Storytel AB (publ) (STO:STORY.B)

CMD 2020

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Jan 14, 2020

So very welcome to Storytel's 1st Capital Markets Day. Yes, we haven't done that before. So it's quite fun. And thank you for making the time this morning to come here and spend a couple of hours with us. The place we're in now is actually quite special for Storytel, not the actual theater, Bjorgafenstuhrer, but actually this address, Bioskottan 41, is where we lived for 7 years. And you could say that we grew up here from 2,009 to 2015. And at some point, I actually thought that we would never ever leave this address. But then we did and we're fine anyway. But I really like this neighborhood here. Good. There are the presentations we're going to show that are available also on the Investors site, as you can see. And if you need Wi Fi, you can see the log in here. We're not going to show that later. So should I give you 5 seconds to log in? 5, 4, 3, 2, 1. The mobile network actually works fine here. Good. So you're ready? This is what it looks like. I'm going to start talking and then we'll have Ingrid Boiner, our Chief Commercial Officer coming up and then Stefan Teigen Faulk, our Chief Development Officer. Then Ingrid will come back. And after 1 hour, we'll break take a coffee break. Short one, ideally 20 minutes, but we put 30 here just in case. And then, Rick De Henley, our Publishing Head, is going to come in and talk about the stories we create. And then Sophie Setygren will come in and talk about the financial stuff and value creation. And then I will round it all up, and then we'll open up for Q and A. And after that, you'll get some lunch. Okay, sounds good. Awesome. Let's get started. So what we're presenting here today is basically the Storytel's streaming organizations, basically the heads of that. So that's my management team that's here today. It's Ingrid, as I said, Stefan, Rickard and Sophie that you'll meet on stage today. And then we have also a couple of publishing houses in Sweden, Denmark and Finland that we own, where we basically run those the governance is from the Board more or less. But this is the 450 people strong organization that we have within streaming and that also makes up most of the value of, I think, the company on the stock market. So you're ready? Yes. Good. So I'm going to start giving a little background on Storytel, what's happened these past 15 years or at least the 1st 10 years. And then I'm going to talk about the market opportunity. So the audiobook market, how big is it and how big can it become? And then how we think about growth and how we can grow and become an important player on the audiobook market. So those are the 3 steps or parts of the presentation. So who are these guys? This is Johan Haugsson, my cofounder, and myself on the Bookfair 2005 in Gothenburg. We just launched Storytel or Bookiler as we call it. And yeah, it was fun. I think the book market needed a mobile audiobook service, but maybe the customers didn't need it so much at the time because not much happened the 1st couple of years. But we learned a lot. I'd set up a couple of criteria for the company I eventually wanted to start up. And one was, it was going to be a consumer product. I thought that's most fun. And then somehow technology based. I was a real tech geek at the time and bought all the gadgets you could find, including the iPad, which actually is basically how I got the idea about a mobile audiobook service. And then I thought that, you know, why not start up something that can grow big over time, but maybe it's not the biggest of markets at the time. That's more fun. It's more it's a bit more innovative if you can kind of invent the niche. And then it should be a company that has like a positive impact on people's lives or it should feel well. I didn't want to do gambling for 1 and would never think of tobacco or that type of stuff. But you know, books, events, mobile audio books, I mean, could there be a better fit for my startup to Internet than this? No, I thought this was the thing. And then we started, we worked for a couple of years, I think 4 years down the road, we still only had a couple of 1,000 subscribers and had to basically save the company in a TV show, which some of you may have heard of, called Dragonstan Drak Neste. And that was really hard. I don't know if we have Rick in Investo yes, you're there in the back. Thank you. So Rick here in the front of the picture was guts enough to say I want to spend €1,000,000 on this guy. And then things have improved over time. But we really didn't in 2010, some things started to happen. We had Spotify being launched in the Swedish market with the paying service and we had the iPhone really kicking off. I think half of this crowd probably bought an iPhone in 2009 or 2010. And things started to happen because all of a sudden you could actually use the Internet on your mobile, which had only been a remote dream for the mobile carriers before. And we started to see some really good things happening, ultra high growth, 80% CAGR over these 6 years. And we actually went profitable already in 2010 and kept that profitability throughout that extreme growth part. And then we realized that the audiobook, the book market doesn't produce enough audiobooks. So we needed to add that to the book markets. We started to produce our own audiobooks. We started to buy a lot of audiobook publishers and then found that, well, why don't we figure out a way to do like Netflix has done something that is basically sold directly on our own platform. So we started Startel Original where we 4 years ago now. And that's now a super international business in itself. And then I launched our first couple of international markets. So Denmark and Netherlands were the first and then Norway followed after that. I think at the end of this period, we had 6 markets. And also became a public company as we acquired Masolut Verlags Group in 2015 that had a position on the Axi TOIET listing already before. So we entered the public environment and made a lot of acquisitions. The thing besides Drak Nest that people who don't know storytellers so well, and you speak to them, what they probably have heard of is the acquisition of Noush. That's in 2016. Because that's really sent a very interesting signal to not only the book market, I think, but to parts of Sweden as well because Neustadt is such a strong, strong brand. People typically know about Neustadt as a publishing house. You know, Bonjan, you know Neustadt, maybe Pratslager. So that was kind of weird when this startup company bought Neustadt. But now I think nobody thinks it's weird anymore because we're so much bigger. So that was nice years. And those years we spent, as I said, most of the time we were in this building and really found our ways on how to develop the company. We bought some other companies as well. The one that probably made most impact on us was the Mofibo acquisition in Denmark, where we really struggled to get into the Danish market in a good way. And we came up as the runner-up and then acquired Morphebo, and all of a sudden, we had an equally strong position in Denmark as in Sweden. So it was a really good acquisition. So acquisitions has been an important part of what we're doing and in particular in publishing. So why do we think that publishing is so important? I think it's really three elements that are crucial. The first one is that, frankly, when we go into a market like, say, India or Netherlands or most markets, there are no audiobooks available. So somebody has to start investing in producing them. And that's typically the role we take only to get the good offering to our customers, basically, to get the service started so people can enjoy Storytel. And then as the market matures a bit and as Storytel becomes bigger, it also becomes a pretty good business to run publishing activities because they sell well and the economics of the whole thing is very good. It's a backlist type of business. In book market, you divide you distinguish between front list and back list. And front list is the new stuff, this year stuff. And back list is all the old stuff. And the old stuff, there was no market basically to sell that before until the digital and audiobooks came along. And then finally, in very competitive markets like the bigger ones were at Sweden, Denmark, you see that we need something to differentiate our service. And that means we need to produce storytelling originals, we need to produce interesting series that actually gives us a point of differentiation vis a vis our competition. So those three factors basically is the reason why we do publishing. And another very interesting aspect with the book market is that 85% of all the consumption in the market is in the local language. So this is not an English global launch type of market. You can't do that in the book industry. You have to build it bottom up. And that's why we spend so much time and effort on building up these local companies, these local entities, where we always strive to find a local product market fit. So basically tailor make our product, our catalog, the way we market ourselves, the way we curate the content, tailor make that to the local market. And that sometimes takes a little bit of time. You have to trial and error and then find the right way. And sometimes you have to change the payment method because the ones we use in the other markets don't work. So another aspect of why we want to make sure that we make the world a more creative and empathetic place with great stories. So the great stories, we should be there to make those great stories thrive. This is the mission of Storytel and I think it's a good one. I think it's one that really represents what we're doing and that we can keep for a long time. I think if you walk into the offices of Storytel, you wouldn't actually find this on the wall. But ask one of the employees, I'm hoping that 3 out of 4 probably can more or less say this sentence, which is nice, because it means something to us. It means that this is really what we put on this world to do as a company. And then a very important aspect of the service that we provide is the curation. So we have 6,000,000 book discoveries made by our 1,100,000 subscribers every month, which means approximately 5 book discoveries per person. And half of those are based on our own programming. So it's basically our own content creators, it's our own intelligence people that creates list, creates algorithms and with the help of those make sure that we can find a customer. So this is something that works really well and that we're spending increasingly efforts on improving. So what about the book market? Well, did you know that the book market is, look at this, like twice as big as recorded music, radio and podcast? I didn't. It's a big market. But then for Storytel, a part of that market is educational books, which Storytel is not really doing. And a part of it is fiction books, which, frankly could work if it's story based, but a lot of fiction books don't work that well in audio. So if you look at the relevant part of the market for Storytel, it's really the fiction market. And right now, the audiobook market is a lot smaller. So fiction books like SEK 600,000,000,000 and the audiobook market about SEK 4000000 to SEK 5000000000. Okay. So it's still globally speaking, it's still a very small part of the book market, audiobooks. So is this good or bad? I think it's really good because there's a potential in my view that, you know, the audiobook market could make up as much as 50% of this fiction book market. And what do I base that assumption on? Well, if we look at the Swedish fiction book market over the past 6 years, we've grown the audio book share of that market from virtually 0 to 50%. So 50% of the revenues of fiction books in Sweden is now audio. So what if we could translate that into the rest of the world? That would be nice, wouldn't it? And that's basically when we would see that the audiobook market could grow this much. So looking at the audiobook market, 10 years ago, it was SEK 6,000,000,000. And now it's SEK 40,000,000,000. So that means we've had a CAGR in the audiobook market of about 20% over these past 10 years. It's primarily growth in the U. S. And in the Nordic region and to some extent in Germany and China. But other than that, the audio book market is very nascent and very unexplored. But this is the growth we've seen in the past. So what share of that is Storytel? Storytel's revenues in 2020, as we informed about in the press release this morning or last night, is about 5%. So SEK 2,000,000,000 out of SEK 40,000,000,000 is about 5%. So that's our share of the order book market today. But then if you look if you were to exclude, for instance, the U. S. Market where we're not present, you would find that our share is about 15%. We estimate that in 10 years, the audiobook market will be worth SEK 200,000,000,000 worldwide. So continue to grow with the CAGR of 15%, growing from SEK 40,000,000,000 to SEK 200,000,000,000. And my guess is as good as yours as to what Stortus market share will be there, but it's clear that we are investing a lot. We are in a position where we know very well what the audiobook customer wants. And we are already in a position where we understand how to set up new markets and find that local product market fit. So how do we grow? Well, I think there's 4 different ways we do it. We grow on the existing markets. As we've seen in the past, we expand to new markets as we've also done a lot in the past, then improve on your existing product. Stefan is going to talk about that when he talks about development and our platform. And then we launch new products. So one example of those launches is the Storytel Reader, which you'll be able to buy outside here today. I hope you take that opportunity. It's a great device. With that, the Storetail Reader, we've seen that the loyalty, the survival of the new customers that come in and acquire their Storetail Reader is twice as high as the normal customer. So it's a lot about increasing ARPU, a lot about increasing extending customer lifetime with these new products. And as I've shown, we've done it a lot organically and also the acquisitions. And in this aspect, it's always important to think about the short term and the long term. So grow an existing market, improve existing product, typically that gives you good growth in the short term, whereas expanding to new markets and launching a new product that will give you some growth long term, but maybe not short term. So this is what our map looks like today. Ingrid will share a lot more about that. But basically we're on 10 different markets. We divide it into 5 regions internally. The kind of weird because Russia is in the West here, but 5 different regions. As I said before, very, very unique approach in every single of these markets. So what's our expansion looked like in the past couple of years? So in 2016, 3 years ago, we had 6 markets launched. And as you can see in the bottom right here, we had 2 of those markets with 50,000 subscribers or more and those two markets were Sweden and Denmark. As we've expanded to new markets and now grown to 20, added a couple of markets, 3, 4, 5 markets every year. We've seen that the number of markets that have 50,000 subscribers or more have now grown to 8. We've added 4 more markets only in 2019. And why is this important? Because as the market passes the 50,000 subscriber milestone, we see that we start to very rapidly approach the profitability level, which is incredibly important. So we now have a lot more markets to tap into in order to drive profitable growth. And if we look at the markets that have turned profitable so far, we can see that we've just added Netherlands after New Year. And we now have 5 markets and it's taken them anything from Iceland with 1 year to Sweden and Netherlands, which took 5 years to go to profitability. And we hope to add a number of more markets for this in coming years. And I think Sophie will share more about that later. Good. That was it from me. And now I'm going to invite Ingrid to stage to talk about the customer and how we actually reach them and why they think that Storetel is so great, right? Yes. Thank you. Good morning, everyone. You can now, since we are in a cinema, you will just sit back and relax for about a minute. Welcome to our world of stories. It's designed for you, the modern consumer on the go that wants to enrich your life. We are in the middle of a media industry revolution where delivery formats are changing rapidly. We go from traditional to digital, from broadband from broadcast to on demand. And new companies are on the forefront that we haven't heard about since 10 years ago, ruling the streaming format. Right in the middle are the modern consumer that are fast to adapt to the changes and also are in control. They decide on what and where and how to consume. It is in this landscape that Storytel has been driving the digitization of the book industry for over a decade. It's also in audio. It's an audio revolution, one can say. In Sweden, according to SIFO Kantar, 90% of the consumers today enjoy any type of audio on a weekly basis. All are on the rise, except for traditional and digital radio, but it's well compensated by the growth in both streamed music, podcasts and of course, audiobooks. 13% claim in Sweden above 18 years old that they enjoy audiobooks on a weekly basis. And this has grown just over the past year by 18%. Ever listeners to audiobooks are about 33%. This number is 50% in the U. S. In Sweden, that means 2,500,000 people on a yearly basis listens to audiobooks. We think that we found a perfect niche in this growing audio industry. We call it meaningful recreation. It will demand something of you. It is a little bit more forward leading and engaging. So it requires more of your attention maybe than to listen to a podcast and again, a little bit more than music. We believe that we are the solution to everyone's daily problems these days. Boredom, insomnia and loneliness. We know that research from SSE, Stockholm School of Economics, recently said that one of the reasons why people listen to audiobooks is to feel a sense of community. Listening can actually be a quite intimate experience. So in short, we provide self help, self development and a sense of community. So when do people consume audiobooks? Well, if you look at this chart, you can see that the prime time for audiobook consumption is at night, between 9 and 11. And then there's 2 other points when you usually listen to an audiobook, and that's when you typically go from home to where you're going to be during the day, work or school. So morning and afternoon. Interesting to see, we have researched what the moods are linked to audiobook consumption. And on the Swedish market, we can see that the sense of calmness and relaxation actually goes up while listening to storytell or audiobooks. We promised you 3 things, or actually, it's 4, but I'll come to the 4th one. It's you will never run out of stories, you will have a great listening or reading experience, and you will have the latest formats and most innovative content. The second one, listening and reading experience, Stefan will talk a lot about how we provide that through our tech platform. And the third one about the latest formats, Richard will come back to talk about how we work with publishing. The first one is the one that we are very proud of. It's our that are, of course, personalized in the way that it takes into account lots of data. But on top of that, we also have local content curators in every country we work in. That is the 3rd wave of digitization, bringing humans and AI together. And we will do this, which is the 4th promise, in a local way. Our brand impact on people's life can be measured by how much time we spend they spend with us or how important we are to them. So on average, a user in our service spends 30 hours a month with Storytel. Engagement is therefore important, and finding your own pattern of usage and habits is important. Therefore, we engage a lot with our customers, and we have a whole web of different CRM triggers and activities in order to spur and engage our customers. We like them to listen. 1 of the measure we call CEV or customer engagement value. It's based on recency, frequency and time. And whenever this change, that might be a prediction for churn. So we trigger people, and we ask them to engage again. We've done AB tests, and we actually know that these triggers work. So when we control this, about the activity goes up by 26%, about, when somebody is actually triggered and come back to the regular behavior. Daily active usage and weekly active usage is also an example of engagement on our service. And this may differ from the countries which are mature, and that means it's an audiobook tradition, or the countries that are more immature. And we believe that providing this service, the story tell on all our markets, we can actually spur and change this behavior as we are the driving force of the audiobook revolution. So these typical numbers will change over time. Our brand has started to gain some international traction. If you compare us on the App Store and where we are placed in the book category, we enjoy an unthreatened number 1 position in 8 of our markets, and we are on periodically number 1 still in 13 of our countries. We have 20 countries launched and 5 of them launched last year. This is on both Google Play Store and, of course, App Store. We have a very simple, straightforward, easy to comprehend business model that works in all of our countries. We basically make sure that authors and publishers get access to their consumers, and vice versa. We provide an unlimited subscription model on a monthly basis. That means that a consumer, if they paid their price for a month, they can enjoy as many stories as they want to through our easy to use app. For this access, of course, we share royalties with the creators. And as storytelling grows, as more customers join our platform, we can also pay higher share of royalties. The unlimited offer looks basically the same everywhere in the world. It's an unlimited offer. It's a premium offer for a month, and it's both the local language plus selective English catalog, plus sometimes even minority languages that are spoken in that country. In Sweden, it's SEK169. In the Netherlands, it's SEK11.99 and in India, it's SEK 2.99. So we have a local pricing model. We have a very local approach to language, and I think this is something that distinguishes Storytel from many of our competitors. We always have the local language at the core of our app, but we also include minority languages in some countries. This is why we have decided to have the whole Arabic own produced catalog in our Swedish store. This is why we have our Turkish catalog available in our German catalog. We've only been there for 6 months, but the Turkish catalog is actually reaping quite a lot of benefits in Germany, with almost 15% of the consumption. We introduced the offer to everyone through a free short trial period. This is to set your own behavior, test the audiobooks out, see what you like, discover. Then you move on to an unlimited subscription for on a monthly basis. Once you've done that, you probably want to invite your family. So you move up to our Storative Family subscription. Then you can invite your family, friends, families and of course, your kids as well. Family is something that's actually reaped quite a lot of good benefits already on some markets, where the penetration is up to 20% on some of our markets. Next year, we will test out a limited subscription in selective markets. This is to start introducing Storytel to a larger number of people on some of our countries. What we already tested is the new products that already Jonas spoke about and that Stefan will come back to you and talk more about. The reader and story, for example. The reader is something that is actually really creating a stickiness to our service, and we can see very high customer satisfaction numbers of the reader. Jonas already shared the number, but this satisfaction actually turns into stickiness of our product. So these are the numbers from looking at people who have started a subscription with us from a reader or a family point of view. And you can see that almost the double amount of people stay within our service after a year compared to only having the regular unlimited subscription. We know that our proposition is interesting. We have proven that our business model works here in the Nordics. And we are see that in new countries we go to, we are very welcome, both by the publishing industry and also by consumers. Actually, we do have an impact in the book world. People sense that they read and listen more the storyteller platform. Plus 80% of our subscribers actually say this in many of our countries. And they also do this on a more frequent basis. So 87% of the people in Netherlands that are on our Storytel platform claim that they enjoy both more, but also more often a reading or a listening situation. What I think is even more intriguing is on the next slide, which is actually that people expand their interest and look at more genres than earlier. And this, we believe, is really due to 2 factors: our discovery and recommendations and secondly, our unlimited model that really spurs you to test a new book from maybe a genre that you didn't really know that you liked before. Last but not least, people actually learn something from being with storytelling. So 72% of our customers in Turkey and in Russia claim that they actually learned something new while being on a subscription from Storytel. We also know that stories, reading, listening is a social activity. It is something that you want to share with others. This is why we did a fun social media campaign in Norway in the summer of 2018, where we asked people to become the narrators of their best story. We think we picked a great winner. Thank you. I will now introduce you to Stefan, our Head of Development. And welcome up on stage, Stefan. Thank you, Ingrid. Good morning, everybody. I would like to start to present this map. It's a real time map. This was recorded yesterday at the same time, and it shows when our users is opening their app in the morning. As you can see, there is a lot of activity in the Northern Europe, Scandinavia, down to the Netherlands and some other areas well in Europe where we are present. But this map becomes more and more orange for every day. And it's really interesting to see this every morning when you come to the work. Okay. So let's talk about our R and D organization. We are 115 in our staff today, and we will grow to roughly about 140 this year. It comes from 21 nationalities and we have 5 main lakes. The first one is the tech department who is taking care of the development and maintenance and operate our service. The second one is the product management with the product managers that make sure that we do the right thing at the right time. And then we have the intelligence with the data science and business intelligence analytics that collect all the data from our customers and our marketing. And then we have the innovation. They are making the business development and make sure that everything we do has a good ROI. And the last one is our ecosystem of products, which is the story, stories by storytell and reader. So daily, we are handling 1,100,000 customers. We have more than 325,000 titles in our service, and we have roughly about 1,300,000 app openings every day, as you can see in this map also at several platforms. And in 20 markets with more than 24 languages and almost 1,000,000 of streamed audio hours every day. And also we have a lot of multiple product offers in different markets. So Storytel has always been an innovator. We are not only following the audio trend, we are actually leading the audiobook revolution. And everything was starting with the mobile streaming of audiobooks. And then we have invented a lot of different features and functions that today more or less are industry standard, like the sleep mode, offline mode, variable speed, chapters in audiobook and the synchronizing between audio and text, which is kind of a very advanced technology that not everybody have. So we are a very commercial driven development organization. We have 3 very important areas when we have put our focus on and that is developing products and functions and features that create a product market fit in our local markets, increase the intake of customer and improve the trial to pay conversion and also improve the customer lifetime value. So how do we create a product market fit in our local markets? Payment. We have to be able to charge the customer on the customer's condition. That's why we have developed a completely new payment platforms. Because the local customer likes to use payment methods like local e wallet solution, local debit cards from the local banks and also their mobile operators billing platform. So we have to be there when the customer are. And actually the output of this is a triple win situation. For the customer, it's convenient. They can use what they already use when they're paying online. The payment provider, they love us because we have a recurrent business model. Every month, they get their kickback month after month. And from our perspective, we get a really good marketing platform for our sales. These payment providers, they have millions and millions of potential customers that we for quite low cost can marketing our product against. Here is some examples of what we recently have integrated to, KCP in Korea, so Fort Klarna in Germany and Yandex in Russia. It's just a few weeks ago, we integrated to them. Okay. Retail is detail and we need to be very we need to pay attention to details in each market. Okay. So marking message is very important. Then the sign up and onboarding flow is also very important and the product offering. So what we are doing or what we are in the Finnish now is to developing a really good marketing platform. So the local marketing people and the global marketing people can create local campaigns that fits the local strategy and make advanced AB testings that drives down the intake cost. Also, the onboarding flow and the sign up flow is very important to make from a local perspective. And then also the price and bundles is also very important to be local at. So this platform is excellent for this purpose. Okay. So how do we increase the intake of customers? Well, among many things, target the right customer segments is very important and make sure that we've got customer that will be profitable in the end and be on multiple platforms. Today, we are an iOS, iPhone and Android and also Sonos loudspeaker system. This year, we will be on Android Auto and also Apple CarPlay and more Sound Speaker System and also Watches. And how can we improve the trial to pay conversion? One very important thing is to activate the customer via notification. This year, we will release in Q1 a notification center inside the app. And this is the first time that we will have direct connection with the customer inside the app. And this is very good for our global marketing team and the local marketing team. They can convince the customer to go from a trial to paying customer. But this is also important because our recommendation engine will communicate with this as well, which means the engine can propose different titles in order to convince the customer to stay here in our service. And also, we are coming with features in the near future. For instance, when a customer had liked your reviews, you get a notification from this user as well. So a lot of new features coming later on. So how can we increase the customer lifetime value and drive engagement? Personalization is very important. Each user are unique and needs to have their unique content. Okay. The recommendation engine is also very important and something that we call inspirational pages that's coming later on. It's actually editorial materials that our editors and publisher can put directly in the app in special pages and also peer recommendations when a user recommend a title or something else to another user. That is also important features that we are working with right now. Example, 50% of what our users placed in their bookshelves is based on our recommendations. And the rest 50% comes from our excellent search engine. So we have an AI driven matchmaking platform, but with human interaction. Our local content creator works together with our algorithms. It's a machine human interaction, which is the outcome from this is really great, and it's getting better and better for every day. Moreover, excellent reading experience is also very important. It's coming in new e book reader inside the Ios. And state of the art user interface is also very important. Last year, we introduced a new player interface in Android and the same goes for iOS this year, coming with a completely new design. And reading as a social activity, this is something that we work very much on now and will be very important in the future. Actually, we have already started to build a community for readers and writers, and we already were starting with that when we introduced the reviews last year. And what we're doing in the Q1 now is that we introduce a new feature. This is what we call feeling tags. So after you have read the book or have listened to it, you can tag it. If you become happy from it, funny, or if it was romantic or whatever it is. And with this data, together with the data that we're collecting from the text in the reviews is exercise our recommendation engines even better. And this is just the beginning. We are coming with a lot of more features in this area later on. Okay. Another thing that's coming later this month is something and also part of the social context that we're working with. It's like if you imagine that you look in TV, you look at TV and you see something that is live broadcasting and you know that 1,000 of others are looking at the same thing, you get feeling of that you are part of something bigger context. We are trying to do the same create the same feeling with these functions. Actually, with the audiobook that you're listening to, you can see how many others are listening to the same audiobook at the same time. This is really interesting feature that we know many customer likes. And again, this is a very innovative. Nobody had done this before. This coming end of this month for both iOS and Android. Okay, so what drives loyalty and create uniqueness? Also, we are working with this magazine app story. It's coming with an upgraded version in beginning of Q2. It will be awesome, a really good product. Then we have the Stories by Storytel. The Tap story app is coming a lot of new features and functions also this year. And we are continually developing the Storytel Reader. And all this together with our core product drives loyalty and create uniqueness. And we can see that from a lot of data. So actually what we are building is a state of the art service that adopts to local conditions. This is very important. As I said, retail is detail and connects storytellers with readers, the platform for that purpose, and makes reading social again. That is also very important. So this year, we will drop almost 15 new app releases with enhanced features and functions. This is huge. And we will also come with something that we believe can transform the audiobook market once again. I can only show you this blurry picture, but stay tuned. A lot of things will happen. Thank you. Welcome. Thank you, Stefan. It just makes it a whole lot easier to market and get to all our consumers. So I'm back. I'm going to talk a little bit about how we work with our markets and the expansion activities. Storytel is truly a local company. That means that we are really reaping the benefits of our flexible yet scalable tech platform, that we have global teams working to set the strategies, set the tools and how we work in the different countries. And then we have country teams led by a country manager in each of our 20 markets that work on the local execution. And of course, the customer there is king. This picture is actually from our global conference during the fall that we've hosted for several years now. It's a great opportunity for all our employees to meet and share ideas and excitement and, of course, also set higher ambition and targets for ourselves. Within Commercial, we have 3 Global Center of Excellences teams. That is Global Marketing, Global Customer and Global Content. They all work throughout the whole customer journey. So marketing works on, of course, attracting new customers to our service and get the customers back that might, for any reason, have paused their subscription with us. Our customer team work on onboarding, engaging and retaining our customers with different recommendations, as I said, CRM communication and the support, global supported. Last but not least is really our content team. It's a mix of both the global team with very local execution. So they make sure that we have the content available and recommended in the best fashion for all our consumers out there. This is also why content is really where we start any type of new market activity when we are deciding to expand into a new market. Our model of We have a global three step approach to how we do business in a new market. So first of all, it's all about ensuring the local product market fit. And Stefan already spoke about all the things that are important in that aspect. But we always begin with content and content can sometimes not exist. So we actually have to produce a lot of audiobooks when we enter a new market. And that's why sometimes it takes a little while before we can open a service to the public. We set a local team and, of course, ensure that the marketing message, payment, pricing, etcetera, is targeted for that specific market. Then we open up and we invite our customers to our platform. This is all about building trial and subscriber base. The word-of-mouth effect is, of course, really, really important, as we have the first users being our brand ambassadors talk about our service, and this becomes a viral approach to discussion and marketing. We also have to find the formula for the local growth in an attribution model, meaning that we find from wherever the customer come into our service and make sure that we're there. When we found the growth formula for a selective market, we go all in. And this is then with another short term target in mind, which is local profitability. So this is where we grow even more. We ensure that we have a lifetime of our customer that consistently goes up as we engage with the customers. And one of the measures that is really important for us to look at to make sure that we do healthy investments is, of course, the silver to suck. Sophie will come back and talk much more about how we create value over time and also our unit economics. As you see, we have different measures of success throughout this journey, and each market takes their own time in order to pass these tollgates. We have learned actually over time. So this is a chart where it shows you that we could become better and better at expansion. So looking at Turkey and Russia up there, we have reduced the number of months until we reach 50,000 subscribers in a specific country, measured by Turkey by 15 months and Russia by 20 months. These are also examples of 2 quite different audiobook markets once we went into these markets, Turkey being a very immature market, whereas Russia already had quite a good standing in audiobooks. So what about the attribution model? I know many people in marketing, this is the Holy Grail, really understanding from where do the customer come and where should we invest. Word-of-mouth has always been at the core of our success up to date and will continue to be so. Lots of brand ambassadors inviting a friend to join Storytel by giving away a book. Lots of online communities sharing experience about what they listen to and what Storytel does for them, as well as Instagram nowadays, showing in Instagram stories what I'm listening to, which can be shared immediately from our app. Unfortunately, this is not enough as for many countries. So yes, we do invest marketing money also in a mix of performance marketing, brand marketing and a dash OPR. So this then becomes the attribution model that works in a selective country that the local teams work together with our global departments in marketing and brand. This is the world as it looks right now from a Storeytell perspective. Expansion is heavy investments, of course, as I spoke about, in production, marketing and content. So last year, we explored 5 new countries in our recently reorganized organization of 5 hubs. So we launched our 2nd and third market in the Latin Americas, which was Colombia and Brazil. And we also launched 2 markets in the APAC region, which was Singapore and Korea. And during the summer last year, we launched in Germany. We will continue to launch markets, but 2020 will really be a year where we continue to make all the efforts to continue to grow in the markets that we already exist in. We will have over maybe open a few more markets, as you saw from the press release that we released last night. Working with these hubs, that's where we decide on our expansion activities as well as deepening our presence in the different countries we are in. So what about the potential? Are we done? No, we are far from done. If we look at the storytell in Sweden, among the population of 18 years old and older, we have a penetration of our subscription base on 5%. We believe that there's much more. Many, many more would like to enjoy our world of storytelling. We can do a little bit of exercise this morning, math exercise. Are you up for it? Yay. Okay. So what if we would reach 5% penetration in the markets we've already launched in? What would that be? Any guess? I'll share it with you. That's the 40,000,000 plus subscribers. Actually, I took away India here. That would then be 90,000,000. So as you see, the potential is big. I believe that my team will do the utmost to continue our expansion and deepening of our commitment in all the markets we've already launched together with the country teams. We believe that there are absolutely more countries to go to. There are more languages to add to our already great asset of 24 languages within our service today. And there are more customers, of course, to be reached. The audio and streaming technology is just paving the way. People have enjoyed Stories for as many years as we can see in history. So, yes, this is what we're up for. Thank you. We will now take a short break. Jonas, you said 10:30. We will be exactly back here. And importantly, we have our fantastic reader out there. So if you haven't checked it out, we have a really good offer for you. You don't know how long that offer is going to exist. So try it out. Take a cup of coffee and enjoy and be back at 10:30. Thank you. Please take your seats and we'll resume the presentations. We're going to see our publishing head, Richard Henley in a minute coming up and talk about all these beautiful stories that we create. And then Sophie will talk about numbers and profitability and value creation. And then I'll come back and summarize shortly in the end, and then we'll do a Q and A after that. And then there's food outside. Sounds good? So please give a big hand and welcome Richard Henley on stage. The wind wailed and moaned through the treetops of the dense pine forest. It sounded like the rhythmic chanting of monks performing a liturgy of sorrow and anguish in a giant cathedral. As they bowed unwillingly before the wind, it seemed that the branches twisted and screamed in protest. And overhead, the pale full moon appeared only fleetingly between ragged clouds that were chasing each other in a wild frenzy across the heavens. So let's see a bit about your knowledge on the world of stories. Which best selling classic was that the beginning of? Anyone? No guests? I'm giving you some time here. War and Peace, no. No, but using the words best selling and classic usually takes you in that direction, maybe Lord of the Rings, maybe The Da Vinci Code, maybe War and Peace or something similar. But I'll give you a few more moments to ponder before I give you the answer. And meanwhile, I'll introduce myself. I'm Richard Henley. I'm working as the Chief Publishing Officer at Storytel. So I'm going to tell you about what I think is the heart and soul of our offering to the customer, the stories in the service, and mainly the stories that we produce and publish ourselves. So now we have some more time. Another guess. Okay. Even if we are in the book industry, this example will show you that the storytell world of stories is not quite the same as the book industry because this was our top bestseller for 3 consecutive years. The Legend of the Ice People, that's where the entrance came from, by the Norwegian author Margit Sandemo Sandemo, Sargenamis Falket in Swedish. This was a fantasy romance fiction story from the 80s that captivated a young audience of teenage girls back then, and which we then brought to new life in 2012 with the famous actor Julia Duvenius as the narrator. And this and just to make a comparison, so you understand what I'm saying here. Just a few years ago, a fairly unknown pulp fantasy author also, George R. R. Martin, reached both critic appraisal and a multimillion audience through the repackaging and restorage of his novel, Game of Thrones. And this marked the starting point for Storytel's own publishing. We realized that the golden nuggets of the backlist in the publishing industry was quite poorly used and reused. So we decided that with our knowledge about the customer and close proximity to the customer, could leverage this in a way that very few publishers could do. And we could also show the way for other publishers to polish their hidden gems in the backlist. 1 year later, we acquired the audiobook publisher, Storyside, which is now the global rights holding brand at Storytel. So Storyside is the rights holding company that has all the license production under it. And as I said, this marked the beginning of our own publishing. And not just during the last years, we turned into one of the world's biggest audio producer. We're now producing almost 6,000 titles yearly in more than 20 languages. And most of that is licensed book, like the Ice Legend of the Ice People, for instance. That makes up for 80% or 90% of our publishing efforts. The rest, a little cream on the cake, is when we commission authors to write specifically for audio, the stories that we call Storytel Original. But I'll come back to that a bit more later. And even further, of course, Storeytell also consists of print publishing houses now. In Sweden, it's Norstedt. In Finland, it's Gomerus. And in Denmark, it's People's Press. And that makes up a huge backlist that are now being converted into audio as well, among other things, of course. So let's back up a bit in time, not just to 2012, but a few millenniums back in time. And look at what has made the audio story so popular. Why is this a boom right now? Because it all started there. It all started in this oral storytelling tradition long before we had writing and long before we had anything else. We gathered around the campfire, we gathered in the town square and heard the stories from the elders or from our brothers or different sources. Then later came writing, and we started writing letters, and we write handwritten books, which were super inaccessible to ordinary people because they were kept in churches and temples and institutions in different ways, up until this Gutenberg Fellow came along and made it possible to duplicate and distribute the written word in a completely different way and add railways to that and all of a sudden, we had a mass market for the written language or the written story. And it wasn't until about 150 years ago, we could actually store and capture audio in a similar sense and later also distributed through broadcast or sell it through tapes and different vinyls and so on. You know this history by heart. And during that gap in time, during that gap between the printed story and capturing it on audio, that storytelling took a very literary direction. It started becoming very closely connected to the printed word, to the written word. So what we are doing now is taking it back to this proverbial campfire. It's not in a place now because it's portable, it's accessible by anyone at any time. And as Jonas started up this company, had a first logotype, of course, the campfire was in it. So he was on to something already back then. So during the last 15 years, we've seen a downfall in the physical book market, And this has happened long before the audio revolution, of course. And it comes down to different digitization effects, of course. And during the last years, with mobile Internet, with headphones, with the App Store and so on, this has really catalyzed the audio boom. We've seen it with Spotify, we've seen it with podcasts, and we are living right inside that boom. And now with wearables and smart speakers and everything, this is really turning into a world of audio. And I'll just stay in history for a little bit. It's not just going to be history, okay? But I'll stay there for a little while. This is Cicero, a politician and philosopher, back in like 50 before Christ. He wrote letters back and forth to a friend. And in one of those letters, he was really sorry because it took him so long to respond to the previous letter. And the reason he stated was that, well, I didn't have time to read your or I couldn't read your letter because I lost my voice. And that's unthinkable today. Of course, you don't have to have your voice when you're reading. But this was how you read. The notion of quiet reading wasn't until a few 100 years ago. Before that, writing was merely a way of storing the spoken word. So this is really, we're taking it back to where the story was from the beginning. But let's get back to present day and look at this from our perspective now. Because an audio story isn't just a block of text, this isn't just a story. Something happens when that story meets the narrator's voice and then the customer. And this is what we call the golden triangle of the audio story. And in order to make a perfect audio story, we need to be experts in all of these three fields. And this is what we're trying to do. It's all about creating a story or finding a story, audio first, with audio first perspective, making sure that story finds it the right narrator. And that's a good step along the way. But if that mix is not then met by the right customer, it's not quite there. So I'm going to walk you through these three corners a bit and explain through that how we think of our own publishing. So let's start with the voice. This business is about relations. The relations between us and the content creators, between publishers and agents, between us and the customers that Ingrid talked a lot about and Stefan talked a lot about. But also, maybe more importantly, the relation between the narrator's voice and the listener's ear. These are 2 of our more famous narrators from the studio in Stockholm. And behind them, you see a wall of fame of all the narrators. And these are the voices that are living inside our customers' ears. Because when you have these super duper noise reduction headphones, everything else is shut out, you know, the train noise or the honking horns in the traffic jam or the neighbor's high pitched discussion. Everything is moved away. It's just you and this intimate voice in your ear guiding you through a story. And of course that makes up, that creates a relation. And we see today that a lot of the customers actually follow the voice. They are searching for the voice that they like rather than the story or the author. So this is incredibly important in our business. And therefore, we are meticulous when it comes to the casting of the voices because a good voice can really lift a mediocre story. And on the other side, a really exceptional story can be put down by the wrong combination. I wouldn't say the wrong voice, but sometimes it's just the wrong combination. We also challenged the production processes over and over, together with the narrators. For instance, we now the narrator runs the narration themselves in the studio. There's more or less no studio engineer there. And this is our latest invention, what we call the story tool VOX, which is a tool for the narrator that they can easily make adjustments, they can listen to the previous session, find the right tone of voice and continue from there and erase mistakes in a completely new fashion and also with an interface that my 6 year old daughter works out pretty more quickly than I do actually. And as I said, these relations need to be treasured. And this is what the publishing business has been extremely good at historically, talent management, taking care of the talents. And this is one of our efforts in this direction, celebrating our talents in something we call the Storey Tel Awards, a gala evening that has been going on in Sweden since 2013 and is now being exported to Denmark, the Netherlands and Finland. So let's move on from the narrator and to the story itself because, yes, you understand this, that without a captivating good story, there's nothing there. And it's not always clear, as I mentioned in the beginning, that the bestseller book in the traditional book industry will be the bestsellers at storytelling. Some books are really good for audio and some are not. And sometimes it's even better to create a story from the ground up, audio first, something we do with the storyteller original authors. And these are some of them in a very collaborative process, working together with our editors and publishers, in a sense more like how you work with television series than when you're working with writing a novel. This is one showrunner and 3 scriptwriters working with last year's Christmas calendars and Traal Gonen. And in close collaboration with us and sometimes even with narrators, to create this story, audio first. Because writing for audio is something completely different sometimes. And these are some of the things that differ. We learned a lot from these years of publishing. And even before that, StorySide that we acquired had been running for quite some time even before. We say that we have approximately 20 years of experience in this. Some of the things is time lapses. Don't do time lapses. Stick to a straight chronological story with a single voice narrator. And all of these things tell us something about the situation the listener is in. Because when you're reading a book, a printed book, a physical book, then it takes kind of all of your focus. You need to hold it, you need to look at it, you need to process it and so on. With an audio, everything around you, your eyes are free, your hands are free, your movement is free. So you can do whatever you like. You can drive a car, you can tend your garden, you can do the dishes or you can sit down, of course, actively listening as well. But this means the story needs to tap into a different kind of situation than the printed book does. So what do we know about the audience then, the customer? Well, traditionally, the publishing industry has not been really interesting interested in whether the customer finishes the book or not. A unit sold has been good enough because when you put it in your bookshelf, it has been sold and you get paid for it. But now that's not enough anymore. To us, an audiobook start is not good enough. We want the customer to finish the book and read the next book and tell their friends about what an amazing experience this was. And that because this is what the business is about. This is when the publisher and author gets paid. And this is what creates a satisfied customer. And to measure this, we look at finishing degree, for instance. How many people that start this book finish that book? That's, of course, a very easy way of looking at it. We also look at comparing finishing degrees between e book and audio to see how much the narration enhances the experience, for instance. But these are still kind of dull tools in the toolbox. So sometimes we do deep dives into the data and look more specifically into the story. This is something that we call drop off points. It shows you minute by minute in a book how many people leave the book at different points in time. And as we are a subscription service, you understand that people will leave early because that's what you do in a subscription service. You try out different things, you listen to something before you get captivated, before you find what you need. But then after that, after the 2 or 3 first minutes, it's a fairly stable, low, very few people leave the story after maybe 10 or 20 minutes. But then sometimes it's an anomaly, like here, in the 14th minute something, of course, happens. And then that's the starting point for our curiosity. Then we go into the story and say, okay, what happened at minute 14? What can we do better? Is it something we can change? And so on. And at this point, it was a change of narrator's perspective and also new voice that entered the story. So stay away from that single voice, usually. All of these things combined, we use when we create this thing we call Storeytell originals. Stories that are unique and exclusive to the Storeytell customers and that, as Jonas said, differentiates us from the competition. And the Storey Tel originals lends their format from another very popular industry standard, the TV series. So it's basically in seasons. It's usually 10 episodes of an hour each. And they're very forward leaning. It's very fast paced. It's easy to digest, and they go on and on and on, usually for several seasons. And they're very true to the genres we know work, suspense, crime, thrillers, feel good romance and a dash of comedy. But last year, we tried out something different. In Russia, we launched The Outpost by author Dmitry Glukhovsky. He was the creator of Metro 2,033, not sure if you're familiar with, but he has a huge fan base around the world, created this post apocalyptic world with that book series. And in many aspects, Dmitry Glucosky was the perfect author to try this out with, not only because he was huge in a few of our markets, fairly known in a few others and lesser known in some, but he was an experimental writer that we wanted to work with as well, because he had been writing not only novels, he'd been writing theater plays, he'd been writing movie scripts, and he'd been writing for games. And now, together with Storytel, he wrote audio first. This also altered the business case around Storytel Original a lot. Before, we looked mainly at the ROI, the production cost versus the revenues this story would bring in. But now we started looking at earned media and PR effect, and even more importantly, intake targets. How many new customers can we attract with a more profiled story on each market? And will it differ? Will it be different from market to market? And in Russia, the effect was quite stunning. During the course of this launch, 18,000 new customers found their way to the Russian service. And as I said, the backlist is hugely important, and these profiled storyteller originals are, of course, a big investment. But if we treat those investments right, if we use those investments to invoke an interest in an authorship, in a genre, in a specific type of story, then we can create this amazing user journey and leverage much more revenue than only on the story itself, but on the backlist, on similar stories and so on. And here, the content duration on the user journey is key, of course. Another thing that's key is what already been talked about, that we're very local, and this is also in publishing. We need to be local. We need to understand the local markets. So we have publishers, we have production set up, we have, of course, narrators. Everything is done locally. Because storytelling is global, but the stories are local. Give and take a few different stories that make it into a global arena. So let's have a look at why this is. As Jonas already said, English is we all think English is a universal language. When given the opportunity to choose between English or your native language, most people choose the latter, especially when you're going to have it in your ears, this intimate kind of session. So in most of our markets, English make up around 5% to 10% of the consumption and the rest the local language is dominant. But it's not just about the language. It's also about the store itself. 86% on the top fifty list approximately, like in average, in all markets are by local authors. So in Poland, it's Polish authors. In Turkey, it's Turkish authors and so on. So this is just to show you how local this market is. And then we all, of course, have this breakthrough literature that we call airport literature, like J. K. Rowling's Pottermore Harry Potter or Millennium Books or those are, of course, some books that are continuously on this top list as well. And being strong locally not only creates an amazing customer offering, it also creates a barrier to entry for our competitors and it also puts us in a very interesting position in a publishing world. Because when we have this setup with very strong local knowledge around each market, then we are super interesting for collaborations with bigger rights holders or bigger IPs that we can work with globally. And we, I would say, have a super unique setup in this that maybe no other publisher have in the world. To sum this up from me, from publishing, this is the final number. 93% of our audiobooks in each local language have been fully listened to at least once during 2019. This is not about this little top list part of the book industry. This is the broad catalog really gaining and finding its customer. And we are well prepared for that. Thank you. And I will leave stage now and hand it over to the person that you've been waiting for, the glorious CFO, Sophie Settegren. Thank you so much, Richard. And hi, everyone. Nice to see so many people here at our first Capital Markets Day, which will also be my last live performance before going on parental leave. So in the beginning of the day, you heard Jonas talk about the total addressable market and the potential we see for Storytel. You then had Ingrid walk you through how we will win the customer on each market that we are on and also future market, talking about our expansion activities. Stefan talked about how we continuously enhance the user experience to drive engagement and increase customer lifetime. And finally, Rick had described how we leverage from producing our own content. I will now go through how this, strategies affects our financial performance. I will start by giving you a historical review of our financial performance before moving into unit economics and value creation. And finally, I will end with financial targets, which we already released actually last night. So perhaps you already seen it, but I'm sure you're eager to hear more about those. First, let's start with a historical review. Storytel is an exceptional growth company. We have proven that our business model is profitable, yet scalable. So back in 2010 and until 2016, Storitel were making profits. We wanted to prove that we had a sustainable business model before accelerating our international expansion. As you can see from this country slide, Storetel is not a Swedish or a Nordic company anymore. We're a global company. This is the probably the 4th country slide you've seen, but we're very proud of that. Present in 3 continents and 20 markets. And we are now profitable on 5 of these markets. In Sweden, in Norway, Denmark, Iceland, and most recently, also in the Netherlands. And we are sure that we will get more countries or all countries into the profitable states. Ingrid talked about some key activities and measures when launching in a new market, and also that it can take a little time to reach profitability. For us, it has taken us between 6 months to 5 years to reach profitability in these markets. And some contributing factors are the size of the market, the matureness of the market, competitive landscape, pricings, etcetera. This slide shows you 3 things. 1st, that the countries we launched in before 2015 are now profitable. 2nd, the markets we launched in 2016 and also Russia in 2017 will be the next markets to reach profitability. We believe that this will be done in 2020 or in 20 21. Thirdly, we have launched in a lot of markets during the last 2 years, and this will be profitable in a few years. If we look at the Nordic markets and then add the markets where we have more than 50,000 paying subscribers, which comprises of the Netherlands, Russia, Poland and Turkey. What you can see here is that we have gone from a negative EBITDA margin in Q2 twenty eighteen to a positive EBITDA margin of 8% in Q3 twenty nineteen. So this shows that we are continuously improving our profitability level, not only in the Nordic markets, but also in the markets outside of the Nordic region. In 2015, we had 150,000 paying subscribers. We have grown that number to 1,100,000 paying subscribers at the end of 2019. At the same time, we have grown our streaming revenues from an average of 75,000,000 per quarter in 2015 to an average of SEK 350,000,000 per quarter in 2019, or a total of SEK 1,400,000,000 in streaming revenues in 2019. And we expect that figure to go up to SEK 2,000,000,000 now in 2020. Going to our gross profit profile or our gross margin profile, we have 4 cost items affecting the gross margin. We have payment fees. We have content costs to 3rd party publishers, production costs of course, and royalties. The largest cost item of this is the content cost to the 3rd party publishers. And as Ingrid talked about, our business model is an unlimited subscription where you can consume as much as you want as a customer. And this is a model that is enabled through a revenue share model that we have with the publishers that JONAH sort of invented back in 2006, before there were any streaming services at the market. And this is a very important prerequisite for us to maintain a sustainable business model going forward, both for the publishers, for the author and for Storytel as a company, to be able to continue to set stories free and to pay the creators for those stories. If we look then at the development of the streaming gross profit and gross margin, what you can see here is that we have quite a stable gross margin at between 40 to 45%, while at the same time we are growing the gross profit. You can see that we increased or improved the increased increased the gross profit in Q3 2019 due to the VAT reductions that we saw in many of the EU countries. And one of our largest cost item affecting the gross margin is our production cost that Ricker talked about. And I often get the question, what would happen if we didn't produce any books? How would that affect our margins? Well, if we only reduced the if we stopped producing any books, if we hadn't produced any books during this time period, it would look like this. So the dotted orange line would be the adjusted gross margin. And it would jump upwards a few percentage points. Because we take the cost of producing our books immediately as they occur. We do not capitalize them today and write them off during the lifetime of that book. But this is without taking into consideration that if we didn't produce any books, our in house share of consumption would eventually go down, which would have a negative effect on our gross margin. I will come back to the capitalization of the audiobooks, and that's something we also released yesterday in the press release that we will change the accounting principle during 2020. So looking at this slide, you might wonder why are we producing books? Because it looks better if we don't do it. Well, to summarize it in one sentence, we are prioritizing long term gains before short term losses. So we're taking losses today because we know that producing the content will generate value over time. So with the current accounting standard that we're using, since we're taking the cost directly today, it means that when we launch in the market, we have a negative gross profit because we don't have any subscribers. We need to build that from day 1. But we're taking costs. As the customer starts to join the service and the streaming revenues increases, the gross profit also increases to somewhere meet the gross profit we would have if we didn't produce any books. But more importantly, as you can see here from the orange columns, it will eventually surpass and we will create longer term profits with the content production. So we are building a catalog which consists of a lot of value. As Jonas said in the beginning, we have a lot of backlist titles. The titles in our in our service has a long life length. Going to 1, or going to our 2 segments, starting with the Nordic markets. We have a comparably high ARPU in the Nordic region of SEK 150. You can also see here the jump in Q3 2019 when the VAT was reduced in Sweden, in Norway and in Finland. You can also see that we have a contribution margin of around 30%. So that's the gross margin, less demarketing costs. So we are profitable in the Nordic markets. We're still growing and we have room to improve profitability. But maybe most importantly, we can use the free cash flows generated at the Nordic markets to invest in the scaling markets outside of the Nordic region. Going then to the non Nordic markets, this is where we have a huge growth potential. We're growing with more than 100% on an annual basis, and we expect to keep a 3 digit growth rates during the next coming years. As you can see today, we're not profitable on a consolidated level in the non Nordic region. But as you can see, the contribution margin trend is going upward, so in the right direction. If we go further down in the P and L to the EBITDA, you can see that we were making profits in 2015. We were actually improving the profitability in 2016. From then and until today, we have had a negative trend, which is because we have invested in productions and in marketing that will generate value over time. What you can also see here is that we expect to break that trend now in 2020. So we expect to improve profitability level. And this is still with the old accounting principles, so not capitalizing any audiobooks in the balance sheet. The reason for that is that more countries are turning profitable or at least shifting more towards profitability. At the same time, we're not adding that many new markets in 2020. So we're focusing on the markets we already have. Perhaps we will launch a few markets, you will see soon. And then coming back to the P and L effect of the new accounting principles that we said that we will move towards sometime during 2020. So in a quarter into 2020, we will do this. We are not completely done with the analysis yet, but this is an example how 2019 would have looked like if we capitalized the audiobooks in the balance sheet and appreciated over time. So as you can see, the gross profit would increase, the EBITDA would increase and the EBITDA margin would improve by around 6 percentage point. This is the 1st year when we do this. So it will have the most positive effect the 1st year, and then we will start depreciated over time. But this only includes the production costs. So when we change the accounting principle, we will capitalize all intangible assets. So also some of the R and D investments that we make that improves the technical platform. Exciting. So going over to my second part, unit economics and value creation. What this shows you in orange is the net present value of the gross profit. And in purple you see the accumulated gross profit. So for each customer that we get into the service and that stays, on average, it will take us 10 months to recoup the initial cost of acquiring that customer. And this slide shows you 2 things. Number 1 is that the more customer we grow today, the more losses we will actually make because we are investing in that customer today. And as you all know, we have a lot of markets in the early phase. But second, the more the longer the customers stay, the more profitable they will become. And this has, of course, great implications as the market matures. Ingrid said that our customers are highly active, consuming more than 30 hours of audio and ebook content every month. And as you know by now, engagement increases loyalty and loyalty increases customer lifetime. And the market where we've been the longest in Sweden, we have a huge base that's been with us for many, many years. And the likelihood of them churning is quite low. So the average subscriber that we already have in the base in Sweden will actually stay for 6 years. That's a long time. And that, of course, gives us compelling customer lifetime value. But looking at the CLV to SAC ratio, so the customer lifetime value over subscriber acquisition cost in the Nordic region is currently at 3.5. And this is of course still with improvements to be made, such as making Finland profitable and doing incremental improvements all the time. Looking at the development of the same curve, you can see that it's gone from 2.3% in Q2 2018 to 3.5 in Q3 twenty nineteen. So we're continuously improving this metric, not only of course in the Nordic markets, but in all our markets. And the way we do this is that we have identified 3 value drivers, which is improving the gross profit, improving the lifetime of the customer and bringing in more subscribers at a lower cost. Ingrid already covered how we will get more customers into the service. And Stefan talked about how we will improve or how we have a good local product market fit and improve the lifetime of the subscribers. And I will elaborate a little bit more on how we can improve the gross profit. So the gross profit can be improved by increasing the price. This is something we've done successfully in quite a few markets now. We've done it in Denmark, in Norway, in Holland, most recently now also in Poland and in Mexico. We can also improve ARPU in other way. So for example, the VAT reduction, we couldn't really have any effect that change. But anyway, it has had great implications on our gross profit. We can also introduce new offerings or new products, as Ingrid talked about, to improve the ARPU. We can negotiate better content deals. We can improve the efficiency in our publishing activities, improve our in house share of consumption. And finally, we can introduce more or other payment alternatives that drives conversion and improves our margin. So there are many tools that we can work on to improve this all the time. But we already have good gross margins, as you saw from another slide. But one of our biggest investments is, of course, the productions or the audiobooks that we produce. So how can we improve or how can we make sure that we are efficient in our publishing investments? We're looking at the cost side. It's important for us to have a good mix of in house and out house production, making sure that we have a good occupancy rates of our in house studios, that we have a, yeah, use the internal FTEs and external freelancers in a good way. And also that we continuously questioning the production process. How can we be more efficient? And for this, we have developed our own tool called story tool, where we have basically the whole production process. And as Rick had mentioned, we have sort of reduced or removed the studio engineer from the studio, letting the narrator be in charge of the production process. Looking at the revenue side, I mean, we can, of course, leverage from us being a global company. We have many, many language languages in our catalog. And one language in one market can be the 2nd or the 3rd spoken language in another market, which Ingrid was also talking about. So as Ingrid said, we had in Sweden. The Turkish content is performing really well in Germany. We also have English Storytel originals, which we can spread in all our markets or translate some of those into different markets. And this is how we can reach economy of scale in our production investments. We haven't talked so much about the print publishing part of our business. And that's, of course, important for us to continue to get good writers or good authors into our service. Looking at the financials on the print publishing side, we want to at least keep our market share. We want to keep our top line, and we want to have an operating margin of at least 5%. So going to the final part, the financial targets. I will start by just showing you the financial targets that we had for 2019 and see how we performed. So we aim to reach 1,100,000 paying subscribers, which we reached during the winter holidays a couple of weeks back. We wanted to grow the streaming revenues with to end up at SEK 1,400,000,000, so corresponding to revenue growth of 36% to 41%. We reached a 39% growth rate. We haven't reported the Q4 figures yet, but our target is to reach a 16% negative EBITDA margin. Also, we wanted to reach streaming profitability in at least one additional market. We reached that now in January in Holland. And we wanted to launch in at least 3 more markets. As Ingrid said, we launched in 5. Sorry. So basically we reached the goals for 2019, which gives us great confidence to also provide you with the 2020 forecast. So for 2020, we want to reach 1,500,000 paying subscribers, a 36% growth. At the same time, grow our streaming revenues to SEK 2,000,000,000. We want to improve the negative EBITDA margin from minus 16% in 2019 to between -10% to -12% in 2020. And as I said earlier, 2020 is a year of focus, incremental improvements and taking more markets to profitability. So we want to reach streaming profitability in at least 2 to 4 more markets. And we will not stop expanding. Even with this sort of slower pace in 2020, we think we will still launch in 1 to 3 markets. But then looking at the longer term, 2023, we think we will improve these metrics and we want to have a CAGR of 40% on our paying subscriber growth during these years and a 35% CAGR on streaming revenues. Also, as long as we see maintained or improved gross margins and improved CLV to SAC ratio, we want to prioritize growth before profitability. And we want to reach streaming profitability within 5 years from a launched market. And as I said, we will not stop expanding, but rather see a new wave of expansion during these coming years. And yeah, and be present in 20 more markets when we are here in at the end of 2023. That was it for me. I hope I helped to give you a greater understanding of how Storetel is creating value day by day and how we will continue to do that by the expansion activities that you see that we have in front of us. I will now welcome Jonas back on stage to wrap up the Capital Markets Day. Thank you very much, Sophie. Brilliant presentation. So you can see I hope that I'm very proud of my management team. I'm very proud of the rest of the staff as well who's not here today or some of them are. We're about 450 people and really love storytelling, loves coming to work every day, I promise. Cool. So I'm just going to wrap this up and try to recap a little some of the things. Thank you so much for staying on with us. So Ingrid talked about Commercial, Stefan Development, Rykdal Publishing and Soffe Business Administration. So what are some of the most memorable slides I think we've seen? I think this meaningful recreation is really a cool way of illustrating the fact that our customers, they are really forward leaning, meaning you have to focus to consume our content. You can't just sit back and don't worry about it, but you have to actually be focused, which means that it's a great pleasure. And this, I think, is a really nice insight. We are the cure for boredom. We're the cure for insomnia. We've known that for many years. We're trying to get some factual research behind this, but we haven't kind of done that yet. But personally, I'm convinced that insomnia and books is a really good cure. And then loneliness, we actually have some evidence from that from a recent Swedish study. We are making people less lonely. And I think one way that we in a very physical and tangible way illustrate this is by our new invention of actually being able to see how many customers are listening to this book right now. This updates by the second, by the way. And that's, you know, I think a good base to start building from when you want to build the social interaction and the social layer onto our service. People listen a lot, 30 hours per month. That's more than some other streaming services. And again, it's forward leaning, it's focused listening. This is something we're very proud of that we know drives a lot of the loyalty and the positive unit economics in terms of very high customer lifetime values that translates into good value of our business. And helping the customers finding the content is of course key. We can see that our own storytel programming is doing a really good job already now, and we're making tremendous progress all the time, creating new lists that are interesting to customers and expanding our intelligence team and our content creation teams. Rick had talked about the golden triangle of audio stories. This is really, I think the core of what we're doing on the story side to find this perfect match between the story, between the narration and between the customer, because those can easily come out of sync, but we make sure that they are not, that they are actually optimized and that always the right, narrator finds the right story. So if we talked about the CVLT SAC and how we work very actively on improving this ratio. And as we've proven for the Nordic region, we all in a very short period of time brought it up from 2.3 to 3.5. It's about improving the gross profit, improving the lifetime of subscribers and also bringing in more subscribers at lower cost, where Ingrid talked about how we can use virality and word-of-mouth to a large extent to make that happen. And these are all the markets we're in now. These are the markets we will focus on to make super successful. Ingrid show you that there's actually a 40,000,000 subscriber opportunity here on the markets we show some. Just look at the Swedish example, which has gone from nothing to 5% penetration in only a couple of years. We see clearly the other Nordic region countries that is happening very fast. And we hope to be able to not maybe get to 5% on all the other markets, but at least up to a couple of percent. So the sustainable competitive advantages that we create, I think they come to a large extent from the loyal subscriber base that you know, learns how to use our service, learns that, you know, this is the way you're supposed to listen to stories. And then that this translates into a very positive brand that becomes synonymous with storytelling. We have the perfect name for this business. Storytel, it couldn't be a better name. And that really helps us because it works globally. It works in every single market we come into. Storytel has a very good connotation. And we want to make that brand synonymous with storytelling because we know that that drives very positive competitive advantage for us. And then our content catalog is hugely important. We build that up in order to be able to get better unit economics, but also in order to be able to present a better service to our customers and also to over time to compete very successfully with competing services. We know that we have 15 years in this industry, have a very strong book industry reputation. We've dug quite deep into the Nordic markets when we also own the publishing houses, but we know that we earned a respect from publishing houses all around the world. And we have constantly people from Storytel presenting on the book fairs around the world and spreading the word about Storytel and audiobooks. And that is really making a huge impact, improving the likelihood of us getting the right content once we enter into a new market. And finally, looking internally, we have a lot of know how. We know exactly what we're doing now. We just need to execute and improve on our working processes so that we become more efficient. And we have a very purposeful company culture where I think that people enjoy being at Storytel. People tend to stay for a long time at Storytel and can come to work. And this means that we can come to work and do a very productive work every single day instead of working on company politics as is the case for some other companies. So let's say that we succeed with all this. What will happen then? Maybe we will be a big part of developing the audiobook market. We've seen that it has improved a lot in recent years. It's grown by 20% for 10 consecutive years now. We're hoping that it will stay at a very high growth rate. We think it will be about 15%, which means the total market opportunity for Stortel will grow from SEK 40,000,000,000 to SEK 200,000,000,000. And we expect ourselves to have a very strong market share in that growth journey. We can see that outside of the U. S. Today, we already have a global market share of 15%, including the U. S. It's 5%. So I hope that looks interesting for you. I hope you stay on as Storytel supporters, shareholders, whatever you are, and maybe we will all look as happy like this in future when you think about Storytel and what we do. So thank you very much. We're now going to move over to a Q and A session. So thank you. So anyone over there. Yes, sorry, sorry, just wait, we need the microphones to be handed out. So we have one question over there, one over there and one microphone to him over there as well. Yes. So I'll start off with 2 questions. Joakim Grenell from DNB Markets. So you've launched in 5 new markets in the recent 12 months. Perhaps you can elaborate a bit on your learnings from these markets. So what has worked better than expected and proven more difficult? Yeah. I'll ask Ingrid to answer that question. Thank you. So that's yes. What has worked better and what has worked less good? Well, of course, there's are always learnings. And I shared with some of you during the break here that we have a country management meeting that we do both online as a hangout and meet in physical form. This is the opportunity where we really help, support and learn from each other. And a few things, of course, don't go as well as we thought. It might be the marketing that has worked super well in one country that doesn't really fit. And what we do that is to localize. Sometimes it's our pricing that Sophie talked about that we have adjusted over time. We have actually in one market also lowered the price as we realized that we went into a market with a very much premium offer. So that's also something we do. And the answer to that question is, again, localization. So I think what we do is that when we have a team that is strong, we recruit well, and they can operate on a very local basis with all the things that we offer from a corporate point of view or a group perspective, that's when we do this best. Good. Next question, mics. Yes. Okay. You had a second. Sorry, you had a second question. Yes. I can't count So in the non Nordic countries where you aim to grow going forward, can you perhaps give us any color on the ambition there? I think that's the thing your question is about. Yes. Telco partnership is actually a really, really successful way to grow. I wouldn't mention then Sweden, but I do it again. Telia has been a very good partner for us here in the Nordics. We have then tried this in other countries. So Vodafone is a good partner for us, for example, in the Turkish region. And this is something that is very similar in terms of that you have your subscription model. Many of the telcos are looking at extra services to enhance their brand. And we're a very excellent partner. So it's a good fit. Of course, also marketing partners in other types of forms. It could be anything from strong consumer brands. We've been approached by other consumption brands as well as other streaming services in different countries to test out actually bundling our service. Perhaps just to add on what Ingrid says is like the what we, yeah, what we aim to do when we do telco deals at least is that we will not give it away for free, but the customer will actually perhaps get a good offer in the beginning and then they will pay the subscription through their mobile carrier. This is the way we have done it in Telia. So we will not give away 12 months for free, for example, to Telkoden. But we want to get paid for the service. Yeah. And adding to that, that can actually also be a good payment solution for us. So actually, the telcos we have bundled with in Poland, that was a way for us to access when we didn't have a localized payment method. We have done that through Mobitec, which is the central organization between the telcos. Competitors like Spotify are investing in podcasting, and podcasting is becoming more scripted. How will you deal with that kind of competition as podcasts look more and more like audiobooks? You want to also, Ricke? Yes, sure. Yes, this is of course, stories are merging all the time. When we see our as I said from the beginning, licensed books is always going to be our bread and butter. But what we're doing with originals is also trying out new formats. So we're also doing that kind of in between since the format of the original 10 episodes in an outreach is quite similar to the podcast format. So when we're doing a true crime, we could call it a podcast or we could call it storyteller written notes. It's more a matter of labeling. We're working with the stories and we're also looking into, of course, how we work with that on a distribution level. But from a publishing perspective, of course, this merges all the time and we catch up things from others and others catch up things from us. You're referring to the fact that Penguin Random House seems to have subtracted books from streaming services. No, not other than it's a small part of our catalog, a part of the consumption, and it's now been kind of hidden from the customers. And luckily, we have tens of thousands of new audiobooks in English coming in that can recoup that loss. So I think it's going to be a long term. I mean, they're taking that standard now, obviously, and we'll see how that evolves over time. But we don't know much more than that really. Derek? Yes, Derek Lelbert here from ABG. So I mean you've posted very strong and stable growth here over the last years and especially this year as well. And now you come with this very ambitious growth targets for the coming years as well. I was wondering if you could comment on sort of which markets you expect will contribute the most like in the absolute number of subscribers here this year and also how ARPU you expect the revenue per user to develop because you would almost say I would almost suspect that the difference between subscriber growth and streaming revenue growth would be bigger given that non Nordics countries might grow faster. Yes. So let's see what many questions in one here. But as you know, I mean, the Nordic segment stands for quite a large portion of our total base and total revenues today, around 80%. And what we expect going forward is, of course, that the non Nordic segment will increase as a share of the total both base and subscription subscriber revenues. Looking at the different markets, I mean, the markets where we have 50,000 paying subscribers, which now is in Holland, in Poland, in Russia and in Turkey, We expect those markets to contribute a lot during the next coming years as we expect, yes, 3 digit growth rates. Also one country that we have mentioned earlier is Mexico that are performing really well. So the Latin America region, I think is very looks very promising and other streaming services such as Netflix and Spotify are performing really well also in this region. And then your final question about the ARPU, I mean, it's of course a little bit tricky to do to give you a 2020 forecast. But what you have seen is that we have been able to increase price in many markets. We just increased it now in Poland and in Mexico from 1st January. And I think you can expect more price increases to be done. The VAT will go down in some more markets during this year. And we still see that the Nordic region is growing. And we have a very high ARPU in the Nordic region. But we will see and then we have the family subscription, which can of course, in the reported figures, it could drive down the ARPU since more customer shares it. But internally, we see it more like in the opposite way because usually customers have shared the account before and now they pay an extra premium to be more subscribers. I mean, the leading metrics for us is, of course, the revenue growth, which the 35%. And then as you allude to, I mean, the subscriber growth could be outcome of that. I mean, if we were, for instance, to drop prices and get millions of subscribers in India, then obviously things would go out of I'll just think a bit between the subscriber growth and the revenue growth, but the revenue growth is our leading target. Yes. Yes, Malvak, Kepler Cheuvreux. Question on content, I mean, when you move into new markets now, has it become easier to generate new content, to skew new content? Or is it tougher because maybe the publishers are learning that, okay, it's storytell when they come in, they become huge and maybe we can take more for our content now or how is that developed? Stefan used to be the Head of Expansion at Stordel Sachs. Well, it's both. Actually, it depends a little bit on what kind of market. But so far, they don't want to take the investment initially. So we are taking actually the investment, and we built up a local strong catalog. And after some years, when they found out that they can earn a lot of money from this, then they normally transform their our the production that we are doing to themselves. So we are actually kicking we are starting the market and then later on, publisher is coming on board. So we are initially all this. And how about content in the existing market? The Penguin content was mentioned. You also have the negotiation with Bonnier earlier this year. How do you think that will be in the future? Will it be tougher? Or is all publishers learning more about how this new model is working? I mean, it is, of course, always a bit turbulent when the new model comes into play like we've done now. And in Sweden, we kind of had a knot that we had to untie together by really good dialogue to come up with a solution that we could look into the future and say, now let's join each other and develop the Swedish audiobook market. So that's a special case. But then if you look in the rest of the world, I mean, the problem for us is more that you have publishers around the world that don't have any income from audiobooks yet. So they don't see the light. They don't see what it could be. So we have to kind of, as Stefansson, educate them about and get them interested in making that first investment in an audiobook production and then see money coming back from us as our subscriber base grows and then keeping investing and investing. But sometimes it's a lonely work and we have to do it on our own in the beginning. And last one on new markets. You have avoided some markets like U. K, U. S. And where there's more competition, but you have entered Netherlands and Germany. Do you want to enter markets where there's more competition now? Or are you trying to stay where you're more of a monopoly in the future? I mean, we think I think that over time, it's market share and profitability levels that kind of converge. So I think that over time, it's a lot easy for us to spend the money early in the new market, build that up as we've done with many of the markets we're in now And then over time, become a very strong market leader that understands the local market fully, understood really the local product market fit and how you drive the best value for the customers that makes them listen more, etcetera, etcetera, and also come in and become a very strong content producer. I mean, we like the position we have now in the Nordic region, Sweden, Denmark and Finland, where we are also part of the book publishing ecosystem because that makes us better at gauging developments like the one with Bonia now and to understand what's in the head of the book publisher in that particular market and how can we best play in order to optimize our future. I have a mic otherwise here already. So as I understand, my name is by the way Jan Pietersen from Telus Fondre and a shareholder. So you mentioned that 2020 will be more a year of a kind of consolidation and adding 1 to 3 markets. But in 2023, you will add 20 market plus. That means quite a hefty acceleration after 2020. And could you be a little bit more specific about that? What your strategy will be to and how you will reach it? I think what we mentioned by 2023, it's until 2023 we will reach plus 20 markets. So it's not that we will launch all of those in 2020 3, just to clarify. I think you have to, 1, I will give you a cue. And that's understanding what languages we already have in our service. And then you can think about where we will continue to expand. I think what we have done is really to build up a local catalog on 24 different languages that we can continuously work with and expand from. And I think, yes, I mean, if you take Latin America and Mexico, I mean, that type of content, there's a lot of markets there that could be added quite easily, like we did with Colombia. And as Ingrid, I mean, the last 2 years, we have been focusing very much on improving also the internal processes and setting up this regional hub structures. And now we have a hub, a LatAm hub driven from the Stockholm office and the Mexico office. And we have a APAC hub driven from the Swedish and the Thailand office. So we have a good structure now to continue the expansion into these different regions. But this year is a lot about I mean, I don't know if it got through what Stefan said, but basically there is a lot of innovation happening now on our user service. And that hasn't really happened for a couple of years as much because we've been preoccupied with going out into these 20 markets. All the global teams in Stockholm and Copenhagen have been focused on making those launches and getting that early product market fit. But we haven't, to the same extent, been able to really focus our development efforts and get an improved service into the hands of the customers. But that's happening fast now. So it's incredibly encouraging. And we just want to pause with the 40% growth this year and not launch a lot of markets and make sure that we trim in all this work processes also in publishing to make us even more efficient and in marketing with the viral effect and the word-of-mouth and all that. So just give ourselves a little leeway to prepare for a much bigger evolution globally from 2021 and onwards. Okay. It's Stefan Oord from Pareto. I have a couple of questions. One is to Stefan, I guess, it's regarding the new payment platform. If you can put that in perspective in terms of time of launch, if you compare it to maybe mid-twenty 19? And then you also spoke a little bit about the new factors that you have integrated into, if you could just give some clarity on that? Thanks. What was the last question? New sort of Yes, this new payment platform was actually we will launch that in the end of last year. And that makes this new platform makes it much more easy and faster to integrate to local payment partner different local payment partners. Actually, they can do it themselves into us and we don't need to do it. And normally, for instance, a mobile operator, they have external consulting companies that integrate to different platforms. So our purpose with this is to offload our own development department with this. So anybody can integrate into our payment system and also to the marketing platform when we do partnership like Norwegian and SAS and things like that. So it's a combination of what we're doing. We have launched 3 new partners with the new platform, and that's actually Yandex and KCP in Korea and SoftFort Klarna in Germany. And so we will continue developing this platform as well, but it's really great start with this. Thank you. Next question is regarding the growth rate in the international business. You mentioned, Sofie, that you expected a 3 figure growth rate for outside the Nordics, I interpreted. Is that per annum up until including 2023? I mean, yes, I would say so in at least some of the markets. But yes, looking at 2019, I think we grew with around 120% on an annual basis in these markets. And in order to reach the goals going forward, we will need to continue to have a 3 growth rates at least during the next couple of years. Okay. Okay. Let's leave it at that. Then also on the EBITDA margin, historically you've spoken about the range of 15% to 25%, I believe it is. Is that still valid? Or can you narrow it down a little bit or Yes. I mean, what we're looking at the profitability level in our Nordic markets and the non Nordic, we have communicated earlier that we expect to have an EBITDA margin of between 15% to 25% in these markets. And as you saw from my presentation, we have a higher ARPU in the Nordic segment, so you can expect those markets to reach the 25% target, while the other markets is maybe more towards the 15%. Since we haven't reached profitability yet or actually in Netherlands now. But I think that yes, the EBITDA margin will depend on the ARPU level that we have. Even though we have the same gross margin in all our markets basically, the marketing as a percent of sale and also, of course, the staff cost as a percent of sale will be slightly higher in the markets with a lower output. Markus Vielandei, Swedbanklobo here. Also very happy shareholder. Markus Zvi Lande. Markus. We are a very happy shareholder also. And agree that growth is more important than profitability right now. So can you please comment a bit on cash flow and financing, which has not been dealt with? Yes. Well, I mean, we did a share issue almost 1.5 year ago now of SEK 500,000,000. That was the 3rd time or actually the 4th when we have done a share issue. We also refinanced our bank loans during the fall. So you can see on an overall level, we have cash at the bank to handle our near term expansion. But then as you heard from my presentation, as you also brought up, if we see very good CLV to SAC and other metrics looks good, we want to prioritize growth over profitability. What that means in terms of taking in more money or finding other financing solution, I can't really comment on that right now. But we are turning more markets to profitability and we can use those cash flows to expand into more markets. If we expect to use the credit facility. Yes, I mean, if we need to use that credit facility, we will do that to handle the growth. So that's the one of the reasons why we refinanced our loaning facilities that our house bank also believes in our growth strategies and that they want to support us to continue to grow. Yeah. And that could of course be both organically or through acquisitions. We don't see any or we don't have any big acquisitions to announce today. But as you saw from Jonas' presentation, that's one way for us to grow into new markets. Yes. Oscar Ericson from Carnegie. A few questions from me. First of all, can you discuss the younger markets in your portfolio a bit? What markets that are not expected to be profitable this year? What market are you seeing the best trends in? And I can see the quickest road to profitability. I think once again, the markets, which I mentioned, which was Turkey, Russia and Poland, are 3 markets that we expect to reach profitability next, either in 2020 or in 2021. And then as you saw from my presentation also, I mean, it's a matter of it takes a few years to reach profitability. And we expect the markets where we launched in a few years ago to reach profitability within the 5 year terms. I think 2 exceptions for that is India and UAE. India, we've already been in a few or a couple of years and we have been focusing on producing content to get a good competitive advantage against other players. And it's this year, we will start to market the service basically because we are integrating with a new payment provider that will help us to drive conversion. And then UAE, it's not one country, that's a lot of different countries. And we are using the Arabic content that we have in other markets rather than marketing us a lot in the UAE region at the moment. So plan A is always to succeed as storytelling with a streaming service and get a lot of subscribers. But since we go in and produce all this content, and we know that this did you see there were snowballs in my pictures before? Yes. Now those snowballs will grow over time and become bigger. It means the global market will become bigger and with the content catalog, it's always going to be a good business for you to have that content catalog because that will sell a lot over time inside Storey Teles service or outside. Great. And you mentioned using LatAm and APAC, the hubs in Thailand and in Mexico. I mean Colombia is one launch like that where you don't have a physical team in the country. Do you expect more of those sort of cheaper launches ahead? I think we constantly, as we do, challenge our own assumptions and our own way of doing things. And especially for a LatAm region, where we already have the content to actually go into more markets, we can see that this could be also a light approach to expansion. However, we will always ensure that it's a local service. And I think this is very important because there are some differences to the different countries in the LatAm region as well. It's dialects, as well as celebrations of different activities throughout the year. So that we need to be close to think about when it comes to both content curation and of course, marketing. But yes, we will probably find and invent new ways of expansion over the years to come. I think what we've done now over the last 3 years of massive expansion is to really, really learn a lot. And that we share and internally still with pride between one another. And what we now have is these 5 regional hubs, managed by Hubmaster together with the country managers who can really set the goals for each of the regions that we are in. Perfect. And the final question for me for Sofie here. Print Publishing, just to clarify, does the old target, it doesn't stand anymore? It's stable sales and 5% margins. Is that the new unofficial target? And the prior target was also stable top line, but slightly higher operating margin, right? And then, yes, I mean, what we can see is that the physical sale is, of course, declining. And it takes a little longer to recoup the investments that the print publishers are doing. So they will need more years because the digital version of the book will be a larger part of the total to recoup the initial advance. Then we are also now, I mean, in we have Nordstell's in Sweden, where we have made really strong profits during the last couple of years since we bought them in 2016. I think we can expect those them to continue to deliver a good result. In Denmark, we have had slightly lower margins. So that's one reason why we have it yeah, why the targets are a little bit more conservative, so to say. But we have done a lot of changes in the Danish office. We have a new CEO, Tin Smedigard, who is really a good leader. And we expect to be able to improve the profits going forward. And then we have Gomeroz now also in Finland, which we just acquired, but they also have a positive operating margin. Great. Thank you very much. Okay. Joakim Gunal from DNB again. So Jonas, you showed a picture for the, say, 2,030 market potential, which implied some quite steep market share gains for U. S. Storytel. So could you please elaborate a bit on what will what are the assumptions for such market share gains in, say, 10 year perspective? The assumption is that most of the growth will come from outside of the U. S. And the Nordic region for that matter. But in the U. S, we're not present, as you know. Since it will come from outside the U. S, we already have a 15% market share outside of the U. S. So the assumption of us getting to 20% market share on all this new growth in all these markets, I think, is not super aggressive. But I think it will come from us basically knowing pretty well what we're doing now and understanding the audiobook market as such. And then in our approach to every single market, we know that we do a good job in finding this fit with the local customer and just know when to accelerate, know when to produce our own content. And with our platform that works, I think, very well across the world now with these new payment integrations. We can be a lot quicker in future than we have been in the past in rolling out the service and driving up the growth. And finally, on the competitive environment, I mean, you seem to be in a global 2 horse race with Audible. So from a global perspective, I mean, we are seeing some other larger technology companies moving their positions forward into audiobooks. Any comments on the competitive landscape there? And any change? I think fundamentally, what's so great is that the user interest is there and is growing a lot, which means that we don't have to anticipate 100% market share. We can anticipate to be one of the players who really understands this market niche. And I think none of the global players are really focused except for Audible, which is Amazon owned. It's really focused on this forward leaning consumer that listens to stories that often takes years to develop. I think it's a very different consumer experience from music or radio. Podcast. With podcasts, you're getting into the same type of user experience when you talk about story based podcast and True Crimes. But other than that, I think just focusing on what we do and do best, I think will help us to get a lot of growth in future. There will be other players who will benefit from the fastly growing audiobook market and I think that's fine. Thank you. Derek Lambertyat, ABG here, again. I see that growth has really seems to have picked up in Russia, at least, with now about 50,000 subscribers. What's driven this mainly? And how crucial has this payment Yandex agreement helped? We usually don't really comment on specific countries. But just to be clear, Yandex is something that we very recently introduced. So I would say that's a combination of a great local team. We saw that Rickard talked about the fantastic opportunity we had with Dmitry Glukovsky and launching an original series in a country where he is very well known, taking a very forward leaning position as a brand. And that was really well recognized. So that really fueled the growth during 2019, and we'll continue to do so. So I think we do selective those type of investments in many of the countries that we are in. And sometimes, it takes a little bit longer to reap the benefits, and sometimes, they are reaped quite fast, as in Russia. Final question and then lunch. Nobody wants to ask the final question. Nobody wants to be between. So this 30 hour user engagement, how is that developed over time, the 30 hours per month? It's developing country by country. So it's a lot higher actually in some of our biggest markets and a lot lower also in some of the markets. So it's really a country by country development. So it all then becomes dependent on the mix of countries that we have. But as a whole, I would say when we were in early days in Sweden and Denmark, it was kind of in the 20s, somewhere early low 20s. And then I think now it's on an average moved itself up to 30. And now it's pretty stable there actually since we're adding a lot of new markets that are more immature and where people listen a little less. Good. Thank you so much for spending the time with us. I would just like to say thank you to my amazing management team. I would also like to say thank you to Don and his PR team, to Ida for taking care of the presentation, with Josephine in sitting in Copenhagen working late nights. And thank you to Birgolf and Stora for organizing this for us and also to Charlotte Bunder who has helped us out where we are. I think that's all of you. And thank you all for coming here. Have grabbed some lunch outside. We will be available for discussions and more questions outside. Thank you.

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