier. So that's as far as I will go. And then I'll leave the other part to Andre.

Yes. I think that when it comes to commercial possibilities here, I mean, the market is definitely in Denmark is much more dynamic now than it was just 1, 2 years ago for certain. But what is maybe even more interesting is that you don't really need to be the core system vendor in order to be relevant, delivering all other types of modules. And if you measure on the frequency and the quality of the meetings we have with the overall sector in Denmark, but actually also in Scandinavia, that frequency is going up. We have a lot of meetings. We have some really qualified discussions of how to use separate modules, not necessarily engaging with the entire banking platform. And I see that as very promising.

Sounds great. And then just a small last question. VERA, is there any opportunity or possibility for you to share some thoughts about the progress you're doing with that solution?

VERA is -- well, there's a huge interest in VERA. And technologically, I think we have one of the best solutions in the market space. We have a lot of qualified dialogues, and we also have prototypes running with several customers. But unfortunately, I can't go into further details at this moment, but it looks promising.

The next question will be from Balajee Tirupati from Citi.

Two from my side, if I may. Firstly, you have cited focus on efficiency gains from AI to be supportive for the group's growth. Are you seeing clients also looking at Netcompany for cost-out projects expecting your ability to better leverage AI for productivity gains? And secondly, I appreciate Netcompany doesn't have time and material-based pricing. But even for fixed price contracts, do you believe the industry would be able to retain productivity gains and not required to pass that on to clients?

Yes, that's two very good questions. I mean your first question is, yes, we actually see that occurring now more and more. Not that it's a big part of what we do. Normally, we are hired to bring in an IT solution that will come up with the necessary effects. But yes, we also see some customers asking us to engage with them to realize the benefits. And when it comes to fixed price, I think the most important thing at the moment is to be relevant and price is important, absolutely. But the business case is even more important.

So if you can show a time to deliver within, say, 1 year or even less, benefits that can be realized within 2 or 3 years and with a compelling business case, I don't find the fixed price and trying to bring that down somehow as an obstacle for our business model at all. So I think we are ahead of the curve. I mean, obviously, some services will become cheaper over time when AI inflects the businesses. But you have to be ahead of the curve and you have to be the one with the most compelling business model. And in that way, you can actually have a very, very good business.

If I may have one follow-up question on margins. So Thomas, could you share building blocks within 2026 margin outlook? It would appear that most of the margin improvement is coming from the banking services business, while outlook for the organic business suggests margin being broadly stable over 2024 level. Are you still factoring sourcing of Danish talents across the group as well as our efforts in product and business development in your 2026 outlook?

So without giving you what you asked for, by the way, and that would also be the first time I'm doing that then, right? But without talking in details on the margin buildup, when you decompose the 16% to 19% on organic and 15% to 18% on group and then you can calculate backwards what that implied would be on Netcompany Bank Services. You're right in your math. Now we will do everything we can to continue to improve our efficiency within Netcompany call within Netcompany Banking Services and within the group. So at this point in time, early on in the year, we are comfortable with the guidance that we have laid out, both for the group and for the organic part and the implied part that has to do with Netcompany Banking Services. And then rest assured that we will do everything we can to be as effective and as good to deliver the services that will continue to make Netcompany the standout name in the industry.

The next question will be from Yiwei Zhou from SEB.

Yiwei Zhou from SEB. Also a couple of questions from my side. Firstly, I just want to follow up on the cost synergy. Thomas, if you can elaborate a bit here. So the cost synergy here materialized in Q4, is it a part of the 2026 target or it will be addition to it?

What we realized in 2025 has nothing to do with 2026. So what we're realizing now, you can say, will be on top of what we're realizing. So it's not that we have taken something that was planned for '26 and done it in '25 or anything. So we're following the plan for '26 to '28 of the DKK 300 million to DKK 350 million. And then we've just had the opportunity to accelerate certain things that we've done in Q4, but we'll continue with the same pledge in '26 and forward.

Okay. And could you also comment a bit on the phasing of the materialization of those cost synergies during 2026. I previously got the impression that it will be back-end loaded. Is it still the expectation?

Yes. Without giving any specific guidance on the quarters of when the synergies are going to be realized because that would then imply that we would give input as to what the margins are going to be in the different quarters. But we don't necessarily expect all the synergies for '26 to be back-end loaded.

I see. Okay. And then lastly, I also realized in the provision did increase quite a lot here in '25. And I can understand the provision for restructuring, but I can see you also booked a sizable project provision here. Could you elaborate a bit here?

It's related to the merger with SDC into Netcompany Banking services as part of the purchase price allocation. So that has to do with the period before we took over ownership of SDC.

And is there -- is it fair to understand that you see the risk here that it will be a bad project?

No.

The next question will be from the line of Aditya Buddhavarapu from Bank of America.

First, on Denmark. Could you comment on how you're thinking about the public sector development this year, given you saw probably slower tender activity last year, how are you thinking about that going into '26? Second, just a follow-up on the question on margins for the core business. Why do you think -- why is sort of the implied margins for the core business flat? Is that because of maybe some more investments or headcount growth? If you could just maybe offer some color on that? And then could you just comment on how to think about the tax rate for 2026, given you have elevated tax rate in H2?

Yes. Thank you for those questions, Aditya. Let me just take the first one and leave the other ones to you, Thomas. So the public sector, yes, I mean, we are looking into a very exciting year in Denmark at the moment. I mean we have some large public engagements to be had. We won a recent one that we mentioned in the presentation. But we're also looking into what's going to happen at some of the core major Danish institutions, both tax office and of course, also police force and defense. And at the same time, we see public sector running at a decent pace. However, we will also see an election coming somehow during the year. But we are very confident that many of the deals that we need to have in '26, we will be able to get signed and executed upon before elections, and that plan is running accordingly to what we've scheduled. And overall, I believe we will have a very decent year in '26 in public sector because there's so much digitization happening everywhere. And for the margins and tax things, I better leave that to you, Thomas.

Sure. Thanks, Andre. And for the margin, like I said on the previous question that also was on margin. We don't comment per se on the bridge or the buildup on the margin for 2026 for the group or for the organic part. We've given a guidance of 16% to 19% for the organic part, of which we are comfortable at this point in time. And then we will do our utmost to do as good as we can. For the tax rate, we expect that to come down during 2026 to a more normalized level. It is impacted for the first half negatively with the special items that are nontaxable -- nontax deductible, sorry. So that, of course, has a big impact on the tax rate in 2025, which will not have the same impact in 2026. We will see that we can deduct the taxable depreciation on the purchase price for SDC, which will then have a full year effect of 2026 and have a positive impact, meaning a lower tax rate for 2026. So it will normalize in 2026, Aditya.

Understood. Also just a follow-up on the free cash flow. You mentioned that what you're looking at in terms of the DSOs, work in progress, all of that is looking in the right direction. So how should we think about the cash conversion in '26?

If you look at 2024, that was really high, right, especially in Q4, more than 400%, underpinning that, that was an abnormal quarter, 147% in 2024 and 98% in 2025. So we're probably looking into a year which is more in line with what we've seen from a cash conversion perspective like 2025.

[Operator Instructions] The next question will be from the line of from ABG Sundal Collier.

Just one question on my end here. So it's obviously very encouraging to see the integration of NBS is tracking well, and we all know that you have high ambitions in terms of growth. I'm okay with Denmark and the Nordics, which I also appreciate are sort of the starting point. But I'm just still curious regarding the expansion you're aiming for into the rest of Europe at some point. Can you confirm that you, at this point in time, have all the regulatory approvals you need, i.e., is it theoretically something you could do tomorrow? Or would it take some time to get these? And if so, how extensive would that be able to get? Would it be -- would it require? That would be my question.

That's a good question. So that depends definitely on the specific type of solution you want to build in a specific European country. Obviously, if you're in -- within EU, many of the regulatory things you need to build particular solutions are already in place. And when it comes to supporting European banks with particular modules or processes, we can do that without any problems at the moment. Now there are definitely some things that need to be regulated even further in EU. For instance, if you want to put things into the EU wallet and you want payment services in that, that still -- there's still some regulation to be had. But overall, I have to say 80%, 90% of what we can deliver to European banks, we can do without any problems at the moment.

So that's not a big obstacle. Having that said, the most important thing right now is obviously Scandinavia. We have -- we see a big market there. And of course, the integration of NBS absolutely important. So we have a very, very strong focus on that. I think that alone can bring us to a very interesting place alone in '26 and '27.

The next question will be from the line of Poul Jessen from Danske Bank.

I have 3 questions. First question is coming to Yiwei's question about NBS and the guidance. With DKK 56 million in the fourth quarter and a guidance of DKK 180 million to DKK 230 million for full year '26, then you actually guide flat earnings described that you would see slight growth. And I assume also you will have further initiatives coming in '26. So how should we get to that you will have lower earnings on the full year run rate next year in '26 than you had in the fourth quarter? That's number one.

What we can say in terms of specific guidance for NBS is that we are comfortable with the guidance set out at this point in time. And clearly, Q4 was good and Q4 was based on realization of synergies. So that's also good. Integration is going fine, and we see some very, very strong interest into the business. So let's see where we end the year with both the group and with NBS. At this point in time, we are comfortable with the guidance.

Second question, public sector Denmark. Andre, you said that you saw contracts coming up from police tax on defense. We're waiting with consensus moving for an election, do you actually believe that we will see those contracts awarded in before end of April?

I think you were falling out a bit there, but I hear your question is the public sector in Denmark and whether some of the contracts with the tax defense and police will fall into place before spring time. Now I'd say -- okay. I'd say that you will see some of it happening definitely before the summer. The good thing about taxes, a lot of these funds have already been allocated. I think so too, when it comes to Defense '26, even in you will see defense and resilience sector acquiring what they need to acquire in '26, that's not going to be influenced by the elections and the same thing goes. So I'm very confident that '26 will be a year with all those 3 government institutions will actually invest more into IT than we've seen for a long time. So I think it looks promising, yes.

Okay. And then a final question is about Schleswig-Holstein. There has been some local German press writing that you are doing a tax solution, a very small one in Italy for the municipalities there. But they also state that it could be run out across all municipalities in Schleswig-Holstein and also more than just the tourist tax. Can you put a little or elaborate a little about what kind of opportunities you see for this isolated, but also how it can be used in Germany to further expand into tax in Germany in general?

Well, it is true that we are delivering minor -- smaller tax solution in Schleswig-Holstein. But we're also in dialogues with other German states about similar solutions based on our AMPLIO platforms. Now the ability to scale those solutions and whether they can be made into larger deals, I think we have to await that. But we are working continuously actually right now in 5 or 6 different areas in Germany, trying to -- trying to use our platforms as an entry point to do new modern case management systems. It's very difficult at this time because it's early days to discuss whether it can be scaled or not. But obviously, that's our intention.

The next question will be from the line of William Richards from Morgan Stanley.

Just a single one for myself. So for the quarter, we saw SEE & EUI segment growth slow a bit sequentially. I think we are now around 7% for the fourth quarter. I know for a while you've been talking about growth slowing in this region to more normalized levels. So I guess my question is, is 2026 the year where we can expect this normalization to take hold? Or was there something else on the growth front in the fourth quarter for that segment that drove this deceleration? Any more color there would be really helpful.

So the deceleration of Q4 stand-alone was driven by lower license revenue in Q4. So that's the main reason for that. We don't necessarily expect the growth to be had in SEE & EUI to come to an end in 2026 on the contrary.

I think we lost William.

Yes. As we have no further questions in the queue, I'll hand it back to the speakers for any closing remarks.

Well, thank you all for joining in, and have a wonderful day.

Yes. A very warm welcome to all of you. First of all, thank you for taking the -- this Friday afternoon off. I know you're busy people. And can you actually hear me as it comes. Okay.

Yes, we will reward you with a very exciting agenda. We'll be going through the strategy of Netcompany, the business model, and we will end up with our CFO doing some of the numbers, specifically on the synergy effects of the recent acquisition, but also going through the long-term targets. Now pulp this comes out as a more of a dialogue. So what we will do for each of the presentations, we will leave some time for you to add questions directly. There will be a few -- 2 breaks. So you can -- that's -- we will take care of your time, and you should just sit down and relax and enjoy this everything. I have a problem with my microphone. Otherwise, I just rip it off and I talk loudly because I usually do that. Okay.

So we will go through the -- yes. Okay. We'll go through the entire agenda in a high pace, but still focusing on the basic facts. We will start up setting. As you know, the world is right now governed by I say, influenced by 2 major forces. One is the geopolitical situation we are in right now. What is happening around us, especially on this continent, the times we are living in and how we fit into that world. And to introduce us to that, we have Ulrik Vestergaard. And then I will add up with the other important force, which is technology.

The development in technology, the whole evolution of technology is immense and it's never been going faster than now. And after those 2 introductionary parts of the agenda, well, I'll be going through the overall strategy, we will dive into the different business areas, and in particular, the platforms and the technologies that we will be issuing into the market over the years to come.

So first of all, warm welcome to all of you and Ulrik Vestergaard. Please, Ulrik.

Thank you so much, Andre, for those words of welcome. And let me also add a very, very warm welcome to Netcompany to first Capital Market Day, but it's good that exams they last throughout a career. It's a pleasure for me to open the proceedings with talking about nexus between geopolitics, digital transformation, digital sovereignty, if you like, and to be honest, the future of both Europe and Netcompany. This is not really working very well, is it?

I think it's no surprise, no secret to anyone that geopolitical turmoil entails both a lot of uncertainty and also a lot of opportunity. That's not new. What's new is the extreme pace of geopolitical upheaval. I have not in my diplomatic career has seen anything like it. But the other thing that's new is the unique combination of uncertainty, risk and opportunity that this means to Netcompany. I'll dive into that a little bit more. But we have, as a company, been pursuing digital responsible transformation for a while now. And I think that as our continent, our European continent becomes not only more alone but also more unified, this quest will hold a lot of promise for digital sovereignty, digital progress and digital security. And I think that process, that quest is an absolutely existential part of Europe's answer to all these geopolitical upheaval.

Let me try to dive into it a little bit more. I don't want to go through these slides one by one, but I think there are 3 starting points that are extremely important to be clear eyed about when we talk about geopolitics from the outset. One is that the world order that we have all become used to and that we've benefited so incredibly much from over the last 8 years. That world -- it is not coming back.

Second starting proposition is that West is sort of a cohesive framework of shared pursuit of values and interest among what used to be the Western countries, gone. It may have a revival later on, but it will never be the same deep alliance, Donald Trump has ruined that. And thirdly, there hangs a big question mark over globalization. I don't think globalization will die, but it's certainly not a hyper globalization area that we're looking into.

How did we get there? I think there are 2 reasons. One is a number of tectonic trends, 5 to be more precise, have shifted power, technologically, militarily, economically for a couple of decades. So some of this has been in the making for a while. Secondly, of course, then Trump has accelerated all of it. The 5 tectonic trends I'll be very brief, is one, that we've seen a dismantling of the institutional global order. I'm talking about the crisis of the UN and all its subsidiary bodies, including the Security Council, UNESCO, UNICEF and so on, the climate negotiations, but also the World Bank, the IMF and the WHO. They are not functioning the way they were supposed to, and it's not going to get easier from here given that the fragmentation will continue. That's number one.

Number two is that open markets is no longer plan A. It's been so for almost 80 years, but it's not the case any longer. I think Trump will be able to kill the [indiscernible] we've come to know it. I don't think, however, he will kill globalization on the idea of free trade, but that's also bad enough.

Thirdly, the increasing helplessness of state tackling amid change. I don't think -- and I regret to say it as a former diplomat that help for the global climate will come from Diplomat's conducting COP37 or 47 or 57 or 167. I think it will have to come investors, it will have to come from public private partnerships, targeted investment, targeted research. But that leads me to the 2 maybe most important tectonic trends. And the fourth one, I normally end with it, but maybe it's the right time to put it on the table now because it's kind of a conclusion. We are moving from relative order to relative disorder in the world. We are, in fact, moving towards something that you could call a transactional [indiscernible] because rules and norms and standards don't apply any longer. They're not respected. If you don't believe me, go to an airport near you tonight to look up in the sky and you'll either see Northern Light or drones to new phenomena on the Danish sky.

So the first part of it is the transactional part, which is not as new as we think in the West, the global South has been transactional for a while. They have refused to choose between the democracies of the West and autocracies of the East. What's new is that the global leader and our best friend for decades, the U.S. has chosen also to become transactional. Not caring about ideology, not caring about alliances, not caring about friendship and perhaps Europe is the biggest potential loser in this because we're the closest friend of the U.S. But the U.S. has now attacked events in Munich. It's attacked us on our economy, the Turnberry trade agreement, it's attacked us on security. And for us in Denmark in territories.

So Europe is more alone than ever before, but maybe also for that reason, more united than ever before. We look to the East, we see destruction. We look to the South, we see destruction, we look to the West, we see, to be honest, auto madness, and we look to the North and we see a threat against our territory, at least if we are Danish. This is the transactional anake that we, as countries, but also as businesses have to have to navigate.

What is interesting for Netcompany and all of this is that, of course, this is a downside, this is a risk to every business, but the unique thing about Netcompany is that since we're not active in the U.S. and not active outside Europe, we are less exposed to these risks than many other, I would say, most other tech companies. So we are absolutely more reliant on a well-functioning European market than getting a global stability, although, of course, I'm never going to say that's a positive thing.

We are, in that sense, shielded from many of the first and worst waves of this new order. That leads me to the fifth trend and maybe not totally surprisingly, for me, the most important one is the digital transformation. And I did actually also say this before I joined a Netcompany. Why is that the most important trend of the 5. First of all, it is contributing to a total reconstruction of our societies as we know it. We at Netcompany are proud to be a responsible agent for change construction of societies. But that is one reason.

The second reason is that if the engine of globalization is turned off or at least decelerated for the global economy as well as -- there's only one other place you can turn to if you're looking for prosperity, productivity, if you're looking for increased competitiveness. If you don't have leased division of labor, division, productivity from technology and division. That's the second reason why it's the most important one.

And the third reason is that, now that we are in this transactional net, this quest for world dominant a little bit currently and on voluntarily have entered as Europe, but we have to realize that's the race we're in. That could, in principle, be decided or played out this quest in 3 different arenas. It comes out in an ideological arena, but that's not going to happen. Trump, Putin don't care about ideology one bit. It's none of their concern.

Secondly, it could be played out in the military arena, I actually don't think that there is a lot of doom and gloom in me, but I don't believe we're headed for a third world war. I don't think neither she or Trump have global military proactive ambitions. And I'll pause here for a second or 2 because that's maybe the most optimistic thing I'm going to say until I turn to Netcompany products and platforms in 2 minutes.

So there's only one arena left really for this quest for world dominance to be played out in, and that is the technological, that is the digital arena, the arena in which we are playing. You don't have to take my word for it or Netcompany's work for it, you can just ask Trump and Putin themselves. And if you don't believe what they say they're sometimes not to, you can look at what they're doing. For the last decade or so, 90% of global investments in AI has stemmed from China and the U.S. Europe is sharing the rest of that, the last 10% with the rest of the world. That is not good enough for Europe. And for us, that's also a problem. AI is at the heart of everything we do at Netcompany. So we're ready for that transition. But the question is whether Europe is ready for it.

This analysis leaves, I think, Europe, and Netcompany as a tech player in Europe with 4, if not existential, then certainly essential reasons for now truly embracing the digital transformation. And I mean truly embracing it. One is the internal search for better, safer, cheaper products and platforms is something Netcompany is contributing to every day. something all businesses are striving for. That's extremely important in a well-functioning market economy.

The second one is the macroeconomic level, you could call it the drag level. If we mean business in Europe, talking about -- and we do talk a lot about it, competitiveness, productivity, prosperity and all of that, we cannot in drag these words, we cannot afford to miss another digital revolution. We cannot press the snooze button for another decade for the fourth time in a row, we need to embrace it now. This is also why we, at a net company have stepped up in terms of trying to influence and engage with policymakers in Denmark, at the European Union and also at the OCD in new positions that we have entered just if we can influence some of these decisions for the good of Europe.

And then there are 2 new reasons from '25. One is geopolitics. If Europe needs to be a geopolitical actor, and that's what we hear all the time, there is no sustaining that in the long run if you're not at the economic and digital forefront, you cannot be a geopolitical super power if you don't have the economic and technological prowess to underpin it. And then the fourth one very important, I think, to Europeans as democracies are stumbling around the world. Very important to us at Netcompany as well, values. Europe would will now be the last defenders of democracy, human rights, freedom, rule of law in the world, supported maybe by a few medium powers, but it's not only those values, it's also sector-specific values like trust, like transparency, like predictability, responsibility. These are values that will not embed a future, thoroughly digitized society if Europe is not at the forefront of technological development, and we are Netcompany, hoping to be part of that facilitation for Europe.

I'm coming to the end. A few comments just to finish this off, this means in a sense for us at Netcompany that we have what I would call an epic geopolitical opportunity here. As I said, we've been working on responsible digital transformation for a while but we also are extremely well aligned to picking up this momentum for European digital sovereignty. You could say that everything we do at Netcompany in a sense is about delivering European digital sovereignty to Europeans. And the very European scope of our ambition of our offerings, our products and platforms is also pretty well suited to a world where Europeans want to pursue digital certainty but a little bit more worry about what's going on outside Europe.

You hear about VERA and defense and resilience later, but I want to mention here that this means that for us, sovereignty is not only digital, we are also ready to step up and see if we can help with this sovereignty agenda in a wider sense.

Last, the future is uncertain. Don't let anyone tell you anything else. I cannot remember in my working life that the future has ever been more uncertain than it is right now. But I also see a near certain European potential for Netcompany to unlock. I think Europe has a chance now to embrace digital transformation. I think Netcompany is well situated to help empower digital them, empower chains that's digitally in its -- digitally anchored in its origins. And I also think that what we need politically from here on is actually a European action.

I think some of what I've talked about today, the fact that security prosperity and values are fundamentally at stake for us here today as Europeans, but also as business people, investors. What this really means is that this political attention has to be turned into action. We have a lot of talent and research at very high quality in Europe, but we're not very good at turning it into innovation. And we're not going to turning the innovation into commercial opportunities, and we're certainly not good at turning those commercial opportunities into something that's scalable.

The same journey for Netcompany is a little bit more positive. We also have talent and research. I think we are good at turning it into innovation. We've proven so. We've also proven that we can find commercial opportunities, but we also need help to scale, and that's where we need more European action very, very quickly. We have tangible answers at Netcompany. We have European solutions built by Europeans, run on European data, responsible to European citizens, what we need now is the European action.

So I think to conclude, our best hope for the future, it's digital sovereignty. European union action and to some extent, also success for that company. And I'll leave it to my colleagues to elaborate on that hope and those solutions. Thank you.

Thank you so much, Ulrik, for setting the scene. We'll now have a couple of minutes for Q&A. Please wait with your answer to you have been handled over a mic. We will start with Yiwei.

Yiwei Zhou from SEB. And I actually have 2 questions here. And firstly, when you talk about digital solvency. And how does it reflect in the tendering process? Have you seen sort of a firm requirements? And could you elaborate a bit here? And I'll do next question later. .

For us at Netcompany, Andre has said many times, digital sovereignty is not digital protectionism. I think that's pretty important. We cannot afford in Europe not to have open innovation ecosystems. We cannot afford to shield ourselves from technological advances of the U.S. and China and others, but it's also quite clear, I think, to all Europeans now that there are certain sectors, there are certain areas where we cannot be -- continue to be overly dependent on a U.S. that's attacking us on prosperity on values and on security, at least some days.

So for us, digital sovereignty is about letting us compete in a fully integrated European market. That's not the case now, more than protectionism really. But we probably also to make sure that at the European level, and I'm maybe getting closer to that a bit less naive about procurement rules and that we don't put ourselves at a further disadvantage on top of the fact that we don't have a home market that is as well functioning as big as have in U.S. and China.

Okay. And you already mentioned a little bit. So you mentioned the sectors and what other sectors is the sort of highly regulated sectors which are more sort of favor the European vendors over the international sort of software company or IT service companies?

Well, I think there's no one size fits all answer here. We operate in many countries in Europe. We operate both with private public clients. And in some of these sectors, there's a lot of degree of openness and a fairly well-functioning European single market. And in other sectors, there is, to be honest, a defunct European internal market. So I think you'll probably have to dive into each sector to answer that question. .

Thank you very much. I think we will end the number of questions here and then get ready for our next presenter. It is Andre, our CEO and Co-Founder, who will present our strategy and the next steps for Netcompany to become a modern pain European tech company, and I'm not sure you need much more of an introduction, Andre.

Thank you so much. And I think Ulrik's points about where we are right now and geopolitically fits very well into where we also are as a company. And actually, the question from a way about how serious this and how much sovereign IT do we need in Europe? Well, one thing is certain. Looking into what we are -- what Netcompany is doing. We are delivering some of the most complex in critical, society-critical solutions, not only in Denmark, where we started, but all over Europe. It's all regulatory and it's what you would call largely historical critical systems, whether it's within tax, customs, logistics, transportation, it's all regulatory, whether it's airports or social benefits. These are systems that are not easy to modernize. They are not easy to give to someone else. They have to be either by governments or the companies that run them. That's essential.

So when we are working with even more fecal types of IT. I'm going to take this thing off very soon, I think. Secondly, we need -- we are in a hurry at the moment, right? I mean, which can just let it be and think this will drift over. It's been a long strategy for many governments and for regulatory companies to sit it out a bit and think, well, we still got this old system. And I know it's 40 years old or 35, 40 years old. I'll do my period, right? I do 3 or 4, 5 more years, I add something on top of it and fine. It's not my problem anymore. And it's actually working, even though it's very old fashioned. What's happening at the moment technologically is that's not an approach that is acceptable. We'll find well -- because I don't need this thing. [Technical Difficulty] Okay, this is better.

So velocity is key here. We need to get this thing done in a hurry, and we need to show success and success can only be shown one way, and that is by using a reference, actually showing how it can be done in other places, reusability. And that's the third very important thing here as a lot of companies in our situation actually think about selling ours, mandates, just invoicing and then showing profitability that is acceptable in their industry.

By reusing, we can scale, intelligently reusing, it's difficult when you come with a background of delivering large complex solutions because most engineers people that work for companies like ours, they think they're artists. They think they are very creative. They build systems uniquely. We will not build systems uniquely anymore. We will build and build on construction and parts that are usable. And then we'll put a touch upon these systems that make them unique and, of course, live up to regulation, which is almost the case in any system that we built.

And finally, the sovereign part and Ulrik said it, it has to be a European vendor, delivering on European technology, having applications running on European data because that's the way it is for tax and customer systems. That's the way it is for an airport. And that's the way it is for social benefits or whatever we're dealing with in our company. And we're actually extremely proud of being one of the few companies in Europe, taking that responsibility, lifting it and saying, well, it's actually possible. And if we do that, I'm telling you it would be better than the rest of the world. Because if you look at China and the U.S., they don't have the same ability to create these systems. And at the end of the day, this is all about competitiveness.

In the transactional world, it's about being competitive. And right now, the reason why we are not competitive is because we're not digitized enough on our regulatory parts. And we might have tariffs but 60% of what we're doing are internal calls, it's administration, bureaucracy and most of it can be lifted by the solutions that we deliver, and that's why we're so important.

Enough about that it's going to products and platforms and technology and what we are going to sell, right? I had it here. I have -- just give me anything, and I'll lose it. You know that -- there we go.

So we invented this not in 2001 when we started the company, because we started early on just building -- being better at building than most others by hiring talented people, making them work after unique technology, it worked up well, right? We grew organically, being a bit better than the rest. We did a lot of bespoke IT solutions, and we decided to go into regulatory huge systems implementations.

Then about here, we started to define a set of components, and we called it -- remember, the offtake framework, I think we had 2,000 components. And if you think it's difficult to sell the message of our platforms and products, while trying to sell 2,000 components to people, that's really, really difficult. But that is the secret behind what we're doing. Everything is built up by these components. And the difference is now that we've assembled them into platforms and products.

And with the products and platforms, and I'll go through the strategy of that in a minute, we are now ready to scale and scale in a way that relies on the reusability of the solution more than the company behind it. It is a very big distinction because if you want to go and scale in Europe and you go to another country and you talk about Netcompany, yes, they like us, they find us a great company from Denmark reputation-wise, whatever, because they don't really know us. What they want is the solution, the platform and the reusability. This is how we are both selling and delivering at the moment.

So in previous days, and this goes specifically for large society-critical systems, most of it has been programming. It has been custom built. It has been constructed specifically for that government of that particular large enterprise because these are critical systems that live up to regulation, and regulation always differs from country to country, from geography to geography, from company to company.

What we're doing now is everything is based on platforms. And on top of the platforms, we are launching products called vertical dimensions of that platform. The platform is technical. The vertical is functional or business. And on the very top of that, we had the customer-specific parts. Now I was actually excited for, I guess, how many platforms do you need? And I think I said in the newspaper 4 years ago, you only need 3 and I gave you 3 names. And then I added AI on across those 3. And I still think is absolutely true. And then you need some products on top of that.

Let's have a look at it. These are examples of the strategy. So you all know about the Smarter Airport the whole journey where we created the PULSE platform and as you can see, the product on top of that is AI and then you have the customer-specific configurations, whether it's Copenhagen Airport or Munich Airport.

AMPLIO, which is with -- I call it the borrowing platform, people working on AMPLIO, don't say that, Andre. But it is really a case management administration -- administrative platform. Technically, what it does you can create any type of entity and you can route it around and you can route it around efficiently. And on top of that, you can put any vertical. And as you know, we launched the life and pension vertical just recently. We are working on AMPLIO in many geographies, in many countries in Europe at the moment, and it's a very solid foundation for many of our administrative systems. We will hear much more about it in a walk-through. And the last one is AMI. It's all about communication. It's all about GDPR compliant communication in a safe environment. And on top of that, we have a vertical, the one that most days know like as digital post, MDK or eBox running on that infrastructure. These are -- this is orchestration. This is real-time orchestration. This is a process. This is communication.

With those 3 buckets of components, there's not a single IT system you cannot build. That's, I mean, at least 99%. I mean if you want to go to the moon again, I'm sure you probably -- you could use some of it. And then finally, as a very important part of the platform strategy, we've launched EASLEY AI to go across these, EASLEY is depicted here in the middle. It filters and remembers what any type of LLM receives or replies, right?

So if you build a solution on one of these platforms in any type of vertical, you can access EASLEY and EASLEY will access in LLM. And very soon, and this is one of the things that I think if you read tech press and you're very interested in -- well, the whole investment in AI, I just heard recently that next 12 months in the U.S. investments into AI will reach over [ USD 500 billion ]. That's a lot of money put into that. So the LLMs, that's a war fallout between very large companies, global companies, we will see versions of that in Europe as well.

What we've done with EASLEY is that we've made ourselves independent and we can change the LLM. So the solution is not dependent on the LLM. And in that sense, we can also live up to the serenity demands that we need to do.

So the strategy is to accelerate growth. And that's done by reusing the platforms, and that is a very different strategy from building everything from pure IT services capabilities. And remember, that the platforms, the products and the customer-specific parts for each and every one of those stacks you have a unique solution still for the customer. It will live up to regulatory demands. It is looking very unique to that customer. However, if you look into the components of this, there's a lot of reuse.

It's not like in the old days where you came with an ERP system because it's still -- I know we're talking to an investor community, and you don't have technical backgrounds, you have financial backgrounds. And you still remember the days where financial services were automated by SAP or whatever. And the word standard package or standard software comes from that. But remember, that was a static type of standardization, either you like it or you don't. And if you change it, it's going to be difficult for you to upgrade. And you had to have a fit that was close to 80% or 90% in order to buy a very expensive standardization package, right?

Here, we can build a unique solution for companies and governments that live up to regulatory requirements but still have at least 50%, 60% reuse, maybe even more. And we can decide that from customer to customer, from institution to institution, from government to government. That's the weapon we need. And it's in the application space that Europe will prevail. It's not in infrastructure. That one is gone, right? I mean, I'm not saying it will not be building cloud environments. I'm not saying we will not have super AI computers we will. And those investments will come but it's in the application space where we will be competitive again.

I don't think if you look at super magnificent companies in the U.S., are they that magnificent? I mean half of them made social media for god. This is magnificent. This is engineering at its very high points sold at a reasonable price and scaling in one of some of the most complex areas of society. That's -- I'm not saying we are genius, but it's really well thought out. I really love it.

And now we will have a walk-through of each of these platforms. I think you'll enjoy it a lot. Remember that I think we have a couple of people on stage who normally are very involved in building our platforms. So be gentle, because they are not used to be standing in front of so many people, important people. I think I will end it there. And hopefully, it will emerge. The strategy will go through each and every presentation we have of the platforms. Yes. Any questions? Yes.

Thanks, Andre. A couple of questions. Firstly, just on the products and platform stuff. Does this lead to any change medium term? And I guess this has been happy for a few years. But in terms of how you think about the labor model, intensity of hiring, how you price contracts, particularly for the private sector, do those elements change? And then really just double-clicking back on the digital sovereignty topics that you've talked about that and Ulrik talked about. Can we double click on if it's a real driver? I know we'd like it to be a real driver, but it's Europe being, I think, challenged with some of these very large-scale projects in the past, whether it's payments initiatives or other things. .

Certainly, when we look at the infrastructure layer in Europe, what 85% is still the big hyperscalers you put up the LLM on the slide and many -- much of the innovation is the U.S. companies when we're running devices, the operating systems or U.S. companies. If we look at the European alternatives on the infrastructure side, they're actually significantly underperforming on growth rates right now. So how confident can we be that tipping point is coming? When might that come in your mind?

Yes, there's 2 great, really great questions. To answer very quickly on the first one, obviously, when you start reusing as much as we are and using the platforms, is it a goal in itself to have more and more employees? No, it's not. The goal is to scale as fast as possible and create a managed solutions as possible.

Having said that, I have to observing how it works out in real life. When we sell one of the platforms and products, we find out very, very quickly that we need some people, experts to help clients building up their solutions and really funny enough, a lot of young people, younger talents really love the idea about reuse and love that they don't have to do the boring work, so to see -- so to speak.

So it's been quite surprising to see that you actually need people just doing different things than before. So instead of programming, they are more integrating and definitely talking more to the customer about their needs. So that's a shift happening there. And it scales much faster.

Secondly, I don't tipping point, really good question. Now I don't know. No one knows. Are we going to prevail with this? Are we going to be absolutely serving? I think Ulrik answered really, really well. It might be a hybrid, right? Probably it comes to government systems and regulated system. Remember that we will have our own software, and we will have our own sovereignty. That's for sure. We'll not give that away. And that's the market we are in. That's very, very important to remember.

Secondly, I think, shown the way for this, these platforms can be installed and run in any type of environment. They are containerized thought like that. I mean, again, this is what I like about it. So if you -- for instance, in Norway, they don't think sovereignty is that important as in Denmark. In the Netherlands, they think it's very important. In the U.K., you all know the U.K., right? We are friends with the U.S., but we're also friends with Europe, and let's see how bad this will -- I mean -- so -- but it can be run on any large cloud environment, whether -- but it can also run on-premise. And that's very important.

So the customer has the choice, and we've designed it that way from the beginning. So you have to embrace these scenarios. And I think it's going to be a hybrid scenario. And I think that some of the global tech providers will also adhere to European standards. It's just a question of time before they come up with something that can be seen as sovereign and in that case, which will also be good for Europe because we need their technologies in conjunction with our own, we can also run on their infrastructure. So we're prepared for that. Great question, by the way.

Perfect. We won't have time for any more questions, but you will be available afterwards for networking down in the reception. So please don't -- do you have questions back don't -- with this one. And now for our first platform presentation, we will have Thomas Rysgaard. Thomas is a partner at Netcompany and has more than 10 years of experience from comped. Today, Thomas will present the AMI platform. Please go ahead.

Thank you very much, and welcome to Netcompany. So building on Andre's introduction to our strategy, going to look at some of these platforms and what we're doing around those. So I'm going to start by giving you a little bit of an introduction to AMI Connect and we'll start off with a quick video as an introduction.

[Presentation]

Wow, that was shorter than I remembered. So let's talk about AMI. So AMI is our Connect or communication platform, if you will. It's unique in that it really is a key infrastructure across a nation or a large organization. So this is being used in Denmark for Digital Post, I'll return to that. But it is started as the glue that glues together all these different services, and also become the connection between the enterprise, the government and the citizen and the customer.

So when we look at this platform as an enabler, it is really something that is driving a lot of digital processes across the ecosystem. Now if we talk about AMI as a platform, it's easier to talk about it as a case. So in Denmark, AMI is in the bottom of digital post. So all communication between the government and the citizen and the government and the organizations companies goes through this platform.

From a number standpoint, over 5 million citizens are in this ecosystem, over 400,000 organizations are in this ecosystem and more than 15,000 systems are integrated into this system as a sender and receiver systems. It tells you a little bit about the scale of this ecosystem.

When we talk about how do we really do enhance communication? So we're sending both communication and letter form. We're also seeing data, we are also building service journeys. Am I missing down here again? Or is it me? Maybe we'll switch to the other mic here in a second.

So when we talk about how we are changing the way you are communicating around government organizations, we're talking about now not sending just flat letters. We're sending data carrying letters with Metadata, who is it from? Who is it to? How is it going to be routed? Who's supposed to answer. We're also putting in actions into our letters, streams, maybe you need to provide data back to finish a flow.

So we're doing a lot with data in this. So the old world where you connected system to system is becoming less relevant. We're actually using an infrastructure to basically accomplish a lot of that.

In Denmark, Digital Post is one of the most critical infrastructures we have, is one of the most critical infrastructures we have connecting citizens with government and citizens and companies with the government. The other thing that is with the AMI platform very exciting is the fact that it becomes an enabler for some of the new technologies that are coming around Europe. So the EU identity wallet will be enabled by a form.

So if you are sending certificates between government and citizens, you can use this infrastructure as a secure infrastructure, GDPR compliant to deliver these. You can also build into service flows, which means if I'm applying for loan, I can basically have a secure flow where I put in documents along the way that are certified from my wallet. So this is actually one of the things when we are traveling around Europe right now is a big discussion. How do we do this securely and AMI is one of the answers.

So Andre mentioned, we are combining these platforms with AI. So some of the POCs we are running down when we look at the next level of this platform is how are we going to communicate with the data in the platform in the future. And some of the pilots we're running, we're using AI agents, chatbots. So you -- or a company can have your personal chatbot and you can chat with your data. You can ask questions, when was I supposed to be at the hospital? Was I supposed to bring anything -- any documentation. When is my next appointment? Was I supposed to be bringing some other data or components to this meeting? You can ask your data.

You can also to calculate my last 3 paychecks. Please tell me how much I made and how much tax I paid. So we're seeing a shift in how we interact with data not just taken up documents, reading them, understanding them, maybe even doing an action. We're seeing that you're actually communicating with your data and you're asking your data for answers. And you will also be able to do application flows and things like that, just through a chatbot. This is the next level. And this -- when we look around Europe and we look at what are they looking for, many of the European countries are looking at these type of applications.

To jump over the regular communication channel where you send a message, you receive a message, let's get more interactive. When we look at the market, what are we doing right now with AMI platform. So obviously, the Danish platform has been up running since 2022. It's implemented across the intention, both in the public and the private sector. We signed a contract here in August in Scotland for national implementation of AMI, and we are starting the first use case in December and January. And how can we do that? And we can do that because we are reusing and we're accelerating.

If you were to build this from the bottom, it will probably take us 2 or 3 years to deliver this. Now we can do it in 6 to 8 months. This is important when you have an election in May, that you can actually go out and show how these things can be delivered much faster and with features that typically would take a long time to deliver. We're also working with the English government with GDS, and we have done a POC for them been very well received. So they are now doing a tender here Q1 for national implementation of -- based on the AMI platform. And we are now in dialogue with the state of Iberia, and with the federal government in Germany who are also looking at how can we use this as an accelerator to both implement the wallet, but also to up the service deliveries and communication with citizens across Germany.

So these are very exciting projects that are going on. When we look across the rest of our core market, if you will, there is not one issue in that market that's not discussing this type of application. I think the suites will come out with something within the next 12 to 18 months. Finland is planning their tenders. If we look to United Kingdom, we are already in there, and we are doing scaling based on national implementations. In Germany, we are in dialogue with both the federal and the state. In Germany, you will have a setup where the seats will have likely their own infrastructure that will connect to the federal infrastructure. So we will see more versions of AMI platform there.

The Benelux in talking about how the wallet and delivery channels can be optimized using something like this, and they have some very rudimentary communication channels today that this will surpass by many layers. And then in Greece and Malta, same thing, the wallet is driving this. And let's remember, the wallet is going to be implemented in all 27 member states by '26 and then fully implemented by '30. So there will be a lot of drivers that will help in this dialogue as we continue into the European market. I think that was it for me from a timing standpoint, and then there is time for Q&A.

Well, apparently, that was very well presented, Thomas.

It was very clear.

It seems like we don't have any questions. Well, I think we should just get going on with our next presenter then. Thank you very much, Thomas. And our next platform presenter is Mads Riisom. Mads is manager at Netcompany and has been a part of net company for almost 10 years. Today, Mads will give you a presentation of our AMPLIO platform. Please go ahead, Mads.

Thank you. And for the AMPLIO platform, we will also be starting with a small video. .

[Presentation]

Perfect. AMPLIO, the value proposition of AMPLIO is basically that just as Ulrik said, we are looking into a very, very big upheaval in Europe kind of around serenity and how we're going to do things. And AMPLIO is kind of helping push the sovereignty agenda because everybody has previously looked into sales force, dynamic serum and other established products in the market or how they do case management, process handling and everything.

Now everybody is now changing the focus a little bit more towards something from Europe. Can we do something within Europe directly? Do we actually have to go to the U.S. and AMPLIO is kind of the answer to this. It has been used broadly in Denmark already for many years. And as Andre said, I'm one of the guys who have been around actually building this 10 years ago, when we started it, and it's paying out a huge amount of money in Denmark already. It is a truly well-established platform with a really big footprint at, for instance, HP and combat. I'll get back into that later.

Another really big thing about AMPLIO is that it's designed to coexist with existing parts of infrastructure. In this environment we're in today, most companies, most governments already have a lot of well-established products, platforms, IT systems, they are very old and you do not just replace them from day to day. It's something that will have to take a while. It's -- it's an iterative process. And AMPLIO is really good at going in and slowly strangle out small piece at a time, allowing a slow and more secure transition instead of having to go for that big bang approach that was very common years ago.

Another thing with AMPLIO is that we use it like a technical template. So it's kind of a platform we stand on and then we build these verticals on top. We will talk about life and pension later and also about AMPLIO state.

When we are talking AMPLIO as well in this very governed area with a lot of regulations and rules. It's really important to be aware with all of these people and with all of these huge changes, we also need modifications on the run. In Denmark, we have seen the COVID hits, and we have seen how we have done inflation, health and stuff like that. We have to be very, very quick and easily adapt our solutions to handle these crises within a government. But at the same time, we don't want to be stuck with these increased maintenance costs forever. And our platforms are built in a way so that you can add components, you can add value, you can use these things and then you can remove them again. And that is something that we have seen a lot of positive feedback from our customers about because they have been usually just seeing a constantly upgoing trend of maintenance, but now they will actually see a bit more of up and down because you can remove the things as legislation changes.

I couldn't help myself. I had to bring a bit of a technical slide, and I apologize already, but AMPLIO is built on our foundation and then we have AMPLIO call. In the AMPLIO call, we have a lot of old parts from the good old govtech framework. We took the most important parts. We put those into a core. And after we have done that, we started doing a lot of things at HP incumbent and other companies, and then we moved on and started making these verticals.

I've brought 3 of those verticals here, it's AMPLIO State, AMPLIO Life & Pension and it is AMPLIO government, AMPLIO is widely used in government also because of the serenity aspect of actually utilizing a European platform for something that is [ soceityically ] critical. Yes.

And then on top of these verticals, you will do this customer implementation. By having the verticals and having this different levels of implementation, we actually allow ourselves to be extremely fast in the market, while maintaining this option or opportunity to tailor it to the individual customer. When we are talking with a lot of our customers, all of them believe there are Snowflakes, even though they are within the same domain in the same industry, and being able to just make those minor adjustments are really, really important.

We see the same within large countries like the U.K., where there's slight different interpretations on legislation, and that can lead to that you will have a slight change in how you implement things in the system. And therefore, it's really important that we push that up and we leave that into being a configuration aspect, so you don't have to rebuild the foundation part of the solution every single time.

The current market presence, I've already talked about it a little bit, but we are at ATP. We have family benefits, we have housing benefits. We have state pension. We are doing huge payments in the Danish welfare sector. Another thing that is really important for them when we are talking about the market potential is that they are able to keep taking on more work because the systems are automating more and more things. They're becoming more and more efficient, which also talks into the issue we are seeing in a lot of countries, for instance, Germany, where they are struggling to find enough people to handle all of these regulatory administration systems. It's hard to employ enough people, it's how to find the right people because it's not really, as Andre put it, the most sexy place to work or the most sexy thing to do.

So therefore, it's really important that we can push this with automation, and we can do that using AI. AI is key to ensure that we can keep maintaining this lead. We can reduce the amount of people we need to do the same amount of work.

We also very focused around KOMBIT where we are talking a lot about multitenancy being a big thing, allowing many different users or companies or groups and KOMBIT it's all the municipalities to ensure that they are GDPR compliant by storing data separately, storing data in a way so that it is easy to move around. I think a lot of you have heard about the issues we had with one of the children a while back, we're moving from one municipality to another would lose the track of the data.

By using these systems, it is now possible to do that automatically. We reduce the risk we make it more fluent, but we ensure that we keep all the GDPR. What we are seeing in some older systems that they are really struggling, it's very manual. It's very hard to ensure that GDPR compliance is being over health, but here with these platforms and these products comes up box.

Other areas where we see is a big win we had in the Netherlands earlier this year with IND when they're doing the digital pack from Europe. It's the new pact on how you do immigrant registration at the border, and that is something that we have built a system for based on the AMPLIO platform that actually allows us to take this, make slight modifications and then move it to another country, and we are in dialogue with other countries if they would be interested in this as well. So the potential is huge.

We also have Sweden, where we have a really interesting one. It's a very small solution out there. But what is really interesting about this and the talk about sovereignty, is that, that system is something they're fully maintaining themselves, meaning we're not forcing them to continue collaborating with us if they find other needs, they can do it themselves or in-house it.

So for them, it has been key for their strategy that they are able to go to market, buy a platform, buy a product, get a delivery, get success and then take it in-house and then continue delivery on it themselves. And then we tender again and again and again in the next presentation.

And then, of course, we have the 2 products that I mentioned. We have AMPLIO Life and Pension, and we have AMPLIO Estate. AMPLIO Life and Pension is something we have built for industry, with the industry to ensure that there is a product out there. It is built on the Festina Finance call, meaning that we are actually able to take our AMPLIO platform and reuse all the great use of experience, usability, GDPR compliance and things like that and how you handle customer interactions with processes and tasks, while still reusing what is already existing in the Festina Finance call. In other areas, we are putting it on top of SAP to ensure that some of those old subsystems can be maintained, do what they're really good at, at the core, but you can still actually use them in a modern society and in a modern world with a modern user interface, quick response times and stuff like that. So it really allows this hybrid and not just a pure either/or approach.

So what is the market potential? I want to say it's unlimited. I think even though it's not the most sexy platform, it's definitely a platform with a lot of potential, I don't think -- we can disagree that all topics sector in all of Europe will definitely need to become more efficient as time goes by and the same goes within the private sector, where we, for instance, have AMPLIO Estate, which is something that we have just launched with a lot of collaborators and it is -- the potential is enormous. It does end-to-end processes for everything within the state, and then the state is not just about rental apartments, it can be anything. It is built in a way so that is very generic and can just as well be used to rent out a desk or rent out a book or whatever you want to rent out. And that is one of the strengths is that we can keep it at the level we want to keep it at.

I think that is really cool about these products we have built on AMPLIO, is that they are built for AI first. It's not that we're trying to adapt what is already there, old legacy or anything and then at AI on top. AMPLIO is directly engrained into the products, meaning every process has been designed for an AI to go and support the human being, reduce the amount of time it takes to do something. It could, for instance, be that if you are doing casework on a pension case, you want to check if somebody is let you go for some sort of payout, then the AI would go in and check to have all the right documents, to have all the right data points. And if no, it could reach out and ask for them dramatically without actually needing a human being to go ahead and spend time on finding out what is needed, what is not needed, how do we need it and how do we connect it.

So the potential is huge. The same is said about AMPLIO Life and Pension. Here we are -- sorry, AMPLIO Life and Pension. And here, we are also building it for AI first, same approach, same thought process around that AI should be a core part of how we are doing things to ensure that we work more efficiently. But for AMPLIO Life and Pension, it is also really important to say that it does weigh more than that. It does not just help you make things easier. It actually goes in and becomes a bit of a digital colleague of yours we'll give you sparring and we'll give you feedback on why did you put this in because according to the data, this should maybe have looked something like that according to what has been done previously.

So all of a sudden, it's not just you can prompt something that we've seen a lot of solution. And you can ask a question, are there as a chatbot. We have all of that as well, of course, but it's just so much more than when you build it for AI first, you just unlock a lot more potential than what you're seeing in a lot of other areas.

I think certainly that was my time from now. So we'll move to the Q&A.

If we have any Q&As, I can see we have one here for Mads.

Just one question. How much work does it take from you guys to develop and maintain the AMPLIO platform? And secondly, how fast, how quickly can develop a vertical within the main platform?

So the platform is built. So how long it will take. It is already there. So you could say that is very short. But for how long does it take to build a new vertical, that very much depends on the complexity of the vertical and the domain. So it can differ a lot. So there's no clear answer to that.

Okay. But to exemplify AMPLIO Life and Pension and AMPLIO Estate, what was sort of the development time? .

So the development time there was very much based around also the speed of how quickly. Vertical help us make these clarifications right? It's made for industry, meaning we needed these rates to be able to pitch in and give us the right information to be able to build this. So the technical time is not actually what is the limit or here or how quickly can we do something, it is more around how quickly can we get the necessary clarifications to do the right thing. So I think it's a little bit difficult to say how long do they take to implement directly.

Question for Yiwei first, and then I'll come over to you, Claus. .

Can you elaborate a bit on how you can incorporate AMPLIO to the Netcompany banking service? And what are the sort of the synergy here?

There are many ways to use AMPLIO in Netcompany banking. The approach could be, there are many different approaches, and we're talking about how should it be done? But with banking, there are a lot of core systems already existing and then utilizing AMPLIO, and utilizing these components to really accelerate to reach what you need and then accelerate on how could you actually do it? Because what AMPLIO is really good at is the processing, making sure that what states are everything in, why should the data go? How do you report on it, how do you order it on how do you audit on it? How do make the automated reporting, how do you do all of these things that are necessary to do a compliant system. All of that can be taken out of AMPLIO, but it is also really important to keep focusing on what is actually there already so that we utilize the strongest piece of the existing core. So -- but a lot is the short answer.

Claus?

This is Claus Almer from Nordea. AMPLIO has been on the market for quite a while. And I guess it's been a journey to tell the Danish public clients. What are the advantages of using this platform. So maybe you can tell about when you're approaching a new project, so to speak, do they buy into the platform, so it's easier, cheaper, maybe to buy their solution? Is it a speed to the market? Or is it actually just the outcome that they're buying into?

Potential market to market, honestly. But if we take an example from Germany where we are.

Mainly the market then come to outside Denmark.

So mainly in Denmark. So in Denmark right now because we have all of these components, they will mean a lot of integrations, it will mean a lot of processes. It will mean a lot of infrastructure is already implemented within AMPLIO. So that could be digital post and something like that. So that's the time to market and the reduced cost is really important, but at the same time, it's a lot of reduced risk. You don't have to rebuild, you take things that already work. They are in production, they are battle tested. They have worked for the last 5, 10 years, and they will continue to work.

And another big aspect of that in the Danish market is also that you are able to collaborate with other customers. So within the public sector, especially, we see a lot where KOMBIT and HP can work together, say, new digital post they can build the component share, and then they can do the individual customizations on top of that to do a reduced cost of getting access to some of the shared infrastructure.

And is that reflected in the tender material so you will like to get some benefits of this risk, for instance? Or is it actually your square with competitors? .

That differs from tender to tender, of course, how they want to score it. So it's really hard to say how exactly it is because that's very tender specific. But you will see in some tenders that there's a lot of focus on reduced risk in on price.

On average. So do you see a benefit? And is there any...

We definitely see a benefit on using the platforms for the tenders. And that is also why we are more or less always tendering on the platform.

One about outside Denmark.

Yes. So...

Do we see any competitors that can do the same as you can when you go outside?

We definitely see competitors will do some of the same things what we can do. But we have a very -- quite a different approach on how you should do platforms. We don't just have a product where you say you get this box and whatever that is in this box, you got to use, you got to use all of it. And it's not really a good fit, then we back to what Andre said earlier, that 10%, 20% of it, then you're going to have some very expensive customizations on top.

And what you then often find is that when you have customized them too heavily, they become a little bit brittle they become very hard to maintain. There's a lot of risk of them actually breaking every time there is a small update. Whereas with AMPLIO, for instance, we see that you have the core components underneath, but then you build on top of it. You don't -- you're not forced into taking anything and you're also able to take the things out that don't need anymore. So you get both benefits of put in what you need, keeping the maintenance flow from the beginning and then remove things as you don't need them and add new things as legislation changes.

I'm not sure if that answered all of your questions, Claus, but Mads will be available afterwards as well. Perfect. We have another question here before...

Can you hear me?

Yes.

Yes. Yes, I had a question. Basically, we asked and you answered it because my question was, how do you differ versus competitors? And you basically answered that. But how come that no competitor to do what do you do then? .

So I think it also depends on the competitors, right? But I think one of the things that really puts us apart, of course, is be a European company, meaning we have a European focus. Another thing is that we have not just sat down one day and decided we are going to build a product. And then we put 10 people into a room and said, build a cool product, and then we'll see you in 2 years.

We really have this focus on built by industry, full industry, meaning that it's the people in the room who knows what they actually need for then able to build it. And yes, we sat down and we made some technical components. But again, it's something that grew out of ATP, out of UK, out of private sector projects. It's something that grew organically and is then being reused because we sat down and found that I need this component. And then instead of building it again, it's like to be competitive, it would be a lot easier to just take the old component and then change the 40% that's different for this new customer and then reuse it again and again.

And when you have done that 3 or 4 times as a developer to become lazy. And then you're like, maybe we should commercialize this a little bit different and make it a little bit easier to move these components around. And then you go from that 40% down to that, it's maybe 10% or 20% on top, depending on the specific component. And my competitors don't do it, I think that very much depend -- I can resay what they're doing behind the scenes, right? So I think it's very hard for me to say why they don't do it. For me, it seems obvious. But at the same time, the cost of changing that from what you already have, if that is a one size fits all, then the cost would be enormous to change and then something like AMPLIO that is built component based from the beginning.

Perfect. Thank you so much for your presentation, Mads, and for all of your good answers. We will now have a break, and we will start again 20 minutes past 1.

[Break]

Welcome back, everyone. And I guess we have Andre seated as well. It's only Claus and Thomas, we are missing, the remaining part of the executive management team. So everything is as it should be. Well, we will now have Daniel Ezban on the scene to present our platform pulse. Daniel is principal and Global Aviation lead at Netcompany Today, Daniel will give you some more insights on both the PULSE platform and our co-owned product AIRHART. Please go ahead, Dan.

Thank you very much. Thank you very much, [indiscernible]. Hi, I'm Daniel. Good to see all of you. Welcome back from the break. So I will be presenting the PULSE platform and what we are doing on that. So let's just get on with it. I've got a small clip made by our good colleagues, [ Simarom ] as well. So let's have a look.

[Presentation]

There you go. That's PULSE. And what is PULSE. PULSE is our platform that turns complexity into insights and insights into action. PULSE does one thing or multiple things very, very well. It connects fragmented IT systems. It gathers data from multiple different sources, tie them together in one single source of truth, makes that single source of truth available for teams, so they start acting on data rather than on gut feeling. PULSE is about delivering operational control at scale, about orchestrating data across functions, across the ecosystem, so clients can see what is happening and understand why and act with precision on exactly that. PULSE is very much the difference between reacting and making things right at the right time.

PULSE has a shared core, and this is a message you've heard a few times today, and I will give my spin on it here. So PULSE has a shared core, a common foundation that we use across multiple different sectors from airports to logistics to energy. When we talk airports, we call it AIRHART. And when we are operating in other industries, we call it PULSE. And it's a very important point that here, we are not just building bespoke industry solutions. We are building on an evolving platform where each project and each things we do on the platform strengthens and accelerates the whole. That is unique. And that resonates extremely well when we talk with clients out in the market who are just really used to having very flexible industry-specific solutions.

They always ask me, why do we have to wait for the right amount of investment and innovation in these siloed solutions. The answer is here by sharing and recycling elements, that's the way you add investments into the platform and the products. It's a model that spreads cost, reduces risk and ensures that PULSE is built to last, not just for 5 years, but for decades. And that is important when we are talking about transforming and changing your operational backbone. That is what people are after in airports and in other big infrastructure companies.

All right. So let's move on and see our current market presence, how that looks. If we start out by talking about airports and what we're doing on AIRHART, this is by far our most mature market and where what we have is resonating really, really well. It has been validated that what we are coming with is definitely best-in-class in terms of the operational platforms. Monthly, I'm getting addressed by some of the major airports worldwide, who calls me and try to understand what is it you're doing? Why are you completely redefining things? Why are you're calling things different things? And this conversation just sparks a lot of interest in terms of our approach to this market.

Both Copenhagen Airports and Munich are deep and long-term strategic partners for us. We are very deep in those partnerships, and they have both adopted AIRHART as the operational backbone where we are replacing legacy infrastructure and providing real-time orchestration capabilities for the airports. And one thing that I'm truly proud of and that I return it to a lot of time is the way that Munich has adopted the platform. That is nothing short of impressive. We are actually running 5 or 6 parallel implementation projects on the platform on very different business areas, and we have scaled from 0 to 80 FTEs on only 8 months. That really proves how Munich Airport have brought into this as a strategic capability for the airport.

When I'm with the Munich management team, they're [ Bavariant ], they like their cars. So we always like to compare the platform to Mercedes AMG, and they are really driving their Mercedes AMG as they should on the German Autobahn with a lot of speed and a lot of ambition, and I'm very proud of that.

So finally, I'm also very happy to announce that we have signed a third partnership agreement with a major European hub. We could even call it a mega hub. But unfortunately, I'm not at liberty to share the name of the client nor the details of the contract at this point. But I can say as much, it is something that we have worked on for a very, very long time. Reaching these milestones have added further credibility to our offering in this area. And it signals that the snowball effect is really imminent, and we are just about getting there. On the next slide, I will get to how we are releasing that potential in the airport space.

So if we look at the transportation and logistics in more general terms, moving away from airports, the sector is scaling fast. It's driven by a low level of digitization and a lot of appetite on the readiness for digital ecosystems. So we are doing great things with the DP World Group, [ PO Ferries, Unifed ], et cetera. And we're still expanding the collaboration and the use of the platform with [ Roche ], who are creating more and more transparency on their supply chain.

If we look at a more emerging market for PULSE, then we're looking into energy and utilities. We have had wins there as well, and we have a market here with a huge promise, especially with projects as what we're doing in Athens on the wastewater company, [ ADAP ], doing great things with [ Vestas ] for the moment. And we have transformed the whole energy grid in Greenland with [ NukisioFit ]. So this is where PULSE is today. It has proven itself in very complex mission-critical operations across all our markets. So now we just need to look ahead what is in front of us.

Going back to airports. In airports, we have a best-in-class product, no doubt about that. We have a best-in-class reference, more of them. They are in place now. So we are at the tipping point. We are ready to scale globally in our airport business. Two things needs to be in place for us to achieve that and release the potential. First, we need to expand our product portfolio so we can also target midsized and smaller airports because that is a significantly unserved market by AIRHART, especially on our home market in Europe. And on the other hand, we are also actively engaging with system integrators to handle implementations at a global scale, opening up for opportunities in the Americas, in the middle and in the Far East. So this is extremely important and interesting point in this venture of the smarter airports.

This is how we will go from a European excellence to a global reach. One thing through the strategic partnerships with SIs to scale and to have a diversified product portfolio that we can scale as well. And those 2 things are also what we will be applying for our growth in our home market in Europe when we are talking PULSE in the other industries. So we will be entering a new phase, and that is what Andre laid out that where we will be shifting for a very service-heavy approach to a way more PULSE as a licensing powerhouse or a licensing generator, and we see a significant growth potential in Europe. So we will base -- we will address this potential on the basis of what we -- where we already have projects, for example, in Munich with Munich Airport as the base for growth -- driving growth in Germany and by adopting this partner-led strategy in new markets in Europe where we don't have presence as of now.

So all in all, the future for PULSE is bright. We have some very, very interesting years ahead of us, and we will definitely be keeping you updated on what will be happening.

And I am sure that you have a lot of questions for me. That's why I kept it nice and short. So please go ahead.

One first here. Is the [ Heathrow ] Airport? I'm just kidding. Just -- I was just wondering why was Norway not marked with the AIRHART sign on Slide 26, I think it was.

Yes. Norway, what we're doing in [ Avinor ] with AIRHART is still on the level of a POC level. So what I marked in that slide on 26 are fully big projects that have been fully implemented. But we are running a POC with [ Avinor ] in Norway, that will finish in about a month.

Great. And then now you have, what is it, 4 major contracts within the segment, including the one you cannot announce the customer? Just thinking, do you have enough people to continue to land flagship contracts within this segment? Or is it like sort of the limits to have 4 big countries right now?

No, not at all. We do have the people. We do have the skills. We are benefiting from what we are doing in terms of scaling with the platform. What we have here is still the same core as we do in PULSE. So the whole PULSE team is also delivering into what we are doing in airports. And we are also, in parallel ramping up on the people side because we know that we are at this point now. But that is nothing we see as a risk in terms of scaling the people side.

Just a quick one. Could you just remind us on how you think the projects that are in motion, [ Smart Airports ] right now is not -- as far I remember, is not generating profitability in the associate line, you can see in that company. So when does that start to turn into something that can be meaningful to the group?

Yes. We see that point is imminent. As I just mentioned in my presentation, with the latest win, we will see a small snowball effect happening, and we are really -- and I can also see that the concepts that we are bringing into the airport market with the orchestrated operations, it's something that is really catching on. And the dialogues that we have and the requests that I'm getting from the outside are shifting, whereas they have been very focused on specific solutions, do your solution do this? Does it do that? It has become much more discussion on, how do we tie everything together? How do we get this holistic view of how our airport operates?

So that is very much what we have delivered that shift in aspect. And that's also where we shape the tenders that are out there by having these many conversations because they need to tender for something that wasn't in the market before for them to get the full benefits out of what we have in AIRHART. And shaping and educating the market is what we have been doing over the last years, I would say. And we are really at a stage where we see a breakthrough in that regard.

Coming back to the AIRHART. So I guess some of the potential clients out there are waiting to see it really functioning, which it does in Copenhagen. So do you see this to be the major milestone now you're ready for the next couple of years maybe to add 5 new customers?

They can just line up. I will be happy to serve them with contracts they can sign. No problem in that. But we are definitely at a point where we see we have good traction and getting very, very good signals from the market. But we also have learned and you can see that the sales cycles are extremely long. And there are long tender processes. Hopefully, not as long as the one that we are just finishing now, but it is a market with very long sales cycles. But that is also what ties into what I talked about diversifying our product portfolio, where we can have products that are way more standardized that will address smaller airports with more, I would say, narrower need than they do in Copenhagen and Munich.

And when are you ready to give some more details on this major hub when...

You'll be the first to know.

Are you sure.

Maybe a second.

Perfect. Thank you. Sorry about that. Well, I think that was it. Thank you so much, Daniel.

And next up is Charlotte. Charlotte has a background in defense. She's a former general in the armed forces. And for 5 years, she served in the office of the Secretary General at NATO headquarters. Charlotte joined Netcompany back in February, and she's here to tell you more about one of our recent launched products, VERA.

Please go ahead, Charlotte.

Thank you very much. Yes, I have been working with -- and I can definitely shout out loud enough if it doesn't work this one. I've been working with defense and resilience for more than 30 years. And I have seen, especially during times of crisis, I have seen how traditional authorities often struggle with the loss of control, especially when the crisis across domains and sectors. When.

I was leading the Danish military part of the evacuation from [ CABO ] Afghanistan back in 2021, we really struggled with sharing data across my domain, the defense domain, the Ministry of Foreign Affairs, the police and so on. We saw similar challenges during the COVID-19 pandemic where authorities struggle to get an overview of everything from supply lines to which parts of societies could be reopened and when.

So in the current geopolitical environment with hybrid threats and attacks hitting our societies, which are based on the principles of sector responsibility and the Western rule of law, we struggle with the loss of control. So the response to these hybrid campaigns and challenges is information superiority that allows us to react in real time, and that is why we built VERA, whixh hopefully comes up in the screen.

[Presentation]

So VERA is a real-time data orchestration vertical that integrates numerous existing systems from the public and private sectors. Just like Daniel mentioned before, when we talked about PULSE, then VERA is based on the PULSE platform, the real-time data platform. So this system gives you AI-enabled awareness. It predicts and it suggests a response. An example on how VERA can create awareness, predict and suggest a response could be if we look at the Baltic Sea area. The system can create a precise overview of, for instance, ships from the so-called shadow fleet using data from AIS, the Automatic Identification System, coastal radars, subsea cables, most of them owned by private industries, satellites naval ships.

And if we are then also linking to EU sanction lists, exclusive economic zones and international law at sea, VERA's AI-enabled technology can predict the criticality and suggest possible ways to respond in an unambiguous way. And in due time before a dark ship passes through national waters. So VERA can mitigate the coordination challenges that I've seen so many times between different sectors and authorities. And then by that, enabling the cognitive superiority, that's a difficult word, but that authorities and organizations are looking for at the moment, especially so within the organization of NATO, but also in the European Union.

If we then look at the market potential and with the example I just gave you in -- at the top of your mind, across European markets, I would say the opportunities are vast. NATO has decided to spend 5% of GDP on defense, out of which 3.5% are hardcore defense, what I used to like and talk about, [ Pfizer ] aircraft, tanks, missiles and all that stuff, but then 1.5% of GDP on resilience. And that's where VERA can play a huge role.

I've listed some of the opportunities up here on this slide and I would like to dive into a few of them. I think like Ulrik mentioned to start with the current -- given the current geopolitical tectonic trends, we -- they are basically creating a lot of epic opportunities, I think was the word, epic opportunities for Netcompany. Throughout Europe, there is a growing demand for digital, national and European sovereign solutions. And that's what we can help with through VERA based on the PULSE platform. So within the public sector, emergency preparedness, climate-related events such as flooding quite often happens across regions and districts and involve several authorities and private companies. We can look at the European markets. the Baltic Sea and the North Sea regions to take -- to mention a few, where we have a lot of energy suppliers that are both vulnerable and threatened and where both private and public sectors are playing a role.

So VERA can create the real-time overview of critical infrastructure that can play a crucial role, allowing our societies to orchestrate and react in time.

If we turn to the international organizations, I've already mentioned NATO. But if we look at the European Union, then cross-national resilience platform initiatives, for instance, [ Frontics ], the European Union operation that is guarding our borders, could be quite a relevant place to start negotiations on VERA because units and capabilities from across Europe participate in this operation. And they basically turn up with boats or with planes in the Mediterranean area. And there is not a digital overview of which components are actually present at any given time. All the other data sources that we can pull into the system of VERA based on PULSE again, are not -- there is not that overview. It's on pen and paper or over a radio, as it is today.

So there is a huge potential there as well. And then, of course, the private sector, defense and security industry suppliers are absolutely giving us -- there are opportunities there in that industry as well, especially you could say, those who have -- who is playing a role in the critical infrastructure market, VERA could play a role there as well. So I would say that there are definitely a lot of opportunities, epic opportunities across Europe when we focus on this new market vertical where we combine, again, the components that we have built in Netcompany over the years -- we are very much focused on VERA, on the real-time orchestration platform at the moment. But within defense and resilience vertical, of course, we also keep a keen eye on [ Ampo ], especially that is also relevant for the nation's defense sectors and resilient sectors.

So that was what I had. And please ask me questions, not technical ones, then I will look at Daniel right away. But any other questions would be fine. If you have any, if you dare to ask me any questions.

Just a quick question here. Could you please talk about competition, if you are aware of any platform systems already being adopted by some European countries or any potential sort of alternatives out there?

Yes. I think going -- again, going back to the beginning of this session where Ulrik presented, many of the European capitals are looking at alternatives right now to U.S. tech giants. So I find it hard to see any obvious competitors on the European market. But of course, from the U.S., there are a few. We all know that, for instance, Palantir, they are very much into defense. So defense is also probably a bit more of a red ocean right now than the resilience part where we -- again, where we integrate data from both public, private sector, military and civilian domains.

So there are competitors out there. Palantir is really good at what they're doing. When we talk about intelligence and targeting. So how does NATO planes operate together, how do they get a common picture? Palantir is really good at that, but there is a lot left for a company like Netcompany to engage with.

Just a quick follow-up. [ Atos ] and the French player realized they have built something for the French military. And do you know if they have a product already? Or is sort of just a system they built there for the French Army?

To the best of my knowledge, it's a system they use in the French Army. And it's still, as I understand it, relatively limited. But I can't say much more about it. I know about the system. I know it's being used in parts of the Danish -- sorry, the French, of course, Army. But basically, there is no system in Europe right now that you could compare with VERA. I wouldn't say there is.

I mean there's a lot of talks about the European drone wall. We need to protect the border and underworking and overwork and everything. But Palantir has one solution maybe. But is this kind of a winner takes all market? Or how can you complement -- I mean, what can you do to sort of complement other suppliers?

Yes. If you -- talking about the drone wall, that's still out in the open how that's going to be configured. But I would -- we have a lot of cooperation with industries, the defense industry in particular. About a year ago, I think it was Netcompany actually launched a national alliance with Danish companies, drone detectors and radars and so on, where all the data was put on the PULSE platform, which is now we have turned into VERA. So there's definitely a potential there, and we are working a lot with finding companies that we can partner up with because, of course, we need the sensors out there. We need the sources to come into VERA. And in particular, on the drone wall, we are in close dialogue with a number of both Danish but also European actors.

A question. When Netcompany has developed products in the past like AIRHART or estate, it's been done together with clients in this case, is it a desktop work? Or is it also done with authorities?

It's done with authorities, but with less participation than I'm not too sure how AIRHART was developed. I think it was in very close cooperation with Copenhagen Airport, of course, to start with. But it is looking at the Danish. If we look at Denmark, there is a lot of pressure on various authorities. So they can't put that many hours into developing it, but we are in very close dialogue with several authorities, not only from Denmark, but also from European capitals. So it differs a bit, I would say, from one country to another, how much manpower is being put into the -- to developing and configuring because the basis is there, the foundation is there.

I have one question actually. It's into 2 questions. Daniel was talking about the Mercedes AMG, and he didn't really say whether it was electronic or a diesel one. So we'll find out whether you need to refuel a lot. What kind of car are you driving? That's one.

And the other question is the order that we're not quite sure is a certain U.K. airport has taken a lot of time. When do you expect to actually see order announcements on VERA?

That's a very good question. I can say that we have the first contract, but I cannot say what it's about. So yes, it's a super difficult question because right now, we can't say more. We're not allowed to say anymore. But I know there is -- I know for sure, there is a huge potential. And again, we are in close dialogue but it takes time. If you go to a Ministry of Defense somewhere in Europe, those things take time. So -- but we are also about to -- there was a question about Oslo and what we called [ NAIA ] . We are kind of on the same line with a number of POCs where we where we use VERA in the military and resilience domains. So -- but we can't really -- that's at the POC level right now with one contract, limited scope, but still.

Okay. Nice one. I think that was it for Charlotte. Thank you so much.

The next presenter is Thomas Monefeldt, partner at Netcompany and with more than 7 years of experience from the Danish Ministry of Tax. He's one of our experts within this area. And Thomas will give you a presentation on both our product, ERMIS and SOLON TAX.

Yes. Thank you, [ Fredrik ]. Yes, I have the pleasure of presenting 2, and we will also here start with a video, and that's a video combining the 2. So let's listen carefully.

[Presentation]

Tax and customs is one of the areas where we have taken our platforms and put into actually a product that is very specific into markets, and it's within taxation authorities and it's within customs authorities. So within this domain, we are talking about what we call custom product or commercial off-the-shelf product that is very much targeting the actual business operations within these domain.

So when we have our ERMIS product, that is a product that goes in and handle all the cooperations of customs authorities. So when we see like Ulrik did in his introduction today that a lot of things is happening within Europe on the border due to the geo economic situation, ERMIS is our answer for the customs authorities and the other authorities at the border on how to handle this and do it into operations. So ERMIS is covering everything related to declarations on import, export and transit, but also other areas of the border, for example, tariffs that is very popular at the moment. And it's handling end-to-end operations at the border for the customs authorities.

We are aligning the product to be 100% compliance with the legislation. So whenever EU is changing anything, we are complying with these legislations and build it into the product, so it comes out to all our clients at the same time. At the same time, we are also working to make sure that we are handling all other global standards and customs is still even though the world is fragmented, is still very much regulated on a global level. So our product is both covering the standards of WCO, but also the standards of EU. So we basically have 2 data models within the product and can shift between them. which, for example, makes us a very compelling argument for selling into countries like Norway or U.K. that is on the edge of EU and want to comply with both international standards and EU standards.

In 2021, the acquisition of [ Intrasoft ], one of the main reasons behind that acquisition was the tax and customs domain. And through that acquisition, we have got a lot of knowledge and a lot of the work that was done in [ Intrasoft ] in the past has been used to actually create the ERMIS product and is now what we are leveraging on. And we have also gathered a lot of people coming into the organization that has very deep domain knowledge. So we are in customs, the most knowledgeable organizations in Europe within this space and the one that's having the most expert and is using that both with our work with EU as a client, but also with the member states.

Besides working with the EU on customs and the member states, we're also in ERMIS working to do what we call supply chain integration. So we're working on integrating what is happening at the border to make it easier for the traders to go in and out of the country by using AI for enabling the way that organizations is integrating towards the customs authorities and also using AI on the internal side of the customs authorities to make process optimization for the customs agents at the border.

Then we also, as part of ERMIS, using it for the risk and compliance part. So everything that is happening at the border related to risk and compliance with goods coming in and out of EU, we're using ERMIS for detecting and using the data that is running through the system for actually building machine learning models and AI models to detect what containers should they take out for control activities.

On the other hand, we have SOLON. SOLON is a newer product that has been launched a couple of years ago that's also building on the knowledge from [ Intrasoft ] and the experience that we got from there, combined with the experience we have got by working with the Danish tax where I was a happy client before joining Netcompany. And SOLON is also like ERMIS end-to-end product that is trying to combine everything that is happening in the core process of taxation. So we are focusing on taking all the areas that is complex and then putting it into the product.

So we are covering end-to-end processes of the whole taxation. So that could be within personal taxation, within VAT, within business taxation and then have end-to-end processes covered in ERMIS and also making ERMIS compliant to what OECD is calling Tax 3.0, which is kind of the Northern Star for tax authorities that they are moving in, in actually being digital and being part of the ecosystem. So we are enabling tax authorities to be, like you know from the Danish context where data is coming from banks, from insurance companies, from unions into the tax authorization, making tax easy.

So for the taxpayer, you don't have to do that much that the tax authorities is actually calculating everything on behalf of the taxpayers.

Are you still awake? Tax and customs can be boring, but I hope that I still got your interest here. On the tax side, when we're going around Europe and we are talking to tax authorities all across Europe and also outside Europe, there is one big issue, and that is the legacy situation that Andre addressed in the beginning. And in taxation, similar, a lot of you coming from banks. So you know this legacy situation and a lot of tax authorities was digitalized in the same way and at the same time that major banks. So the legacy challenge that you really see in that market is very much the same as you will see in the financial sector. And therefore, when we are going out and looking at big transformation program, they do not see a need for an end-to-end solution that cover everything at once, but want to do it stepwise.

So the way that we have built SOLON tax is to take a separate model or separate business processes and then make it easy to take a step-wise migration. And that's also the approach that the tax authorities where we have sold SOLON has been using and do this migration stepwise and using the componentized structure of ERMIS similar to what [ Mads ] was telling you about with [ Ampio ] earlier and make it easy and more -- less riskful to go into these big transformations.

If we look at our footprint, if you look at the customs part of things, we are what we call the market leader. We have 11 contracts across Europe on ERMIS handling import, export and transit in various countries and has, over the last years, won around 80% of the tenders where we are participating in most contracts in this space is tender out in large EU tenders. So it's quite easy to figure out how well are we doing up against this market. And if you see, we are both working in countries where we have local offices, but we're also working in other countries. And in these countries, we're working together with local system integrators and have the ability to scale by also using other companies locally to actually implement the product itself.

If you look at land, it is newer. We got the first contract last year, as you probably are aware of, and it is now having 3 countries, where we have sold SOLON. So that's Sweden, Lithuania and Greece and is working on this implementation and we'll have our first go-live later next year in Lithuania. Then we are seeing in the market of tax authorities, a shift towards more and more cost product. So we see around 1 to 2 tenders coming out in this market a year and it's also expected that for the coming years. And with the track record of SOLON, we have won the 3 out of the 4 tenders where we have participated with SOLON. So we have found a very good market traction for this product within Europe.

If you look at the market potential for SOLON and ERMIS. We should start with ERMIS. One thing that has been a main driver for ERMIS has been the European custom code that was decided by EU in 2013. That has harmonized the way all customs authorities is working. That is continuing in the coming years, and there's still a lot of potential in helping countries that is lacking to comply with this legislation and helping them building on top of its both countries where we already have contracts, but also countries where we don't have contract yet.

Besides that, there's coming in a lot of new legislations in EU within the custom space. We have areas like [ CBAM ] where we have won a contract within EU and is running the system or is implementing the system that is going live later in the year to comply with the [ CBAM ] legislation and that is going to be effective 1st of January next year. And similar legislations we see on the pipeline in EU coming, and that will be something where we see big market potential, both on member state level, but also within EU.

And then we have put up here a new area which we're looking into, which is trade facilitation. All the knowledge and the processes that we are having for customs authorities is also relevant for traders and logistics companies so that we have the ability to go in and help them running their businesses with the insight and knowledge we have from the customs authorities.

If you look at the SOLON part, SOLON is a market where we have this 1 to 2 tenders a year coming out. It's an area where there is a shift towards cuts, but there's also a shift for making smaller pieces of solar combined with our system integrator capabilities. So for example, in the U.K., we have started the journey with HMRC with a Dallas contract on doing bespoke development and is working on that. So we see a combination in many countries where we both have the product, but also have the actual ability to help with the strategy that the local authorities are using the knowledge from building our own product into the SI work.

Yes, I think that was basically that. I think the last note is that we have now -- because we are so secure in the way that the product strategy and the coverage of the product in terms of the business, we are also investigating with some pilots to go outside Europe with SOLON. And we are right now in active bidding outside Europe with -- where we are partnering up with one of the major what you call consultancy companies and is bidding with that. And that's a kind of a test with some procurement that is actually live right now, where we're seeing can we scale ERMIS and SOLON by going outside Europe in a model where we are the one that comes with the product and comes with the domain knowledge and then working together with a local implementer that can then do the integration work around this space.

I think that was it, and then there's time for questions.

One question. Last time at the Capital Markets Day in 2023, you had a slide showing market penetration for the ERMIS solution. I think at that time, you have penetrated 7 or 8 countries. Today, you have 11 countries. First question, are you happy with that development, given that it's only you and [ ED ] that has a solution for this industry?

Yes, I think so. I think being able to win 80% of the tenders that has gone out is quite well and it is a lot above what you will see in other similar markets. So we are happy about that. And then on the side of that, we also have increased our work at the clients that we are working at to be able to do system integration work around the product. So we have been very satisfied with the growth we have seen within this space.

And then we have used the knowledge from the member states to actually got a lot of work within EU. And we only see with the new EU customs reform that is coming in 2038 that the work in EU is growing, and we are right now the biggest supplier in EU for tax, the tax and customs authorities. So we also see a very big potential in being close to EU and getting more work there.

And what is the risk that the deadlines for UCC custom code will be postponed again?

The risk for us in terms of market share?

Yes, exactly for the upcoming tenders.

I think the UCC deadlines, the last one is, I think, in '27. So -- and then they will probably be a little postponed as it looks right now. We don't see that as a big risk because if they are postponed, it will just give countries more time to actually take on a larger development and get rid of the legacy systems that many countries, for example, the big countries like France, Italy, Germany is having. So we only see that as a positive thing if the deadlines are getting delayed a little bit.

Yes. It's here. Just one quick question. Could you please talk about the potential with your existing customers? If I remember correctly, one, the Danish Ministry -- tax Ministry put the system up for tendering. It was split to like 3 parts and expanding to import, export. Do you see the same pattern here in the international markets?

Yes, we do. So many of the countries that we have here, the contract right now is only covering transit, which is the smallest part of the customs work. So in major markets like the U.K., like Holland, we see a potential in going into other areas. And we also are in close conversations, and we see that the strategy in many countries is following is taking smaller steps.

So for example, within export, it could be the [ AS ] legislation. That's a new thing within EU. So they're taking these steps. And when they are taking these steps, they are not using their old legacy system, but they are then using the legislation to apply for funding and then we have the opportunity to get in there. So definitely a big opportunity to expand within the current clients.

Thank you so much, Thomas. And before we get to the break, I'll just give the word to André, who will give you a little speech for a couple of minutes.

I'll summarize a little bit on the last 2 sessions here because now we're going to -- after the break, we're going to go into an economy banking services, which is a new adventure as well. But I hope and it was very clear and visible how the platform strategy is everywhere and what we do and how we're reusing everything and that we are working with very specific domains where deep knowledge is extremely important.

And one thing I would add to the overall presentation here is that don't forget that there's a lot of investments going into AI at the moment. And everyone is talking about AI like the whole new thing, and we see what's happening in the U.S. and in China. The ticket to go into the AI space and fulfill the full potential is being inside these domains and having AI built into it. So when you think AI and you think ChatGPT and you're using it everyday and I certainly do. Think about it differently. Think about the way Mads talked about it. It's really important. They can do a lot of stuff for you when you're inside these domains, working with it every day. And it can actually -- that's where you take the potential of 30% and 40% of the workload there is today, it is not outside.

So -- and I think I don't know, but with the huge investments going into AI infrastructure at this moment that can be utilized from within the systems and using AI. Even I sometimes think so much money going into at the moment. It's historical. It's really what is spent during one year is more than we've seen for 10 years in the Internet area. But that infrastructure can be reduced through our solutions. Just an important point to make. Okay. Break and then Netcompany Banking Services.

[Break]

It is now time for a presentation of Netcompany Banking Services. And by my side, I have Torben Finnemann. Torben was CEO at SDC for 12 years. Before joining Netcompany Banking Services as CEO...

Only CEO for almost 3 years.

A part of SEC for 12 years. But the 1st of July, you joined Netcompany Banking Servies' CEO and Torben will start giving you a short explanation of STC and the services they delivered in the past and afterwards Thomas Cordth, partner with more than 25 years of experience at Netcompany, and now Head of Business Development at NBS or that was what I read on LinkedIn at least, we'll present the vision and next steps for NPS. So please go ahead, Tom.

Thank you very much, and thanks for the opportunity to share insights, but also a high level understanding of the former SDC. And also, hopefully, through this give you an understanding of the starting point of Netcompany Banking Services.

I think maybe the best way to give an understanding is to start by explaining a few historical turning points of SDC. Clearly, the first one is founded in 1963. Key purpose at that time was scalability, like it, of course, also is today, but economies of scale for basic operations. Since then, the purpose have shifted very much towards the customer journey as a whole. That is the end customer and a great banking experience for the end customer, but also, of course, for the efficiency within the banks themselves.

Another turning point is the entry of the Nordic markets. In 2004. SDC entered the Norwegian market with the first customers, followed by entering the Swedish market in 2007 and eventually also the very Ireland market at 2010. And today, SDC operates 51 of -- SDC operated 51 banks across the Nordic with the majority in Denmark and Norway.

I think it's also very important to stress that in the recent years, SDC has successfully done a level shift on the main platform. This is a modernizing of the core banking platform. This is a cross-country core banking platform. Also, we launched a new mobile bank, [ netbank ] and Nordic mobile netbank for the Nordics. And we have built an adviser platform. I would say, a market-leading adviser platform also for the Nordics.

The next natural step for SDC would have been a for NBS is to focus even more on the customer journey, making the customer journey a fully automated customer journey, preferably AI powered, making it faster, making it more efficient, making it more personalized and making a great banking experience into this. This could seem like an ambitious goal attack. I think given the competencies that SDC brings to this with the sector insights and the sector knowledge, combined with the new tech insight and skills and the AI power tools, some of the tools we have gone through today makes a strong combination and enable us to actually make a fully automated customer journey.

So today, SDC is a modern based core banking fully service provider across the Nordic. In fact, we are the only full-service core banking provider in the Nordics. That is a unique position. The position is consolidated by the fact that we have full integrations to the sector in 4 countries. We have full integration to partners. We have full compliance to legal and law in 4 countries. So basically, we have a Nordic market, which is open for company banking services. And we have a full opportunity to pursue scalability across country, not limited within 1 country.

Looking at the numbers, we have about 2 million end customers, typically the ones using the mobile bank, of course, we have about 6 million customer accounts. There's about 2,000 bank personnel or advisers sitting in the banks facilitating various advisory cases. And I think the advisory case is a key element in here. There are more than 1 million advisory cases we do a year. It's the core of our focus. Also, it's a core for our focus because this is where you generate the revenue for the banks. This is where you do the credit loans, where you do the selling of investment products and pension products. And essentially also what I mentioned before, this is where you facilitate the full customer journey and where you have a high degree of customer interaction. So naturally, this is a focus going forward.

I already stated that we are a full service provider. But I would like to state it again, this is full service for all aspects addressing the end users, addressing the bank personnel and the banks addressing the daily operation, addressing the security for a bank, which is also a major task and addressing all the compliance, the law, the regulation, which is just increasingly as time goes by. So we are a trusted and key partner for banks. I think we also are the largest share of wallets. And you could say we are their license to operate because we're such a huge part of our customers.

Therefore, also the services spans on a great spend, starting with the basic services that we deliver. And these are Software as a Service. This is core bank. This is payment [indiscernible], of course. This is daily operation. And this is compliance, law sector compliance, of course, also. And then at the other end, we also have supportive services such like migration support, implementation support and utilizing the systems and even purchasing community using the scalabilities of course.

The services we deliver is based on recurrent revenue. Main part yearly maintenance license for the basic services, also transaction-based and usage-based recurrent revenue, of course. And then we have commercial enhancement projects that we do together with the customers, of course.

A key part in our services is also the flexibility we provide to our customers. So we have an open platform, a platform which enables a fit for all shapes and sizes of banks as you see up here on the screen. We may have some of our customers -- most of our customers utilized the full Software-as-a-Service platform. So that's all our solutions. But other customers to an increasing degree, utilize parts of our platform. They may use the core banking system and have their own mobile bank and that flexibility, of course, enable us to go towards a much larger customer base. And also, of course, makes it important that we are also a strong partner in the integration to third-party vendors on their own applications. So it's an important part for the flexibility.

Also, we are a facilitator. We facilitate governance. We facilitate bringing our customers together, looking at common solutions, and we do that to ensure that we can make scalability on this solution. Reduces, of course, average cost to the benefit of all.

Finally, and I think very relevant, we are trusted and best-in-class migration partner. When I speak about migration, I refer to consolidation of existing customers, and I refer to onboarding of new customers. This is a key capability considering the consolidations in the sector. When you do a decision to swift from one platform to another, or to merge, it is a daring decision for any director in a bank because of the complexity. We have proven capabilities in this. We can do that. And we believe we are going to do that quite frequently when we are going to onboard, of course, new customers, where this is going to be also a key capability. But I think addressing the markets, Thomas Cordth will go.

The foundation we already have, let's talk about the future, what our goals and aspirations are. So where do I move forward with this? Yes, here we go. So in essence, we want to be the most business-focused banking IT service provider in the market. So our starting point and offspring is definitely what we want to be for our customers and customers in a broader sense, all kinds of stakeholders. So beginning with the customers, we want to provide the next-generation self-service, give friction less answers on queries, both on a daily term on banking transactions, but also in important life moments. And it's not only digital, we think here will also make sure that we do the best transaction with the customers when we have them in the banks.

For the advisers, it's very important to get a 360-degree overview. [indiscernible] we just spoke about is a real good candidate for giving that overview, integrating across all the tools they're using today. We can see and that accounts for most banks, the jump between applications, copy content and have a lot of busy work that doesn't really help and it's not really productive.

So this is something we'll focus on. Coordinating in a financial overview and always give the customer or the adviser the next best action. So you keep having focus on the essence and how we can create more business. So this is definitely one of the things we're looking into.

Another thing is, and I'll come back to the [indiscernible] that is definitely the business automation. There are still a lot of manual tasks, especially in the production layer. When you have sold the product and go into production, there's still a lot of manual tasks that we can automate also by using AI. And finally, going to the banks, what you should really notice here is that we have done the investment in moving from the mainframe to newer technologies. That's the hard part. So this will definitely give us a lot of opportunities to close these gaps really fast with the platforms we have just shown you today.

And again, data is all about data. So giving real data, real time data insights, in the banking sector, you have a lot of batch processing, you move things overnight. We want to provide more real-time data where it's possible. So you can do things instantly giving the best advice instantly, automate the processes around KYC and ML instantly. So this is what we are going to work intensively with.

So what are the enablers? What is making this possible? Yes. It's probably not a surprise that AI is what we're looking into. We already have a catalog of AI agents we want to build. Some of them focus towards the end customers and some of them focus towards the advisers. So we're already delivering on some of those, and this is where we want to show quick improvements compared to what you have today.

And it's not only at the customer touch points, it's also when you're doing KYC and ML, we do want to do that instantly.

Business Automation. We already have a lot of tools doing business automation. Amplio is a tool for providing business automation and giving a coherent overview. So we already have a lot of tools to start from here. Real-time data insights, we look very much into, as I said before, how we can provide data real time, so you can take actions instantly. But it's not only that, it's also collecting the data so we could do a lot more within compliance, security and fraud prevention. It's all about data. All banks -- all bank products or digital products and we can collect a lot more data than we do today.

So real-time data is also that what will enable that we can do even more on the AI side and also even more on the business optimization. So here, we're building the foundation for the future. And we have so much to build from that company. We are building some of the largest real-time data platforms out there. Daniel told about the data orchestration things we're doing in Pulse. So this is really a stronghold for us. This is something we know really much about. So we look very much into how we can provide that information going forward to the other.

And then speed of innovation. Having done the hard part, modernizing the core, imagine how fast we can close gaps and concur new features and opportunities by deploying the platforms you have seen today. We have so many good assets we can deploy in the banking area as well, giving us a leap and closing really fast in some of the opportunities we are seeing out there.

Going to market opportunities. Of course, we believe we can get a larger share of wallet at our customers with all the backlog we have from that company, with all the tools and platforms we have out there, we have so much more to offer now than we have had in the past. Also bringing things in from under domain. As you have heard today, this is something we do quite often, taking things from one sector and bringing it to another sector. And we're already doing a lot in pension and insurance that we can bring into here, especially in the AI area.

Another important part is that we will provide the market with core independent solutions. Today, you need to have the core in SDC, but if we need to capture new markets, we cannot rely on customers always peaking our core platform. So we'll come with products to the markets where we can actually build on other cores and provide instant capabilities that the customers don't have today. I see a big opportunity. This is important.

Torben, you alluded to it, we still have a lot of market to capture in the Nordics. So that's where we start. But of course, over time, we want to expand in other markets as well. But for now, it's Nordic. Denmark and the Nordics we are focusing on.

Back to the migration experience you just talked about. We can actually drag on not only the migration experience you have. We have done so many migrations at Netcompany. So when we get new customers, we can make risk-free migrations. We have the tools for it. We recently launched [indiscernible] which is legacy modernization platform, so we can do this transformation. And remember, this is hard surgeries. Every time you do a modernization or if you actually want to leave your banking [ corn ] and switch to a new one, migration will always be a concern. But we are really, really strong in that. We have done it both in the SDC, and we have so many tools to bring to the market from that company. So the inter barrier to our platform will be a lot lower than usually.

And then last but not least, Netcompany Banking Service is now part of a larger group, the Netcompany Group. We already have a lot of engagement in our Netcompany Financial Services group working with pension companies, working with insurance companies. They are already active in other countries. So that will give us a foothold to go into new markets. We're already there. We are known for delivering on financial services. So of course, that would be a stepping stone to catch a new market.

And again, I'm very much focused on delivering new things very fast to the market, really proving that we come with a new -- a new idea of how banking should be done. We are a commercial operator. We are used to be in a competitive situation. We're used to getting a lot out of almost nothing sometimes. So we know how to deliver these solutions. So I really think that will bring us in a good situation.

In Denmark, at least, it's very locked this market. It's typically owners that runs the banking central. But now we have a commercial player that can really change the market dynamics.

So I'll not go into these platforms. You have seen a lot of the platforms today. I think Mads you got one question where Amplio is relevant. That was not a fair question because you have not been involved in banking services. But we're already looking into, as I said before, how we can create that 360-degree overview combining advisory sales and fulfillment of these products. So Amplio is a way to integrate and get the overview and provide the [indiscernible] for the adviser. And this is something that will be a game changer.

The last thing I might mention here is we own a part of [indiscernible] Finance. Netcompany Banking Service is already using their adviser products. So that is also a starting point for us to work closer together with the finance on providing things that can also help the banking market and where we're in some sort of control and can do that together because we have mixed blood.

And the last thing is we're also doing a lot in banking in Greece and Cyprus. We have a lot of the larger banks in that area as well. And we also have assets from there, where we're, of course, looking into how we can share that. And basically stand on each other experiences and capabilities. So I think that's it for what we're going to again in the future.

Any questions? I guess that we may here that's the new kid in town.

I guess a question going back to where SDC is today. I'm curious to hear a bit more about the upsell potential of existing customers. So what's the -- how much more is a customer who is on, say, the full SDC SaaS platform worth than the customer is just using one solution? And I guess, related to that, how many customers are on the full SaaS solution and how many are just on a more fragmented number?

I think I can answer that. In terms of upsales, there's different perspectives for a larger share of volume of wallets, as I said before, we have some of our customers, of course, they are cross sector large customers. So there are opportunities to do cross-selling or other sectors to the same customers. There are multiple business cases to do for, as I said, for revenue generation for current customers. So there are lots of selling potentials with the existing customers in this aspect also, of course.

Most of them today is using the majority part of our Software-as-a-Service. Some of our larger customers, for instance, we have Skandia in Sweden, is only using the core banking platform, and then they have their own mobile and netbanking, and we have done a full integration to this. So we see some of our customers only utilizing parts of our platform, but that's not the majority. The majority is using the full services, but we do get a lot of requests also on partial parts.

We are out of time here. So please reach out to Thomas and Torben afterwards, if you have any further questions because I'll now give the words to our CFO, Thomas Johansen, who will go through the numbers with you and the synergies first of Netcompany Banking Services. Thank you.

All right. Only me between cold glass of wine. So I'll see if I can be swift. So a few words on the synergies within Netcompany Banking Services. As of July 1, '25, we completed the acquisition of SDC. We are thrilled about the transaction. We believe that it will add significant value to the Netcompany Group and to our shareholders. But equally important, it will offer tremendous value to the sellers of SDC, namely the banks that are now customers of Netcompany Banking services.

Transaction was structured as a merger, whereby SDC was merged into a new company, namely Netcompany Banking Services. As a consequence of structuring the transaction as a taxable merger rather than purchase of shares. The acquisition is meaning that the net assets to Netcompany will be eligible for tax depreciation. That means that the full purchase price of DKK 1 billion will be tax deductible on a tax depreciation perspective, saving DKK 220 million of taxes for a Netcompany.

Another consequence of the merger is that SDC for the shareholders' agreement that was in place, received a payment of DKK 65 million for the shares of holding in SDC [indiscernible] because they had they had to leave the company [indiscernible] they're no longer owning part of it. Now the fact that Netcompany Banking Service is no longer a shareholder in [indiscernible] data is on dramatic, and it will pose no change in the relationship initially. The [indiscernible] is obliged by law to continue to deliver the current services for the next 24 months. And if there is no new solution in place after that period of time, [indiscernible] is still obliged by law to continue to deliver these services.

Now SDC used to report on the Danish GAAP, whereas Netcompany Banking Services will report on IFRS. On the Danish GAAP, leases are accounted for as expenses and are hence included in administration costs, whereas in IFRS, leases are capitalized as right to use assets and amortized over the term of the lease. Reporting on the Danish GAAP, SDC have historically capitalized and amortized the own developed software. Now under IFRS, that capitalization would require a clear relation between the capitalized development cost, the future cash flow related here to and a clearly identified delivery obligation. Such a strict relation does not exist under the IFRS interpretation. And hence, capitalization is not allowed, even though a significant amount of IP has been developed and still exist.

Hence, the value of the own developed software is substantially reduced during the purchase price allocation from around DKK 750 million to DKK 33 million. The value of the developed software is instead allocated to customer relationships and goodwill. And Netcompany Banking Services will consequently discontinue the previous method of capitalizing and amortizing approximately DKK 200 million of costs annually.

As has been said a few times, a main reason for the shareholders of SDC to enter into the transaction with Netcompany was to accelerate innovation, reduce time to market for new solution, and, at the same time, also reduce their own running costs. To deliver on that promise, the Netcompany has initiated a comprehensive transformation project of Netcompany Banking Services, introducing Netcompany methodologies of working, sharing existing platforms, of which you've heard a lot today, to accelerate innovation for Netcompany Banking Customers and to eliminate duplicate roles post merger.

In addition, Netcompany Banking Services will leave its current headquarter in [indiscernible] and work out of Netcompany corporate headquarter, actually right here in [ Stingelin ] Copenhagen as of January 2026, so 2 months. That move, we believe, will ensure a fast and swift integration of sharing knowledge and support the integration of Netcompany Banking Services further into Netcompany Group.

During the next 3 years, Netcompany expect to gradually realize cost synergies by 2028, are expected to be between DKK 300 million and DKK 350 million compared to the cost base in SEC of 2024. The expected phasing of the realization of the annual cost synergies are 35% to be realized in 2026 next year, 65% to be realized in 2027. And then the full realization of cost synergies to be realized by 2028 and onwards. Assuming the midpoint of the cost synergies range of DKK 300 million to DKK 350 million in 2028 the transaction will add roughly DKK 6.8 in earnings per share compared to the 2024 base, which is equivalent to an increase in earnings per share of more than 70%.

The total special items year-to-date is DKK 351 million, including DKK 35 million related to advisory in connection with the transaction, termination of contracts, including the lease of SDC's old headquarter [indiscernible], which is another DKK 130 million. And then finally, other restructuring costs, including cost redundencies of around DKK 185 million. So all in all, that is the synergies to be realized in SDC, the reason for why we think this is a fantastic transaction both on a business perspective, but also on a financial metric perspective. And I'll leave you with that and then open the question -- over the floor for questions.

I guess when we think about the deals you've done, Intrasoft was less of an integration than Netcompany Banking Service will be. Do you think Netcompany Banking Service is ready for that cultural change that you have to drive through that business, both from a delivery perspective and cost base effects over the coming years. And you haven't mentioned too much about the top line growth you hope to achieve with Netcompany Banking Services, do you think you can accelerate that growth rate sustainably why you changed the cost base quite significantly?

Yes. So a lot of questions in that 1 question. Thanks, George. In terms of the difference between Netcompany Banking Services and SDC and in terms of [indiscernible] you're absolutely right that initially, we decided not integrate the Intrasoft into Netcompany Group back in 2021. The reason for that at that point in time was that Intrasoft was a very big operation, 3,500 employees or 3,200 at that point in time. And Netcompany was 3,700. So basically, we did an analysis showing that the integration risk if we were to put Intrasoft, Netcompany Group systems in 6 to 12 months was simply too big.

Now subsequently, we have integrated Intrasoft into the Netcompany Methodology, the Netcompany Systems as of January this year and further integration is ongoing. So I would actually say that the integration of SDC and Intrasoft will in the same place. The only difference is the speed with which it's done.

Now at this point in time, before we acquired SDC, we were a group of 8,500 employees, having done a number of acquisitions and also subsequent integration. So we feel much more comfortable that we can do the integration with SDC on a faster scale than what we've seen historically. Adding to that, the vast majority of employees in SDC is in Denmark. And the part that's not sitting in Denmark is [indiscernible] where we also have an office. So the 2 integration of -- 2 integration tasks are, by nature, very different. We feel comfortable that we will manage to integrate SDC and the talent that exists in SDC greatly into a Netcompany Group to the benefit of both parties.

Then in terms of top line growth, we don't have any specific long-term aspiration for SDC in the Netcompany Banking Services at this point in time. We are just now getting on the same platform. We'll do the integration of Netcompany Banking Services as I said, 1st of January. And then, of course, we will start to see what we can do of new offerings like Thomas Cordth was mentioning. We do expect that to generate additional activity with Netcompany Banking Service customers, and we'll look at how we can then scale that further. But as of now, we're looking at the transaction to be yielding significant cost synergies. And then if and when it will add top line synergies, we'll get back to that.

Claus Almer from Nordea. So can you just say a little bit more about the cost synergies, what is actually driving or what's behind this DKK 300 million to DKK 350 million. Is it both fewer FTEs, is lower salary? Is it moving out of [indiscernible]?

There is a combination of all of the above. And then you're going to ask me, well, how much is [indiscernible] to kill the energy in the room and [indiscernible] that I'm not going to be commenting on that in great detail. But what we can say is that when you do a merger, then clearly and put things together, certain roles exist in duplicate manner, right, which is mainly within the administration. Now it's fair to assume that a lot of those roles once integrated, will vanish and be done in one unified way. So there are some reductions in the administrative part of the group.

Is also fair to assume that given the fact that the ability to work with technology and work on existing platforms already exist throughout Netcompany Group, that learning and that methodology will be pushed into Netcompany Banking Services, which inherently will generate significant efficiency gains in Netcompany Banking Services, basically mean that we can do more with the same people, and we can do the same with less people. So that also means there will be some redundancies going forward. But we will make those calls as we go.

The most important thing is to observe that we have a group of 51 banks that have been trusted Netcompany to handle all of their operations that have been trusted Netcompany to deliver on the promise to deliver new and modern banking services to accelerate their offerings through an increased use of AI. So of course, we will also focus on that. And then there are other external factors in terms of cost for advisory within Netcompany Banking Services, that will be discontinued sure [indiscernible] will go away. So it's a combination of those things.

You talked about integration makes sense in Denmark and also in Poland. But I also realize there's around 27% of revenue in 2024 came from the Nordic markets, Sweden and Norway. And what are the synergy there could you maybe elaborate be?

So the market in SDC, Sweden and Norway are, to a large extent, served out of [indiscernible] historically. I think the presence in Norway was in [indiscernible], which is a small representation office of 5 people. So there's not a lot of synergies to realize there because there's no presence. So Norway and Sweden have been served out of the office in panel.

And can you elaborate a bit on the revenue stream in this Nordic markets? Are they more like licensing income for the SaaS platform? Or is it sort of [indiscernible] business?

So the way the licensing -- or sorry, the way the revenue stream is struck is not as a license. Historically, a number of different applications has been built in SDC, more than 300, and they are all pulled together in a solution to run the bank or the bank's different operations. And that is being in most on an ongoing basis. It's not based on licensing. That's also why we cannot sustain the DKK 750 million as value of intangibles. It is based as a recurring fee for maintenance of the operation.

All fueled up. Please go ahead.

I'm still Thomas. And thanks for the question. We can, of course, take further discussions afterwards. Talking a little bit about long-term targets. Now the demand for IT services in Europe, we believe, continues to be large and growing and using market data the addressable market for large-scale IT digitalization projects, that is the Netcompany is estimated to be well over DKK 1,000 billion. So that's DKK 1 trillion in Europe annually.

In addition, my colleagues today have demonstrated that Netcompany are now ready to also tap into the market for software licenses with the various products and platforms that we have developed and commercialized over the last couple of years or 3, 4 years. So consequently, we add another DKK 300 billion of addressable market in Europe annually for software sales for Netcompany to tap into.

Now that leads us to conclude that Netcompany should be growing organic revenue through any business cycle between 5% and 10%. And based on our offerings and our products, platform enabled with AI, we conclude that Netcompany should also be realizing a margin of more than 20% through any business cycle, too. For the group, including Netcompany Banking Services, we expect total annual capitalization of costs related to the development of own software. So that would be the products that we've been through today, not necessarily the ones that are in the Netcompany Banking Service that we said we will not capitalize on, but continued development on mean [indiscernible] and the other platforms.

We continue that level to be in line with our historical level of capitalizations, which is around DKK 100 million to DKK 130 million annually. Taking this and the timing of the realizing of synergies in Netcompany Banking Services into perspective, we expect to reach an adjusted EBITDA margin of above 20% for the group by 2029.

Since 2016, we have made 6 acquisitions that have been supportive of building the group as it looks today. The acquisitions in Norway, in the U.K. and the Netherlands are what we would label as "acquisition and hirings." In other words, acquiring a company to get access to the employees. The reality irrespective of what Andre and I have been tough in the market with, reality is that it's turned out that such acquisitions are inherently more difficult to make successful. Hence, we changed our approach in 2021 with the acquisition of Intrasoft, to be focused on only acquiring companies that would add "scalable IT." Thomas Monefeldt has in his presentation shown the value of Ermis and Solon to the group, and those products we got through the acquisition of Intrasoft.

The opportunity in both estate and life and pension, based on the Amplio solution that Mads Riisom was talking about together with Life & Pension core that [indiscernible] have developed offers great market potential, too. And lastly, Torben Finnemann and Thomas Cordth have spoken to the scalable opportunities with SDC into Netcompany Banking Services, reusing SDC IP with Netcompany platforms, including AI capabilities. In addition, also tapping into the other product developed by Festina Finance, which is the adviser platform that was already an integral part of the system landscape in SDC and in other banking platforms too before the acquisition of SDC. And hence, looking forward, we will only be making acquisitions that offer scalable IP.

So finally, I just want to reiterate our capital allocation principles. Now we continue to be opportunistic when it comes to M&A, meaning that we will act if the relevant M&A opportunity presents itself. When making an acquisition, we expect the acquisition to be accretive in less than 2 years with a payback of 5 years. In special cases, we can accept a payback period of 7 years. And finally, we target to make acquisitions where value of the target is not higher than the value of Netcompany. Going forward, we will dynamically redistribute free cash flow using both share buybacks and dividends. Our long-term target for leverage is below 1. And irrespectively of those targets, we will still complete the DKK 2 billion share buyback program that was initiated in 2023 to be completed by 2026.

Now that was all I had. I don't think anybody has any question on the long-term targets. Yes or maybe no. Any questions, please. That's okay.

Thank you, thank you for saving me here.

And I will be the one to ask last question. Thomas, last time you provided a bridge one, give the 2026 EBITDA margin target. Could you also elaborate a bit here, how do you reach the 20%. It is year quite far from, if you look at the current level?

Yes. So we'll not be providing a bridge. So if you're hoping for that, I'll have to disappoint you. But, what will take us to the 20% margin by 2029, there's a couple of things. So first of all, clearly, the realization of synergies in Netcompany Banking Services, will add to the margin. That's clear. Second of all, and maybe tapping back into our recently released Q3, we do expect margins to continue to come up in the markets we're in. And we saw a margin increase in Denmark in Q3. We saw a margin pick up in the U.K., stable markets in Netherlands and then too low margin in Norway.

So no surprise when I say there's going to be a combination of increasing margins in those countries. And then clearly, that will be facilitated by continuing to sell large-scale digitization projects with a product or a platform attached to it. The product line platform will enable better and faster implementation. It will enable reusability, which means that the cost will be lower, which eventually will make our profits go up.

Now another important message maybe is that towards the 2029 target of the year 20%, we have not made any wild assumptions that 10% of revenue or 20% of revenue should be driven by licenses. So we believe there is a large and untapped license potential for Netcompany to tap into, but that is not what's going to drive the 20% margin by 2029.

I'll try another one on end up having a recession and you grow 5% and up 10%. Can you still achieve the 20% EBITDA margin?

Yes.

That's the shortest answer you've ever given, Thomas. So thank you very much.

Thank you.

And with that, we are actually done for today. I want to -- just before we open the doors and leave the room, I want to say thank you to all of the presenters that has been on this stage today. I want to thank all of the internal colleagues that has held out to get this up and running. But of course, also thank you to all of the investors and analysts that has decided to participate both here at our headquarter in Copenhagen, but also those who have followed online. So please go down and have an hour of networking with the presenters, our country managing partners, both from Denmark, [indiscernible] as well. So if you have any follow-up questions, please go ahead and thank you very much.

Welcome to Netcompany's interim report for the first 9 months of 2025. Today's call is being recorded. [Operator Instructions] I would now like to introduce CEO, Andre Rogaczewski; and CFO, Thomas Johansen. Andre, please begin.

Good day, and welcome to this presentation of Netcompany's results for Q3 2025. My name is Andre Rogaczewski, and I'm the CEO and Co-Founder of Netcompany. And I'm joined today by our CFO, Thomas Johansen.

Before we get going, there are some important disclosures that I need you to read through. So could we please have Slide #2. I will pause for 30 seconds here and let you all have a read-through of these important disclosures.

And with that, can we please go to Slide #3, please. The topic of today's presentation is our performance for Q3 2025. I'll start by walking you through the business highlights for the quarter and some of our recent launches. Once I'm done, Thomas will go through the financial performance, including our guidance for 2025 and long-term targets before we open the call for questions.

And can we have the next slide, please? The future does not belong to traditional IT consultancy companies building solutions from scratch, but rather to European platform companies using components and products and AI to deliver in a fast, reliable and responsible way. In 2023, we launched our product and platform strategy, embracing this development, and we are strongly positioned to take market share from more traditional players.

We have clearly differentiated our offerings from our peers, which is also why we continue to grow. An example of a recent product launch is VERÁ based on our PULSE technology. The launch is happening in a time where European governments, institutions and large enterprises continue to focus on European digital sovereignty through European solutions developed and hosted in Europe on European data.

VERÁ is a critical solution for European defense and resilience, providing AI-enabled awareness, prediction and response. This is a vertical we have invested heavily in within the last 12 months, and our ambition with VERÁ is to become a preferred European vendor and a trusted partner in a time of change.

Another example of where we have differentiated our offerings is within real estate, where we have commercialized our offerings and launched AMPLIO Estate. AMPLIO Estate is a new solution for property management companies that aims to set completely new digital standards for property management across Europe, moving away from mere administration to real automation and new process support driven by AI.

Our solution for the life and pension industry, AMPLIO Life and Pension is a third example of launching vertical solutions on AMPLIO. Very fundamentally, all of our launches and products and platforms are AI-ready. But AI is also a fundamental part of our own delivery model, and it's mandatory for all employees at Netcompany to use our digital assistant, EASLEY AI to ensure that we continue to evolve and stay competitive. EASLEY AI knows about Netcompany deliverables and methodology and will assist our employees in designing, building, testing and running our systems.

At our Capital Markets Day tomorrow, we'll elaborate further on these topics. And can we go to the next slide, please?

We closed the SDC transaction on the 1st of July with the merger of SDC into Netcompany Banking Services. In Q3, we have commenced the integration of Netcompany Banking Services into Netcompany Group. The integration efforts are progressing faster than anticipated, and I'm thrilled about the opportunities Netcompany Banking Services give us within the financial service industry.

We can already see now that the combination of deep subject matter expertise within former SDC, combined with Netcompany best-in-class IT development capabilities will offer the customer solutions that are unmatched in the industry. We look forward to accelerate the partnership with our banking customers in the future, and we will already, in this quarter, be launching new AI initiatives benefiting our customers. Thomas will give you a detailed walk-through of the NBS numbers in his part of the presentation. And can we have the next slide, please?

And now I mention some of the contracts we have won during the third quarter. In the public sector in the Netherlands, we have been selected as a strategic innovation partner for the development, management and implementation of a new shared registration system for 3RO, the three collaborating probation service organizations in the Netherlands. The system is based on our AMPLIO platform.

In the Danish private sector, we have entered an ambitious strategic collaboration with Heimstaden Bostad, PHM Group and Thylander. Together, we will introduce a new revolutionary European property management system built on top of Netcompany AMPLIO and with AI deeply integrated into core processing with EASLEY AI. This is the first contract for our newly launched AMPLIO Estate solution.

The Scottish government have selected Netcompany to build a digital communication infrastructure for Scotland and its citizens. The ambition is to enable broad digitization and interoperability of digital solutions and communication flows in Scotland, thus driving innovation and efficiency in the digital government, gradually replacing a large part of the analog processes of today.

The solution Scott Account mailbox is built upon Netcompany's AMI platform, which is extended and customized for the specific needs and the digital ecosystem of Scotland.

And can I have Slide #7, please. Also in Netcompany SEE & EUI, we have signed several new contracts in the third quarter of the year, of which we have highlighted a few here. In the public sector in Greece, we have entered an agreement with the technical Chamber of Greece. The project includes creation of an integrated system that will use new GIS and AI technologies and high-resolution aerial photography to effectively identify cases of unauthorized construction.

Also in the public sector in Greece, we have signed a contract with the Independent Authority for Public Revenue, IAPR, where the scope of the contract is to design and develop a new integrated electronic human resources and payroll management system with the aim of digital transformation and upgrading the administrative capacity and operation of their services.

In the private sector in Greece, we have been awarded a 1-year contract extension with a leading gaming company in Greece, OPAP, to deliver end-to-end application delivery services, including design, implementation and quality assurance across the core gaming platform. And also in the private sector in Greece, we have been awarded a 1-year contract extension with HELLENiQ to provide support, maintenance and development services.

And with that, I will now pass on the word to Thomas, who will give you a walk-through of the numbers. Please go ahead, Thomas.

Thank you for that, Andre. And like already mentioned, I'm the CFO of Netcompany, and I will go through our financial performance for Q3 2025. Also, please bear with us for the added complexity to this particular quarterly report following the inclusion of Netcompany Banking Service into our numbers for the first time.

So if we move past the breaking Slide #8 and straight into Slide #9 in one go, please. As of 1st of July 2025, Netcompany Banking Services, formerly SDC, was included in Netcompany Group. This resulted in adaptation of new accounting standards for SDC moving from Danish GAAP to IFRS. The acquisition means that we, in this quarter, have made a full purchase price allocation of the DKK 1 billion purchase price, just as we have made full provision for restructuring costs.

Taking a look on the financial performance in the quarter, we grew organic revenue in constant currencies by 8.5% compared to Q3 2024. Currencies impacted revenue growth negatively by 0.3 percentage points, resulting in reporting organic revenue growth of 8.2%. Organic growth was driven by 6.7% growth in revenue from the public sector and 11.7% growth in revenue from the private sector. Revenue growth was supported by all segments, except from Norway. Reported revenue grew 34.3%, of which 26.1% were nonorganic related to the inclusion of Netcompany Banking Services.

In Netcompany Denmark, organic revenue increased 4.8% compared to Q3 2024, driven by revenue growth of 14.3% from the private sector, while revenue in the public sector was in line with the same period last year. Netcompany SEE & EUI continued the strong growth for the first half of the year and grew revenue 12.5% compared to the same period last year. The growth was driven by both the public and the private sector that grew 12.2% and 13.5%, respectively.

Also, Netcompany U.K. continued its strong growth from the previous quarter and grew revenue 17.4% compared to Q3 2024. The growth was driven by the public sector, which grew revenue by 23.8% compared to the same quarter last year. The growth in the public sector was supported by increased engagement with both existing and new customers, including a continued ramp-up of resources on our engagement with HMRC through the Dallas framework and through other contracts. Revenue in Netcompany Netherlands increased 10% compared to Q3 last year and was solely generated in the public sector.

In Netcompany Norway, revenue decreased slightly by 2%, driven by a soft market for IT consulting that generally has been declining over the last 12 months. In Netcompany Banking Services, revenue grew 5.8% compared to pro-forma revenue of SDC Q3 2024. This was a result of increased activity with existing customers.

Can we move to the next slide, please? In a market where most of our peers have seen little or no growth, Netcompany grew organic revenue with 7.1% in the first 9 months of 2025 compared to the same period last year. Organic growth was driven by the public sector, including the European Union that grew revenue 8.3% and supported by revenue growth of 4.3% from the private sector.

Growth in both segments was supported by our products and platforms and AI solutions. Reported revenue grew 15.7% in the first 9 months of 2025, of which 8.7 percentage points were nonorganic related to Netcompany Banking Services. And can we move to the next slide, please?

In Q3 2025, organic adjusted EBITDA before allocated headquarter cost increased 8.7% to DKK 348.1 million, yielding an organic adjusted EBITDA margin of 19.1%, in line with the same quarter last year. Reported adjusted EBITDA increased 17.3% to DKK 359.3 million in Q3 2025. Adjusted EBITDA margin for the group was 17.3% compared to 19.8%. And the explanation for the lower margin is the inclusion of Netcompany Banking Services, which impacted adjusted EBITDA margin negatively by 2.5 percentage points.

In Netcompany Denmark, adjusted EBITDA margin was 29.2% in Q3 2025 compared to 28.6% in the same quarter last year, underpinning the margin acceleration that we've seen in Netcompany Denmark.

In Netcompany SEE & EUI, adjusted EBITDA margin was 12.1% in Q3 2025 compared to 11.6% in the same quarter last year. In Netcompany U.K., adjusted EBITDA margin was 14.3% in the quarter compared to 10.3% in the same quarter last year and at the same time, significantly improved compared to Q2 2025.

In Netcompany Norway, adjusted EBITDA margin was 0.4% compared to 11% in the same quarter last year, and the decline was related to the soft market in Norway. Adjusted EBITDA margin in Netcompany Netherlands was 22.9% for the quarter, in line with Q3 last year.

In Netcompany Banking Services, the adjusted EBITDA margin was 6.4%, in line with pro-forma adjusted EBITDA margin of 6.6% in SDC in the same quarter in 2024.

And can we have the next slide, please? For the first 9 months of 2025, organic adjusted EBITDA before allocated headquarter cost was 17.5% for the group, in line with the same period last year. Reported adjusted EBITDA margin before allocated costs from headquarter was 16.6% compared to 17.8% in the same period last year. And again, reported margin was negatively impacted by the inclusion of Netcompany Banking Services to the group numbers. And can we have the next slide, please?

I will now give a detailed walk-through of the acquisition of SDC and the financial impact of including SDC into Netcompany Group. As of 1st of July '25, Netcompany completed the acquisition of SDC. The transaction was structured as a taxable merger, whereby former SDC was merged into a new company, Netcompany Banking Services, which was established by Netcompany and capitalized with DKK 1 billion in cash and equity.

The former SDC reported under Danish GAAP, whereas Netcompany Banking Services will report under IFRS. This results in significant differences in accounting treatment for certain assets and expenses, most notably accounting for leases and own developed software. Under Danish GAAP, leases are accounted for as an expense and hence, included in administration costs. Under IFRS, leases are capitalized as right-to-use assets and amortized over the lease term.

Reporting under Danish GAAP, SDC have historically capitalized and amortized own developed software. Under IFRS, capitalization requires a clear relation between the capitalized development cost, future cash flow related here too and a clearly identified delivery obligation going forward. And due to the specific nature of the contract entered into with all the customers of Netcompany Banking Services and the way the total solution in SDC has been structured with more than 300 individual solutions developed, such an obligation does not exist under the IFRS interpretation, even though a significant amount of IP has been developed and established and still exists.

Hence, the value of own developed software is substantially reduced in the purchase price allocation from around DKK 750 million to DKK 33 million. The value of the developed software is instead allocated to customer relationships and goodwill. This also means that Netcompany Banking Services will discontinue the previous method of capitalizing and amortizing approximately DKK 200 million annually.

Future potential capitalization of development of own software solutions will be based on specific cases where a standard SaaS solution is developed, which will subsequently be licensed. A full purchase price allocation has been performed and based on the assessment of assets and liabilities of SDC, the purchase price allocation leads to the assets and liabilities in Netcompany Banking Services as illustrated in Note 8 in the company announcement.

Furthermore, as a consequence of structuring the transaction as a taxable merger rather than traditional purchase of shares, the gain arising from the transaction is taxable for the sellers and the acquired net assets will be eligible for tax depreciation for the buyer, Netcompany. Under the Danish tax law, the full purchase price of DKK 1 billion will be eligible for tax depreciation over a 7-year period, resulting in reduced taxes of DKK 220 million.

Also as a consequence of the merger, SDC was required to exit the ownership of JN Data as per the shareholders' agreement. Hence, Netcompany Banking Services received DKK 65 million for the shares in JN Data during Q3 2025.

Under the regulations for operators providing "solution" for critical financial infrastructure, JN Data is obliged to continue to deliver unchanged services in quality and price for at least 24 months. If no alternative operating solution is established at that point in time, JN Data will remain obliged to deliver these services.

A main reason for the shareholders of SDC to enter the transaction with Netcompany was to accelerate innovation and reduce time to market for new solutions and at the same time, reduce their own running cost. To deliver on that promise, Netcompany has initiated a comprehensive transformation project of Netcompany Banking Services, introducing Netcompany methodologies of working, sharing existing platforms to accelerate innovation for Netcompany Banking services customers and eliminate duplicate roles post-merger.

In addition, Netcompany Banking Services will leave its current headquarter in Ballerup and work out of Netcompany corporate headquarter in Strandgade in Copenhagen as of January 2026. The physical move will ensure fast and swift integration and sharing of knowledge and support the integration of Netcompany Banking Services into Netcompany Group even further.

During the next 3 years, Netcompany expect gradually to realize cost synergies that by 2028 are expected to be between DKK 300 million and DKK 350 million annually compared to the SDC cost base in 2024. When we originally announced the transaction, we communicated that we expected the transaction to be double-digit percentage accretive to earnings per share in 2028 compared to 2024 baseline.

Assuming the midpoint of the DKK 300 million to DKK 350 million cost synergy range, the transaction will add DKK 6.84 in accretive earnings per share combined to the 2024 baseline. This is equivalent to an increase in earnings per share of 71%. As a result of the integration, a restructuring provision of DKK 205 million has been booked and expensed as special items in Q3, covering costs to be incurred towards 2028. This covers costs related to redundancies, lease terminations, termination of contract for services no longer required as well as various other costs related to retention and integration efforts.

Another DKK 96.5 million related to impairment of right-to-use assets and other regulations have also been expensed in Q3 as special items, bringing total special items for Netcompany Banking Services to DKK 304 million in Q3, whereas total special items for the group year-to-date totaled DKK 351.2 million, including DKK 35 million related to advisory in connection with the transaction. Can we go to the next slide, please?

So in summary, the inclusion of SDC into Netcompany Banking Services have led to significant changes to previous accounting principles and a significant amount of costs have been booked as special items in Q3, supporting the realization of the expected annual cost synergies of between DKK 300 million and DKK 350 million to be reached by 2028. These are summarized in the table shown here. Can we go to the next slide, please?

In Q3 2025, we employed an average of 9,482 FTEs, equal to an increase of 1,394 FTEs or 17.2% compared to Q3 2024. 6 percentage points were organic and 11.3 percentage points of the increase was nonorganic as a result of including Netcompany Banking Services employees into the total number. The attrition rate for the last 12 months was 18% for the organic part of the group, which was a small increase of 0.5 percentage points compared to Q3 2024. On a sequential basis, the churn rate was in line with Q2 2025. Furthermore, the 3 months rolling churn rate was in line with Q3 2024.

As Netcompany Banking Services is in the initial phase of a significant and structural reorganization, it makes no sense to include data on churn within Netcompany Banking Service into the group numbers at this point in time. Can we go to the next slide, please?

Organic free cash flow decreased from DKK 145.3 million in Q3 to negative DKK 11.5 million in Q3 2025. The development in the organic free cash flow was mainly driven by development in working capital and to some extent, also impacted by increased tax payments and increased acquisition of fixed assets. The negative working capital changes in Q3 '25 was mainly driven by increased contract work in progress in the organic part of the group. This was due to timing of milestone payments on projects, mainly within public contracts throughout the group, while the level of trade receivables at the end of Q3 was slightly below the realized level at the end of Q3 2024.

Consequently, organic cash conversion rate was negative 7.1% compared to 89.5% in Q3 2024. While cash conversion rate adjusted for taxes paid on account decreased from 59% in Q3 '24 to negative 22% in Q3 2025. Also in Q3 2025, Netcompany Banking Services accounted for negative DKK 44 million of the group's free cash flow, which totaled a negative of DKK 55.5 million. Cash flow is expected to normalize during Q4 and Q1 and the differences in working capital are of timing character only. Days sales outstanding decreased from 70 days in Q3 2024 to 53 days in 2025. Can we have the next slide, please?

Organic revenue growth -- organic revenue visibility end of Q3 2025 was DKK 6.7 billion, which was an increase of 6.8% compared to DKK 6.3 billion in Q3 2024. Based on pipeline end of Q3, revenue visibility in both public and private sectors for the remaining part of '25 remains at a satisfactory level, supporting continued growth.

Nonorganic revenue visibility from Netcompany Banking Services for the last 3 months of 2025 amounted to DKK 390.5 million. Combined with the reported Q3 revenue in Netcompany Banking Services, revenue visibility for Netcompany Banking Services amounts to DKK 811.4 million compared to expected revenue of between DKK 840 million to DKK 870 million for Netcompany Banking Services for 2025. Can we have the next slide, please?

Considering organic revenue growth of 7.1% for the first 9 months of 2025 and taking pipeline and revenue visibility into account for the remaining part of '25, we lift the lower end of the expected revenue growth range from 5% to 6%. At the same time, we narrowed the range and reduced the top end of the expected revenue growth range from 10% to 8%.

Consequently, we now expect organic revenue growth for 2025 to be between 6% and 8%. At the same time, we narrow the range for our expectation to organic margin and now expect an adjusted organic EBITDA margin of between 16% and 18% for 2025.

We remain committed to the share buyback program of DKK 500 million launched in connection with Q2 2025 report running until the end of January 2026. Can we have the next slide, please?

Yesterday evening, we announced our long-term targets, and these are as follows: long-term organic revenue growth for the group throughout any business cycle of between 5% and 10% annually and an adjusted EBITDA margin above 20% for the group to be reached by 2029. The 20% adjusted EBITDA margin is including Netcompany Banking Services using new accounting technologies, meaning that we do not continue the previous methodology of capitalizing around DKK 200 million annually in Netcompany Banking services for development of own software.

For the total group, including Netcompany Banking Services, we expect total annual capitalization of costs related to development of own software to be in line with the historic levels for the group of around DKK 100 million to DKK 130 million annually.

For capital allocation, we will complete the DKK 2 billion share buyback program by 2026 as originally introduced in 2023. We continue to be opportunistic when it comes to M&A, and we will dynamically redistribute cash using share buyback programs and dividends of all free cash flow while observing leverage, of which we have a target of below 1.

We will now open up the call for questions. So if we move to the Q&A slide, please, and open up for questions. Thank you.

[Operator Instructions] The first question is from the line of Claus Almer from Nordea.

Yes. First of all, congratulations with a strong Q3. I have 2 questions. I'll take them one by one. The first is to the Banking Service division. When do you expect to be ready to launch some new products that will have a meaningful commercial success outside the existing customer base? That will be the first one.

Thank you, Claus, for that question. So we have already commenced some new services to be launched within the next 3 to 6 months in our customer group.

And that's for Denmark? Or is that also in a broader European perspective?

That's primarily for Denmark and then Scandinavia.

Okay. Then the second question goes to Denmark. It's actually two-folded question. So you raised your -- or increase your FTE by around 6%. Does that mean you are running at a full utilization in Denmark?

Yes, it means that the utilization is beginning to be where we want it to be. And just maybe one more comment on the increase in FTEs compared to relative increase in revenue. We are also changing the split in FTEs and thereby utilizing more FTEs outside of Denmark to generate revenue in Denmark. That, of course, has a positive impact on margin. And that's why we can see increasing margin despite the fact that FTE count is increasing more than revenue.

Okay. And then just more to Denmark. The private segment, which grew quite nicely here in the quarter. Can you share some details on the pipeline and what type of projects do you see in the pipeline?

Yes, I can do that. I mean the private sector is a focus area and has been a focus area for us the last 1 to 2 years, even more than before. And all the engagements we are currently working on, the pipeline is strong and the engagements we are working on are based on our platforms that we use across all regulated industries. And furthermore, we also engaged with looking into how larger enterprises in Denmark can substantially reduce their IT expenditure and at the same time, become more agile. So it's a very interesting pipeline and engagements.

The next question is from the line of Yiwei Zhou from SEB.

I have 3 and do one at a time. And firstly, Andre, could you maybe talk about your expectation for Netcompany Banking Service the future growth potential? And what is embedded in your long-term target? And also in this context, I realize that you have lost this local bank alliance in Norway earlier this year. And what is the time line for phasing out its [ 10 ] member banks?

Well, I cannot go into the specifics about the Norwegian market and what we're doing there. But I can tell you what the strategy is, and it's indeed quite simple. We have already modernized the kernel of the banking system, and we're now adding our platforms and our services on top of that. And we will gradually be introducing more and more automization and AI into our services. Now looking at the acquisition, I think it's -- looking at the numbers as well, I think it brings out clearly that there's synergies to be had.

But at the same time, we'll also be making sure that our time to market will go down, and you will see much more automization coming out of our service lines. And that's where -- this is where -- that's what we're going to do to our existing customers, but we'll also do it in a modernized way. So new customers do not have to invest into the entire banking platform in order to benefit from our service lines. And that's as far as I can go with our expectations on that.

Okay. Fair enough. And in this context and a question on your cost synergy. If I calculate correctly, the DKK 300 million to DKK 350 million cost synergy, it will lift your EBIT margin for NBS quite significantly, probably to more than 20%. And I understand a lot of that will be driven by your productivity and efficiency in the software development. And would you consider to pass some of those gains to your customers? Or do you see the need for it?

When we've made the agreement with the banks, the agreement was that we would deliver a couple of things to the banks, and that's why they were willing to let us take over SDC. First of all, we would deliver better products faster. We would deliver new innovation, and we would deliver capabilities within artificial intelligence. Now we will also develop and deliver that at running costs that are lower than what they have historically been paying to SDC.

So the synergies that we are mentioning here is net of that. And you can view the synergies as impact on net profit or profit before tax. But since the transaction is also opening up for depreciation on the assets [Audio Gap] then there's DKK 220 million in safe taxes to be offset. So you can view the DKK 300 million to DKK 350 million way as additional profit for the Netcompany Bank Services Group.

Okay. And can you please talk about the revenue stream from the banking customers here to NBS? And I understand from one peer that a part of the revenue is coming from the platform and also part of that coming from the sort of commercial projects. And I was wondering if you can also talk about if the price for those commercial projects are already fixed under your current contracts or long-term contracts with the banks.

We cannot disclose any of the details in the agreement we've made with the banks. And I think you're going to appreciate that. First of all, we've agreed with the banks not to do so. And second of all, we think that's for our privilege to have. Now we will go more in details with Netcompany Banking Services on our Capital Markets tomorrow, including what kind of services we are going to deliver, how fast we will deliver them and what the change will be to the customers of Netcompany Banking Services having paired up with a professional IT provider rather than an internal IT department of a bank.

Okay. Now looking forward to the section tomorrow. Last question here in relation to the bank merger earlier this week. And how do you view this impact on the Danish banking IT market? Do you expect this [ ARC ] Bank and its chosen of their IT vendor will change the competitive landscape?

Well, we certainly welcome the landscape of delivering banking services in Denmark is going into a more dynamical character. Every time we see that type of development, if you look at the business case calculations for merging banks or acquiring banking services, the IT part of that calculation is always very significant. And in that sense, I think sticking to our strategy that I mentioned before, being able to deliver faster, more modern and in a cheaper way will position us -- position us perfectly in that market.

Okay. And would you see any opportunities or even risk to your business in the long-term?

In what way to our business?

Any opportunities?

Well, obviously, when the market becomes less static and when everything is more about how to deliver the right services at the right cost, our modular approach and having the most modern technology with less cost is absolutely attractive. So yes, we see a lot of opportunities in a less statistical market.

[Operator Instructions] And next up, we have Poul Jessen from Danske Bank.

A few questions. You write in the report and you earlier said that the integration is ahead of plan. Can you give a little more color in what way it's ahead of plan because you haven't seen and you don't guide any synergy impacts for this year?

No. I mean, surely, that means that we've had some months, quarters to learn each other, learn the organization and figure out how to organize ourselves. And that is in place. Plans are in place. We are executing upon the plans. And when we look into that, we can see we are ahead of our schedules. And by the 1st of January, we'll have SDC moving into our headquarters. And we've already established teams and development efforts and everything has been set into a new setting, and that's happened before we actually scheduled it. So that's good to see.

And some Danish media has been writing or having focused about unions and the potential synergies. How is that evolving?

Well, we have a very constructive dialogue with all the unions in Denmark, and we will continue to do so, and I expect that we'll find a solution in some way.

Okay. And then finally, looking ahead on your long-term ambitions. You've launched VERÁ this week, the state solution. When you give the long-term margin guidance, how should we look or maybe that's more for tomorrow. How should we look at license income being part of the guidance here?

Well, the more vertical products we launch and good examples of that is VERÁ, but also Estate. Obviously, when we launch the more verticalized versions of our platforms, we will also be incurring a license towards the customers selecting those solutions. But -- not going into more further details of our expectations, I don't think we can do that.

What we can say, though, Poul, is that the long-term targets that we have set is based on the Netcompany that you know. And then we are in a transition, as Andre is mentioning, to launch more verticals. And that means at one point in time, we will also see significant uplift in our ability to charge licenses for the products and platforms that we offer. The target of 20% in EBITDA margin by 2029 does not assume that there is a significant uplift in licenses. That will come on top -- so that will come on top.

Okay. And when you look at -- when we talk about VERÁ and Estate and then compare it with the speed that we have seen on AIRHART on the ramp-up there, have you taken a more cautious view on getting into these new verticals than what initially was communicated about airports?

Well, I think we've all learned from the developments in AIRHART. It's the same type of technology platform. It is a strategic decision to select our platform and product in this sense. However, we also see that it can be utilized in smaller settings than a complete airport. So we'll be offering it to both selected institutions, but also entire countries or geographies, so to speak. So -- we've been cautious in the way we've been approaching it. But at the same time, we think we have a solution that is very adequate for supporting European countries and institutions and vital enterprises in having a clear view of their assets and how to protect them.

And next up, we have a question from Anders Vollesen from Jyske Bank.

I have 3 questions. I'd also like to take them one at a time, if that's okay. So the first one, I just noticed there's no material license revenue in Q3. I was just wondering if you could give any guidance on how we should think about that going into Q4, if there's anything pent-up or waiting there?

Well, thanks for that question, Anders. And you know the answer to that, and that is that we cannot give you any specific guidance into Q4. So we've narrowed the range, and we expect a top line of 6% to 8%, and we expect a margin of 16% to 18%, and we are comfortable that we will end in that range.

Fair enough. Second question and third actually goes to NBS. Can you tell us anything about how we should think about the phasing of the cost synergies that you've put out today in NBS? Is it like linear? Or is it like a big ramp-up here in 2026? Just yes, I guess, a housekeeping question.

It will be a gradual realization of those synergies, and we'll go more in detail with that tomorrow. But you can assume there's going to be a gradual realization of cost synergies over the next 3 years, '26, '27, '28.

Okay. Great. And then the final question. So when I look at the [ AvanesLands Bank ] transaction, obviously, there will be a winner and a loser on the bank platform side. Would you have an appetite in merging or acquiring the "losing sites" sort of and would you see yourself as a better fit than a potential bank data BC merger?

Well, we are -- we will always be a relevant player in any type of competition, and we actually believe that we have relevant services. And of course, we will be ready if that should occur.

And we now have a follow-up question from Yiwei Zhou from SEB.

Again, I have 2 more questions here. Firstly, on this tax impact from the SDC acquisition. And you mentioned this DKK 220 million tax asset can be used for tax deduction. Thomas, if you can elaborate a bit how should we expect it to face over this 7-year period? Would it be sort of upfront loaded or will be smooth spread out? And also, if you can also talk about this cash impact?

So the tax depreciation of the full purchase price, the DKK 1 billion is what gives the DKK 220 million. So that's safe tax, and that will be realized over a 7-year period. That's the depreciation method used for taxable depreciation on intangibles. So it will be realized gradually. And that means that for all practical purposes, 1/7 per year, which will have a positive cash impact in that year.

In terms of reduced tax...

Yes, reduced taxes.

Okay. And the cash flow should be 1:1 -- the cash flow impact.

Yes.

Great. And then next question is regarding the JN Data. Now you have sole ownership. And I was wondering, over longer term, if the banks or if you have more bank customers, I mean, the data hosting is a large part of the business. Would you consider to add more or operate data center? So would you be required by the customer to do that?

I think in any aspect, JN Data is hosting all the applications right now on behalf of Netcompany Bank Services, and we are happy with that, and our customers are happy with that. Of course, going forward, in terms of what the future will look like, we will have to discuss that, first of all, with our customers of Netcompany Banking Services and with JN Data in the commercial negotiations that we have in terms of how the future will look.

Okay. So we cannot rule out when do you have to invest in the data hosting business? I guess it's very, very small exposure you have today.

Yes. I don't think that you should think of Netcompany building data centers, if that's your question. That's not the same to say that we don't have investments in servers, but the physical data center is something different.

And next up, we have Aditya Buddhavarapu from Bank of America.

So firstly, at the Q2 results, you had spoken about seeing an impact in Denmark because people are spending time on product development and the SDC integration and that is expected to reverse in H2. So could you just give an update on how that has progressed during Q3? How much of -- maybe that was to growth? Second, Norway, as you said, growth is weak due to a weaker market. Could you just talk about what's happening there and maybe how some of the contract wins you had there could help to drive growth in that segment in Q4 and into next year?

If I take the first question, then Andre can add on to Norway. So in connection with Q2, we said that in Denmark, we had for the first half of 2025 utilized, roughly speaking, 100 people in 3 different buckets equally distributed on work related to the integration of SDC, increased business development, i.e., sales activities, specifically within large public and private engagements. And then the last 1/3 used for product development in terms of making sure that different features and capabilities were put into most notably the solutions, AMIs and SOLON.

And then we also said that we expect this over usage of resources from Denmark to normalize through second half and that it would be an even normalization throughout Q3 and Q4. And that is what we have seen so far. So we are seeing that normalization and expecting that to come to full fruition during Q4.

Yes. When it comes to your question about Norway, the market in Norway is specifically soft. There's also some timing issues in that, also looking at the government spending. However, we have some solid customers there, and we continue our business, and then we are ready for -- to embrace the next pickup in the market space.

Understood. And maybe just one follow-up on the U.K. You saw a very strong growth in that market. Can you just talk about the pipeline there and also what could help drive growth again into Q4 next year in U.K.?

Yes. The U.K. is -- the U.K. results are -- and you can see that they are actually -- they're coming from 2 sources. One is our existing customers who are buying more under existing framework contracts. And the second phenomenon is that we're actually penetrating the U.K. with more and more platforms -- platform-based projects and the awareness of Netcompany is growing also in the public sector.

And the win in Scotland with the EME platform is also one of the strategic kind because we're using one of our platforms for creating Digital Post and what relates to that. So it's the result of a long, say, long tedious and patient buildup of pipeline. And yes, we are happy to see that it's actually materializing.

And next up, we have a question from Mads Quistgaard from DNB Carnegie.

I will take them one by one. So first, some bookkeeping questions. If you want to find a pro-forma 2024 adjusted EBITDA number for SDC, would it be fair to take the Q3 number of DKK 26 million and then multiply it by 4? Or is there any seasonality in SDC? Would be my first question.

And there is, unfortunately, a little bit of seasonality, Mads. So it's difficult to just take 1 and multiply by 4. So I wouldn't recommend that. There are certain things happening both in '24, but also in the first 2 quarters in '25. So it becomes blurry if you do that.

Okay. But I guess given there's an IT company, Q4 tends to be stronger. So it would be a fair assumption to also here assume that Q4 is stronger in SDC compared to Q3?

That's a fair assumption.

All right. Then I have a question on the revenue because I see in the report that you're right that most of the revenues in SDC is based on a time and material basis. But I recall from the 2024 annual report in SDC that you have a strong backlog, and it is recurring by nature. So can you maybe talk into revenue, even though it is a [ TMT ] basis, is this recurring by nature?

It's recurring by nature, and it's also not uncapped. So it's also by nature, what you would call fixed fee. But the contract is structured as T&M in terms of how we are remunerated for the effort. But it is recurring by nature, and there's also in the contract agreements in terms of what's going to happen over the next coming years.

Great. And then on the CapEx, I understand your point with R&D capitalization, but how should we sort of view it going forward, Thomas? Is it fair to assume it to be, let's say, DKK 20 million per year? Or is it run rate closer to DKK 50 million? I think you capitalized what is DKK 120 million on a full year basis in Netcompany Group and then Intrasoft. So how to think about it?

I think to think of -- 2 things. So capitalization, think of that on a run rate of somewhere between DKK 100 million and DKK 130 million for the group, all up. And in terms of CapEx, so traditional investment in servers and other traditional CapEx, that is typically somewhere between DKK 50 million and DKK 80 million on a historical basis. And that will come in different waves. From time-to-time, we need to invest in server capacity. And from time-to-time, we need to invest in other capacity, which makes it not even. But if you look at the investments so far historically, then you come to a run rate of, yes, somewhere between DKK 50 million and DKK 80 million, I would say.

Okay. Final question, coming back to the consolidation. So just to understand the industry, so the ongoing consolidation, we also expect in the future, is that a risk or opportunity? Or is this a more end user again, hence, less important if banks continue to consolidate? That will be my final question.

I think the consolidation is definitely an opportunity. Any change in the static environment of the banking market is welcomed by us. And as I said before, the IT cost and the agility and time to market are really, really important parameters when rearranging the ownerships. And I think it's fairly underestimated how much the modularization of services will impact the market. There's going to be a lot of modules that you can use across the data centers.

And furthermore, I think AI will really penetrate this market over the next 2 years. So it's definitely an opportunity for us because it opens up the horizon of what is possible and it leaves the static nature of always utilizing the same vendors over and again and again.

Fair enough. It was just more to understand that we were above 200 banks in the '90s, we are around 50 banks today in Denmark, and there seems to be ongoing consolidation. And just to understand the financial IT service providers have still in the meantime been able to lift their revenues substantially. So it seems to me as this is more like an end user game that it is a consolidation that is driving the top line in the financial IT service providers. That was more the question.

I think that if you look at the total spend on IT for those banks that have been reduced substantially, IT spend has exploded. And that's because it has been run by internal IT departments that have not had as their core business to do IT projects, digitalizations and the likes. And we are biased here, but we believe that we are better to do that. And therefore, we're quite certain, as Andre is alluding to, that it will be an opportunity to Netcompany and Netcompany Banking services for sure.

And next up, we have an extra question from Poul Jessen from Danske Bank.

I don't know if you heard it because it just said unmuted now.

We didn't hear it, Poul. So I'm quite sure it was a great question. Can you please repeat it?

No, it's for Andre. When you launched the VERÁ solution, then you let person quote you for saying that PULSE and similar solutions could account for 20% to 30% of revenue somewhere in the future. Based on estimates now that would then be DKK 2 billion to DKK 3 billion. I was just wondering, could you put a little more color on what you actually meant and what is the starting point? Is it already close to DKK 2 billion coming from those? Or is it all platform aggregated? If you could put a little more question on that -- not question, comment on.

Yes. What I meant there is that real-time orchestration and digital twin solutions will be a big part of what IT industry is going to be delivering in Europe over the next future or years to come. And that goes because that is happening due to -- because of several reasons. One is that the amount of sensors and the amount of areas where you've digitized something that can be connected to a real-time engine has just been rising over the last 3 or 4, 5 years. And then, of course, also the geopolitical situation we are in.

So you will see a lot of companies being able to monitor their assets in real time. And that is great from an optimization point of view to drive your business more efficiently. This was not possible before, where it was much more about administration, orders, invoicing, economy, financial control.

Now we will see a lot of things happening in the operational part in a real-time orchestration of businesses. And that will happen both from an optimization point of view, but it will also happen in regards to the geopolitical situation we are in at the moment. So yes, I do believe that 20% to 30% of solutions being made in the near future are going to be much more related to that than just financial automation or classical administrative IT systems.

So in your context, then we are talking about products...

Yes. That's the platform we are using for that, yes.

And where are you today? Just to have an indication, is it a doubling or is it plus 30%? Or is it a tripling that you're talking about when you say 20% to 30%?

We don't have that information disclosed, Poul. So we cannot give you where we are today. We are not at 0, and we are not at 20%, 30% as of now. But what we are seeing that any new project that we are embarking on in Netcompany is based on one of the products or platforms that we have. And that means that when we grow, we grow on products and platforms. And then we have some ongoing solutions that we also manage that will gradually move to those products and platforms also. So it's a phasing thing, which will happen over the next, as Andre say, a couple of 2, 3 years, and then they will expand from there on.

As there are no further questions, I will hand back to the speakers for any closing remarks.

Well, thank you, everyone, and have a wonderful day.

Welcome to Netcompany's interim report for the first 6 months of 2025. Today's call is being recorded. [Operator Instructions] Today's speakers are CEO, Andre Rogaczewski; and CFO, Thomas Johansen.

Andre, please begin your meeting.

Thank you. The topic of today's presentation is our performance for Q2 2025. I will start by walking you through the business highlights and will also give you our perspective of the current market dynamics in Europe and how we see Netcompany playing an increasing and important role in the continued digitization of Europe. Once I'm done with this, Thomas will go through the financial performance, including our guidance for 2025, before we can open the call up for questions.

Before we get going, there are some important disclosures that I need you to read through. So could we please have Slide #2, please. I will pause for 30 seconds here and let you all have a read-through of these important disclosures. And with that, can we please go to Slide #3, please. Sorry, Slide #4. Since Netcompany was founded 25 years ago, our focus has been on responsible digitization. Starting with the public sector as our primary, we have built and implemented some of the most fundamental solutions for digitization in the Danish public sector. This has been done in a repeatable and institutional manner, giving us the opportunity to repeat this in other geographies based on our platforms, products and methodology.

Today, we see greater demand than ever for increased productivity within the public sector across Europe as every country is now launching its own digitization strategy backed up by EU ambitions as well.

With European governments and the EU's focus on enhanced digital capabilities based on solutions from European vendors to increase European competitiveness and productivity, our investments in the future are more relevant than ever.

We continue to expand our presence and footprint outside of Denmark. And within Q2, we've won projects within the public sector in the U.K., Sweden and Greece, and we see positive development in the Netherlands as well.

Public digital services such as advanced case management, digital post, digital wallet and digital ecosystems or so-called digital twins are some of the requests we see from European governments.

And with our solutions and experience in the different categories of public administration, ranging from tax and customs, emergency preparedness, welfare benefits, business administration, immigration and social security, we are well positioned to take part in the digitization journey that Europe is on.

But it's not only in the public sector that we are accelerating this data revolution. We see more and more cases come to the market in the private sector, too, where Netcompany has been traditionally strong in sectors such as transportation and logistics as well as in life and pension.

With our latest acquisition of SDC, we are continuing to build a strong foundation within this industry vertical, spending most on IT and digitization, namely the financial services industry. And with SDC, we can now also deliver banking software as a service. I'm very excited about the opportunities this brings to Netcompany.

Another very important focus area for us is AI. AI is a fundamental part of our delivery model and it's mandatory for all our employees at Netcompany to use our digital assistant, EASLEY AI to ensure that we continue to evolve and stay competitive. EASLEY AI knows about Netcompany deliverables and methodology and will assist all our employees in designing, building, testing and running our systems.

As EASLEY AI is our platform for generative AI digital assistants internally, it is also the foundation for our proposition for generative AI to all our customers. With EASLEY, it is possible to independently use various global large language models in conjunction with EU AI regulation.

And recently, also Feniks AI was launched as our platform in order to use generative AI to help modernizing legacy systems within our customers.

With PULSE, our real-time data engine used in airports under the name AIRHART, this is now available for all sectors. We have a very strong position as a European leader within predictive AI and digital ecosystems across many industries.

The future does not belong to traditional IT consultancy companies, building solutions from scratch, but rather to modern European platform companies using components and products and AI to deliver in a fast, reliable and responsible way. We have embraced this development very early on. And in 2023, launching our platform and product strategy, we are strongly positioned to take market share from the more traditional players.

We have clearly differentiated our offerings from our peers, which we will also continue to do while we grow. The product and platform strategy benefits both our customers and our business as customers will experience faster project completions and reduced overall costs, while we will expect accelerated revenue growth from delivering solutions based on reusable platforms and products across sectors.

All over Europe, we will continue to see demand for our customs and tax products, our case management systems, our solutions for digital post and our real-time data engine, which to me confirms the resilience and relevance of our business model. And can we have the next slide, please?

We closed the SDC transaction on the 1st of July with the merger of SDC into Netcompany Banking Services. I would like to welcome all our new employees of Netcompany Banking Services. The integration of SDC into Netcompany Banking Services has now started, and given the significant planning done over the last months, our expectation is that we will see rapid progress of the integration efforts bringing new and innovative solutions to our existing customers, at the same time, attracting new customers.

In connection with the announcement of Q3 '25, we will include Netcompany Banking Services in our financial reporting, and we are looking forward to giving you more details in connection with the Q3 reporting on the 30th of October and on our Capital Markets Day on the 31st of October, which we will host at our headquarters here in Copenhagen. And can we have the next slide, please?

And now I will mention some of the contracts we have won during the second quarter. In the Danish private sector, we have been selected as a vendor for a significant enterprise customer that is currently undertaking significant investments in the overall technology stack. At this point in time, we're not able to share the name of the customer, but we expect to be able to do so in connection with our Q3 report. The contract size is significant.

In the Danish public sector, we've been selected to deliver a new modernized driving license register to the Danish Road Traffic Authority. The modernization includes moving the solution from an old mainframe solution to our AMPLIO platform.

In the Swedish public sector, we've been selected by the newly formed Swedish Payment Agency to build the digital foundation for all government social benefit payments to all Swedish citizens. The solution will be based on our SOLON TAX product.

Furthermore, in the Danish private sector, we have seen a positive trend of conversion of pipeline in the beginning of July, which I'm looking forward to be able to disclose further information about during Q3. And can we have Slide #7, please?

Also in Netcompany SEE & EUI, former Intrasoft, we have signed several new contracts in the second quarter of the year, of which we have highlighted a few here.

In the European Union, we have been awarded a framework agreement as a part of a consortium by the Intellectual Property Office. The scope of the agreement is to provide maintenance support for end users, Digital Workspace, IT Infrastructure and Operations Services. The framework is a renewal of an existing contract.

In the private sector in Greece, we've been chosen to deliver end-to-end application services, including design, implementation, support, and maintenance for Vodafone's telecommunications service portfolio.

And also in the private sector in Greece, we have won a contract with the Independent Power Transmission Operator, IPTO. For IPTO, we will implement an advanced AI-driven system to enhance field engineering operations. This solution will leverage large language models, machine learning, image recognition and historical incident data to provide real-time troubleshooting assistance to field engineers.

And with that, I will now pass on the word to Thomas, who will go through the numbers in more detail. Thomas?

Thank you for that, Andre. And like already mentioned, I'm CFO of Netcompany, and will now go through our financial performance for Q2 2025.

So if we move past the break in Slide #8 and straight into Slide #9, please. In Q2, group revenue increased by 3.9%, measured in both constant and reported currencies. The growth was driven by increased activity in Netcompany SEE & EUI, Netcompany UK and Netcompany Norway.

Revenue growth was negatively impacted by resources from the Danish business unit allocated to a combination of product and business development as well as preparation for the SDC transaction.

Product development was related to additional functionality for our products, ERMIS and SOLON, as well as embedded new functionality and AI capabilities into our platforms, AMPLIO, PULSE and AMI, due to increased customer demand.

The increased allocation of resources from the Danish business segment related to group activities is expected to normalize during the second half of 2025. In addition, revenue growth was negatively impacted from fewer working days in Denmark, Norway and the U.K. due to timing of Easter.

Altogether and including lower revenue recognized from license sales compared to last year, this impacted group revenue negatively by around DKK 75 million.

Revenue in the Danish business segment decreased 3.9% in the quarter. And because of the 100 FTEs allocated to product and business development as well as preparation for the SDC transaction and integration, revenue was negatively impacted by DKK 25 million. Additionally, 2 working days less impacted revenue negatively by another DKK 25 million. This led to a reduction in revenue in the Danish business of DKK 50 million and was the reason for Q2 revenue being DKK 30.8 million lower compared to the same quarter last year.

Netcompany SEE & EUI continued its strong growth performance from the beginning of the year and grew revenue by 12.9% in Q2. The growth was driven by an increase in the private sector of 33.1% and a 6.7% increase in the public sector and EU area.

Netcompany UK delivered 10.4% revenue growth in the quarter, which was driven by continued ramp-up on the DALAS contract.

In Netcompany Norway, revenue grew by 8.1%, driven by revenue from the public sector that grew 21.9% in the quarter.

In Netcompany Netherlands, revenue was on level with the same period last year against a strong performance in 2024. Can we move to the next slide, please?

During the first half of 2025, Netcompany group revenue grew by 6.4% to DKK 3.456 billion. The growth was driven by the public sector, including the EU that grew 9.1% in the first 6 months of 2025, while the private sector revenue was on level with the same period last year.

The allocation of 100 FTEs from the Danish business segment into additional product and business development and preparation for the integration of SDC into Netcompany Banking Services, as already described, impacted group revenue negatively by DKK 45 million during the first half of 2025. These activities are expected to normalize during the second half of 2025. And can we move to the next slide, please?

In Q2, adjusted EBITDA margin before headquarter allocated costs decreased by 3.4 percentage points to 13.8%. Adjusted EBITDA margin in Denmark was 16.5% compared to 23.9% in Q2 last year. The decrease in margin was a result of the allocation of FTEs to group-related activities and a few working days as already mentioned.

Netcompany SEE & EUI adjusted EBITDA margin increased 1.4 percentage points in Q2 2025 compared to last year despite lower license revenue than in the same period in 2024.

In Netcompany UK, the adjusted EBITDA margin decreased 1.9% due to 1 workday less in the quarter.

Netcompany Norway increased adjusted EBITDA margin by 4.4 percentage points compared to the same quarter last year as a result of better utilization and ramp-up on the AVINOR project.

In Netcompany Netherlands, the adjusted EBITDA margin was 14.9% in the quarter. Can we have the next slide, please?

Despite the significant investments already mentioned related to our product and business development and resources spent on preparing for the SDC transaction, we realized adjusted EBITDA margin before allocated costs from headquarter of 16.2% in the first 6 months of 2025, not far from the 16.8% margin realized in the same period last year, underpinning the resilience of our business model and the relevance of our offerings to the market.

The normalization of resource allocation in the second half of the year will have an accretive impact on our margins. And can we have the next slide, please?

In Q2 2025, we employed an average of 8,333 full-time employees, which was an increase of 5.7% compared to the same period last year. The FTE growth was mainly seen in Netcompany SEE & EUI.

The attrition rate for the last 12 months was 18.2%, which was an increase of 0.9 percentage points compared to last year. We continue to be able to attract the talent we need in all the entities. Can we go to the next slide, please?

In the second quarter of 2025, we generated free cash flow of DKK 25.6 million compared to DKK 148.2 million in the same quarter last year. The lower free cash flow was driven by a decrease in operating profit and the development in working capital. As a consequence, cash conversion rate was 32.6% compared to 10.7% in the same quarter last year.

Days sales outstanding decreased from 73 days in Q2 2024 to 58 in Q2 this year. Can we have the next slide, please?

In connection with our announcement of our quarterly results this morning, we have also reinitiated our share buyback program and have announced a DKK 500 million share buyback program running until the end of January 2026.

We confirm our previously communicated target of distributing DKK 2 billion back to our shareholders through share buybacks towards the end of 2026, leaving DKK 700 million in share buybacks to be initiated in 2026.

Debt ratio was 1.3x in Q2 2025 compared to 1.5x in the same quarter last year.

Debt leverage is expected to be around 1.5x at the end of 2025, also as previously communicated. Can we have the next slide, please?

Revenue visibility end of Q2 2025 increased 6.3% to DKK 6.2 billion compared to DKK 5.8 billion in Q2 2024. Based on pipeline end of Q2 and significant wins in the Danish private sector in the beginning of Q3, revenue visibility as of the end of July for both private and public sectors in the remaining part of 2025 remains at a satisfactory level.

Nonorganic revenue visibility from Netcompany Banking Services, formerly SDC, is at DKK 780 million compared to total expected revenue of DKK 840 million to DKK 870 million in the second half of 2025 for Netcompany Banking Services. Can we have the next slide, please?

Based on our financial performance for the first 6 months of 2025 and taking our pipeline and recent pipeline conversions and revenue visibility for the rest of the year into perspective, too, we maintain our full year financial expectations.

For revenue, we thus expect organic revenue growth to be between 5% and 10%. And for adjusted EBITDA margin, we expect it to end between 16% and 19%, also based on organic numbers. These targets exclude the impact from Netcompany Banking Services transaction.

For Netcompany Banking Services, we expect nonorganic revenue between DKK 840 million and DKK 870 million for 2025. A full purchase price allocation, including provision for restructuring costs, will be made and disclosed in connection with the reporting of Q3 results on 30th of October 2025.

The provision for restructuring costs to be made will cover costs associated with realizing synergies for the period running until end 2028. The provision for restructuring costs will have a dilutive impact on net profit and hence on earnings per share for the results in Q3 and for the full year 2025. It is expected though that synergies will be realized from 2026 and onwards and thus, the transaction will be accretive to net profit and earnings per share already next year.

We will now open up the call for questions. So can we move to the Q&A slide and open the questions. Thank you.

[Operator Instructions] The first question is from the line of George Webb from Morgan Stanley.

I want to pick on 2 high-level ones, if I can. First one, maybe one for you, Andre, and tying into some of your prepared remarks. I'm sure it hasn't gone unnoticed that the share price performance of the broader IT services sector has been quite weak year-to-date.

And I guess what's been happening there in part is the market has become a little bit more concerned around whether generative AI drives efficiencies and then pricing pressure and causes a revenue issue over time.

I guess when you think about Netcompany, you focus on the complex projects, the AI tools you have, the products and platforms all means you are in good shape. But kind of keen to hear whether you have particular thoughts on that topic and whether you think the market's kind of early view on what generative AI may mean for the overall sector is perhaps right or wrong?

Secondly, just on the margins year-to-date, maybe one for you, Thomas. Obviously, slightly tracking behind last year and then putting that into the context for the full year guidance. One of those factors you mentioned in the first half has been an increase in the resource on the product development side, ERMIS, SOLON, as well as the 3 platforms.

On the product side, could you just kind of help us understand why that's seen as, I guess, a one-off or at least why it's running at a high level that will reduce moving forward. You've mentioned AI integration, but was there any product monetization that needs to be done? Were there any specific functionalities missing? And so a feel for what's happening around those investments and when you can reallocate those FTEs back to billable work would be helpful.

Thank you, George, and thank you for those interesting questions. When it comes to your first question about the generative AI's impact on the entire sector, I think there's no doubt and also if you read all the reports made over the last 2 years that it will affect our sector.

And I think you will see, as always, when new technology hits this area that you will find both opportunities, but also for some companies, it can be a difficult time. We've embraced generative AI into our delivery model very early on. We are, in a sense, kind of lucky. We have so many young people entering the company. I think we have the record in the sector when it comes to hiring young people. And they have been very, very influential in the way we work, and that has been centralized from the beginning into our tools, our delivery mechanisms, our methodology.

And with the launch of platforms like Feniks AI, the platform for legacy modernization and implementation of replacements, and also the launch of our own EASLEY AI assistants, we are very, very early adopters of how to use generative AI.

Having said that, I think the need for very, very good computer science people is still there in conjunction with great business understanding. So it's many of the things that can be systemized or made repeatable. These things also within programming will become a part of our tools. And the more you can implement and embrace the tools into the delivery itself, you will actually be able to gain a lot of benefits here.

And I'm proud to say that we see the first signs of that in many of our projects. But you need to make it mandatory. You need to include it in your delivery model and have a very, very, very firm policy about it. And this, we've been embracing very early on.

We are preaching the same thing to our customers in every way. And this is actually one of the areas where internal development is very important for what you also deliver externally. So it's the same work with algorithms and tools that we're using internally that we are also promoting externally for our customers. That goes not only for programming or testing but also for business processes.

So I hope that answered your question, but it is very interesting times. And I think it will happen gradually, but fast. So over the next 3 to 5 years, you will see this happening in the sector. It will happen gradually, but fast. So it's not going to be a revolution, but it's not going to be something you can't see in the sector either. So it's going to be gradually and fast happening across the sector.

If I can add some clarity on your second question, George. Then overall, when we talk about 100 FTEs for these 3 areas, if you so will. So increased product development, increased business development, which is sales, tender writing and the likes, and increased time spent for preparing for the SDC transaction to be integrated into Netcompany Banking Services.

So if you take those 100 people from the Danish business segment, then there are probably -- we can assume they are more or less evenly distributed between the 3 buckets, and that means that we talk about 1/3 of the 100 from the Danish organization spending time in the first half of the year on specific functionality on product development.

And since it is from the Danish organization, it's probably fair to assume that it is on cases related to the Scandinavian market, where specific knowledge about how the Nordics operate is required. And that is being paved out. And that's also why we're quite comfortable that it will decline, and that decline has already begun in the second half of 2025 here.

The other 1/3 for platform development, as Andre alluded to, no surprise that we are spending more time on AI, embedding capabilities that are AI-driven into our existing platforms and the platforms, again, PULSE, AMI, AMPLIO and the likes. And increased demand from the market has spurred us to make this investment. That is also coming to a more normalized level in the second half.

And then the last 1/3 is for the SDC transaction, which, by nature, will come down since we are beginning the integration work as of 1st of July. So hope that answers your question, George.

Yes, that's really helpful. I appreciate those thoughts. Maybe just one final one for you, Thomas. When you think about maybe qualitatively the pipeline for licenses in the second half, I know things can always slip across the quarter. But how does that look at the moment?

It looks strong for the second half. And as we also mentioned, we have seen conversion of pipeline cases into real contracts in the early start of Q3, which, of course, is supportive for our look towards the remaining part of the year.

When it comes to how much is license driven and the like, I'll pause and not answer on that. Clearly, there are some license opportunities in the pipeline. But as you also know, timing of that is inherently difficult to predict. And therefore, we will, at this point in time, be silent on that specific part.

Next up, we have Claus Almer from Nordea.

Also a few questions from my side, and this will be on the SDC transaction. So this is probably to you, Thomas, but about the profitability of SDC, will the change from Danish GAAP to IFRS have an impact on how SDC will show up in your numbers? And how should we think about the development cost? Will that be expensed or capitalized? That will be the first one.

Thank you for that question, Claus. And I think I will answer that by saying that all good comes when you are patient. Like we tried to say at least in the beginning of the call, in Q3 report, we will have a full purchase price allocation vis-a-vis SDC, including the impact going from Danish GAAP to IFRS, including how do we look at development cost going forward and the like. So I'm not able to share too much information on that now, and that will come in Q3.

Okay. So maybe I'll try to ask in a different way, Thomas. So the lack of guidance on EBITDA, which was mentioned in the July announcement that it will come with the Q2 report. Is that due to things you have discovered after taking over the company? Or it's just a matter of, as you said, time?

I think we refrain from guide on what the impact is going to be on margins because there will be 2 factors impacting that, right? So there will be going from Danish GAAP to IFRS, and then there will be the impact on the business in terms of restructuring provision.

Now you can then argue that the restructuring provision anyway is a special item, so below the line. But to give full transparency, we would want to take all of those things together in Q3 once we have the full amount of synergies and provisions to be made.

Okay. So no negative surprises so far. So that's how you should ask that?

On the contrary.

Next up, we have Daniel Djurberg from Handelsbanken.

My first question would be more specific on the margin performance in the U.K. To me, a tad soft 1.9% despite DALAS framework set to have a positive trend. You also now use 84 subcontractors in U.K., which is, I guess, 14% of the U.K. workforce, up from 4%, I believe. So can you tell us a bit more about the outlook here on the margin uptick in the U.K. And also if the use of subcontractors is mitigating this?

Sure. Thanks for that question, Daniel. Now the lower -- relative lower development in margin in the U.K. and the performance in the U.K. is driven by the nature of how the DALAS work is being onboarded and ramped. So whenever new teams are being put on the DALAS contract, for practical purposes, a higher proportion of contractors are involved in the beginning and then they will gradually be rolled off. So what you -- and substituted by own Netcompany employees. So what you will see over the coming 6, 12, 18 months is a gradual improvement of margins on the DALAS framework, which will have a accretive impact on margins in the U.K. So it has to do with the nature of how work on DALAS framework is onboarding.

And may I also ask you, Thomas, on the cash conversion, a tad soft in the quarter, especially year-over-year, partly on back of the increase in work in progress of [ DKK 200 plus ]. For how many projects is this expansion related to? And should we expect a trend of increasing work in progress on back of larger project wins going forward?

Well, there's always some timing in the buildup of work in progress and when we hit the payment milestones in the different projects, which then leads to us being able to raise an invoice that the customer will then subsequently pay for. So there's a little bit of a buildup in work in progress. That's a timing. It will come out during the second half, and you expect to see more normalized cash conversion in the second half than in the first 6 months and particularly in Q2, which was negatively impacted by, as you rightfully say, the buildup of work in progress. So it has to do with the mix and the type.

Going into second half, like Andre also alluded to, we have won a fairly large contract in the Danish enterprise market in the private market, which is not a project that will build up a lot of work in progress, but more be invoiced on an ongoing basis. So that alone will have a positive impact also.

Okay. Perfect. And may I have a last question perhaps on coming back to this normalization of FTEs used in Denmark for the R&D and partly the SDC is said to normalize in second half. Is it possible to be a bit more specific on this fading on a quarterly basis?

Yes. And the answer to that is that it will be a gradual normalization over the year or the remaining part of the year, beginning as of July and being fully fledged in at the end of December.

So assume a gradual improvement without me being too specific on the different quarters. And the reason for that is that, I mean, you know our business also when there can be 10 or 15 people here or there, up or down, from one quarter to the other, which can skew things a little bit. But gradually, over the second half of 2025 is as much as we can say.

Good luck in Q3.

Thank you, Daniel.

Next up, we have Balajee Tirupati from Citi.

Thank you for taking my questions. Two from my side. Firstly, you have mentioned observing tendency for the EU and European governments to prioritize European vendors going forward. Have you seen more firm signs of the same in your pipeline? And if you could share color on how this changes the competitive landscape vis-a-vis large global players who have strong local presence in Europe and smaller niche competitors?

Yes. Thank you for that question, Balajee. Yes, we've seen concrete changes in the pipeline, and we also see as a criteria for selecting customers directly, do you have a European region or your data or your software is placed in Europe?

So digital sovereignty as it's called is becoming a factor when selecting vendors. That's for sure. And that goes actually across many of the European society critical system. It goes for taxing customers, but it also goes for many more administrative systems that are considered being a part of any country's preparedness or you can say, resilience.

So it's becoming more and more important that the vendor has answers to both the IP but also the location of software and also the vendor's loyalty to the European overall case.

Understood. And so the large global IT services companies who have a strong local presence probably would be in a position to address some of those concerns around sovereignty with their strong local presence. Would that be a fair way to think about it? And that's more of adverse impact would be on niche global peers who are -- necessarily do not have as strong legacy presence in Europe?

Well, that's a very good question. I think it depends and really depends on what you're doing in the sector. If you look at the software cloud vendors, they are definitely trying -- the large ones are definitely trying to move their cloud presence into European soil, so to speak. And hopefully, that can help them in a sense.

But definitely, if you are -- the more critical piece of software or delivery that you are a part of and the less European you are, the more fragile you are in the sense. And that, of course, will go for a niche vendor not being present in Europe. That goes for sure.

Very, very clear. Maybe one question on the guidance for this year. If you could share how your pipeline and contract ramp you going into second half of the year is compared to the beginning of 2025. And do you see higher degree of variability, which explains the group retaining the wider guidance range where upper half seems decent bit daunting at present, to be fair?

I mean, on the guidance and in terms of what needs to happen, in which sequence and why, as always, we don't really comment too much on that. But it's logical that the more busy we are, the more revenue we generate. And the more revenue we generate, we also get better scale. So that's logic per se.

But we're not going to be able to unlock the walk to the different percentage targets in the guidance, Balajee. What we can say is that revenue visibility looks improving and 6.3% compared to last year is comforting. And taking into consideration what we've seen early in Q3 gives us comfort with the range.

And maybe if I can slip in a question on SDC guidance as well. What does the second half contribution from SDC imply in terms of revenue growth in that business versus same period last year?

That's more or less flat compared to same period last year, Balajee. So SDC on a stand-alone basis and mind you, we have taken over ownership from the 1st of July. So give us a little bit of time before we start to see the impact of giving new products and innovative solutions to existing and new customers. And then we will see that also. But it's now, what, a month and 14 days into our ownership. So it does take a little bit of time before we start to see that accelerate. So flattish compared to last year.

The next question is from the line of Yiwei Zhou from SEB.

Firstly, Andre, could you please elaborate a bit on the strong private segment growth for Intrasoft. You mentioned those large contract wins in the beginning of the call. I was wondering if they have contributed to the growth here in the quarter? And then could you also maybe comment a bit on the time frame of those contracts?

Yes. So there's no doubt that the synergies between Netcompany SEE & EUI and Netcompany Core emerging especially also not only in the public sector, but also in the private sector. The reuse of components, the PULSE platform but the overall approach as well towards legacy modernization is very important when we win larger private contracts. And the overall reference library is also important. It goes without saying that if you come with references from Northern Europe to Southern Europe or the other way around, it's actually getting more and more important that you also in industrial areas are relevant.

So it is visible in the numbers that we are winning more and more private contracts in Netcompany SEE & EUI, but we are also seeing a pickup in the private business when we go for the large enterprise projects.

Especially, also in Denmark, but in any geography, coming in with the platforms and being able to remove legacy systems and putting in our real-time engines or administrative systems based on our platforms is something that private companies are really looking into. And we are converting pipeline, and that's very interesting to see. So it's not only good ideas or slides. We actually -- we are launching large projects where we're doing this. And the big contract that we have mentioned in the beginning of the call is also a result of our platform strategy. So it's actually notable in the numbers as well.

Can you say if they are multiyear contracts or it's just short-term projects?

Multi-year.

Multi-year.

Okay. Great. My next question is on the defense sector. NATO greatly increasing defense budget and I understand part of the data will also be invested in digitization. Could you please comment on if there is any potential for you?

Yes. That's a great question. I think overall, you can see that we've been involved in many, what we call, preparedness solutions and digital ecosystems or digital twin solutions where we assemble data from various sources in order to be alert and to react fast. And those kinds of solutions we've implemented in airports and transportation companies and even within public sectors. Now can that be used in defense sector as well? Of course, it can.

And without going into further detail, I can tell that we are, of course, working together with defense, both in the U.K., but also in other countries in order to promote that idea. And that goes for both entire society resilience and stability, but also for particular defense applications. So more detail than that.

Can you please confirm if there is any concrete sort of projects or tenders already in the pipeline?

I'm sorry, Yiwei. I cannot do that.

Okay. Fair enough. And my last question is on special items. You booked DKK 22 million here in Q2. Apart from Denmark, you also have special items for U.K., Norway and the Netherlands. Can you elaborate if they are also related to the SDC transaction or if something else?

So they are not. It's basically an allocation of cost based on the headcount. And if you see the special item, and that's how we've done it historically, then you can argue whether that's correct or not, but at least it's consistent.

The special items are being distributed amongst the Netcompany Core countries and not Netcompany SEE & EUI. So all the DKK 21.6 million relates to the SDC transactions. And it is mainly cost for lawyers. So it's not a transaction cost per se. It's cost for lawyers that we have used to make this new contract framework with all the customers in the old SDC.

It is a contract that if you look at it over a 10-year period, that has a value of between DKK 17 billion and DKK 20 billion. So it is, by far, one of the largest contract frameworks that we have done. It is one of the largest contract frameworks in Denmark this year and that do require some serious contract knowledge here that we have also obtained help with externally.

At this moment, we do not have any further questions from the queue. So I'll hand it back to you, Andre, for any closing remarks.

Well, thank you, everyone, and have a wonderful day.