Trifork Group AG (TRIFOR) Earnings Call Transcript & Summary

Yes. So I think we should start. Good morning, Dan Dysli, Head of IR of Trifork Group. We're delighted to have you here this morning to look at our first annual results actually as a publicly traded company. The presenters today will be Jorn Larsen, CEO; and Kristian Wulf-Andersen, CFO of the group. Now before we go into the presentation, I would like to show you quickly the disclaimer. Please have a look at that. And while going through the disclaimer, just a few formalities on how we're going to proceed here. We're going to have a presentation of approximately 30 minutes. Everybody is going to be on mute during that time. Following this, we will open a Q&A session. [Operator Instructions] We will then take the time to answer your questions. We will unmute you so you can ask the question and then you get the response from either Jorn or Kristian. I think that it's being recorded, and the webcast will be on our website on the investor website later on today, the investor website, where you can also find the presentation that we're going through now and all other announcements related to the results. So with that, I would like to hand over to Jorn Larsen. Jorn, please go ahead.

Thank you so much, Dan. So welcome to this webinar, and thank you for taking the time to listen in. I can see a lot of participants. And I hope you have a lot of good questions for us at the end. Let's look at some of the highlights for this year. As you know, our mission is to improve the world with software. We drive tech innovation. And here, we have some key numbers for where we are on that mission at this point in time. So if you look to the left, you see a comparison about from where we were last year, same time, to the period we are talking about. So if you compare Q4 2020, Q4 '21, you see an increase, a growth of 21.2% of which organic is the majority of that growth. More important is if we look at the whole year, 12 months 2020 compared to 12 months '21, we see a total growth of 37.4% and approximately half of that a good -- a little more than half of that is actually organic growth. And this, we consider a satisfying result and is in line with our midterm and year guidance. So -- if we then look at some key financials. First of all, we have our revenue for the year, $158.5 million, representing that growth. And then we have a Q4 EUR 42.3 million. As you all know, we like the number of 42, and now we see it clear. And if you multiply 42.3 x4, you also see that we have a smooth growth over the quarters. There are no big abnormalities in our business. We have an adjusted EBITDA for the track segment of EUR 28.6 million, which is also aligned with our guidance. The Q4 comparable is EUR 7.4 million. And again, if you do the math, it looks satisfying from our point of view. And then what is more important is that if we look at the total margin for the adjusted EBITDA margin for the Trifork segment, it's 18.1%. And now we are getting into where we would like to be eventually. And then we have for the Q4, slightly less. It's a period I can say, in the Q4, we had a little more vacation, a little more sick leave. Once the -- most of the restrictions of COVID were released in the various countries. We did see slightly more sick leave and this is actually represented here as the consequence. We still have a good cash position, we are net positive by EUR 17.1 million, representing a minus 0.4 leverage ratio. So we are still in a, you can say, fairly proactive mode on the M&A track. We are looking at a lot of companies. We will keep you updated as soon as something is material, and we can close deals. On the right side, you have the key statistics. So we are now up to 58 business units. It's -- we added quite a few in '21. We have 25 active lab start-ups. We will get back to them and just short of 1,000 employees in total. At the end of the year, we had 28.2 million views on our GOTO YouTube channel. And as you know, it's a KPI we like to track and report to you. And actually present day, if you go to our YouTube channel, it's already passed 30 million views. And you can see the track, the trend of this growth is growing at a nice rate. And this is the most important KPI for us because it's the inspiration from outside to us, and when we are inspired, we can inspire our customers. If you then look it in a larger perspective, because I always look things in where we are coming from and where we are heading. Here, you can see how we have been growing profitable since 2007, and adding the '21 actually improves the CAGR from what it previous was, and now it's 24% CAGR, which is really around where we think a healthy growth is. Let's move on, Kristian. So also, it's very important that every time we can present to you that we talk about what we actually do, and why it is important and how it influences the world. So first of all, here is yet another case story from Vestas. And in itself, that's a very pleasant thing for me to be able to report on. First of all, that Vestas allows us to tell about the work we do with them. But also if you track these case stories over time, you can see that we have been able to work together with Vestas coming up with new innovative solutions again and again and again. Some of them featured by Apple, some not. And also some of them in collaboration with SAP. So this case story is about optimizing the whole process about warehouse management. That means placement of goods and materials and tools into warehouses and also help the 1,000 people who are using these apps to find things in the quickest possible way. And this is a quite dramatic result we have here. So we actually improved the time by 40% from the solution they had before. And it's not like they didn't have software before. They had another, you can say, digital solution for warehouse management. We call this new solution Warehouse Hero, and it actually saved 180,000 hours per year. So -- and 1,000 users, very high adoption rate. And we don't have manuals or instructions. It's a zero time for training, and you lock onto this solution in less than 0.1 second. And this reduces stress among all the people who work with this solution, and of course, it increases the business results because we can do things faster. So we'd like to show you many more of these case stories, and this is -- this is the mission. It's hard in the mission of Trifork that we improve the world with software. Let's move on, Kristian. So here is a quite extensive list of some of the main events. I will not take you through all this because then we would sit here all day. What I can say is that an obvious main event for us, at least, is that we brought Trifork to the market. We believe we have created a foundation for Trifork to live for many, many years into the future. We have now around 7,000 shareholders, and we are very happy that we also know that a lot of the shareholders are colleagues of Trifork. And of course, some of you attending this conference are also shareholders. Regarding M&A and partnerships, there are a lot of events. So we acquired 2 smaller companies that now are business units, Vilea and StrongMinds, 1 in Switzerland, 1 in Denmark. We have a partnership with NVIDIA. It's a very important partner in AI and virtual machine learning. So when you put a video on some real world, then you can detect various things there. We have used it, for instance, in a case where we are detecting road kills. And the mission there is to make sure that fewer animals are killed by cars on the roads every year. So we use machine learning to learn about how we can protect the wildlife better. We have a partnership with Tuum. Tuum is a next-generation core banking system, and we are working with start-ups to implement this technology so they can propel their business. We have fintech start-ups like &Money and Kashet. We have a cyber protection partnerships with Promon that is also in our -- and lab investment, I will return to that in a moment. And then we were quite active on Trifork Labs. So on M&A, we were not that successful, but in finding really interesting partners and investment opportunities in labs, we were quite successful. We divested Humio. So we had an exit. We actually have 2 exits, 1 partial and 1 full. So Dawn, that we actually made a separate announcement of, was half -- not even a half, but we reduced our ownership from being a consolidated group company to being a lab company. And that is a company that already started up with a fairly high value compared to what we now only see. Then we have a number of sustainability initiatives. So 2 start-ups are in our lab companies now that are there, and that is Dryp and Upcycling Forum. Dryp is a sensor technology to improve the flow of waste water and water in the environment, leading to less overflow and less pollution in our oceans and seas. Then we are building 2 new buildings. We have Trifork 1, 2 and 3. Here, as I mentioned, Trifork 1 and 3 because they are also lab companies. So it's new innovative buildings where we are testing and setting in production in a number of new innovations through Trifork. We have implemented a number of solutions. I already mentioned the Warehouse Hero. We have -- we've been involved with the COVID passport from Denmark. We have a Banedanmark case story. We are doing operation for SOS International, et cetera. So a lot of activities in that point as well. Trifork Operation, which is in our recurring and run part. As you might recall, we have now 2 new operation centers, a brand new private cloud installation in Denmark and a Tier 4 in Switzerland. And we received a reward from IBM, being one of their favorite security partners. Let's move on Kristian, which was a long story here. So you might recall, our strategy house, and I already touched base on some of it. So perfecting the Trifork Way is something we do all the time and every day. We work with the leadership teams of all our 58 business units. They do peer development. So we bring those business unit leaders together, and then they learn from each other and improve the way they operate. We have been growing our European position. We have been growing our Run revenue. You can see the organic growth in Run. It's actually 23.6%. I already talked about some of the strategic collaborations. And I would say &Money is one of my favorite ones, where we, together with 3 banks, are working to create new innovative products. And together with those banks, we put them and put them on the market and sell them to other banks as well. And also with partnerships, I mentioned NVIDIA. We have IBM, and they are 2 strong partners. Let's move on Kristian. So the overall group, and this is important to understand how we report now our numbers. You know that Trifork Group consists of 2 segments, the Trifork segment and the Trifork Labs segment, and we report separately on these 2 segments. Trifork 58 business units across 12 countries. We have always majority stakes there. We have Trifork R&D, our research and development, and it's implemented in the form of lab companies, of which 25 are active, and it's all minority investments. Next, Kristian. We have our go-to-market model, the Inspire-Build-Run, nothing new here. What is happening in what we see in '22 is that we are looking at bringing back live events and conferences. I don't believe the world will ever be the same. It's more uncertain than ever. We still have COVID and the pandemic around us. We have a war in Ukraine, which is very unfortunate, and we hope it will be dealt with in a very effective manner and end very soon. So and also mentioning how it's impacting Trifork. So we have some -- we have colleagues of Trifork who are either original from Russia or from Ukraine. And we are helping these people to overcome their challenges, and we are giving them space to help the families in their home countries. So this is, of course, a very unfortunate, very sad -- and yes, unfortunate situation. We are helping where we can. And some of our business units are actively helping refugees when they arrive at the train stations in Poland and Hungary and other places, and actually directly helping. And the organization we have done a program to help Red Cross as well. Let's move on Kristian. So here you have the overview of our 6 business areas, nothing new here. Let's dive down to the verticals. So here, the 3 verticals being FinTech, Digital Health and Smart Building, you can see the overall division from our total revenue to FinTech representing 15% of our total revenue. We see Digital Health 10.3%, and we see Smart Building coming up now because you recall earlier that the it was fairly low. It's a long mission we have with Smart Building. But you see, we have had a quite high growth and actually from the 3 verticals. It's the one that has been growing at the highest rate 46.6%. And Digital Health, 10%. So that is following market. So we are, you can say, underperforming a little bit towards our own ambitions, and FinTech had a nice healthy growth following our total growth. Next, we have the horizontals. And here, you see the smart enterprise, which the example from before with Vesta, with Banedanmark and others. We see cyber protection. Cyber protection is, of course, very much in play now, and probably nothing is more important to most businesses and to protect the data and being able to actually operate your business. Many, many businesses are very digital and if you're digital, you're also exposed to hacking and cybercrime. And you see in the TV, you see all the bombs falling and all the people getting hurt physical, and that's heartbreaking to see. But what you also have to know is all the invisible war that is going on, and that is increasing by a lot in these times. So we are very busy in our cyber protection business area, and basically sold out in this moment. We are scaling what we can. And for the year, you can see here that we have been growing 34% in this field. This is not the easiest business area to grow because it demands very high level of expertise, a lot of infrastructure investment and so forth. Cloud operations, 15.9%, had an organic growth of 30.18%. So that is okay from my view. Let's move on, Kristian. So here, you can see, if you study our financial report, you will see these 8 stories here. I already talked a little bit about the Warehouse Hero case story. If I have to mention another one, it could be bconomy where we are in a joint venture partnership with 3 banks, developing new products. And bconomy is a brand new business banking platform that helps small to medium-sized businesses being more efficient when they do banking and their own operation. What we see a big trend in is that traditional banks, they are doing a lot of effort into doing more kind of businesses, the period where we have had with very low interest had kind of forced, established large banks to think creative and come up with new offerings towards customers. And some of them are done -- many of them are done in fintech companies, and one of them is &Money where we now have this new product bconomy. Yes. Kristian, let's move on. So the one I didn't mention just before is this product we built for Banedanmark. Banedanmark, it's a rail owner of the Danish tracks, so where the train is running on top of. And this has been a very successful rollout. So very high adoption rate, 650 users, 750,000 managed assets and 60,000 work orders every year, and very user friendly, very fast to use, again, sign -- in time of 0.1 second. Have advanced technologies such as speech-to-text because this is something you use in the field. You use it in the rain, you use it in the night, and being able to track down where you need to service a specific part is very important. And of course, you can imagine that we are in a dialogue with other rail owners around Europe, who also uses SAP, which is most of the rail owners that does that actually. So our collaboration with SAP is quite important. Let's move on, Kristian. Here have a look into Labs. And as you can see, we have been very active in the lab area. And this is very important to try out because it's here where a lot of the new ideas come from is where a lot of innovation is happening, and it's where a lot of products are built. And we fuel this innovation with venture capital. And the ones that are orange here -- marked with orange are the ones who had a capital increase or were brought into the group. You have ComplyTeq and Promon, which is new comers to Trifork Labs. And let me just talk a little bit about Promon. Promon is a Norwegian company founded by a Danish person, Tom. And I was in Oslo this week. And it's a great company. We're very happy to be involved. Our ownership of Promon is 5%, but it enables us to have a seat at the table. We can give input to the road map of the product and we can resell and implement this product among all our customers, and it can also be used as a door opener into the cyber world in new areas. So we have ambitions to set up offices in other parts of the world, where Promon is a store owner product. And Promon is an app shield. So a lot of -- you probably all know antivirus programs, you have to install on your laptop, et cetera, and you have a lot of procedures to avoid hacking in many ways. And Promon is a very easy, integratable tool that you can wrap around your app, so being iOS or Android or others. And then it will save you from being hacked. So it's a nice insurance policy for companies who have very valuable assets that can be accessed through apps. So we have expectations for positive development here. Kristian, let's move on. So we are reaching the end of my talk here. So we have an ESG update. There is also a newly published ESG report on our investor and website. And we have a -- so we are talking about a few things here. The environment, first of all, the E in the ESG. So we are looking at innovating on our office basis. We are building new office spaces. We are tracking how much consumption we have in energy, and the emission of also CO2. And we are also helping other companies to keep track of that. There is a new directive coming in place in the '23 report, and we are preparing to actively do very detailed reporting on this. So that is quite instrumental. We believe that the 1 action that is very important, and that is to you can say, plant as many trees on the planet as possible. There are studies that shows that if you can double the number of trees in the world, you can actually absorb over 50, 60 years all the artificial emitted CO2, which is a mind-boggling idea, but 3 trillion trees is also quite a lot, but we will do our part, and we want to use those materials such as tree and wood in building our offices, and we are already doing so. We -- on the social side, people are in center of Trifork. We like to call ourselves colleagues. We are all colleagues of Trifork. And if you look at the gender distribution, we are -- we have better numbers than what comes out from the schools and universities. Our average age of 39.5. We have employees of -- from more than 25 countries. You can see here, we track a sickness absence of 2.4%, still fairly low, a little bit higher than it was a year ago due to the fact that now everyone is along with other again, our immune system is weak. And we get exposed to bacteria and viruses from all the kinds, and that increases this sick absence a little bit. We still have an acceptable churn. And churn is a complex number in itself because some churn is, you can say, wanted and necessary. If you build a new business unit and you want to find the right team composition then you might have to go through a few different skill sets and people before you find the right team. So that is something we call a positive churn -- and then you, of course, have unhappy and unwanted churn where somebody leaves to another place, but where we would actually have liked to kept this person around, and this is something we struggle with like every other tech companies. There is a big demand in tech capabilities and people who know our software. We are full on, on our GOTO. All our GOTO videos are on the Internet. Everyone can learn from them. And as you see, we already passed 30 million, so a lot of people take advantage of this, and it's actually one of the larger channels in world. Governance. We have a Board composition of 40% female at the Board level. And we have a high degree of compliance, and ESG in this regard. Kristian, let's move on. So now I'll hand over to you.

Thank you, and then I will go a little more into details in relation to the financial performance. So overall here, the Trifork Group performance in relation to revenue. Jorn already talked into this in the beginning. So you see here, we have almost the same ratio of growth from organic and inorganic, and especially in relation to the inorganic growth then this was primarily related to the acquisition of Nine back in September 2020. So this is also why when you're then looking into the fourth quarter, see that the inorganic part of growth in the fourth quarter here shows up way lower because it's not impacted by the growth from the Nine acquisition since this fourth quarter is organic instead. Then looking a little more into the group performance on EBIT. So we are guiding on EBIT, and this is why we're here for the Trifork Group is focusing on EBIT and also adjusted EBIT. So as Jorn already explained, then the deconsildation of Dawn Health in 2021 meant that we had an income of that and that was impacted on EBITDA, equals also to on EBIT. So here when you see the difference in between the adjusted EBIT and EBIT, then in 2021, you have this EUR 22.1 million impact from the deconsolidation. And you also have the IPO-related cost then as an additional cost when looking into EBIT. So all this is adjusted for when looking into the adjusted EBIT. So here you see that we improved the margins on EBIT and realized total adjusted EBIT up EUR 15.5 million, equals are almost doubling up from the same period in 2020. Looking then into the Trifork segment performance. Then the Trifork segment, the adjustments here, you could say, or the difference in between the Trifork Group is that the cost of running the Labs organization, which is just about EUR 1.5 million in 2021, is then adjusted for here when you're looking only into the Trifork segment. So then again, EBITDA here, when it's unadjusted, is impacted by the Dawn consolidation. And when adjusted, it's 18.1% margin, and EUR 28.6 million overall. So it's a 42% increase compared to 2020. Yes, moving on to Trifork segment performance in EBIT and adjusted EBIT. Then you also see here that the impact or growth compared to 2020 was even higher, giving us an adjusted EBIT margin of 10.6% in the Trifork segment. Overall looking into EBIT, then the impact of the Dawn deconsolidation, of course, was very high compared to the normal year. So this is why you see the high ratio here and the high growth compared to 2020. Diving into the sub-segments. So within the Trifork segment, we have 3 sub-segments, Inspire-Build-Run, which is also shown in our go-to-market model. And here, you see the actual numbers. Jorn showed you that just about 70% of all revenue was in the Build subsegment. And just about 20%, 21% is in the Run subsegment. So Build and Run are really the drivers of ring revenue and revenue growth in the Trifork segment, and this is why we focus on them here. Overall, you then see the margins. So you see the margins in the Build segment in the graph to the right. So overall EUR 26 million in EBITDA -- adjusted EBITDA equal to a margin of 21.2%. And you see the run-based revenue or EBITDA adjusted of EUR 7.4 million, equal to 22.8% in margin. Then you also see in other segment. This other segment, it comprises of a group overhead of the impact from IAS 19 on pension liabilities, and also in our other segment here, we have, for example, our Code Node facility in London, where we in 2021 did not have any activity due to the lockdowns. So we still have an abnormal high cost here of EUR 1.3 million. So a normal level of other would be between EUR 3 million and EUR 3.5 million in cost. Now I'll dive into selected subsegments. So here, we have the Build subsegment, which is by far the largest subsegment in the Trifork Group. So we're looking into how the revenue growth was in that subsegment. And what you see here is that overall, we had an 18.2% organic growth. You also see that all the inorganic growth is placed here in the Build subsegment. So all, the 41.8% growth compared to 2020. You also see the impact, as I talked about before, that the inorganic growth was very low in the fourth quarter. But organic growth was still at 15%, and this is also where we see it moving forward into Q1 in 2020. The adjusted EBITDA, looking into that. We saw an increase from 19.5% to 21.2% from 2020 to 2021. So this is an improvement of almost -- or a little more than 50%. And this is satisfying in this area where we have the highest ratio of revenue in Trifork. What also you should pay attention to is that 61.6% of all revenue within the Build subsegment is what we call repeat with the strategic customers, meaning that this is customers that we've had for more than 2 years where we -- like Jorn explained in the Vestas case story, do repeat in new product development with the customer and then continue to follow the customer on the journey to digitalize the company even more with the new and smarter solutions. Then looking into the Run subsegment, then we still see that the Run subsegment here is the subsegment where we have the highest profit margins, EBITDA margins. So looking to adjusted EBITDA, we have had a margin of 22.8% in 2021. Overall, we also see that all the growth in this subsegment has been organic. And this is also how it has been historically, and how we see it moving forward. That organic growth will be the highest here, and that we will have the highest profit margins. Now looking into the Trifork Labs segment. As Jorn explained earlier, we really focused on the Trifork and Trifork Labs segment. Trifork Labs segment here accounted for a profit of EUR 3.3 million in 2021. So even if we had a loss in EBITDA of EUR 1.5 million, then the net result here is close to EUR 3 million, based on increasing value of the investments that we are involved in. So what you see here, the change from 2020 to 2021, if you're looking to -- in the graph to the right, then you see accumulated real -- unrealized gain in 2020 was very high. That was primarily based on the value increase in the Humio that we exited in early 2021. And so that is why you see the big change to realized gain from unrealized gain. Then we have the Dawn deconsolidation, which was made in late 2021. And -- that was made -- the deconsolidation was made in the Trifork segment, meaning that when Trifork Labs took over the investment as a financial asset, then that was here posted as cost and active investment of EUR 20 million. So that is behind the increase you see from the EUR 5.5 million in carrying amount to EUR 30.6 million in carrying amount. End of 2021, the total balance of all the value we have from our labs investments carrying forward was the EUR 47.3 million, equal to the investment of the EUR 30.5 million and unrealized gains added on in 2021 here of the EUR 16.7 million. Then looking into the cash flow and financial position. And Jorn elaborated over that we are in the position of net debt to adjusted EBITDA of minus 0.4. And the way net cash positive with EUR 17.1 million. And this is despite all the investments that we have been doing in Trifork Labs despite the acquisitions that we've been making, and also paying out, for example, of EUR 13 million in dividend during 2021. So all, a solid position, which we also expect to bring forward with a positive operating cash flow moving into 2022. Then ending up here with our guidance for 2022, then we have a guidance on revenue stating revenue target between EUR 175 million to EUR 180 million. And this is incorporating or primarily related to organic growth. So what you see in the details on guidance in our annual report is that we guide on the 12.5% to 15% organic growth. When guiding on that is also that we had the deconsolidation of Dawn, and this is also described in the financial report, where you see, if you're looking back to the notes that the EUR 4.4 million that Dawn Health contributed with in 2021. If you take that out and then compare it, then it's 12.5% to 15% organic growth when comparing the new revenue guidance. We have not guided on any potential new acquisitions, but only including in the guidance, the inorganic growth that we see in already completed acquisitions. So if any new acquisition will be announced, then we'll also announce what part or what impact this will have on our guidance. In the Trifork segment, adjusted EBITDA, we guide on the EUR 29.5 million to EUR 32 million. And on the Trifork Group EBIT, we guide on EUR 15.5 million to EUR 18 million. When guiding on the Trifork Group EBIT, I also want to point your attention to that this, of course, then is including the expected cost we have of running the Labs organization. But if you just look into the Labs organization for the past 5 years, then we have had an average EBT in the Labs segment of EUR 14 million a year in average. So here, we would suggest looking into the Trifork segment EBIT as the best guidance. And the cost of running the Labs organization is just between EUR 1 million to EUR 1.5 million in average year. I now hand over to you, Jorn, to conclude.

Thank you so much, Kristian. So this actually concludes our presentation for today. And we are open for questions. So maybe you can go to the next screen because we already used a lot of time. So we like just to dive in.

[Operator Instructions] So just looking whether there's any questions. So far, we don't have any questions here of the attendees. [Operator Instructions] Okay. I see. We have one Serge Rotzer.

Serge Rotzer from Credit Suisse. I would have several questions. I would ask one by one if this is okay for you. So probably first question to the question to the outlook, Kristian, you mentioned that you didn't reflect any nonorganic growth into this top line guidance. What's about Vilea and StrongMinds? Is this in this 100 -- is this in this -- or is it EUR 175 million to EUR 180 million already included? And how much...

Yes. I can answer that. Yes, all the acquisitions that we have done in the past and are completed are included. So from Vilea, this is revenue from until April that will be included. Since the concession was done in May 2021. And in relation to StrongMinds, this will be included until October. Since the acquisition was done in November 2021.

So basically, we should deduct the correlation impact from your [indiscernible]...

Yes. This is only between...

[indiscernible] because you adjusted EUR 4.4 million. So we had to also then to increase the impact of [ relay ] installments to calculate organic growth rate. Is this correct in your view?

Yes. This is correct. This is between 0.5% to 1% in the -- registered as inorganic growth.

Okay. Cool. Very helpful. And probably the next on all-time guidance, you didn't make any guidance for the Build-Run segment, but you already achieved quite high margins. I remember last year, you guided for Build, a margin between 18% to 20%. You over exceeded -- you exceeded it, by 21.2%. So what should we expect here? And the same is true for Run. You guided 21% to 23%, and you are close to 23% with 22.8%. So is this [ bandwidth ] is still true for the current year? Or do you see any changes, do you see upside on that, downside for the Build-Run segments here?

I'd say in our guidance, it's more or less to stay stable, you could say. Of course, the way the market and the economy is at the current point in time, we will see, I guess, inflation rising. We already see that. And depending how good we are in relation to pass this on to our customers as well, if they're ready to pay more for the services because definitely, we will look into a higher cost level at some areas as well. So initially, it's about keeping the margins. If we're able to improve them this year with the current situation, I'm not sure. But in our guidance, we are more or less staying on the same level.

Okay. Cool. Then next one is only for my understanding. When you did the IPO, you had 48 business units. And now you have 58 business units. But you mentioned that you have opened 8 business units. So I lost 2 business units, if you could help me here? And probably if you can say where you have opened these business units, are these units all in Denmark or outside of Denmark?

The new business units are in different countries. The one that was mentioned, the 8, was organic growth. And then as Jorn mentioned, we have 2 new business units in StrongMinds and Vilea joined in 2021. But overall, it's not only in Denmark, but it's also in other countries. All of it you see in 2021, then you see all the inorganic growth was made in almost all the inorganic growth, maybe 95% was in Denmark. So -- but you still see the ratio of the revenue in Denmark compared to countries outside of Denmark being more or less the same, a little less in Denmark compared to global. And with the inorganic growth in Denmark, then it also shows that the organic growth was the highest outside of Denmark.

Okay. Give sense for what you're explaining to me. And this will have been the next question from me when I look back at the country breakdown. So the strategy was to grow outside of Denmark. So U.K., Netherlands and Switzerland mainly. But the share in U.K., Netherlands decreased, I have seen, from a total group from 8% to 6% in U.K., Netherlands from 7% to 5%. I'm questioning a little bit, the growth strategy in these 2 markets and also in Switzerland, the share grew from 1% to 3%. That makes about close to EUR 3 million. And I guess this is a consolidation effect of the Swiss acquisition. So what I want to say is that you don't -- that you're not growing outside your strategic markets. So U.K., Canada and Switzerland. But I know it's still only a few months ago, but if you can help me here. And then lastly, outside of these key markets, mainly rest of the world, your share increased from 8% to 12%. You have been growing by 118%. So can you explain me what this has been in market, country, customer, whatever you are able to disclose?

Yes. I mean what I can disclose is that I think the market is more being globalized, meaning that you might have an entity in 1 country, but actually, this entity is spread also like Triford being more globalized, meaning that we can have a U.K. customer, but actually delivering to other countries than U.K. based on that U.K. customer. So it's not so easy just to put it into boxes, into countries as it maybe was in the past. So I think this is what we're experiencing. So then you could argue, well, it does it really make sense to focus on where you're delivering your revenue. And I would say, no, maybe not because it is being more globalized. But we would say where we focus, where we extend our organization is in the focus markets we have. And of course, some of the focus we have on the -- for example, Switzerland is then paying out also in Switzerland. But as you see and know, in Switzerland, you have a lot of companies, international companies. And sometimes we then invoice them in Switzerland, sometimes in U.K. or other countries, but working still for the same global entity.

Okay. Got it. Gives a lot of sense, much of sense. And probably a last question for Jorn. I can remember in the past quarters, you mentioned that you would like to buy companies, but the multiples have -- now we have seen that multiples are coming down or have been coming down quite materially. What's about your move? Do you see now growing opportunities to grow also inorganic in 2022? Or what is -- where are the hurdles?

Yes. So you're completely right that we have a great appetite for growing inorganic. And to change the picture, you have been seeing here from Q4 '21. We are very active. But I would also say we are probably -- we are very thorough in doing due diligence. So we have a fairly large compared to what we used to have, a very, very large pipeline. We do a lot of research as well. We do a lot of search, and we do a lot of preliminary interviews and investigations. Sometimes we also start trading with potential M&A targets to -- if we buy a little bit from them, then we can see how they act. We analyze what technology stacks they are on. We analyze what customers they have, how well they fit into our business areas, et cetera. So we are -- you can say we have a bigger radar now. We are doing more work, more investment to selecting the right candidates. And then I'm confident that we will see that it will be a more steady inflow of companies into the Trifork Group as we see because the disruption from the IPO, and we had to pause these activities. It took a while to see the consequence of restarting that because it is a long process. We have also had some near misses. You can say that where we actually thought we would do it. But then eventually, we decided not to. So we are probably -- we are in the process of lowering the risk when bringing in a new entity into the Trifork Group.

But also just to add to this, that you see the most recent acquisitions we've done are quite small. And this is also the favorite size of the companies that we're looking for is not to be too big because if they are in a size compared to 1 business unit, then it's much easy for us to integrate them into the group.

And I would say if anyone of you who is listening here has any good ideas on why don't you collaborate with this company, we are all ears. We are very much interested in looking at strategic partnerships, M&A opportunities, et cetera.

Okay. Quickly, a follow-up and then I will stop. Sorry for my colleagues. But do you see also 4 sellers than in the market. Companies which are going bankrupt or who have a cash issue where you get an offer. This would be the question 1. And question 2 on this is, do you really have to acquire? Or do you see opportunities that you can stay in as a success and grow organically as other companies are going bankrupt, if this is true?

I would say that probably our strategy is not to do turnovers -- or turnarounds. Sorry, turnaround. So we actually decided for our strategy. We want to work with already successful companies because the effort of turning things around is -- it can take a long, long time and drains a lot of energy from the whole organization. So even though there might be some good, you can say, investment out there, then we avoid it for the time being. What we do explore more and more is to start more organic. So to start with people who are very entrepreneurial, and then to work out an agreement with them so they can start in a new place from the ground up. And there needs, of course, to be a specific good reason to do that, but this is something we are looking at as well. And that's a good alternative to do an M&A, but then there needs to be a good traction from the beginning in a number of team members you can bring in very fast, and probably also account customers you can bring in. So we need to have confidence that, that will happen soon. And of course, investment wise, that's the best thing you can do.

Yes. Serge, thank you very much for your questions. [Operator Instructions] We're getting close to 1 hour. [Operator Instructions] I see we don't have any further questions. Jorn, do you want to make a closing remark?

Yes. Thank you so much for listening, and we are always available for answering questions on various channels. So please don't hesitate to reach out directly to us. And thank you for today, and hope to see you in the real world very soon.