Ladies and gentlemen, welcome to the Addnode Audiocast with Teleconference [Fourth] Quarter 2021. For the first part of this call, all participants will be in listen-only mode, and afterwards there will be a question- and- answer session. Today, I am pleased to present Johan Andersson, CEO, and Lotta Jarleryd, CFO. Speaker, please begin.
Thank you, welcome to the Q1 presentation for Addnode Group. As presented, I'm the CEO of Addnode Group, Johan Andersson, and with me is our CFO, Lotta Jarleryd as well. If we could move to the slide agenda Q1 2022. Next slide, please. I thought we would start off with a short intro of Addnode Group just to put it on the map. Let me give you a brief on Q1 2022, talk a little bit about what we do within sustainability, sum it up with our investment case, and then open up for Q&A. In the presentation, you will also find a display of customer cases from our divisions and the acquisitions that we have done in 2022, 2021, and 2020. That's more appendix and reading. Thank you.
Please move to next slide. Looking at the Addnode Group, we provide digital solutions for a sustainable future. That means that we create sustainable growth and value by acquiring and developing cutting-edge enterprises that digitalize society. We are organized in three divisions: Design Management, Product Lifecycle Management, and Process Management. Looking at the last 12 months ending March 31 here, we are roughly 2,300 employees. We have net sales of SEK 4.4 million, and an EBITA result of SEK 500+ million. Looking at our revenue, we have recurring revenue of 67%. 67% meaning that our customers pay in advance for the right to use the software or the digital solution that we provide for them. It could be both on-premises solutions and SaaS solutions.
Then we also sell licenses and then services, when implementing, the solutions and integrating them with other, digital solutions at our customer side, and also some services around that. With that only introduction, I would like to move to the next slide and present where Addnode Group are presented today. Looking at next slide, Addnode Group today, we are, started out in 2003 in the Nordic countries, and, then, we have moved out into the world, meaning that we also have operations in, Australia, Japan, Canada, and latest with our acquisitions that we'll talk about a little bit later in the U.S., a significant portion of our operations. We are step-by-step becoming more and more international. Please, next slide.
Looking at Q1, it's another record quarter, and we have also made strategic acquisitions in the U.S. and also some other acquisitions in Germany and U.K. Our people are doing fantastic work, and we started out 2022 with a record quarter. What's good is that all three divisions achieved good organic growth and improved earnings and contributed to the good result in Q1. Net sales increased by 28%, 7% was currency-adjusted organic growth, and we ended up at SEK 1.3 billion. The EBITA increased to SEK 118 million, and our EBITA margin strengthened to 13.6%. Important is that the EBITA included a capital gain of SEK 24 million from a sale of an office in the U.K. that was part of an acquisition that we did in 2020.
We ended up with an office, and then we now have sold it. Our policy is not to own any offices. We would like to lease them. That's part of the. Also looking at Q1, we have had acquisition costs of SEK 12 million. The capital gain and acquisition costs when looking at the different segments that are reported under central eliminations, you will not find them in the different divisions. Summing it up, it meant that earnings per share increased by 96% to SEK 3.17. All in all, from a financial perspective, a good quarter. We have had generally good demand from both the private and the public sector.
We can also see that, U.K., for example, that had a little bit tougher compared to our other market in COVID situation are getting better as well. Looking at the different geographies, it's moving from a stable to a good demand to sum it up. I think with that, we'll end that and move to the next slide, please. Looking at our Q1, we grew all components of net sales. License revenue increased. Recurring revenue increased also with 28%, ending up at SEK 910 million. Looking at the total, you can see that our recurring revenue is 69% of total net sales.
Looking to the left in the graph, you can see that we are back on a growth path with regards to net sales, after having a smaller downturn in 2021 due to COVID. I'm pleased that we are back on the growth path on a yearly basis again. Please next slide. Addnode Group, as I said, we are operating three divisions, Process Management, Design Management, and Product Lifecycle Management, and all contributing to the good growth in Q1 and the improved earnings as well. Next slide, please. In Design Management, we both had a strong organic performance, and we made some strategic acquisitions by the end of the quarter. Looking at the organic performance first, net sales increased to SEK 707 million. That was a growth of 33%.
Organic growth 11%, and adjusting for currency, 5% organic growth. Symetri is our Autodesk partner who has a good offering of own technology and services complementing our partnership there. Had a very good demand in the quarter that was reflected in division's growth and earnings. Our customers value now Autodesk partners with proprietary related products, as well as a broad in-depth design and BIM skills. Demand in the U.K., as I mentioned earlier, was especially positive coming from a lower situation. In the Nordics, manufacturing customers became more willing to invest. Demand for division's other offerings based on proprietary software for BIM and collaborative portal for construction, infrastructure, and facility management also made good progress in the quarter. EBITA increased to SEK 89 million, and the EBITA margin widened to 12.6%.
In the quarter, we also made our largest acquisitions to date of Microdesk in U.S. This company was consolidated from March 1, 2022, meaning that it was one month that was included in the quarterly results. With that, please move to the next slide. Microdesk is an acquisition that is, as I mentioned, the biggest one so far for Addnode Group, but it's also a complementary acquisition of what we are doing today. Meaning that Symetri, who are part of Addnode Group, became part of Addnode Group actually in 2005, started out having a net sales of SEK 1 million, and ending up in 2020 with a net sales of SEK 1.5 billion, growing through organic growth and acquisitions. We have done that predominantly in the Nordic countries and in the U.K.
Now the next step is establishing also the businesses in the U.S. through the acquisitions of Microdesk. It's a big acquisition, but it's also complementary acquisitions to what we are doing today. Meaning that Symetri and Microdesk will be one of the biggest Autodesk partner in the world and also the one with the biggest service offering. We are expecting to pay $50 million for this, $26 million up front and $24 million is depending on the financial result becoming approximately three years. We have financed this through our existing credit facilities. Next slide, please. Why are we excited about this? It means that Symetri and Microdesk together will have a global reach. We will have a technology leadership that we are able to invest in our own IP supporting the Autodesk platform.
We are industry-focused. We'll probably be the one with the biggest consultancy offering actually in the world in this space. We can see that we will have good benefit from manufacturing and construction moving together. We as Addnode Group can back up, support the further growth of this entity. Both companies are very much customer-centric. Out of this approximately 700, at least 600 are meeting customers, if not on a daily basis, but on a weekly basis. We have a strong partnership with Autodesk, and we also have other supporting technologies to support our customers within the AEC area and the manufacturing area. We have a strong consulting team offering this. We see great opportunities going forward.
At present, Microdesk has a lower profitability than Symetri, but we also believe that going forward, we will be able to find a way to make sure that Symetri and Microdesk has the same profitability going forward. How will we do that? Of course, we have a strong offering with of own IP supporting that. Hopefully, that we'll be able to infuse that in the U.S. market through Microdesk as well. We can share know-how both ways from Symetri and Microdesk and share resources and also looking at how to run the business in more efficient ways. Hopefully, this will be a growth platform to go for, you know, further. Please next slide.
What I mentioned is that one of the things that is exciting is that we have a product portfolio supporting and enhancing the investment in the Autodesk platform. We call our product there Naviate, Sovelia, and CQ. That all the things that we have invested and have as a significant portion of our business of today. That means that if someone, if you are an architect today and you log in to one of the Autodesk products, you will find these products in the toolbar. It's integrated in these things that we deliver to our customers. It's not a separate product, it's a bundled product, and we provide it to our customers. Why I'm mentioning this is because it makes us unique to our other competitors in the market, and of course, it has a good contribution to our profitability as well.
Next slide, please. Looking at Product Lifecycle Management, also the quarter with strong earnings improvement, and we also made some acquisitions. Net sales increased to SEK 338 million. That was a growth of 19%, organic growth 12%, and adjusting for currency, it was 8% organic growth. Operations in the U.K . Made especially positive progress in the first quarter with increased demand for PLM systems and related services. Demand remained good in the Nordics and Germany. Initiatives in simulation solutions and solutions for customers in life sciences progressed well in this quarter. Recently acquired Claytex was consolidated from January 1st, 2022, and the acquisition of DESYS was consolidated, effective from March 1st. EBITA increased to [SEK 44] million, and the EBITA margin expanded to 10%.
I am especially pleased that we're able to deliver a very strong earnings quarter with EBITA increasing 89%. With that, I would like to move to the next slide. We made two acquisitions in this quarter, supporting and making TECHNIA even stronger as a world-leading Dassault Systèmes partner. The acquisition of DESYS and Claytex, with some adding SEK 200 million of net sales to what we are doing in the PLM space. They are both partners to Dassault Systèmes and providing also related proprietary software and services. Claytex specializes in simulation and testing for the automotive industry. The integration of DESYS also means that TECHNIA becomes even stronger on the German market. Two very good companies supporting the further growth journey of TECHNIA. Next slide, please.
Looking at Process Management, had a very high organic growth from our perspective, and we were also able to improve margins in the quarter. Net sales increased to SEK 288 million in the first quarter. That's a growth of 28%. Organic growth was 10%, and adjusted to currency is also 10% because the majority of the business is in the Swedish market. We believe that the division is outgrowing the market in those operations, providing solutions and services in document and case management, public services, and municipal engineering information systems for public authorities and municipalities. The division's business are well-positioned for public sector tendering, owing to their attractive digital solutions, in-depth experience, and good references.
We can see that the competition of people in the labor market are intense, and, it's not, that is affecting our businesses, but we can see that the competition are increasing. EBITA increased to SEK 60 million, and the EBITA margin widened to 20.8% compared to 17% last year. All in all, a very good quarter with high organic growth and improved margins. Next slide, please. Then I would like to hand over to our CFO, Lotta Jarleryd.
Thank you, Johan. I would like to start with an overview of the consolidated cash flow for the first quarter 2022. We started the year with a strong operating cash flow that increased by 60% to SEK 242 million. This represents a cash conversion rate at 1.6x , and that is operating cash flow to EBITA adjusted for the property sale. The improved operating cash flow compared to the same quarter previous year was attributable to improved earnings as well as higher contribution from the change in working capital. As Johan previously mentioned, we have executed three acquisitions during the first quarter of this year, and the net outflow cash flow from these acquisitions was about SEK 300 million.
In addition, we set the last outstanding portion of the consideration to the sellers of Excitech that was acquired in January 2020. This payment was made in connection with receiving the proceeds from divesting the office property that was included in the acquisition. Other investing activities mainly related to development costs for proprietary software. Regarding cash flow from financing activities, we have drawn about SEK 300 million on our revolving credit facility to finance the acquisitions. Please also note that the Board of Directors has proposed to the AGM a dividend of SEK 3 per share. This corresponds to a total dividend of SEK 100 million to be paid out to the shareholders on May 11th. Next slide, please. I would like to carry on with a few comments on the consolidated balance sheet.
We continue to operate supported by a resilient balance sheet, which gives us a favorable position to continue to grow organically and through acquisitions. Following a strong cash flow in the first quarter, the cash position was SEK 668 million as per the end of March. Together with unutilized portion of the credit facility, we had about SEK 1.3 billion in available funds by the end of March. Other changes in the balance sheet from December 31st, 2021 until the end of March 2022 predominantly derived from recent acquisitions. Following the customer purchase price allocation exercises, goodwill and other intangible assets have increased by SEK 578 million. Non-current liabilities increased as the credit facility was used for financing and continued considerations were booked as liabilities.
External debt totaled SEK 965 million, and leasing debt amounted to about SEK 180 million. Please now note that the utilized portion of the credit facility arranged in June 2021 is classified under non-current liabilities. The previous credit facility was classified under current liabilities as its maturity date was June 30, 2021. Following the acquisitions in the first quarter, net debt increased to SEK 481 million. The equity ratio was 34%, and return on shareholders equity was 16%. Finally, I would like to mention that the board of directors has proposed to the AGM 4:1 share split. The purpose is to increase the liquidity of the Addnode Group share. The scheduled record date for the split is May 18th. Back to you, Johan.
Thank you, Lotta. Let's move to the next slide, sustainability agenda. Looking at Addnode Group, what we do is, Addnode Group we work according to a sustainability agenda with five focus areas that we have identified. We truly believe that our biggest contribution to a more sustainable society is the digital solutions that we offer to our customers. Our solutions are used, among other things, to perform, for example, digital simulations for the benefit of the environment and health, make more sustainable design choices, product life cycle management, property management, and improve participation and dialogue with citizens. That means that the digital solutions that we will provide make it possible for our customers to create a more sustainable world. That's our contribution. We care about the people and environment in our business. That's a given.
We also ensure that our partners and suppliers support our sustainability agenda, and that's why it's important to work with good partners as well. By the end of the day, we need to make money so that we can finance our business and make investments to create a more sustainable world. To make all these things happen, we need to have some sort of control and management of the sustainability work. Looking at what Addnode Group do, we have identified those of the UN Global Development Goals that we believe have the clearest link to the Addnode Group's sustainability agenda. Starting from left, our objective three, good health and well-being. That's both linked internally, but also the digital solutions that we provide, for example, to our customers in the life science sector.
We have to work with gender equality because it's important to have equal opportunities. We would like to have decent working conditions and economic growth, both internally and what we provide. Sustainable industry innovations and infrastructure is an important area for us as well. Also looking at sustainable citizen communities and, all in all together, we would like to help combating the climate change. That's what overall what we're trying to do within the sustainability area as an everyday work. Please move to the next slide. In summary, looking at Addnode Group as an investment, we have a strategy of acquisition-driven growth, and we will continue to do that. As you saw, we did three acquisitions this quarter. We will probably do some more this year.
When we do it, we'll see, because we like to do acquisitions from entrepreneurs who are working in the areas that we are. That means that we are very seldom in competitive auction processes. It's more of a long-term effort to make these things happen. So that means that it happens when it happens. We will continue to provide sustainable digital solutions to our customers. We do believe that we have an attractive business model, meaning that customers pay upfront for the right to use the software and creating recurring revenues. It's a good cash flow and a good customer relationship. Within Addnode Group, you will find a diversification, meaning that different countries, different regions, different offerings in both the public and the private sector.
If we also sum up the first quarter, I believe we started the year with good organic growth, acquisitions, and better efficiency in the operations, meaning essentially better margins. Our strategic acquisition from Microdesk is a big step for Addnode Group and opens up the U.S. as a new domestic market. As Lotta described, we have a strong financial position with low debt-to-equity ratio and good cash flow that gives us the potential to keep executing our profitable growth strategy. With that, I think we'll move into the final slide, Q&A, and open up for questions. Lotta and I are both available here to answer your questions as good as we can.
Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero-one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero-two to cancel.
The first question comes from Daniel Thorsson from ABG. Please go ahead.
Yes. Thank you very much. My first question is on the strong margin across all the segments. For me, it looks mainly cost-driven. Anything here we should not extrapolate for the rest of 2022 that may have been abnormally low for any reason in Q1? For example, if I look at Process Management, the cost decreased SEK 10 million versus Q4, quarter-over-quarter. Anything you would like to highlight here?
Good question. We are still adapting to a new world, meaning that we are becoming more and more digital, working more and more distributed. We are seeing the good effects of that, meaning that we are lowering our costs. There might be just a few sort of millions with, let's say that we were expecting to have some kickoffs in the first quarter, and then we had this sort of final wave of COVID, meaning that we were not able to have that. That's not SEK 10 million, so to speak, but you have that. You can have a little bit of effect on that. On the other hand, we have learned to work more efficient in a distributed manner. I think the jury is still out on that.
The same goes for.
What I mean with the jury is still out is that we can see a very good efficiency in the way we're working, and probably just some costs will move from Q1 to Q3 with regards to. That's just SEK 2 million. It's not SEK 2 million, SEK 10 million.
Except from that, we should see a normal seasonal pattern on the underlying OpEx in 2022, I guess, versus the figure we have in Q1.
Yeah.
It's not that abnormal, at least.
It's not that abnormal from a cost perspective, no.
Excellent. On the growth side, I mean, you are facing considerably tougher comps in the coming three quarters than we saw in Q1. The 7% organic growth in this quarter was honestly a little bit lower than I expected, at least. So how do you think about organic growth for the group for the rest of the year? Is it possible to deliver a positive level here in Q2 to Q4, or anything we should be aware of in terms of tough comps and demand?
I think we could be able to have organic growth as a group going forward. There are no things saying that we should not be able to have organic growth as a group going forward. What I'm trying to guide for is we are trying to see something that we, if we do 3%-5% organic growth over time, that's good for us.
Mm.
As we have delivered 7%, I think that's good currency adjustment. We probably will not do 10% organic growth. That's not what we sort of have in our infrastructure and what we are doing. Definitely, in the motion that we're having, we are expecting some organic growth. We don't do, as you know, any prognoses, but there are nothing in it unless there are any further development in the world from a macro level. We can't control that, but knowing what we know today, we are expecting some organic growth.
Yeah. Okay, excellent. I just saw that the last year's Q1 was actually declining 14% organically. So a growth in this quarter was probably widely expected while in the
Yeah, yeah, yeah.
You grew 10% organically. Okay. That's fine. My last question is regarding the Microdesk.
Regarding the
Yeah.
The most important thing for us is that we grow organically on a profit level. In order to do that, we need to do, of course, top-level growth.
Yeah, exactly. Excellent. My last question is, regarding the Microdesk acquisition. You say that the margin is lower than your Group margin and than your Design Management margin. As you pay half of the consideration up front and half in earn-outs, and we do not know the exact margin level and the required targets for the earn-outs being paid out, we don't really know the acquisition multiples today or in the future or post-synergy. Can you just help us understand this acquisition a little bit better by, for example, giving us a narrower margin range for the current Microdesk business, roughly what it needs to get to get the full earn-out margin-wise, as well as maybe the potential that you see you can bring this company ahead?
I guess this may not be information you want to share in full detail for some reasons, but to understand the direction and the levers in the deal would at least help us understand the value creation you're looking to create much better. Thanks.
Yeah. Thank you. It's a good question. If you look at the other similar companies like Microdesk, you will find that a lot of them have an operating margin of around 3%-4% of what they are delivering. So that's probably. We are higher, having a higher margin than that. How do we move someone from a sort of a industry margin to the margin that we are doing today that is much higher? There are a couple of things that you can do. Both looking at the service offering, how you execute that, and also, how you add own IP to enhance the investment in the Autodesk platform. That is something that we have done fairly well, and we are expecting to have that going forward.
Also the nitty-gritty daily work, how you operate the business that we do. There are three things. Those three things we believe that we are able to move someone from an industry operating margin to the margin that we have our business today. Then looking at in 2020, for example, you know, we did an acquisition of Excitech, who at that time had an operating net sales of around SEK 500 million, and what I described as the industry operating margin. If you look today at what we have in Design Management, you can see that we are not operating on what I described as an industry operating margin of 3%-4%.
That means that we have shown that it's possible, and we believe that we can do it very much again with the help of the very good management team of Microdesk working together on that. I think that's how we can sort of where we would like to move someone from and to, and how to do that. Looking at the multiples, we have some. We always said that we are paying in a multiple in between, historically between 5x-10x, the operating profit. The 10x we normally pay for someone who has own IP and a high growth. Looking at a partnership with, what we are discussing now, then we're closing to 5x, and that applies to this as well. I think that's probably roughly what I can do to help guide them.
Of course, we have arranged the earn out, so that meaning that in order to get the earn out, you need to do better than you're doing today. That means that if they are able to raise the margins going forward with the help of us, then that means that the earn out will be paid out. Hopefully, that's a little bit more helpful.
That was very clear. Thank you. To get the earn out, should we assume that the acquisition multiple remains relatively the same, or will it pay slightly higher multiples if they get it? Can you say something on that?
It's probably a very straight multiple.
Okay. Excellent. That was all for me.
Thank you. The next question comes from Erik Larsson from SEB. Please go ahead.
Thank you. Good morning, and happy Friday. I have a few questions. Just firstly, on the last topic here, it was very clear, but I'm just curious about sort of the timeline of improving the margin in Microdesk, and maybe, I guess, to that earn-out, duration. Are we talking one year, two years, three years? That's my first question.
Running a business, it takes some time to do so. Of course, we will not see this happening in the first year. We'll probably need a second year, and in the third year, we are expecting that it should have happened.
Okay, great. I'm just curious on the pricing dynamics in general. I guess when it comes to, you know, consulting and implementation and that stuff, hiking prices should be quite straightforward. On the software side, and especially since you are partly a reseller, how does pricing work? Can you raise prices on your own or contracts fixed for X years? Or is there a lag, when your partners hike prices? Just the dynamics broadly or how it normally works would be very helpful if you can describe it.
Like you mentioned, our own software, for example, when we're talking about predominantly in the division, Process, we are in control of our own process, of course. There you also have some indexes with regards to our support agreements and also with the services. Of course, that's new and so that's pretty much in control. If you look at Design, we also have our own software for the construction market. Sovelia solution and facility management. That's roughly around SEK 400 million of our net sales to be in control. Like I said, we have our partnership business. You have to divide it in separate things, meaning that the base platform, there is a list price. The good thing with our partners, they are very good at this.
That means they are not lagging. They are probably a bit more proactive rather than the other way around with prices, and that's good for us. We provide a lot of services and our own IP for that, and that we are in control. There's no major, as you said, lag. The one thing could be from our supporting agreement, but those are renewed around the year, so to speak. I don't know how else is your.
Yeah, no, yeah, it does. Have there been any price hikes so far, like of the 7% organic growth? Is there a price component in there? I guess that's larger than usual as well.
There's a price component in that, but the main thing, the major part is still volume in the 7%, but it's a price component, of course.
Okay, great. Thanks. Just a final, very technical question on the balance sheet. Just from my understanding, as we talked about when you acquired Microdesk, you have $24 million of earn out in that price. Just glancing through your balance sheet, I can only see you specify SEK 25 million in contingent liabilities. I just guess I don't really understand your reporting. If you would clarify which line that comes in.
Yes, of course. When we do the purchase price allocation, we of course take the whole amount, both the upfront payment and the contingent payment. Valuing the goodwill and other intangibles such as on the asset side of the balance sheet. Then we make provisions for the contingent consideration. That's included in non-current liabilities.
Okay. It's not really seen the SEK 25 million in contingent liabilities. You haven't really gotten the Microdesk part on that yet then, I guess.
We make an estimate.
Okay.
We make an estimate of how much we think will actually be paid out within three years.
Okay.
We make a good step for that. That is included in the balance sheet. That's in the report, if you can find that in non-current liabilities.
Oh, okay. I see.
It's there. Yeah.
The SEK 25 million is basically within three years then?
Exactly.
Okay, great. Thanks. That's all for me.
Okay.
Thank you. Ladies and gentlemen, let me remind you again. If you have a question, please press zero one on your telephone keypad. The next question comes from Daniel Thorsson from ABG. Please go ahead.
Sorry. Now I was muted. Sorry. I just have another M&A related question. I saw another listed company, CFI, acquiring Dassault Systèmes reseller called SolidEngineer the other week, with sales of SEK 100 million in Sweden. I guess that was something you looked at. Were there any reasons you did not buy it, or didn't you look at it at all?
I think it's very good that more people are interested in the market that we are in. I mean, certainly that. Normally we do not comment anything like that because, just for a policy reason. I think, one of your question was with the cost and the process. I think we would like to further expand that answer. Would you like to answer all that?
Yeah. I wasn't sure. You said that we have decreased the cost in process.
Yeah, I mean. Yeah.
I'm not sure. Could you elaborate on what you actually meant there?
Yeah, absolutely. I don't know the gross margin. If I don't assume anything, I just take the EBITA minus the sales in the quarter, and I see that the difference there is SEK 228 million, while in Q4 it was SEK 238 million. Either you have a big movement in the gross margin in Q4 to Q1. If I assume it to be flat independent on level, the OpEx must go down at least. That's a simple calculation I just realized.
Yeah. I think it's too simple.
Okay. It must be a gross margin.
Because we have positive effects on the gross margin since the efficiencies that I have.
Yeah. Okay.
What we have on the
Okay.
If you compare Q1 2020, Q1 to Q1, you will see that we made an acquisition in 2020 of a company called S-GROUP .
Mm.
They are partnered with American company Esri. That means that we have increased the portion of third party products in the offering in Process Management. That's a very good business contributing to our EBITA, but it has a lower gross profit.
Oh, okay. Okay.
That's what I explained.
Yeah. I mean, yeah, it does year-over-year. I was just comparing with last quarter, Q4. S-GROUP Solutions was part of that already.
Yeah.
When I do that calculation, it seems to be down slightly on cost. While last year, Q4, Q1 versus Q4, it was pretty flat-ish. I was just wondering if there were any one-time lower cost effects there or not. Because the margin was very strong. Revenue-wise, Q1 was SEK 9 million lower than Q4 sales-wise in Process, while the EBITA was the same. The difference there is obviously costs. Could be COGS or it could be OpEx. I don't know. That was kind of my question.
Okay.
I think I got a good answer.
Yeah. I thought you referred to the quarter-over-quarter.
No. Yeah, you mean from Q1 last year. No, I looked at just Q4. The delta here, the last six months. Sales was down SEK 10 million, but EBITA was flat. I thought it was a pretty strong EBITA driven by lower costs, obviously. That was more my question. If we could extrapolate the lower cost level here or anything, especially in Q1. I guess it was a few million, maybe lower. I guess maybe Q4 was slightly higher cost because they had a tremendous year, and you got some sales fees or something like that. I don't know.
Yeah. That could be so.
Exactly.
Overall, there are no significant changes in the cost structure from Q1 compared to Q4.
Yeah, exactly. In process then.
In process, yes.
Yeah. Gross margin-wise, nothing. Because we don't know the gross margin, obviously. That could help in the segment. That should be relatively flat, I guess. Yeah.
Looking at Q
Okay.
Well, okay. Yes. Thank you.
Yes. Thank you. That's fine.
Thank you very much. There are no further questions. Dear speakers, back to you.
Okay. Thank you for taking the time to listen to the presentation and some good questions. With that, I think we end the session. Thank you.
Thank you.