Hello, and welcome to this 2022 full year and Q4 presentation from Skandia GreenPower. My name is Tommie Rudi. I am the company's CEO, and I will be giving today's presentation alongside Lars Gunnar Abusdal, our CFO. A bit more about us later in the presentation. Today, we will take you through the key events for 2022, the company's strategic direction. Lars Gunnar will take us through the financial reports, and we will conclude today's presentation with a Q&A. Let's begin. 2022 in a nutshell. The elKompis brand was launched in Q3. The brand has been well received by the customers, and the app has been recognized as well built and a solid product. For Skandia Energi, the hold strategy was continued throughout the year.
A new CEO was appointed July 1, 2022, and the company initiated a search for funding towards the end of the year due to its distressed situation. The company also had significant impairments. In 2023, subsequent events, the CEO resigned in January 2023. A private placement was concluded in February, and a new board of directors and management has been appointed. A cost-saving program has been initiated, and the organization is being significantly downscaled. A bit more about the cost saving program. The program has been put into place to ensure cash positive operations by the end of 2023. Specifically, we are significantly downscaling the organization. We are reducing marketing costs to a minimum. Development costs on the digital platform has been reduced to a low level, and we are decreasing the use of external consultants.
The targets for the program is to reduce salary and payroll costs by more than 50%, reduce operating expenses by approximately 70%, to reduce capitalized costs to virtually zero from NOK 21 million, and in total, our aim is to reduce our overall operating costs from NOK 84 billion down to NOK 22 billion at a year yearly run rate. That's a 74% decrease, and we expect the full effect of the program for the full year of 2024. Here, you can see the organization. On one side, the old organization, and to the right you will see the new, more agile organization that we will be left with after the cost-saving program. Speaking of the new organization, Lars Gunnar, can you say a few more words about yourself?
Of course. My name is Lars Gunnar Abusdal. I've just been appointed the new CFO. I'm a local man from Kristiansand. I'm 42 years old. Formal education is, I have a bachelor degree in mathematical finance and a master degree in business administration from the University of Agder. Before I started here in Skandia Energi or Skandia GreenPower, first as the finance manager and now a CFO. Before that, I was head of finance in Fjord AS. Yes, I think that's enough about me. Tommie?
Thank you, Lars Gunnar. As mentioned, my name is Tommie Rudi. I'm the new CEO of the company as of the April 1st. I'm 33 years old. Through Evendo Invest, I am the majority shareholder in Skandia GreenPower as of the private placement in February. Before my engagement in Skandia, I founded Saga Energi and a few other companies with business to consumer sales. A bit about our strategic direction. As mentioned, the elKompis app has been launched in the market and has been well-received. However, we acknowledge that the development of operating costs are unproportionately high in comparison to the number of users. Going forward, we seek to broaden the user base to bring down the cost per user for the app.
We have already started a program or a project to make a rebranded version of the app to the Skandia Energi brand. Going forward, we are seeking to a possible lease of the platform to external parties to further broaden the user base to bring the cost per user down. We also expect the positive margin development per customer going forward due to several reasons. The first one being a change in the market. The last few years, the whole market, all of the suppliers have seen a increased cost, mainly due to higher spot prices, electricity prices, and we're now seeing a lot of providers that are seeking to inflict this cost reduction onto their customers through price adjustments. We expect the general prices in the market to increase.
We also expect to have a positive margin development due to our value added services, such as offering the app to the Skandia Energi brand. We also expect the positive margin development due to consolidating the number of product portfolios we have to lower the operating costs of each product portfolio. We also seek to improve cost control. We are implementing a small and dynamic organization, and the customer acquisition costs is being reduced to a low level through the cost-saving program. More long term, as of right now, our main priority is to ensure operations, and that the organization adapts to the current market, and the board will continue to investigate possibilities for future growth and new strategic measures. Now Lars Gunnar will take us through the financial reports and give us a bit more details.
Thank you, Tommie. Well, first let's look at some customer numbers. At the end of 2022, the group had approximately 23,700 customers, of which 19,400 was customers of Skandia Energi, and 4,300 were customers of elKompis. Through the year, the amount of customers in the Skandia portfolio have declined by approximately 12,000 customers. The main reason for the churn through 2022 has been the whole strategy, meaning that all growth initiatives in the group has been focused on elKompis, not the portfolio in Skandia. Furthermore, the record high Nordic power prices has led to a significant increase in the churn in the whole market. At the end of April this year, we have almost 17,000 customers in the Skandia portfolio.
elKompis was commercially launched in September 2022 and was well received in the market. At the end of Q4, the portfolio consisted of 4,300 paying customers. A sequence of reducing the marketing cost to a minimum so far in 2023, the elKompis portfolio has had a limited growth and consists of 4,500 customers as of today. Let's have a look at the contribution margin for the Skandia portfolio, which has been lower than in 2021. This is a consequence of the aforementioned market changes. The record high Nordic power prices in combination with the significant price competition between the players in the market has led to higher churn in 2022. The contribution margin per customer in the Skandia portfolio has been put under pressure.
For the full year of 2022, contribution margin per customer ended slightly short of NOK 1,300, a reduction of approximately 12% compared to 2021. Earlier in the presentation, Tommie presented the short term strategic measures that will be taken. I will not go into details on the way forward. Let's move on to the financial results for 2022, which was a turbulent year for the group. The record high Nordic power prices, driven by lack of gas deliveries from Russia, led to a significant increase in the gross revenues. In total, the group had gross revenues of more than NOK 550 million in 2022, up by more than NOK 15 million compared to 2021.
Our revenues, net of the cost of power purchase, was down year-on-year due to lower average contribution margin from the customers. Salaries and payroll costs increased somewhat due to a severance package to our former CEO, as well as less capitalization of salaries. Over several years, the group has capitalized salary costs related to the development of the digital platform, as well as acquiring new customers. The new share, the share of salaries that was capitalized in 2022 was somewhat reduced, leading to increased salary costs recognized in the statement of profit and loss. Other operating expenses doubled compared to 2021 and was driven by two factors: increased costs related to marketing of the digital platform, as well as higher expected losses from account receivables.
Impairments of almost NOK 60 million are related to the digital platform in CAC and will be commented upon more in detail later in my presentation. Following derecognition of the deferred tax assets leading to income taxes of NOK 16.2 million, the group reports a net loss of NOK 127.7 million for 2022. Moving on to the financials for the fourth quarter, we see that the EBITDA ended at minus NOK 19.9 million. This is down by almost NOK 17 million Qo Q. The main reasons for the reduction in EBITDA are lower net revenues and higher operating expenses caused by the same factors as for the full year. Following impairments and income taxes that was recognized in the fourth quarter, the group has a net loss of NOK 103 million in Q4.
This is more than NOK 96 million lower than in the comparable period in 2021. As mentioned, 2022 has been a turbulent year for Skandia GreenPower. An updated analysis led to impairments of close to NOK 60 million recognized in 2022. Over the years, the group has invested significant amounts in developing the digital platform. The commercial launch of elKompis in September 2022 was a success, and the platform is solid. However, updated analysis show that the expected future revenue from the platform is significantly lower than previously expected. We have updated the discount rate, the expected future customer base, as well as the contribution margin per customer. All these factors have had a negative effect on the calculated residual value, leading to impairment of almost NOK 50 million related to the digital platform.
Based on our best estimate, almost 90% of the amount that has been invested in the platform over the years is lost. A historic lack of cost control, the lack of speed in executing the strategy, as well as the changed market we have seen over the last few years are the main factors behind the impairments. Further updated analysis also show that the customer acquisition cost have been capitalized at too high level. The estimated contribution margin per customer is lower than previously expected. This has led to impairments of CAC of NOK 10 million. We believe that the book values of the digital platform in CAC is now at a realistic level. Stress, which Tommie mentioned earlier in the presentation, these impairments underlines the need for robust cost control going forward. Now, let's have a look at the balance sheets as of year-end.
The recognized amount of intangible and fixed assets are down due to the impairments. The deferred tax assets have previously been based on tax losses carried forward. At this point in time, the group is in a transitory phase, and the uncertainty has increased. Thus, it is not likely that the group will have profits to utilize the tax losses carried forward, and the deferred tax assets have been derecognized. Over several years, the group has applied certain principles for revenue recognition incorrectly. The error has led to a negative effect of approximately NOK 5 million on the reported equity as of year-end 2021. The previous reported equity has thus been restated and is now at NOK 147 million. The group's working capital consists of receivables, mainly to our customers, cash and cash equivalents, and current liabilities. The latter is in substance related to interest-free debt to our power supplier.
We see from the reported amount that the group's working capital as of year end 2022 were approximately zero. This, in combination with negative net cash outflow, led the company to a distressed situation. On my last slide, I will provide some information on the cash flow for Q4 and 2022. Adjusted for non cash effects from depreciations and impairments as well as working capital movements, cash from operating activities were positive for the full year. Our working capital is positive as we have favorable credit terms with our power supplier, meaning that we receive payment from our customers before we pay our vendor. However, most of our short-term debt was due all in 2023. This left the group in a challenging liquidity situation. Cash from investing activities is mainly due to investments made in development of the digital platform. For the fourth quarter, cash from investing activities is positive.
This is due to an erroneous classification in the cash flow statement in previous quarters in 2022. In reality, there were no cash movements from investing activities in the fourth quarter. Following net cash inflow from interest, which is settled at the end of each fiscal year, net change in cash and cash equivalents is negative by NOK 8.8 million for the full year. That's it. I guess I will now hand it over to Tommie to summarize.
Thank you, Gunnar. To summarize, the historic strategic direction has led to significant losses in 2022. A new short term strategy direction is in place from February of 2023. Our main focus now is to execute the cost saving program, implement price adjustments, increase margins, and improve cost control. We will investigate new opportunities for growth and profitable operations from 2024. That concludes our presentation. We will now move on to the Q&A section. Yes. Have a look to see if we've had some questions.
Yeah. So far, and it's, that's, our presentation has been very good. There are no questions. Let's give it a minute or two, see if something pops up. Yeah. No, it doesn't look like we've had any questions. That will conclude our presentation. Thank you so much for attending. Have a good day.
Bye.