Admicom Oyj (ADMCM.HE) Earnings Call Transcript & Summary

Hello, everyone, and welcome to Admicom Capital Markets Day 2025. I am Henna Kotilainen, Admicom's Chief Strategy Officer and will be your host today. First, I would like to say a big thank you for everybody -- everyone joining us here in gray Helsinki today. And also a warm welcome to everyone who's following us online. This is what we will be talking about today. First, we will talk about our resilient business model and strong financial profile. One of Admicom's key strengths is the predictability of our business. Almost all of our revenues are recurring and our ARR growth has continued even throughout the construction market downturn we have experienced in Finland during the past years. Our profitability and cash conversion are high. And we are currently debt free, which gives us a great capability to invest in growth. Secondly, we will be talking about the growing market potential. We expect construction markets in Finland to start recovering during the next 3 years. And we expect its digital spend also to gradually increase to tackle the productivity challenges construction sector is facing. And finally, Admicom's revenue user and project-based models and monetization models ensure that when our customers' growth outlook improves, that will support also our growth journey. Thirdly, we will, of course, talk about also our newly announced growth strategy. With it, we aim to accelerate growth in our current markets with our comprehensive platform. And at the same time, we aim to triple our total addressable market to increase the growth potential. And finally, we have a strong capability for M&A. So we plan to complement our organic growth with carefully selected business acquisitions. Let me then introduce our speakers today. First, our Chief Executive Officer, Simo, will be sharing about the new strategy for 2026-2028. Then our Chief Product Officer, Teemu, will be talking about our customer-centric platform and our Chief Growth Officer, Pekka, will share how we plan to transform our go-to-market model. I will discuss our plans regarding international expansion. And finally, our Chief Financial Officer, Satu, will summarize altogether from a financial perspective. And in addition to the presenters, we also have here the rest of Admicom leadership team present here in the studio. So Thomas Raehalme and Helena Marjokorpi here with us. And also the Chairman of our Board, Petri Niemi is here for -- to join the discussion here in the studio. Timeline-wise, this is our agenda for today. So I will soon hand it over to Simo, whose presentation will take us roughly until 20 to 11:00 and will then be followed by Teemu's and Pekka's presentations. We will take a short break roughly at 10:00 past 11:00 to give you an opportunity to stretch your legs and fill your coffee cups. And after the break, I will continue with the international expansion. After my presentation, Satu will come up to discuss the financial view to our new strategy. And after Satu's presentation, Simo will be back on the stage to wrap up the presentation with some final words. And then we will have roughly half an hour time for the Q&A. In the Q&A, we will be taking questions both here in the studio as well as online. So if you are watching us online, you can leave your questions already during the presentation. But all right, let's get going then. The floor is yours, Simo.

Thank you, Henna, and a warm welcome from my behalf to the Admicom's CMD 2025 and sharing the strategy for the next 3 years. I've been soon 1 year in this role of Admicom's CEO. And during the couple of first months when I joined, I mentioned many times that I have a feeling of optimism. And during the preparations for the CMD, I can tell you that my optimism has strengthened. So I still feel very optimistic about our future, and I'm excited to share what lies ahead for the next 3 years. We have been developing over the past 20 years, a company that has strong abilities, strong team to help the industry to be more productive in construction and of course, to pursue next growth stage. But first, it's good to reflect a little bit to the past. So let's first set the scene with a couple of highlights from our previous years. Like mentioned, we have been on this journey for 20 years in developing our digital capabilities and our ability to help construction industry to be more productive. We have been developing our capabilities in-house, but we have been also acquiring companies to strengthen our portfolio. We have been focusing on ability to grow during the past years during our last 3 years strategic phase, which is now ending end of this year. And also, we entered Estonia as our first international acquisition. We have been growing to a company of EUR 37 million annual recurring revenue with more than 300 Admicomians, and we're serving over 3,400 customers in the industry. So I think we have a quite impressive track record in the ability to grow, in the ability to develop our capabilities and serve the market. We have a great team of professionals, both from SaaS, software and technology, but also from construction industry. I think our team stands out in the ability to understand the customers' pain points, what are the problems we're solving for the customers and our ability to execute our strategy moving forward. We have been mentioning that we are very well invested into R&D, into product management and support. And you can see it from the chart here. We have more than 40% of our employees focused on that domain. We also have strong services capability to complement our products with the business services, formerly known as accounting service, but now more broadly business services and also a strong team in go-to-market and of course, management and admin. We have a great set of joint values that we are sharing across the company that has been the development during this year when we have been consolidating our company, both from a company structure perspective, but also culturally. So we are very well equipped for the future also from our team perspective. Our mission stays the same. We are existing to help to build better together with our customers, with the employees of Admicom and with the broader ecosystem of construction companies. Our vision is to become the partner of choice in the European construction software ecosystem. So in the vision, we're quite bold with our ambitions to go international and to be the preferred choice for the customers, which means that we want to develop our customer experience, and we want to develop our products and services to be standing out from the market. The customers are telling the truth. They are telling if we are on the mission and if we're being successful. We have a new podcast series called RaksaTalk, Construction Talk. And one of our customers, Franklin, was recently there telling their story, how in the challenging construction industry downturn, they have been able to grow 50% during this time. They can use technology to select the right projects so that they know which project they should take so that they can deliver profitable results. They are creating a process for estimating the projects, planning the projects so that they know how to avoid costly mistakes, and they can lead and manage with real-time project and financial visibility. And the quote is that being on top of the projects is where everything happens, so to say. So that's the foundation for a successful business. So we have these customer success stories, which we believe that are the testimonial for our ability to be on the mission and deliver value for our customers. The market is very complex in the construction industry. It's one of the largest industries in the world, so it contains also a lot of potential, but there's a lot of problems to be solved. There's many stakeholders participating in the large construction projects. In a large residential building, you can have tens, even hundreds of different contractors working together to deliver the outcome. And in Finland and Estonia alone, there are 75,000 construction companies operating in this field. So the industry is massive, the potential is massive, and there's a lot of complexities and problems still worth solving. Why is the construction productivity so low? Like mentioned, the construction industry is very fragmented. Every project is unique and the conditions vary, both in terms of weather, but also in terms of there are many mistakes, there are many changes happening as the construction project proceeds. The contracting chains are long. And typically, it means that also the data and the information flow is very challenging. Typically, there are a lot of mistakes just because of the data and information flow being inconsistent. Typically, in the process, the plans come late for the project. They're insufficiently made, they're developed on the fly and they contain a lot of errors. And it's difficult to find skilled people and keep the people so that they can learn from project to another. And also construction companies globally have a very low digital maturity. In average, only 12% of the construction companies use digital tools in all of their projects. So there's a lot of adoption that still needs to happen. And the market in our competitive peers is very fragmented still. There has been consolidation happening in the market. We know that the Nordic companies like SmartCraft, EG and ASE have been consolidating the market. But still, when I look at our customers' current software portfolio, they have tens and tens of different products, which are purpose-built for specific tasks. And we believe that with our portfolio coverage and with the strategy that we have now put together for our offerings and portfolio, we can start to tie together the fragmentation in the market and provide more easy, accessible and seamless data flow across the construction project. About the market, we have estimated that the current markets where we operate actively with our companies, Estonia and Finland, the total addressable market for the construction software is approximately EUR 400 million. We believe that this market will provide us room for growth. We have estimated that next year, the market recovery will be approximately 3.5%, which is alignment with the Construction Industry Association. But we also believe that the digital spend will increase as the companies start to realize the value like we saw in the Franklin example, they start to realize the value that come through the better productivity when using the digital capabilities. Henna mentioned about our resilient business model, and this is a picture that I'm specifically proud of. This is an example of the Admicom team delivering great results even during a deep market downturn. You can see on the gray bars there, that's the month-by-month construction industry revenue volume change. Our customers have had very challenging market for the past couple of years. But yet, we have been able to fight back and grow despite this market downturn. And we will see a few examples from Pekka how our growth is being fueled by our customers' growth. And how we have been able to fight against the market downturn, where Satu will explain you a little bit of our business dynamics and our growth dynamics. But I'm very proud of this picture because it shows how well the Admicom team has been executing during these tough market times. The journey so far for the past years has been to build the very broad portfolio of companies and capabilities that we can serve to our customers. We have been demonstrating the ability to execute during the tough times. And we have been also -- during the past couple of years, we have been strengthening our internal capabilities. It means that we have been investing into people in the support functions. We have been investing into critical skills and capabilities in the team. We have taken the first step outside of Finland with Bauhub acquisition. And even though in financial numbers, it's not maybe the most significant step for us, but it's culturally and in our ability to go abroad, it has been a major step forward. Since I started beginning of this year, we have been focusing on further strengthening our base for the next phase growth. I can proudly say that today, we are operating in Finland with only 2 companies when we had several companies as subsidiaries when I started in the beginning of the year, and our team has done a great job in terms of simplifying our operating structure. And we also changed our strategy from product-centric, which was, in a way, the legacy from the acquired companies to more customer-centric operating model. And we have also built the one Admicom team towards the customers, meaning that it's easier to operate with Admicom so that when we contract and when we do cooperation with our customers, they are facing one team and one company. I would say that we are excellently positioned for our next strategy phase. So let's go there. The next 3-year strategy is called -- the strategy phase is called, Let's Grow Together. And like the headline, it's very much focused on how we execute the growth strategy and how we return back to above 15% organic growth rate. And by end of this strategy period, we will be exceeding EUR 60 million of annual recurring revenue. We are still holding this North Star of EUR 100 million ARR as our target, but now we focus on executing the next 3 years to reach the EUR 60 million as our first milestone towards the beyond EUR 100 million milestone. We want to focus on profitability, and we believe that we have operational leverage that we can utilize to grow our current businesses profitability to beyond 40% adjusted EBITDA. We will develop our most and -- to the market the most comprehensive and customer-driven platform of capabilities in terms of technology and services to help in the productivity of the construction market. And during this strategy period, we will triple our total addressable market by expanding our operations to new markets. And we will have a one winning team of professionals in the software, SaaS and construction industry skills so that we can deliver the promise to the customers and drive value for them as well. Let's look at the few details here, and we will have some deep dives today in several topics. First of all, we are sharpening our focus in terms of our ideal customer profiles to serve the construction process and the key companies in delivering those projects. We have historically been addressing different customer needs in different industries even. But today and for the next 3 years, we will be serving mostly customers dealing with the construction projects and improving the construction productivity. We will be focusing on the main contractors in these projects, the subcontractors and some specialty contractors like the building engineering companies delivering the HVAC solutions and the deliveries. But not only are we focused on the sector of construction projects, but we are also focusing on certain customer profiles within those companies. We want to serve those customer profiles and user personas to make their life easier so that we bring our software and capabilities to serve their everyday life challenges. The finance manager wanting to know exactly how the projects are going from a financial view, but the site manager needing to know how to run the project from a schedule and resource and task management perspective. And of course, many of our customers are at the smaller end of the company. So typically, the entrepreneur or the general manager of the company wants to have the big picture, wants to have the situational awareness of all of this, and we need to serve all of these user personas to make their life easier and to drive for the productivity. We will bring together our portfolio even more through the customer lens. The upper level of this platform picture is demonstrating different critical workflows and areas of operations, what our customers are dealing with in their day-to-day operations. We will focus on helping our customers to sell better, meaning do better proposals, do the winning proposals and do customer relationships better, deal with the various different contracting models and of course, to do the invoicing more with the real-time visibility in how the project is proceeding. We will focus on helping our customers to manage and plan the projects better, meaning how to build the schedules and the tasks, how to build the cost estimation and the quantity estimations to be accurate so that the outcomes will be more predictable. And during the production stage, we will help our customers to manage the site operations, manage the safety and quality aspects of the project and also to deal with the collaboration across multiple different stakeholders in the project. And of course, where Admicom was really born was from the administrative operations, how do we automate the back-office functions, meaning how do we do and help the customers to deal with the accounting, the payroll operations, but also in personnel management and different various reporting needs for the company. And in the center, we have the AI agent-based workflow management. We will hear and see a demo from Teemu how we are bringing AI agents in the center to help to coordinate between these different functions and between different capabilities. So that we're not, in a way, creating one business process and one way of doing things, but we can serve customers with more flexible way of building the workflows to serve the company's purposes. And we have the first commercial release for the AI agent-based workflow management in the site operations package that we launched a couple of weeks ago. So how we do all of this is based on our existing software products that we will even more tightly integrate together, and we will enable the products to be orchestrated by the AI agents. We will have the complementary services from accounting, tax compliance, payroll, employee advisory, financial consulting so that not only are we doing the legal mandatory things from a financial reporting and management perspective, but we will also deliver more value-add services to help the customers to manage their business better. So we call it today business services instead of just accounting services because we will bring more value-add services there. And like I said, we will do commercial packaging of these things to serve more the user personas and to bring the AI capabilities there. So for site managers and for the construction workers, we have now released a site operations package, which will help the customers to manage the site operations more easily and effectively. And also, we have been historically building a few partnerships to complement our capabilities. But we will do that even more in the future by bringing in more third-party stakeholders in helping us with managing the product and cost data like we do today with, for example, Granlund. We will have many different kinds of financial services that we can bring to the customers. We have, for example, Nordea Rahoitus, as our partner, and we have Intrum in helping us to deal with the debt collection for our customers, which we can seamlessly bring to our customers through our platform and services. So we will bring the ecosystem to our customers to make their life easier. And we will actively develop this platform of software products and services and partnerships to serve our customers better. And Teemu will give you a few examples how will this become real in some customer examples. So by focusing on the customers and delivering value for our customers through improved productivity, we believe that we can do it by helping the customers to manage the data, manage the real-time visibility in the projects to help customers to make better decisions. We can help customers to reduce the manual work a lot by using automation and AI agent capabilities. We can bring a lot of the industry best practices to our platform and tools to bring the workflow examples and bring the best examples of delivering the higher productivity so that the customers using our platform will automatically deliver more productive services and projects when using our capabilities. And we will do this by making the life easier for our customers from the ease of use, reducing the complexity in the software and product landscape and also through partner integrations. We want to be the integration point for many different third-party services and even some third-party solutions in the future as well. And of course, when we deliver the improved productivity and value to our customers, we can get benefits for the company as well. We believe that we have an excellent ability to serve our customers better, deepen the customer relationships and also improve our net revenue retention. We will give you, for the first time, also midterm targets in terms of our NRR percentages. And through the wider use of Admicom solutions, we believe that we can increase the average revenue per customer. And Pekka will share you a few examples how this has been developing in the past as we have been executing the cross-sell opportunities and also we have been growing in the customer relationships through our customer success and account management. And when we have a higher perceived value for our customers, we have more pricing power. We have more scalability and ability to drive for higher margin profiles. And of course, we can drive additional revenue streams by bringing more of those complementary services through our business services, but also through the partners. So we can drive for Admicom more growth and more profitability. The key growth drivers, like we say that this is the strategy phase for now starting to execute a more stronger growth in our business, we can bring through multiple different growth drivers. We have a very strong investment into our ability to land new customers. We have now the sharpened customer focus so that the customers we serve, we can also deliver higher value for those customers. Through our cross-sell and upsell, we can expand our existing customers, so we can broaden the use of Admicom solutions when we make it more easy to use multiple products at the same time. And also, we will be driving more product-led growth opportunities, which means that when the customers are using our one product, they will have access to multiple products at the same time with easy access and more self-service as well. And we will grow with our customers. When the market is turning, when we can get our customers to succeed in their business, we can also find growth from that. We have revenue-based, project-based and user-based monetization models that will contribute to our growth. And of course, to complement this growth momentum, we will look into the new geographies to expand our total addressable market. So we will look both from an M&A perspective, new market entries, but also through organic growth and also through product-led growth. So we have multiple different growth drivers that will then yield this more than 15% growth, both from an organic perspective and then complementing by the inorganic growth. And of course, we need the one winning team to make this all happen. We have a great team. We had a Christmas party last Friday, and I can tell you that also I felt very optimistic about the Christmas party. There was a great momentum there. And we believe that we have a team that is on the mission of building better together with our customers, but also with our team. We want to further improve our ability to understand our customers' pain points, what is needed in the construction industry and our customers' daily work. We have great opportunities for our team members to grow in their professional skills and to develop themselves for the next career phase. We will also have more international opportunities for our employees. And we want to have increasingly diverse team, meaning multiple different skills and also multiple different nationalities working together in a one winning team. How we do this? We focus on executing our work through different execution streams that go across our operations. First, we have this execution stream of customer-centric platform, which Teemu will give you a few examples. So how do we develop this modular AI-enhanced platform that drives construction and contracting professionals productivity. We have a go-to-market transformation that we're executing at the moment, and we will be executing in the next 3 years to help us to accelerate and scale our growth momentum. It includes also more digital go-to-market capabilities on top of our field services capabilities. We will drive for international expansion, meaning we will drive for expanding our addressable market by building a strong foothold in selected new markets. The business services, like I mentioned, is the next level accounting services like we have today with our 90-person professional team helping our customers to deal with the financial and administrative work. We will develop that to further value-add services for improved productivity and also to help us deliver better customer experience as well. And we still have some work to do in our internal operations. So even though we had this stage of focusing for growth, we have been now consolidating our company structure, but we still have some system development and core system and data capabilities that we need to improve and also to look into certain core processes that go across our company. So some investments are still needed in the selected areas during the 3 years phase. And we will today have deep dives into these 3 different areas. Teemu going into the platform, Pekka going into the go-to-market transformation and Henna then also giving further color around the international expansion opportunity. And we're going to do this in a few stages. We need time to create the base for the international growth. We need to further strengthen our platform capabilities to work even better together. So we will have 2 years of intensive focus in using the investment we have in the R&D and product development and also to really sharpen this customer focus in the construction industry to make sure that we have the most comprehensive and customer-centric platform that we can serve to the market. We will accelerate the growth in Finland by gaining momentum from the industry growth. So returning back to growth in industry in Finland in construction industry. But also we will be looking into strengthening our foothold in Estonia. We have more than 400 paying customers today in Estonia. They are mainly using only one product. So we have a great opportunity to expand our footprint there with multiple of our capabilities. We're going to pursue business acquisitions through a revised M&A strategy, and Henna will share the criteria that we will use in evaluating the target companies. And we will strengthen our internal operations capabilities by doing and executing targeted investments in our operations. And in '28, our expectation is that we will be starting to see more accelerated growth in the international markets, and we will continue strengthening our foothold in Finland and Estonia and of course, continue developing the platform moving forward. The platform capabilities that we can build beyond this strategy period is still massive. There are many, many areas that we're currently not serving with the customers. So we see that it's a long-term journey that we can have for developing these capabilities. So in summary, the strategy is called, Let's Grow Together for the next 3 years. We want to become the first or preferred choice in the European construction software ecosystem for the construction project professionals. We want to get back to above 15% organic growth rate and go beyond EUR 60 million ARR. We want to focus on starting to improve our current business profitability to go beyond 40% adjusted EBITDA, but we will tolerate some profitability diluting factors when it comes to international expansion and M&A and Satu will share a few details around that as well. We will have the most comprehensive and customer-centric platform that we can use to serve the customers, and we're operating in 3x the total addressable market of today. And we will have the one winning team to do that. The how is through executing our strategy through these execution streams that go across our company, and we will be very much focused on our core mission of building better with our customers -- together with our customers. And our mission is supported by our shared values in the background. We care, we dare and yes, we will grow. So thank you from my side. And now we will start the deep dives, and I will invite here Teemu, our Chief Product Officer, to explain a little bit more about the customer-centric platform. Teemu?

Thank you, Simo. It's great to be here on the stage explaining the customer-centric platform. Can you take a look on the notes on the screen? So let me deep dive on the product side of the strategy, and it means how we build a customer-centric platform for our customers and how AI-enabled workflows will help construction companies. So I think Simo already explained why and how wide and comprehensive our platform already is. But let's start -- let me start what I mean when we talk about our platform. For our customers, it simply means they get everything they need from one partner. They don't need 10 different tools. They don't need a manual disconnected workflows where they move data from one solution to another. We are speaking about one platform that actually works together. And then we are doing this, like Simo explained already that we bring our existing products together. And we always look at it from the customer and user point of view. How do we do their day easier? How we make them faster and more productive. So I would say that our core promise is clear. We help construction companies become more productive. And that's the value we are building into the platform. AI, of course, plays a big role. So we are speaking a lot of like AI agent-supported workflows, but we are not doing the AI for the sake of AI. We want to use it for real concrete use cases that we have developed and identified together with our key users. And I will walk through more details what we mean by the workflows soon. And then as we are doing already a strong progress on these, we are already integrating the products together. We are already enabling the workflows, but AI will let us to accelerate our development. And we are building the platform step by step so that it can scale into international markets as well. And let's make this more concrete and let's take a look on what the AI agent supported workflows mean in practice and how they can change every day in the construction. When we speak about the AI agent, and I think every software company is speaking about the AI agents, we wanted to show that we are speaking more on the platform, how do we connect the agents together. And here's one example of project resourcing. These workflows actually are something that we are running and estimating right now in our AI research program. So that's something we are already living and doing every day. But getting back to the actual customer workflow, in every construction project, teams need to evaluate the resources needed, whether it's an estimator and project manager working together with the site manager and general manager. But that's a busy time for the company because they always have more projects in their sales pipeline than they can have resource available. So that's where we think that AI agents are really making a big change. They can analyze the resource availability in real time. You don't need to make an excel and then see whether the people are available, highlight possible gaps in the plan and help the teams decide whether they can use their own people or whether they want to -- and need to go with the subcontractors. And of course, when the project starts, these plans will change constantly. So that's where the AI agents can start monitoring and forecasting the changes, make recommendations and then make sure that all the right resources are available when needed. And then I would say that one of the key things is that it can highlight the risks to different users like site manager needs to have different risks, project managers monitoring the budget and the schedule. And then that's where the AI agent support the workflow, save time and improve resource utilization across the projects. So you don't need to keep any more separate excels and see how the projects are going, whether you have all the people available. And I would say that more importantly, these building blocks already exist in our products. So this is not something that we are developing from the scratch. We are using the AI agents to connect our products together and making a seamless information flow through the whole platform. And that lets construction professionals become more productive instead of manually tracking changes through the individual solutions. But this project resourcing, I would say, is just one example. We are working on many other examples as well. But we need -- we want to make these workflows as practical as possible, and I will go deeper soon on what the workflows mean in practice. But we also spoke about customer centricity. And when we talk about productivity also for the customer, it's important to remember that it looks very different based on your role in the project. Whether you're a bid manager, whether you're a project manager, site manager, general manager, everybody has their own way of into the projects. That's why we are bringing our own construction professionals and software professionals together. We want to deeply understand the real day-to-day work for each role. What actually slows them down, what motivates them and what actually makes their work easier. And that's what we have heard them saying. So for the bid manager, it means that she wants to right -- win the right projects. And for the project manager, it means that he wants to run the projects on the time and budget. When for the site manager, it means that he wants to save more time for the actual construction work, not chase the information back and forth. When the general manager, he wants to make more data-driven decisions. And these are the talks we hear from our customers every day. But -- and that's why we want to understand these needs deeply, not only on the high level as we see here, but what it actually means and how to build a solution based on the real customer needs. And we do that in co-creation with the key users. They can give a feedback even before the development starts so that we are building solutions that match real-world needs from Day 1. And I would highlight also one of the things that we are bringing for our customers. It's the best practices. So we have been digitalizing construction for the past 20 years. And during that time, we have learned what actually works, whether it's on the site, whether it's on the office, and we have built those practices into our solution. So it becomes easier for customers to adapt digital workflows and to get the value faster. That's how we can onboard customers very fast on our solutions. And they don't need to reinvent their own processes. Let's take a look on a practical example, how we have built and launched a new AI-based solution for the site managers. Like I mentioned, over the past year, we have been running the AI research program. We have interviewed tens of site managers and project managers. We have mapped out the most common repetitive tasks that slow them down every single day. Together with customers and the key users, we have selected the first workflows that actually bring the biggest impact when automated. We have had more than 10 pilot customers using the solution in real construction projects. So it's not something that we are just building and giving for the customers. Customers are giving weekly feedback for us. And this has given us the confidence that we have identified right problems for the site managers and that the AI is really creating value on the construction side. And the result is seen here. It's our first AI-based site operation package. It supports the key daily workflows on the site, whether it's reporting, updating schedules, managing resources on the site, finding information and documenting completed work. And it does this all seamlessly across our products, so that workflow feels easy for the user. And for the site manager, this really means time saving and less manual work and much better visibility on what's happening on the site. And you can see it from the customer quote as well. The impact is already visible in real projects. And then we have also a commercial angle here. This is our first AI-enabled solution where we packaged multiple products into one ease to buy package, and we are aiming to have higher average revenue per customer than selling the individual products. Packaging like this creates a clear value proposition for our customers and a stronger, more scalable business model for us. But of course, it's easier when you can see that in the live. So let's take a look on the demo, what this means in practice. So here, you can see a site manager making a task and they can use voice over, if needed, speak to the phone and our AI agent understands the context. And when you have confirmed, it will create a task. And now it has the context what you are doing and asking for doing. And as you can see, it's connecting with the other scheduling program and the schedule and the task is available. Now we jump into the actual site worker and he or she is doing the actual waterproofing documentation as we go along. And you can see how easy it is to start making a new document and everything is documented on the fly. So you don't need to move between the different products. This connects already the products and gets the information flowing between. And of course, important thing is to follow the progress. And here, the site manager is closing the task as we go along, if there's no open task anymore related to the waterproofing. And then as we see a task gets updated to the schedule. And now with this very simplified example, you have seen an AI-enabled workflow where we have connected multiple products already together, and this is something our customers are using on the site already. So they can use the AI assistant, they can use the task management, make tasks there and they connect to each other. When you need to start making the documentation, it knows what documents are available or what you need to fulfill, and it supports making the documentation on the fly. So that's what we mean when we speak about the AI-enabled solution, making multiple products working together. And as we look ahead, the next 2 years look very busy on building the platform and strengthening the platform that we have already there. And of course, we need to prepare for the scalable international growth. First, as you saw, we will add more of these AI-enabled workflows across the products. And then we will release also new solutions like you saw the site operations package, those that will help customers to manage their work end-to-end. It's not the point solutions anymore, it's more end-to-end work management. And at the same time, we are reducing possible duplicate features across the portfolio. This gives us more clear focus on the workflows and allows us to build more seamless and efficient platform experience. Of course, we need to also unify the user interface and our data models, so that all of our products will look and feel the same, so there are not anymore separate tools. And then, of course, this is a major enabler for the AI workflows and better usability. We are also building our core product-led growth capabilities, which means that it's not only about online purchasing and trials, it's all about helping customers to onboard by themselves, finding new use cases and use more self-service with the help of AI. And this improves the productivity for our users, and of course, what we are looking at is the shortening our go-to-market cycle. And one of the key elements, which Henna will explain more in details is, of course, how do we prepare for the international growth. Here, we take a systematic approach. So first of all, we will analyze the market and user needs with the help of AI. As we see, the landscape is very scattered and not too many companies have been able to go for multiple markets, and that's where we can use the AI. Then we will define our positioning in each market, and we will definitely use AI for supporting the localization. Localization doesn't mean the text or the product content. It means those workflows. Different markets have different needs, and we want to put that into the workflows. This helps us enter the new markets faster and is based on our AI research program, what we are running as we speak. And as we reach the end of this strategy period, we have built these basic capabilities into the platform and again move into the acceleration phase. We can support new market expansion faster, whether it's through M&A or whether we want to go another market. We can grow faster with the PLG-driven experience and add more local partners into our platform ecosystem. And of course, we will keep adding more and more of those AI-enabled workflows across our products. Having said that, thank you all. As you can see, we are building a stronger and more unified platform based on our existing products. We are developing new AI-enabled workflows and getting ready for the international growth, but great products alone don't create growth. That's why we need the right go-to-market engine behind them. So now I'll hand over to Pekka, who will walk you through how we bring this customer-centric platform to the market. Thank you.

Thanks, Teemu, for the inspiring deep dive into our platform strategy. My name is Pekka Pulkkinen, and I run Admicom's growth organization since 2023. Really happy to be here to share some insights into our go-to-market transformation in more detail. Our go-to-market transformation includes 2 phases. First of all, it's about accelerating, harvesting the face-to-face opportunity. This means utilizing the biggest go-to-market organization in domestic markets in a more efficient way. This is done mainly by focusing on our ICP customers and the renewed setup around our customers in terms of growth responsibilities and capabilities. Secondly, transforming for scalable growth through PLG. In order to scale, we are building product-led capabilities for our customers to try and buy the different parts of our comprehensive platform directly from the software. This will also be a major asset in our internationalization efforts going forward. As introduced previously by Simo, Admicom's growth drivers are well represented in our go-to-market transformation, landing new customers with sharpened ICP, expanding through cross-selling interoperable capabilities into our large customer base and growing together with our customers through volume-based models. Now looking into the growth opportunities in more detail. As mentioned already by Simo, there are over 75,000 construction companies in our current markets, Finland and Estonia. Even if we focus on above EUR 1 million revenue, there's a lot of room for growth in the 6,000 over EUR 1 million customers with roughly 30% current Admicom coverage. As we know, the construction industry is catching up other sectors in digital spend, and that raise is playing into our advantage. Then to the opportunities. Landing new customers is at the core of our growth strategy, especially the volume potential in the below EUR 1 million prospect base is something we want to serve better going forward. The solution packaging, as presented by Teemu, will be an average revenue per customer lever regardless of the customer size, both for small and large customers. The second growth opportunity is even larger. Only 20% of these current customers use more than one Admicom solution as we speak. And hence, it poses a major opportunity for us. Cross-selling to our current customer base with our wide platform will drive substantial growth in the coming years. Customers are constantly looking for a partner who can provide an integrated set of capabilities that is designed for their specific industry needs. Third opportunity is around the increasing digital maturity of the industry. Our customers are hungry for ways to improve their efficiency, and we can ride the digitalization wave together with them to catch up other sectors. Next, I'll briefly go through 3 actual examples to highlight our concrete capability to execute the land and expand strategy. This first example describes the growth journey of a EUR 2 million revenue electrical contractor, where we have almost doubled our ARR from the initial Ultima and payroll implementation in 3 years. The customer replaced another ERP with Admicom Ultima due to our wider set of integrated software and service capabilities, ease of billing and better mobile functionalities on site. Our financial consulting services complement the customers' growth ambitions. And due to great customer satisfaction, the entrepreneur in question has even trusted Admicom to be the backbone of 2 other construction companies owned by the same individual. This is a good example of our go-to-market organization delivering the platform value to our customers starting from the ERP capabilities, but also showcases the monetization model effects to grow together. Second example showcases a EUR 6 million revenue subcontractor, where we have over quadrupled our ARR from the initial estimation implementation in 4 years. First, due to cross-selling and expanding through additional seats, but earlier this year, growth accelerated substantially. The customer, with roughly 50 employees, was using 3 different solutions to steer business in terms of ERP and finance. This year, our platform was able to replace these separate tools with 1 integrated solution and especially the ease of billing has been a major driver for the customer satisfaction. The biggest individual cross-selling potential is our Ultima ERP in combination with our business services, and our focus will be especially in the construction segment as there is the biggest growth potential. Our third example showcases quite a substantially larger customer, over EUR 50 million revenue contractor, where the initial customer journey started with estimation and scheduling. Over 2 years, the customer has grown substantially in terms of usage, but also new capabilities has been brought. About the landing strategy. As mentioned, the initial customer need was to increase estimation accuracy and improve the scheduling transparency. A new logo was landed with EUR 40,000 ARR. Then to the expansion. The expansion was mainly driven by customer growth and the need to improve the quality of site operations through solid documentation capabilities. When it comes to the user-based increases, the customer went through quite a substantial change in their operating model, and we were able to increase the amount of users because of that, to drive growth together. The bottom line in this customer case, triple the ARR over 2 years. Summing up our growth acceleration strategy. We usually land with ERP in smaller customers and with project management solutions in the larger ones. The tighter ICP focus will increase our hit rate going forward. Secondly, the expansion happens through offering complementing solutions, even quite fast sometimes, but usually over the years since customers' ability to onboard multiple solutions at the same time is limited. This strategy has been systematically in use since the beginning of the year and the 19% growth in customers using more than one solution is a solid proof point for that. Thirdly, grow with customers has a substantial effect on increasing our average revenue per customer. In ERP, it means growing with the revenue-based billing mechanism, and in other solutions, by growing the number of seats or projects. So we've reorganized our growth operations around our customers and prospects in the sharpened ICP. Our marketing is now well equipped to attract demand in a digitally scalable way. The face-to-face organization reflects our land-and-expand strategy. Sales is focused on onboarding new logos, and customer success is geared towards widening the usage of our platform in the current customer base. Customer experience is now centralized and plays a crucial role in improving our customer experience as one Admicom and also facilitating the feedback loops from the customer interface towards our platform development. In a nutshell, we utilize market's best coverage, we foster long partnerships and harness our industry expertise for the benefit of our customers. Finally, from acceleration to scaling through PLG. In order for us to be efficient in scaling our go-to-market operations, product-led growth is a key enabler towards the end of our strategy period. There also, we have 2 phases. First, expanding in our current customer base; and second, drive the international expansion. Both of these phases are supported by state-of-the-art digital customer journeys and subscription management, both that we are working on as we speak. Even though there is some work to be done in this field, we have solid capabilities already in place like our documentation software, Vision. Here is an example. We've enabled our customers to try and buy digitally, but also to manage their subscription through self-service. Our entire platform will have these capabilities going forward. All of this in order to scale growth in domestic but also international markets in a more efficient way than today. Thank you very much for the attention. And now it's time for a 6-minute break. Enjoy, everyone on site and also online. [Break]

Welcome back, and hello again also from my behalf. Our next topic will be international expansion, and I will be also talking about our M&A strategy as we see it as one key means also to pursue the international growth. Let's start by taking a quick look back. M&A has been an integral part of Admicom's journey also in the past. So during the past 5 to 6 years, we have carried out in total 8 acquisitions. And with these acquisitions, we have strengthened Admicom's competitiveness in different ways. We have acquired software solutions to complement our portfolio, for example, with Trackinno. We have brought in product development expertise, for example, with Aitio, and we have entered new markets with Bauhub. And of course, we have grown. So this year, roughly 25% of our ARR is coming from solutions that we have acquired through these acquisitions. And what I want to highlight here is that one of the key drivers behind many of these acquisitions has actually been to build the foundation for international growth. So when Admicom was founded 20 years ago, the starting point was construction ERP. That is today our Ultima, Admicom Ultima solution. And ERP is a fantastic business in many ways. But unfortunately, it is also very local in nature, and it does not travel very well, because it requires high level of localization and adapting to the local regulations and so on. So when Admicom started to think about the international expansion, it also became apparent we need to complement our portfolio with solutions that are easier to take to other countries. And that's what we have done. So firstly, with Tocoman acquisition, Admicom entered into the project management space and got solutions, for example, for estimation and scheduling that are today Admicom Estima and Admicom Tempo. With Kotopro, we got the documentation solution that is today called Admicom Vision. And with Bauhub, we, of course, got the entry to the Estonian market, but we also got this project collaboration and information solution, which is today an important part of our whole platform, but it's also a solution for which we see international potential also outside Finland and Estonia. So M&A has been an important part of our toolbox, and it's going to be that also going forward, both in terms of supporting our overall competitiveness in our current markets and in terms of driving international growth. Then talking about the international growth. In the previous strategy, it was actually planned that this 2024, 2025 would already be a period of accelerated growth with international focus. And I guess it's fair to say that we are not as far down that road as we would have hoped to be at this point. And that is partly due to the fact that during the recent years, we have had very challenging market conditions here in our home markets in Finland. So the focus has very much been on executing our business and on securing the business results here in the home markets. But at the same time, that hasn't meant that we have had less focus and less resources for the international expansion during the past years. So we are still at the very beginning of our international expansion journey. However, we do have taken some important steps that I want to highlight. So as already mentioned, almost exactly 1 year ago, we acquired Bauhub from Estonia. And we got the solution that is now part of our platform. And we also got a very kind of strong market position among Estonia main contractors that are also the type of customers we want to serve in our new strategy and also in Finland. So there's a very kind of good match between the customers and the ideal customer profiles. And Bauhub acquisition has been a very important learning experience for us, as already mentioned by my colleagues. So it was kind of a proof point that we can acquire and we can integrate the company also from outside Finland. So today, Bauhub team members are now part of Admicom in different functions. And actually, their role in development has been quite crucial this year when we've been building this Bauhub solution to be part of our platform. In addition to Bauhub, we have roughly 20 international cross-border customers outside Finland and Estonia. And their importance in terms of the business volume is, of course, quite limited. However, they serve as an important means for us to get the market understanding and to validate our product market fit. For example, last year, one of the largest developers in the Nordic countries became our customers, and they now use our BIM3 and Estima solutions across their operations in Finland, Sweden and Norway. In addition, in Finland, they also use Planner and Tempo, and we are currently discussing how could we next expand our collaboration by bringing in property Bauhub. So we have taken some good steps, but it is clear that our ambition for international growth is higher than this. For the next strategy phase, the ambition is then to triple our total addressable market by building a foothold in selected new markets. And here, you can see the estimated sizes of construction software market in different European countries relative to our current Admicom markets, so Finland and Estonia that are combined roughly EUR 400 million. So if you look at the list, you can see that Germany is roughly 7x the size of our home markets; the U.K., 6x; Sweden and Netherlands, roughly double the size of our current markets. Poland, Norway and Denmark are roughly in the same ballpark as our home markets. And the remaining 2 Baltic states, so Latvia and Lithuania, even combined represent less than 1/3 of our current markets. And what this basically means that if we want to triple and when we want to triple our total addressable market, we need to and we will enter either one large market or a few medium-sized ones. So we want to remain focused also here. We are not planning to set up operations in all these countries and start to have very small operations across many different places, but rather take carefully selective steps, and in the chosen markets, build a strong foothold. And I know that everybody would be very eager to hear which one of these markets are we looking into. However, unfortunately, I cannot yet share you that. And that is because we see that M&A is an important means for us to enter, so that we are evaluating our options not only based on the market, but also in terms of the availability of the suitable acquisition targets. So our approach for international expansion is twofold. Firstly, we will continue to pursue organic growth. We still have room for expansion in Estonia, as Simo and my colleagues already mentioned, and we continue to grow with these international accounts, for example, in Sweden. With these efforts, we are strengthening our capabilities for running international operations. So our product market fit and the possible local partnerships we need to have to complement our own solutions, we are developing internal processes as well as the product-led growth capability that we expect will support us, especially when we move more towards the end of the strategy phase. But then at the same time, we will also pursue inorganic growth. It offers us opportunities to take bigger and faster steps than the organic path would provide. And when we look at the markets where we would we like to enter, we are paying attention, especially to their digital maturity and not just in general, but in those segments and the user groups that we are targeting. And that's because we see it so that Admicom is still a relatively small player in the market. So we are in a better position to grow in markets where customers are already used to using some of the digital tools in their processes. So we do not wish to be the first market maker there who tries to educate the big base of construction companies to work in a different way, but we rather enter places where there is already some traction for the digital solutions. Also, based on our benchmarking and validated by our international accounts, we believe that our solutions are actually quite competitive also outside Finland and Estonia. So we are not afraid of competition even if there would be already some solutions in the market. And furthermore, we see that even if the markets that are in a relative scale, more mature, for example, Sweden, even in those markets, the overall construction digital maturity is still very low. So even in those markets, there is still -- the markets are evolving and growing and there are opportunities for a focused player like us, even if on a relative scale their digital maturity would already be higher. Let's then take a look at our M&A strategy in more detail. At the beginning, I mentioned that in earlier phases of Admicom, we have been making acquisitions also, for example, to strengthen our development capability. And of course, we still welcome new talent, but acquiring software developers is not the type of an acquisition we would primarily be looking for now. Instead, we have 2 main drivers for our acquisition when we are looking for the acquisitions. So first, market entry/target customer acquisition; and second, to complement our platform. So in a way, to continue on a path of further strengthening and making our platform more comprehensive by bringing in solutions that add value to our customers. In addition to looking at this through the lenses of these 2 main drivers, we have also defined ourselves a set of criteria for an ideal target. So starting from the business size, the ARR could be in the ballpark of EUR 1 million to EUR 10 million. So we are looking for companies that already have a proven product market fit and growth capability. So not just a company that has an idea on paper, but something that is already out there that has been validated with the customers. And typically, this would mean that the company would already have hundreds of customers out there. Naturally, we want the targets to be aligned with our target customers and platform strategy, so that now that we are becoming more focused players, the acquisitions don't kind of derail that focus too much. Then we want to bring in a talented team, and we seek cultural fit. And that is because we see these factors critical in terms of us to be able to materialize the synergies from the deals. And then looking from the financial perspective, we are mostly interested in companies that are in, in a sense, healthy financial condition. So we are not interested in making any major turnarounds with the financially distressed companies. And finally, I guess it goes without saying that we want the acquisitions to be value accretive. So the valuation needs to be in a level that allows a good business case for us and increased shareholder value. And then if we look at our approach, how are we approaching these cases. First of all, we want to buy and integrate. So we are not planning to be a holding company that owns companies from different countries, but we seek synergies from the acquisitions. And it means that we will be integrating them both in terms of solutions, kind of bringing those to be part of our platform, but also operations-wise and culture-wise. Then we will be financing the deals primarily with cash and debt, meaning that we would mainly use shares only to ensure the retention of the key people of the merged company. And finally, we want to keep the risk level manageable. So we want to be bold, but we don't want to do anything stupid. So if we then reflect on this M&A strategy described here and our latest acquisition with Bauhub, we can see that it actually fits quite well on the strategy described here. So we did get market entry to Estonia. And as Simo said, roughly 400 new customers that are part of our ideal customer profile. We also got a solution that very well kind of complements the platform we have, and their ARR was roughly EUR 1.5 million. And if we look at the other criteria on the list, they ticked pretty much all the boxes on the list as well and our approach was as described here. So that's an example of the type of an acquisition we would be interested to do also going forward. So this brings us to the end of the international expansion part. So if I would summarize, I would say that we want to triple our total addressable market by building a foothold in selected new markets. M&A is important means for us to do that. But at the same time, we want to strengthen our internal capabilities, so that we build a stronger, more international Admicom. We have now covered 3 out of 5 execution streams that we will be focusing on to make our strategy real. And while we are not going to make deep dives into the two last ones today, let me briefly introduce still those streams, so that you know on a high level what are they about before I then hand over to Satu. So let's start with business services. So as already mentioned, Admicom is quite unique in our markets here in Finland, because on top of this ERP solution, we also provide these accounting services to our customers. And this has actually been quite important for many of our customers here in Finland. So it has supported our differentiator and really been an important and valuable part for our customers operating in this market, especially the smaller ones that maybe have less in-house capabilities. So business services is about how we take this into the next level and develop services to complement our platform in improving productivity and delivering the best customer experience. And in practice, we will be working on these 3 topics. Firstly, we want to bring more value add to our customers, so that we provide more and more these advisory services on top of running our customers' operative processes. We also see big potential in leveraging automation and AI to improve productivity of this service delivery, both internally and also for the benefit of our customers. And we want to explore and develop new complementary partnerships. For example, legal services or something similar, so that when the customers are working with us, they could get even more comprehensive package of solutions for their daily needs. And at the same time, that would ensure us to still remain focused on what we do best, so the software and our own business services. Then future-proof operations. And that's about how we streamline our business processes, upgrade our core systems and strengthen capabilities to support scalable growth and international expansion. And these were all topics we have actually already worked on and during the previous strategy phase, but we see that we need to still continue the development to ensure that we are ready for the growth, and we will be also making some targeted investments into the topics also during this strategy phase. In practice, we will be developing the flexibility of our internal operations to respond to changing business needs. And this means that by having well-documented agile processes in place, we ensure that we are able to carry out, for any changes, let's say, a pricing model change or integration of an acquired company in a swift and structured manner. We will also renew our systems architecture and automate our key processes to support the expanding business. And finally, we want to practice as we preach, so that we are not only helping our customers to make data-driven decisions, but we are doing it also internally. And coming from the background of several acquisitions, we still have some work to be done in this area to ensure that we have all the data in a shape that supports the good quality business decisions. So these were the last 2 execution streams we will focus on in our let's grow strategy. And I will now hand it over to Satu to talk you through the financial perspective to the new strategy. Thank you.

Thank you, Henna. Thank you also to all the previous speakers of today. So I have now the honor to tie all of this together from a financial perspective. So today, you have already heard about our resilient business model. And that has really been the key to our success in the past years when the market environment in the construction sector has been extremely difficult. You have also heard about our comprehensive product portfolio, which we are now evolving into a comprehensive modular platform. And Pekka talked about our broad existing customer base and the sales force and the sales operations and how they have been organized today. Henna then guided us through our solid track record in M&A and also shared our crystallized M&A strategy. We also have some other key strengths at Admicom, which have been mentioned a little bit, but I would maybe want to take a short recap on those before we deep dive into the financial targets of this strategy. So firstly, over the past few years, we have been in an investment mode. So we have made planned investments into several areas of the company. Almost all areas of Admicom have been strengthened. Despite, we have been able to maintain a solid level of profitability with our adjusted EBITDA being over 30% throughout this high investment phase. In the last reported quarter, so Q3 of this year, we, for the first time, reported improving absolute adjusted EBITDA compared to previous year. So that means that now we have first proof that we are able to turn also the profitability as we go forward with our growth strategy and execute on the growth. The predictability of our business was already mentioned once, but it's always good to remember that almost all of our revenue is recurring in nature. So that means that we don't have high one-off fees that could potentially fluctuate our revenue generation and development going forward. Our cash conversion is really high. On average, 80% of adjusted EBITDA is converted into cash annually. So that means that not only we have a very solid cash flow, but also our EBITDA is really clean. So we don't push a lot of expenses through the balance sheet. As of last summer, we are also debt-free. So we paid out the last bank loan that we had in June from the Kotopro acquisition, and now we are debt-free. And together with our high cash flow and our debt capacity, we are very well equipped to now start executing on the crystallized M&A strategy. And we can also choose for ourselves when do we want to use the share in M&A. And primarily, we will use that only in retention purposes, as Henna already mentioned. Historically, this is our cumulative ARR development from end of 2021. Over the almost 4 years -- past 4 years, we have generated almost 90%, so 9-0 percentages ARR growth through our new sales and upsell. Upsell and cross-sell are together in this graph. At the same time, the market circumstances have been tough. So that means that our growth has been limited with the high amount of churn and downsell that we have experienced. The market-related reasons for downsell and churn are various. So for example, for our Ultima and accounting businesses, we are seeing companies go bankrupt or face insolvencies. So at worst, or at highest, insolvencies have explained almost 40% of the quarterly churn that we have experienced. For our project management solutions, churn happens for different reasons. Obviously, insolvencies play a role there as well. But if you think about our project management solution customers, they might not -- in this market environment, they might not have a single project to estimate or document. So they don't need the tools, and that's why they churn. Downsell in this market environment happens because our customers are reducing workforce. So there are less users to our products. There's also the annual adjustment fees. That's one component of our ARR. And we calculate them on a rolling 12-month basis. And that represents basically the revenue-based billing model of Ultima and accounting. Over this 4-year period, we have not gotten any tailwind from this element. So the amount of adjustment fees in our ARR growth is pretty much flat. And if you remember the good years, so in '22, '23, this element alone was contributing EUR 600,000, EUR 800,000 on an annual basis to our ARR growth. So what I'm telling you with this picture is that in a better market environment, as the market starts to improve during this strategy phase, we expect all of these ARR elements to develop positively. And that's now a great segue to our ARR target for this strategy phase. So as communicated, we are targeting to reach minimum EUR 60 million of ARR during this strategy phase. And here's how we have come to it. So firstly, organically, we are targeting EUR 15 million to EUR 20 million. And there are multiple drivers for this part of our growth ambition. Pekka, Simo, Teemu, they all talked about this already. But maybe as a short recap, we are aiming to land new customers. We have our sales force dedicated to acquiring new customers. We have selected land products. That will be the first products that we sell to these customers. So that's one driver for the organic growth in the Finnish market. We are also going to further accelerate our cross sales. We have been growing with our customers already, and Pekka shared some very intriguing examples of that in his presentation, but we plan on further accelerating that. And of course, the platform strategy and how it helps to increase the average revenue per customer plays a big role there. It also is expected to lead to higher stickiness of the customers so that we can increase the NRR, so net revenue retention. The monetization models, user-based, project-based, revenue-based, they all play a role in this organic growth target that we have. Secondly, we are aiming to get EUR 7 million to EUR 12 million from international expansion and M&A. Henna explained you the twofold strategy here. So we are planning on expanding in Estonia, strengthening our foothold there. And at the same time, we are planning on growing through our international customers that we already have today. And through M&A, we are targeting EUR 5 million to EUR 10 million during the next 3 years. So we are also clearly accelerating our M&A strategy and ambition. So our target is to be back on the over 15% organic growth by end of the strategy phase. And of course, we have market assumptions behind our target setting. And on high level, we have estimated that the market improvement will happen gradually during the next 3 years. Simo already shared in his presentation that the expectation for next year, 2026, that's still very modest. So the construction revenues in Finland are expected to grow only by 3.5%, but we expect that to speed up as we go forward with this strategy. We also have a very clear target for profitability. And we have had the target of reaching over 40% EBITDA also in the past. So today, what we want to bring you is more concreteness about how we believe we will get there. And we have very clear operational and strategic levers that will help us reach this goal. During this year, over -- I believe in every investor presentation and meeting that we have had, we have communicated about the overinvestment that we currently have in our product development and product management. And that's basically because of the latest acquisitions that we have made. We have gotten mainly product developers and product management personnel with Trackinno and Bauhub acquisitions. So we believe that we can -- with the platform strategy, we can make better decisions on how we allocate these resources and drive down the relative share of costs that we put in product management and product development. And our target is to decrease the relative cost by 3% to 5% during this 3 years' period. Another clear lever for us is accounting delivery and product support. So we have already kicked off a few product development initiatives, which are aimed to bring higher level of automation to our business services. So meaning the accounting services and payroll services that we provide to our customers. Similarly, we will also target to do the same type of automated enhancement to our product support and customer onboarding processes. So we believe that we can drive down also the relative cost ratio in this area by 3% to 5%. And obviously, we have other areas as well that we can bring more efficiency to. And the go-to-market strategies that Pekka explained, they are 1 clear player there as well. And what's very important to understand is that while we do this, we can still keep on investing into all these areas, because our growth strategy ensures that with the scalability, we can drive down the relative share of costs while still maintaining some level of investment. So to summarize on the key financial targets that we published last week, we have categorized them under growth, profitability and leverage. As said, we are targeting to be back on the over 15% organic growth by end of the strategy period. And for the first time, we are also giving clear targets for net revenue retention and customer churn. And that's because our existing customers play a clear role in our growth strategy, so Admicom is no longer a company that only seeks to acquire new customers, but we are also aiming to take very good care of our existing customers and make sure that they buy more. That's what our platform strategy is all about. And of course, the monetization models, together with the improving market will be a clear support for us as we go along this strategy phase. For customer churn, we have been below 6%. So for example, last year, we reported a number that was below 6%. However, during this strategy phase, we have higher growth ambition for our project management side of our portfolio. And those products are typically less business critical in nature, so they can also have higher churn rates. Of course, we are also crystallizing our focus in our core ICP. And that can mean that some non-ICP customers that Admicom has acquired in the past might churn during this strategy period. But of course, we are making the best possible efforts to make sure that we minimize that. The profitability target of 40%, that has now been set for the current businesses, and that's for the reason that the M&A acceleration we accept some dilution -- short-term dilution from any acquired businesses. But to recap, we also have a buy and integrate strategy in M&A. So we will be sure that we execute and realize the synergies as soon as possible. And we plan on executing our M&A strategy with a leverage level of less than 2.5x EBITDA. And with our very high cash flow, we also know already that we are able to repay any bank loans quite quickly. Of course, the new growth strategy also changes our capital allocation priorities. We are prioritizing growth. So that means that we are putting more capital, of course, into the inorganic growth. So that will be one clear target for capital allocation during this strategy phase. But also, as Henna mentioned, when he presented future-proof operations, strategy stream, we have some strengthening of current operations and systems, for example, that we need to do. But in our organic growth, the strategic reallocation of current resources plays a bigger role than the investments that we will have to make. And with the reprioritized capital allocation, we also published a revised dividend policy last week. So our aim going forward is that we will aim to allocate approximately 30% of annual profits to returning capital to our shareholders via dividend distribution or share buybacks or a combination of those. It seems that I'm the only one who exceeded the given time slot today, but now I will hand back over to Simo, who will wrap up today's presentations, and then, we head to the Q&A. Thank you.

Thank you, Satu, and thank you, all the speakers for contributing to this Capital Markets Day presentation. There's a lot of information to unpack, but I will go in my final words back to the starting slide that Henna used in the intro. So what is the key messages from our Let's Grow Together strategy? So first of all, we are building this strategy on top of our existing resilient business model and our strong financial profile. Satu explained how we're able to utilize our strong cash position and our debt-free balance sheet to drive for more investment. We have a very predictable business model, like we have been demonstrating that even through this cyclical construction industry and the past couple of years, we have been able to sustain on a growth track. We have an amazing growth potential in the market. The construction market is expected to recover in Finland during the next 3 years. And we are conservatively betting on that as well. Like I said, we're expecting next year to be in the range of 3.5% growth. But gradually improving as we move along. But also, we're betting on the customers seeing the benefits like in the customer example that I shared with you that how the digital capabilities and our combination of products and services can help the customers to increase their productivity. So we see that the total addressable market, even in our existing markets, will grow as the customers see the benefit of these technologies and services. With the market growth, we have strong monetization models, where we can really drive and benefit from the growth of the industry, from the growth of our customers through different user-based, project-based and also revenue-based models in our monetization models. And now, we have a growth strategy that really pinpoints the activities and execution that we need to do to get back to the 15% organic growth. We want to grow in the current markets with a comprehensive platform. We have an amazing cross-sell opportunity, and we want to also land new customers by using the modular platform and selected land products and capabilities. We are moving beyond in our internationalization strategy by tripling our total addressable market in selected markets, not to go overboard in our investments in the international expansion, but really be focused in selected markets, where we want to serve hundreds or not even thousands of customers in the coming years. And we will speed up that by leveraging our experience and track record in executing successful M&As and using our ability to drive that furthermore. Like I said in the beginning, I was optimistic when I joined the company. I'm really excited and optimistic about this strategy. I believe this will give us the opportunity to get back to growth with the customers and with the Admicom personnel and with all the -- all of you shareholders. So now, it is time for Q&A, and I will invite Henna here to help us in the moderation, and we will then first start with some questions from the audience here in the studio.

Indeed, let's start from here. So please.

Felix Henriksson from Nordea. I can take 3 questions and then get back to the queue if there's time for more. But maybe first on organic growth in Finland. What do you see as the biggest bottleneck currently organizationally for organic growth in Finland?

I think like Satu mentioned, we have been demonstrating our ability to execute growth both in terms of new customer acquisition and growing the existing customers. So we have been hampered by the industry downturn and the challenging conditions that our customers have been facing. So the downturn and the churn has been eating a lot of that potential that we have been able to execute. But we still have a room for improvement. So one challenge that we have had is that when I started, I looked into the cross-sell opportunity that we had with our existing customers. We had not made it very easy for the customers to buy several products from Admicom. We have several subsidiaries and entities from whom they are buying. They had multiple contracting entities. They had multiple invoicing entities. And the cross-sell was almost like buying from a separate company than buying from one company with a seamless platform strategy. So we want to make the cross-sell easier, both in terms of how we sell it, but also how customers can buy it. So that's one lever. And then also, we are now splitting -- like Pekka mentioned, we're splitting our field sales into 2 different teams, and it's already existing today, where we have one team purely focusing on the new customer acquisition and then one team focusing on customer success through the account management that we do. And if I give you just a few reflections from this year from our customers, when I have been meeting with the customers lately, they have been mentioning to me that something has happened with Admicom that you're taking good care of us and you are helping us to grow our business and use multiple different tools. So it's really now starting to show that the customers feel this care that we are giving for them. And also, we see it in our sales pipeline. We have more and more opportunities, where we are selling multiple products at once for new customers, and we have cross-sell opportunities for the existing customers. So it's just basically accelerating that momentum even further. And in the next phase, we have more self-service functionalities for the customers to start onboarding new capabilities. That's the product-led growth that we're building into the platform. So those are the key drivers, and obstacles have been this complexity of buying from us and the non-integrated nature of the different products, but now it's been moving through the right direction.

Right. And then, how do you see the international expansion shaping the company's go-to-market strategy? Would you also explore partner-led sales and building a partner channel internationally? Or is it purely direct sales you're looking towards?

I think we're open for different options. We have -- for certain products, we have already existing partners in certain European countries. So we have been testing that a little bit. I think the main go-to-market and in a bigger volume is through our existing organic cross-border sales and through M&As. But we are open for different other partnerships. It can be go-to-market partnerships or it can be partnering with existing dominant financial ERP players to which we bring our product management -- our project management capabilities on top. So it can be various different partnerships that we can leverage as well. So it has multiple dimensions. And we haven't set in stone one particular strategy, but we're exploring different options, mainly looking into organically selling cross-country, but also then looking at the M&A as the acceleration for the international expansion.

Got it. But then on M&A, so Henna, how do you see the competition being internationally for good acquisition targets? And what type of multiples are you willing to pay for your acquisitions?

Well, if I start and maybe you can -- and Simo can complement. Of course, we have seen quite high multiples in the market during the recent years. And based on our criteria, I don't think we would be willing to pay that type of multiples, let's say, 10 or something close to that. And we believe that now that we have more clear platform strategy, we have more clear criteria what we are looking for, we believe that it's better for us to be proactive and try to find the targets that we feel are suited to our needs rather than take part in the bidding competition about companies that have been kind of put on sale. So we believe that we would be able to do acquisitions with more moderate price levels, let's say, on the similar levels as we did with Bauhub.

Yes. I would echo on that. So the market has been very heated when it comes to construction software market consolidation. There's been a lot of companies who have been on sale, and there's been almost like an auction for those, where the valuation have been creeping up a lot. And we knew about all of those, and we decided not to pursue because we saw that the valuation was just not in a way, justified to be as synergistic or to have a good return on the investment. And like Henna mentioned, we believe that we can be now -- with the new and more clear criteria, we can be more proactive. We can reach out to the ones we feel are the right fit for our platform strategy and for our go-to-market strategy. And through that, we can find a mutual benefit from those acquisition targets, where we can also create the right sort of incentivization for the team to be part of the Admicom strategy, and we can also find like a value-accretive valuation. And I would say exactly to Henna's point that we paid from Bauhub -- as an example, we paid a multiple of 4 into the ARR, and I felt like that was the right value for the company, for the team and for the complementary platform that we got from them. So that gives a good, in a way, benchmark what we're looking for.

It's Atte Riikola from Inderes. Let's continue on M&A. Maybe from the target company's point of view, why they want to join Admicom family, and like you said, there has been like pricing competition in the market. So if there's like a higher price tag offered, then why they would choose you instead of that money back?

Maybe I can start. We have been having conversations with different target companies. And one of the main criteria for them to look for a more comprehensive provider with a broader set of portfolio is that many companies feel a little bit squeezed in the market. They see that if they have been providing a very narrow software capability, it's been eaten by the ones providing a broader, more comprehensive platform and that's also the message that we get from the customer. So the customers have not decided to take and onboard tens of different software products because they want to have so many software products, it's been because the market has been so fragmented that every use case has a separate product that has been serving that typically. But if there is a player in the market who can provide more comprehensive user experience and integrated data flows, they would be willing to opt in on that. And I think like with the case of Bauhub, they felt like they don't have enough resources to take their solution international. So they want to have more international reach. They want to have more international expansion possibilities. And also, I think there's a certain maturity in the construction tech market. We are seeing the founder-led companies wanting to look for exit. So the ones who are not finding the exit through IPO or private equity based exit, they want to become sold to a trade company or a company like us for the next phase. And I think for many founder, IPO is not possible because of the size of the company, and PE is a little bit intimidating, so they would be kind of like fearful of the future of the company. And I think we can be a great home for these founder-led companies to be integrated in and to provide the next phase for the employees as well.

All right. Then, about the product-led growth you talked pretty much about that today. And I think you already tried that with the Vision product at least.

Yes, we're at the moment doing it with the Vision.

So what has been your experiences this far?

They have been very encouraging. So when the users can add more licenses, add more seats to the products, we see that with a very small opportunity cost and sales cost, we can add revenue to the products. And the more the user management is done by the customer, we see that the lower threshold there is to add more users and add more seats to those solutions. So it's kind of driving the growth through the adoption of the software. We can focus more on providing best practices and providing more use cases where the tools have benefits. And then, we can see that the user base is growing. This example what Pekka was showing from this EUR 50 million infrastructure constructor was a great example where they adopted a new way of working, where they added a lot of seats and users to use the document solution, and then, the scheduling solution for more data transparency and for better site management. And that actually over doubled our ARR as well. And it was mainly because the customer adopted the new way of working with the new seats. And something we have experimented this year is that we have brought together the product navigation so that you can start to see in the navigation window, the different functionalities from the different products that this is something we didn't have before. And now, even though we don't have full integration so that you can digitally onboard directly from that navigation, we see that we're generating traffic across our portfolio. So we can see that the interest from the customers to explore the different functionalities is there when it's represented in the platform. So we will continue on that, and we will start to enable more digital customer journeys so that they can start to onboard and trial out the new functionalities. And with the data integration, they will have more readiness in the different stages of the project life cycle that they can benefit from. So it will drive cross-sells, it will drive upsell with less sales resources needed for making that happen.

You stated that now your addressable market is around EUR 400 million. So could you open up a little bit more how you have calculated it?

It's basically used by calculating different averages of the digital spend in the construction industry. It's containing the full digital spend and the, let's say, relevant areas of investment against our portfolio. And it's -- of course, it's difficult to say exactly what is the addressable market. And we didn't want to separate the serviceable market or what we have at the moment, but it's more like the full potential of the digital spend and related things. Do you want to Satu somehow allude on that more or...

Yes. So basically, we have benchmarked also against what other companies are saying about the Finnish and Estonian markets. And with our own calculations, we have come very close to the benchmarks, and that's how we came to the EUR 400 million. Yes.

It's Matti Riikonen, DNB Carnegie. A couple of questions. First, regarding your growth target of the 15% ARR. Is that basically a target that you should be or you plan to reach every year, the 50%? Or is it more like a CAGR type of target? And if so, do you think that it would be more back-end loaded or front-end loaded because of the cycle or where we are at the moment?

Yes. So behind our growth targets, we have a market assumption that next year will still be very slow for market recovery. So that means that we aim to accelerate our growth rate beyond 15% towards end of the strategy period, but we don't expect that to happen next year.

And also, maybe I would add on that, that for next year, the growth will mostly come from our own ability to execute better our growth strategy. So accelerating the cross-sell opportunity and ensuring that the new customer acquisition is at a sufficient level and also ensuring that we are able to manage the churn as well, even though the market conditions still stays quite challenging. So next year is going to be more around our own ability to execute, and then, we're anticipating that the market will give us -- the market recovery will give us more acceleration on that.

All right. Then, regarding your adjusted EBITDA target, I see that you have capitalized some development costs in the balance sheet and the capitalization has increased from previous year. So do you think that you will still continue to capitalize some of the costs? And is that the kind of missing factor when you talked about the 80% cash conversion rate compared to EBITDA? I mean, you said that 80% is good, but I would ask that why isn't 100%. So could you shed some light on that, that where is the missing kind of 20% on the...

Yes. It's in taxes. So we have the 20% tax rate in Finland. So basically, it's EBITDA minus taxes, roughly, is converted into cash. We have been capitalizing a little bit more. So about 2 years ago, we finalized some huge product development efforts related to sort of replacing the whole financial engine of Ultima ERP. And when that was finalized, we got to allocate our resources more on the new product development. So after that, we have started to develop Quantima. We have started Tempo, a couple of other -- a couple of versions of Tempo actually to target different customer segments. We have now the AI-related development ongoing. So the amount of capitalization that we do, that's directly related to the resource allocation from those like very maintenance type of work to actually something that generates new cash flows in the future. And although we are not an IFRS company, we do very strictly follow the IFRS capitalization criteria because the Finnish accounting standards do not really give any good guidance on that.

Then third question related to -- I noticed that when you measure the market potential, for instance, Poland was like 1x more. And if we think about Poland as the size, why isn't it any higher? Is it that kind of digital capability in Poland is smaller? Or what's the reason to consider that Poland is not as an attractive market as many of the Western counterparts?

Yes. Of course, that was about the size, not the attractiveness. So I think those are still maybe a bit 2 different questions. But there are a couple of components in estimating the market sizes. So there is, of course, the size of the construction sector. That's one element. But the other element is then the digital maturity. And our understanding is and what we have learned from different discussions with professionals is that the digital maturity in Poland is still way lower than in the Nordics. So that is kind of bringing the mortgage size down at the moment, even if kind of construction sector wise Poland is indeed a sizable market.

And during the couple of past years, we have been conducting more deeper analysis on a few target markets where Poland was one of them. So we got a little bit more insight into the market, both in terms of the market potential, but also in terms of the different companies operating there in the construction software sector. So it's kind of -- it's a combination of looking at the different overall TAM like parameters, but it's also then complemented with a more in-depth analysis of the Polish market. Daniel?

Daniel. Yes.

Yes. Just a couple of questions from my side. Daniel Lepisto from Danske Bank. So could you discuss this cumulative ARR bridge and especially the churn component? I guess, there's 2 parts in this question. So can you dissect the voluntary and bankrupt churn, which you touched upon briefly? And secondly, there has obviously been voluntary churn as well from your customers, so what are the key issues that your customers see? How do you tackle them?

Yes. So we presented ARR bridge from end of 2021. Unfortunately, we do not have a very good record of insolvency-related and voluntary churn from -- throughout this almost 4-year period. But of course, the insolvency-related churn started elevating as the market downfall started in 2023. So during that period of time, I mentioned that at worst for Ultima and accounting, 40% of churn has been insolvency-related. I would maybe guesstimate that maybe 1/3 in those sort of more mission-critical products, and then, a slightly lower ratio for the project management solutions because it's also easier to only sort of downgrade the users for certain products and not leave us completely. And the second part of your question was?

Voluntary churn levers, right?

Yes, yes. Yes. Well, obviously, in the recent years, the market has become more competitive. There are more players in the market, and the Nordic, sort of a consolidation has started to happen. So we are not immune to that, obviously. So that plays a role. And then there might be some, for example, non-ICP customers, like the industrial customers, which we said about 3 years ago that we are not focusing on them anymore. So that's one reason why we are experiencing churn. But I think that over the past year or so, we have made great improvements in our ability to manage churn as well. And I think that we have now better -- like organizational-wise, we have better means to also sort of mitigate that going forward.

Yes. I would add one concrete example where we have seen some voluntary churn, especially in Ultima ERP, the financial management of the companies and the priorities change when they are starting to grow to a larger company. So you might have a need of adopting a more, let's say, scalable financial ERP solution or if the companies are being bought by larger corporations, we have had in Finland, for example, many of the building engineering companies have been acquired by Swedish group. And the group entity defines that what financial ERP you need to use. And then, if the acquired company has had Ultima, it has been then replaced. So it might be that through growth or through consolidation, there might be a pressure for selecting a group-wide financial ERP due to certain reporting requirements or group management requirements. And this has -- this have -- might lead into replacing the existing ones. So there are many reasons, but like I said, now, since this year, we have had this quite extensive customer success unit with account managers. I think the customer experience has improved quite a lot. And we can also protect our customer base better when we have a broader set of technologies in use. So that also drives the customer retention.

Great. And final question from me, the annual adjustment fees. So, how is the conversion progress that you initiated earlier this year? And should you -- should we sort of treat this adjustment fees, which were previously annual as sort of a monthly fees from '26 onwards.

Yes. So the rollout has gone pretty much according to our plans. I would say that maybe a little bit over 1/3, maybe 40% will be rolled out to the new model by end of this year. That obviously means that the adjustment fee component next year will be only for selected customers who are still in the old model. But I believe that we will give more guidance on that when we publish our 2026 official financial guidance. So let's not rush into that in these sessions. Yes.

Okay. Good. Let's then take a couple of questions from the online audience. And I would actually like to ask Teemu to join us here on the stage as we have a couple of questions regarding our platform and the AI.

Sure.

So a question we are having is, have you developed your own AI engine? Or are you leveraging third-party AI models? If you are using third-party solutions, what are the associated costs?

I guess that's one of the most common questions I get every day almost. So, of course, we have developed our own models. That's behind how can we make those construction specific. We are leveraging existing well-known technologies. And I would say that one of the key things what you saw in the demo is that actually those workflows doesn't happen that often. So quite often, we are compared to a development tools where developing is happening all the time or financial tools, where you do a lot of tokens. So that's why we don't see yet high running rate on the cost side, and we will implement some basic measures like a fencing strategy that if the token utilization will go high, then you start paying extra for that.

Good. And there's another question to follow that. So how AI ready is your current technology stack, particularly within your ERP platform and the related project management solutions?

I would say that the readiness is a pretty good level. So almost all of the products have APIs available. And that's why we are able to connect the products together faster and faster with the AI agents. I guess the question is very much related to Ultima, and that's a transformation that I have seen happening over the past 2 years. Our customers, big ones, are also requesting APIs to be used so that they are integrated with the BI tools and so forth. That makes it possible to build those workflows even on top of the Ultima.

Okay. Thank you.

Thank you.

Let's then still take a question about our customers. So could you please quantify how often construction customers choose for a complete platform offering versus simply one specific module? And maybe, Simo, you can comment on this one. Yes.

Yes. Absolutely. So I would say that since there hasn't been availability for a comprehensive platform to be bought, we have also not wanted to make it so that it's black and white, you either take everything from us or nothing. So we are building a modular approach. So you can pick and choose what functionalities, what tools you want to take. And typically, we land with one or a few products that we are selling to the customer to solve certain challenges what they're having. But then we start gradually selling more of the capabilities through cross-sell and so on. So I would say that, in most cases, we're not selling everything at once, but we learned a certain functionality or product, and then, we start gradually upgrading from there, cross-selling from there and growing as we speak. And let's bear in mind that all of these tools and capabilities what we bring to our customers is some sort of a change management process as well. So the customer is changing the way they're working, and that also takes some time for them to adopt. So it's, in a way, a better approach when we do it modularly piece by piece and then the customer can due to change management, as they grow the use of the technologies and get the benefits from them as well.

Okay. Thank you. Then there is a question where I would actually -- maybe Pekka, you can comment on this one. So it seems like most members of the management team and Board own very few shares. I know it is a share option program also, but I'm still somewhat concerned about the limited insider ownership and the fact that the company is primarily owned by institutional investors. What is your view on this?

First of all, I'm really glad that this question came up. We have had, as you mentioned, some option-based programs, but -- and also in my mind, they have not been on an adequate level. We have unfortunately been somewhat held back by the decisions of some of the previous AGMs and thus not having the tools to create meaningful incentive programs. We are, therefore, currently preparing additional and improved share and option-based incentive programs for our management and for the Board as well, and this will be presented in our next AGM in the spring.

Thank you. Maybe we can ask Satu to come back on stage. We have a couple of questions here still about our financials that you could comment. So first of all, does our adjusted EBITDA margin target rely on market recovery? Or can you achieve that without any significant improvement in underlying markets?

I would maybe phrase this so that our growth strategy relies somewhat on the market recovery. And if we can't execute or reach the growth targets, then obviously, it is harder to reach the profitability margin as well without any sort of additional plans that we would execute on that.

And I would highlight the fact that what Satu already mentioned during her presentation is that we are not planning on a major cost-cutting exercise. We're planning on leveraging the growth and the operational leverage through efficient and scalable operations. We see that we have great opportunities for leveraging the growth in improved profitability profiles through multiple means. We don't have a linear cost base. We don't have a linear, in a way, need for additional investments into people or tools to support our growth. And we have specific automation targets, where we see that this way, automation will furthermore improve our ability to scale with existing resources as well. But still, we are able to make targeted investments as we grow because we need to have new skills and new competencies also to support the growth in the long run. So everything relies on our ability to drive growth in the future. It's also through our own execution ability, but also through the market recovery and this growth will enable us to drive the profitability higher as well.

All right. Maybe I think we have only time for maybe one final question or let's see how fast this one is to respond.

Patrick Gunn, DNB Carnegie. You talked about developing business services as one of the goals that you didn't dwell into that much here now. But I was just wondering that what is that target kind of meant to drive for. I mean, typically, when a software company talks about services, that means some hourly based work, which is not as scalable as the pure software sales. So why do you think that you would be benefiting from these additional services? Is it to create stickiness with customers? Because obviously, when you mentioned legal services, I would imagine that it would be dilutive to your margins, so any explanation on that.

Yes, very good question, and a quick answer to that is that, we believe that improved construction productivity requires a certain level of services on top of our technologies. We want to bring expertise to our customers, especially in the lower end of our -- like smaller end of our customers who don't have scalable or big internal operations around the finance function or so to build, for example, more insight into their cash flow analyzes, more internal reporting capabilities that we can build on top of Ultima. And we will do it based on recurring revenue models. So we're not looking for extending our time and material or effort-based financial models, but more like packaging, the existing current monthly recurring revenue services to have more, let's say, depth to the service scope so that we bring more like internal reporting capabilities, cash flow analysis, more like being the chief financial officers as a service to our smaller end customers. This is kind of an ideology that we have.

All right. I think, unfortunately, we are -- we have reached the time we had for the questions and answers. So thanks a lot for everybody for sharing your questions. And on behalf of the whole Admicom team, thank you for joining us today. It was a pleasure, and we will be closing the stream here from the studio. So have a great day.

Thank you very much.