Addnode Group AB (publ) (ANODB) Earnings Call Transcript & Summary

Welcome to the Addnode Group Q4 presentation. [Operator Instructions] Now I will hand the conference over to the CEO, Johan Andersson; and CFO, Lotta Jarleryd. Please go ahead.

Hello, and welcome to the presentation of Addnode Group's year-end report for 2022. I am Johan Andersson, the CEO. And with me, I also have Lotta Jarleryd, our CFO. The agenda for today is Addnode Group in brief. We will look -- dive into our Q4 report. We'll address sustainability, sum up with our investment case and, of course, answer your questions. You will also see an appendix in the presentation with our acquisitions related to this year and our shareholder structure and the share performance for 2022. Addnode Group, we provide digital solutions for a sustainable future. Looking at 2022. It's been a year of organic growth, acquisitions that sharply improved earnings per share. I'm very proud of our employees' efforts in the year and Addnode Group increased net sales by 53% to SEK 6 billion plus. Organic growth has been driven by good demand for our digital solutions from our customers, architects, technical consultants, manufacturers, construction and facility management and the public sector. We have secured new accounts, we have strengthened our offerings and continue to focus on product development. We also completed acquisitions that complement our existing business simultaneously with establishing the USA as a new domestic market for Addnode Group through our acquisition of Microdesk. The combination of our high growth with the improved efficiency meant that for the full year 2022, EBITA increased to SEK 728 million, while our earnings per share increased by 72% to SEK 2.86. Looking at our strategy [Technical Difficulty], it's -- Addnode Group celebrated 20th anniversary this year in 2023. We've been a profitable growth company ever since we started, and January of 2023 showed our growth strategy created value and Addnode Group moved up to Nasdaq's Large Cap segment. Looking at the slide, you can see our growth in net sales separated on organic and acquired growth. 2021 net sales was SEK 4 billion. Organic growth was 17% and acquired growth was 36%, adding up to a total sales of SEK 6.2 billion. And we made 5 acquisitions during the year. So this slide show our growth for the last 6 years, both -- separated on organic and acquisitions leading up to where we are today. And we have increased earnings per share by an average of 20% annually over the last 10 years and by 25% over the last 5 years. This growth has been possible due to all our skilled and committed employees, innovation, strong offerings for our customers in sectors with underlying growth, cost efficiency and complementary acquisitions. A strong financial position with low debt/equity ratio gives us the freedom to continue to execute our growth strategy by continuing to build on our current strengths and continuing to develop. Going into Q4 '22, we can see that the growth strategy is creating value. Our high growth and positive earnings trend continued in the fourth quarter, and yet again, we reported a higher sales and EBITA for a single quarter. Compared to the corresponding period of previous year, Addnode Group's net sales increased by 60%, which 13% was currency adjusted organic growth. EBITA rose to SEK 200 million, and earnings per share was up 28% to SEK 0.77. Looking at our divisions. PLM and Process delivered at a stable high level. The year-on-year earnings was sourced from Design Management division, which more than doubled net sales, growing EBITA by 88%. The explanation for Design Management gains are strong organic growth by Symetri in the U.K. and a positive progress of our U.S. acquisition, Microdesk. Overall, in the fourth quarter, demand was good in all our main markets. However, we are attentive to how an uncertain business environment and cost inflation may impact us going forward. And with that, I would like to hand over to our CFO, Lotta Jarleryd.

Thank you, Johan. I would like to start with sharing a few more details on net sales. In the first graph, we have about net sales for the fourth quarter over the last 5 years. As you can see, the current quarter was very strong. Total growth was 60% compared to the same quarter previous year. It is also evident from the graph that recurring revenue was the revenue category that increased the most with about SEK 500 million. That increase derived from both acquisitions and organic growth. The main contributor was Design division, and by that, predominantly meaning Symetri and Microdesk that accounted for more than 80% of the increase. The most important driver was multi-year deals following strong demand, especially in the U.K. and U.S. markets. As you come into the graph in the center, I would like suggest that it is certainly important to have such a high share of recurring revenue, 68% in the fourth quarter, as a stable foundation in our business model. We had a strong cash flow generation, thanks to a high share of advance payments at the beginning of the year. Service revenue is admittedly not included in our definition of recurring revenue, but many customers return to us again and again for our service offering. In the third graph, we have set out a breakdown of net sales by geography. After the last couple of years' acquisitions in the U.K. and in the U.S. and the consecutive organic growth, we are now a group with a significant international presence. In the fourth quarter, 42% of our net sales were generated in these 2 important markets. In the same quarter previous year, the share was 22%. Back to you, Johan.

Thank you, Lotta. As mentioned earlier, as you know, we are 3 division, so we thought it would make sense to walk you through the 3 divisions in the fourth quarter. Looking at Design Management. Net sales increased to SEK 1 billion. It's milestone, going -- for the first time in 1 quarter. And it represented a growth of 113%. Organic growth currency adjusted was 22% in the quarter. Symetri's new operation in the USA, Microdesk, continued to outperform expectations due to positive demand in the AEC segment. The organic growth was mainly from Symetri's U.K. operation. Demand in the Nordics remained positive from the AEC segment and manufacturing. Volume and margins and new business sales and 3-year agreements renewals progressed well. Tribia, providing collaborative portals for construction and civil engineering, and SWG providing digital solutions for facility management made also good progress in the quarter. In total, EBITA was up by 88% to SEK 111 million. The EBITA margin was slightly lower compared to last year, mainly because of the changed revenue mix with a higher revenue share from third-party solutions as a result of Symetri and Microdesk growth in the quarter. We also would like to inform that Symetri and Microdesk's partner Autodesk has announced its intention to alter invoicing and payment terms for contracts lasting over more than 1 year. That means that payments, both from our customers at to Autodesk, will happen annually even if the customers sign a 3-year agreement. And up until today, they have paid upfront for a full 3-year period, and now it will be billed annually instead even though it's signed for a 3-year from a contractual perspective. This will have an initial effect on the cash flow. But as currently, revenue and cost for the entire contract value will continue to be recognized immediately when the contract commences. So no material change in that. And this change that we are describing is scheduled to come into effect at the end of March 2023. So it's something that is an upcoming event. So all in all, a very good quarter from Design Management. And we also made an acquisition after the end of Q4 of a company called FAST2 Affarsystem AB. From the spelling, you can see it's a Swedish company. They are offering a proprietary ERP system used by 9 of the 13 largest public housing corporations in Sweden. FAST2 will integrate with SWG, making it even stronger in the digitalization and life cycle management of real estate, primarily for the public sector. In the division we also have Tribia, another company that delivers SaaS solutions for project management in construction and civil engineering projects. The acquisition of FAST2 means that SWG and Tribia will complement their offering of proprietary digital solution for the real estate and construction markets in the Nordics and U.K., and together, they will have a combined net sales of approximately SEK 500 million. So meaning that with FAST2 and Tribia and SWG, we are having a net sales in the division of Design Management of almost SEK 500 million of own proprietary system aiming for the facility management and the construction market. So with that, we would like to move on to Product Life Cycle Management. As you can see, net sales increased to SEK 455 million in the fourth quarter. It's a growth of 29%. Organic growth currency adjusted was 6%. Demand on the German market progressed somewhat more positively than market data indicated earlier. Sales performance in the U.K. remained good and demand on the Nordic market was stable. What we can see is that customers are still increasingly demanding time-finite leasing of licenses instead of the previous license purchases with perpetual right of use. This means that the division continues to build a stronger base of recurring revenues. At present, the acquisitions of 2022 in the division have lower profitability than the division's other operations in the quarter. Integration and work on increasing profitability is ongoing. EBITA for the quarter amounted to SEK 44 million and the EBITA margin was somewhat lower than last year. So looking at the third division, Process Management, you can see that continued organic growth and we have still a focus on expansion. Net sales increased to SEK 335 million. It's a growth of 13%. Organic growth was 8%, in line with recent quarters. The organic growth is a result of the division's close and well-established relationships with a large base of public sector customers and the strong offering of attractive digital solutions. The division companies added a new number of employees in autumn to strengthen its development resources. Decisive in Norway, acquired in June 2022, progressed as planned. And looking at EBITA, it was SEK 60 million and the EBITA margin was 79% (sic) [ 17.9% ]. So with that, I would like to hand over to our CEO -- CFO, Lotta Jarleryd, who will walk you through the cash flow, I guess.

Yes, thank you. Johan, that's correct. I would like to continue with an overview of the cash flow. The operating cash flow for the fourth quarter amounted to SEK 261 million, which was in line with the same quarter previous year. And following the strong development of the operating result deriving from organic growth and the acquisitions, we generated SEK 740 million in operating cash flow during the financial year 2022. That was SEK 277 million or over 60% more than previous year. Cash conversion rate was about 90%, and that is operating cash flow to EBITA adjusted for the property sale in the first quarter. Investing activities in the fourth -- investing activity in the fourth quarter amounted to SEK 45 million, and that was primarily related to investments in development of proprietary software. For the 12-month period ending December 31, cash flow from investing activities was SEK 490 million, about SEK 420 million related to the 5 acquisitions we made this year as well as to considerations to sellers for acquisitions made previous years, i.e., mainly earnout payments. Other investing activities mainly refer to development of proprietary software. The financing activities in the fourth quarter predominantly refer to repayment of the credit facility. In the beginning of the financial year 2022, we financed the acquisitions of Microdesk and DESYS with loans under the revolving credit facility, about SEK 300 million in total. We have, however, repaid about half of that amount later during the year following good operation of cash generation. Dividends to shareholders of SEK 100 million as well as repurchase of owned shares, totaling SEK 23 million were also part of the financing activities. These were together with the remaining 3 acquisitions financed through a readily available cash funds. Please also note that the Board of Directors has proposed a dividend of SEK 1 per share through the AGM in 2023. This means an increase from previous year by SEK 0.25 and corresponds to a total dividend of SEK 133 million to be paid out to the shareholders in May 2023. Please also remember that we made a 4:1 share split in May 2022. And in the following interim report, we have recalculated all share-based key ratios, including dividend per share. And let's continue with a few comments on the consolidated balance sheet. You have probably heard me saying this before, but we continue to operate supported by a resilient balance sheet, which gives us a favorable position to continue to grow organically and through acquisitions. Changes in the balance sheet during '22 predominantly derive from the 5 acquisitions we have successfully executed during the year. Following the customary purchase price allocation exercises, goodwill and other intangible assets have increased by about SEK 800 million in total. Due to the strong cash flow during the year, the cash position increased by almost SEK 200 million to SEK 600 million by December 31. Together with unutilized portion of the revolving credit facility, we had about SEK 1.3 billion in available funds by the end of December. The credit facility balance was SEK 0.9 billion by the end of the year, and the amount was reported under noncurrent liabilities. The net debt has increased by SEK 95 million during 2022. The ratio of net to debt to EBITA was, however, on the lower side at year-end, about 0.7x. Finally, I would like to comment on the repurchase of own shares. In June 2022, the Board of Directors supported by an authorization from the AGM 2022, decided to repurchase 230,000 Class B shares. The main purpose was to enable delivery of shares associated with Addnode Group groups to incentivize. The repurchases were executed during the summer. As per December 31, Addnode Group holds 1,030,000 own Class B shares in total. Back to you, Johan.

Thank you, Lotta. Yes, I'd like to take a few seconds to address our sustainability agenda. Still the same agenda, still the one that we're pushing. And it's 5 items. And we would like to give you an example of number one, digital solutions that contribute to sustainable development. And the rest is, of course, that we care for our people and the planet in the way we work with our partners and suppliers. We need to have a long-term financial strength in order to do all the good things that we like to do. And of course, we need a governance model to make it happen. But let's have a focus on #1. There are some examples in the interim report, and I would also like to highlight them here and also make sure that you know that they are in case -- descriptions are available on our website. And looking at the beginning, you can see example 1 to the left is from the Design Management division. It says Symetri is supporting BamCore in developing digital solutions that demonstrate the energy and CO2 impact, benefit of making buildings more sustainable with biogenic fibers like bamboo. It's a very practical example of what you can do, both in practicality and with digital solutions. And the example 2 in the middle is from our division Product Life Cycle Management. It's TECHNIA, who has delivered a 3DEXPERIENCE platform as a cloud solution to the company Kite Rise to be used when developing high-performance energy storage systems. Looking at example 3 to the right is from our Process Management division. And it's a company Sokigo, who has delivery solutions TopoCad and CSM to the Environmental Services Group Ragn-Sells. The system enables faster and more efficient design of their recycling plans. As I've mentioned, you will find a full version of these cases at the Addnode Group website. And looking at Addnode Group as an investment, it's the same slide as previous. It's the same one that we're using, but I just want to highlight what we are trying to achieve. Looking at the Addnode Group, there are a few things that I will review. So looking at the Addnode group, we provide digital solutions to our customers. Our growth is supported by underlying trends like digitalization, diversification, automation and sustainability. Our customers' need for digital solutions is there, and we don't believe it will disappear. Addnode Group is continuously creating value by supporting our organic growth with acquisition of enterprises that complement our current businesses. We like skilled and committed employees. We make strong offerings to our customers and have a high share of recurring revenue that Lotta mentioned earlier. 70% of our net sales is from recurring revenue, meaning that the customers pay upfront for the right to use a software or a digital solution that we provide. Our customer concentration is low. We have a geographical diversification, and we have a strong financial position with low net debt that Lotta described. We are demonstrating the Addnode Group has a solid platform for organic and acquisition-led growth in good and tougher times. From the inception of Addnode Group in 2003, we have, up until 2022, doubled our net sales every fifth year. Demand is good, but we are attentive to how an uncertain business environment may impact us going forward. So with that, we would like to open up for any questions.

[Operator Instructions] The next question comes from Fredrik Nilsson from Redeye.

I want to start with the margins in PLM. I mean, it's a healthy level, but it's still not as strong as we have seen in recent quarters. You mentioned some new companies joining the numbers, but I believe most of that was present earlier in this year as well. So could you tell us a bit what's the difference compared to the really strong levels seen in recent quarters?

Yes. I think there are -- bit of what I mentioned is that we have a change in the customer going from -- historically, we have had a very strong license sales in Q4 in the PLM division. But over the last year, we have -- both from customers sort of wanting it and also having a shift from a license model to a more recurring base one, meaning that the customers are leasing their system. That means that we would have a more even earnings during the year. So that's one thing that has sort of changed the mix for the different quarters. And you can see the previous quarter has been quite strong. That's one result. And then as we mentioned is that we -- if you look at the comparable quarters, you can see one effect we have from the acquisitions. And then another is the execution. We should have -- we could have been able to execute a bit better in the quarter. So I think it's 3 things that are making sort of the margins a bit lower than last year. A mix in the business model going from more from a perpetual to a more of a recurring base model, meaning that it will have an even -- more even over the quarters. And then the acquisitions have less than the margin that we have today. That was something we were working on. I'm not worried about that. And then of course, we could have executed better. So I think that's the reason behind it.

Okay. I see. Sorry. Maybe it was just my cord. Sorry. Yes. Also, like -- I want to ask kind of the same question regarding process. I mean, you mentioned that you have hired some new personnel. I believe that is may be one explanation. But is there anything else? I mean, you grow the sales by 13%, but the profit is basically flat. So is there anything else there?

I think it's -- we have been growing and in the last year, we have seen that we are able to grow the business. We have moved from a low digit organic growth to more of a higher organic growth. So looking at -- comparing, I guess -- if you would compare 2022 with 2021, you can see that we have doubled sort of the organic growth rate. That means that when you go through that transition and you sort of get used to that and you add more people, there will be certain quarters with, what you could call -- call it a little bit deep in the margin. And we are -- have also moved from a 15% margin in this division to 20%. That means that there will be sort of a -- some lower quarters on the margin and with -- when we sort of find the right balance in that -- so I'm not that worried about that sort of downward trend. It's more a -- we have a good growth, and it will be -- some quarters might have lower. So I think it's just that reason. We are learning to grow, and we make a -- we hire new people, and we were able to -- we'll do that. We are long term. So that will have an effect on single quarters.

Okay. I think it's reasonable. Also, you mentioned that you believe there's a catch-up effect in Symetri in the U.S. and U.K. due to the pandemic. I mean, why do you believe there's a catch-up effect affecting those numbers? What reasons do you have to believe in that?

If we start with the U.S., you can see that -- I don't think that we considered to be -- based in Stockholm, European, we didn't really sort of see what -- how closed down business was in the U.S. during the pandemic and the COVID situation. What happened is that when you're starting to open up different urban areas and you start to invest again and then you start new development and then you need to do more designs. And that is the sort of the catch-up effect in the business, that the people are forward looking again and they were able to invest. And then you need to -- then you will hire an architect and then you need a technical consultant. So that's the sort of the catch-up effect there. And then also looking at the U.K. market, where we had the organic growth as we reported. Microdesk is not reported as organic. If you look at organic growth, you will find it mostly in the U.K. And I think the business there was a little bit hampered by the Brexit, the COVID, all together. And now we can see that they are back on track. And that meant that 2021 was not a good year and 2022 was a good and even strong year. Then you would have the catch-up effect in our numbers.

Okay. One last question from me. Could you tell us about your view of the market condition? It seems like it's rather solid in basically all markets, even in Germany, if I understand you correct. Could you tell us a bit more about that?

Yes, I agree with that, is that we seem to have a solid market for the offering that we are providing both to construction, facility management and also to the public sector and the manufacturing and the OEMs. So there is some market out there for us. There is -- who you say? -- there's enough market for us to make a solid business. And then we are all -- we're talking about what will happen depending on the interest rate and the inflation and the war and the -- today, it seems that everybody is reading into the Fed's last decision that the interest rates will go down and that will have an effect. But that's for others to discuss. But I think for us, we have enough market to make a solid business. I think that's how we look at it.

The next question comes from Daniel Djurberg from Handelsbanken.

A question on -- starting on this first 2 ERP business and consolidated into Design Management into the SOLIDWORKS Global together with Tribia. You mentioned this will be a roughly SEK 500 million business. And I was wondering if you can give any view on the underlying market growth here and the profitability on a pro forma level. And also if you're looking in to make this our fourth division going forward?

Yes. If we start out with the sort of the profitability -- I think that you're looking at SW and Tribia, who are sort of the existing business, that they are contributing to the -- they are slightly above the margins in Design Management as they should as their only ERP. So that's to be expected from that. FAST2 that we have acquired will add in the beginning roughly like SEK 80 million plus in net sales. Their financial performance is lower as of now, but we expect that we can lift that, being part of the group, and with some synergies that we have. So given time, it will come up to what we are achieving today. So there's a potential in that. So I think what we can expect from this type of setting is probably closer to what we're doing in Process rather than [indiscernible]. We are seeing that this could be a growth area. Will it be another division? Let's see. There are very good synergies with existing business in Symetri as they are working with similar customer groups and similar needs. So for the sort of -- for this entity to grow, we don't have to break it out to a new division as of now. But who knows going forward. I'm happy to have the problem of that if they continue to grow.

Nice. May I ask you on Design Management? Obviously, a fantastic strong second half of '22, also triggered by Autodesk due to the contracts. I guess the discount have triggered a lot of your 3-year contracts in advance. Was this seen also in Q4 and, i.e., is it both Q3 and Q4 '23 that meets very tough comps. And are there any other reasons really than locking in the price now to take a 3-year contract for a customer rather than take a 1-year contract since you pay annually to Autodesk? Are you...

I understand the question, but I don't think the question is fair. Of course, looking at what you can see -- you look at Symetri, the sort of the existing business when we entered 2022, Addnode Group. Their sort of ratio 3-year contracts for the full year is not different than 2021. So that means that the growth from that business is coming from making more business in total. Then we have Microdesk in the U.S. You have sort of a -- that's more of a more 3-year deals in that. So yes, it's not changing the ratio. I'm talking about the ratio. That means that we're also selling 1 year and 3 years. So I'm not saying that we are not expanding 3 year. It's just a ratio of the total sales. So yes, there is a portion, and that could be different between quarters. But if you look at the total year, I would say that the main driver has been that we are doing more business with the customers.

Yes. And I guess we should be a little bit aware of this at least when putting our numbers on the growth for Design Management on Q3.

Yes. So I think it's probably that we are very proud of the good year that we have, and it has also been a very good year from sort of a growth perspective. And we are not expecting that we will be able to run this business with a 20% organic growth moving forward. So you were fair with that in the question. You should be aware of that.

Yes. Perfect. And if I can ask a little bit on the PLM. 2 sides of it, perhaps. Germany did better than feared. Should we expect this to be stable also entering in '23? Or was it more of a delay in the issues that might hit the fan? And also on the system latex, you talked about working on profitability and so on. Can you give any more color on the work you do to catch up to margin levels on average?

I think we start with the tough question that's important and that I really can't answer is the market conditions in Germany in 2023. As of now, we can see that -- because it's very much dependent on what will happen in the macro environment, and I'm not controlling that. But we are prepared for handling whatever sort of scenario that will happen. And as of now, we can see that the customers are buying from us and they are willing to invest. Most of the customers are related to R&D in any form, meaning that the ones who are making designs of boat machines, cars, ships and et cetera. As long as those kind of customers are willing to invest in new products and development, then we will have a customer. So long term, I can see that the need is there. How that will be affected by short-term things, it's a tough question. And then there was another question about how we're sort of making sure that we can continue to improve margins in PLM. It's basic things, making sure that they have the right organization in place, the right kind of people and the right offering. So there's no magic. It's just a matter of continuing to execute it.

The next question comes from Erik Larsson from SEB.

I have a follow-up question on the margins in PLM. You gave some good color. But I'm just curious on the strong guidance from Dassault into next year that we saw yesterday. Do you think that you will be able to leverage that and maybe be more forward leaning, sort of execute better and improve on the margins?

I mean, we are a strong partner to Dassault and we are sort of available in the Nordic market and in the German market, and we also are in the U.K. market and then we have some offering in the U.S. But the main market for us is in Northern Europe. And we will -- we have our sort of share of that because I think we do have that decision. So then it's a matter of how efficient we can be in the execution of that growth, and that's up to us. And we have shown that we are on that path. So I'm -- and of course, if we see growth in the market and we are able to capture on that, we should be able to see that in our profitability as well.

And then on general price hikes, what are you seeing -- looking into 2023 both from your software partners but also in Process Management? How will you be able to compensate wage inflation coming up here?

I think we have been quite okay with that. Looking at most of the -- in the public sector, meaning both of what we do in Design Management, but also for our facility management offering primarily in Sweden, we have a lot of, for example, state agencies, local hospitals, et cetera, that use our system. Those are indexed. That means that whatever cost inflation that we endure by that will be reflected in the price as well. And then looking at what we are primarily at -- what we do, for example, with our Symetri offering with Autodesk in Dassault offering, those are -- every time you sort of renew annually, there's a price discussion. And so far, it's meant that price has gone up. And so I think we've been - we can always do more, but we are able to rise prices. And does that mean that we are able to do it 3%, 4%, 5%, 6%? It depends on each contract and it depends on each sort of customer group.

Okay. Great. Just a final question for me. Looking at the strong performance in Symetri and Microdesk throughout the year and thinking about 2023, where we have certainly more uncertainty. So how forward-leaning are you here? Are you expecting to grow your head count in these businesses, hire salespeople and so forth? Or are you more cautious would you say?

The good thing with this business is that there is scalability in this business. That means that for every sort of growth in net sales, you don't have to hire. For a consultancy business to generate more, then you need to hire more people unless -- it's impossible to invoice more. But in this business, you can always sell a little bit more. So that means that we can be a little bit cautious on hiring people and still being able to sell. So it's not sort of a trade-off situation here. So we see a good market, but does that mean that we will increase with 15% on -- total employees? It doesn't have to be that. I'm just saying that we can still grow without hiring more people. So it means we've been cautious and at the same time grown. So it's not a very easy answer -- a question to answer on that side.

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

Lots of questions already replied here. So that's very good. I just have one. Where do you think we will see slower growth and market growth first in 2023? We have talked about Germany here end of '22. That did not happen. Do you see any red flags or any orange flags and risks going into '23?

I see risk everywhere. Every morning when I wake up, I see risks. So if you ask me where I see risk, it's every day. And that's just part of doing business. And that's also a possibility. The risk is also somewhere -- so -- no, but to honest, of course, there is -- you can have -- we try to sort of maneuver in the way -- in the business where we are today. It means that some people are saying that there will be a soft landing now going up the end of the year. Others say that, okay, if you look at specific -- if you are -- if we have some businesses that are focused on pure construction on the construction side. That's a very small portion of our business. But of course, we don't expect to get much business from business development in construction in the spring of 2023. But it's already there. So that's nothing new. But so if you -- and then if you mean -- risk is that we will not be able to deliver 10% organic growth, that's a risk. But if we are able to sort of have a more modest organic growth, then the risk here is lower. And the thing with Addnode Group is that we are a diversified group also from a customer perspective. I think the 10 largest customers altogether generates low single portion of the total Addnode Group. We are in several markets. But in each of that portion -- I wake up every day and see a risk and thinking what we can do. But if we sum it up to a totality, there are no sort of big, big risks for us. You're not getting a very good answer, but that could also be an answer.

Yes. And then just to follow up a little bit here on M&A opportunities in 2023. I mean, now you have a really large market share in both Dassault and Autodesk reselling businesses. Do you find any regions that you would like to expand into? Or should we expect acquisitions in the current markets that you operate in? Or how should we think about what type of targets you look for ahead?

That means you're correct that we have strong market positions being a foreign-based business. But we still -- for example, in the U.S. market, we have almost no -- we have a very small Dassault business. We have entered with Microdesk, but we are still not the dominant player in the U.S. market. So there's more things to do there. We have a strong position in the U.K. and the Nordics and -- but there are other regions. So I don't think we are limited in our growth with regards to those type of businesses. We discussed a little bit today in facility management, the acquisition of FAST2. We are there in the Swedish, Norwegian, and the U.K. player. Still more to do. It's a very fragmented local market. And we are in the Process division, we are looking at the public sector. And in the public sector, software for local municipalities and state agencies. We are predominantly in Sweden. We have expanded to Norway with the acquisition of Decisive. But it means that we're still a local regional player. So -- and like I said, we -- Lotta mentioned that our net debt is SEK 450 million, something like that. And we are still in the credit line. I think we are in a position to do more acquisitions in 2023.

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

Thank you for taking the time to listen to Lotta and me presenting the Q4 report.