Viaplay Group AB (publ) (STO:VPLAY.B)

CMD 2020

← View all transcripts

Nov 10, 2020

A warm welcome to Nans Capital Market Day 2020. My name is Sabinja von Gafke. I'm an international moderator, speaker and TV host, and I have the pleasure of hosting us through this 3 hour live broadcast offering an interesting and relevant program and updates. We, of course, wish we could have been here with you all face to face in the same room, but as we know, times currently have changed, so that's not possible. However, digital entertainment is what we do for a living. So we're truly so excited to welcome you all here virtually to the studio in Stockholm. And ahead of us, we have 3 hours of interesting presentations on the future of NAND. And I also want to encourage all of our viewers to be interactive today by sharing and posting your questions because we will be taking time after each presentation to lift your questions. And speaking of questions, you can submit your questions. If you look in your browser, there's a question form at the bottom of the page and that's where you can write in all of your questions and I will raise as many as I can that time will allow. And, I also want to mention that the presentation deck that will be shown today are accessible and downloadable to all of you viewers at nendgroup.com/investors. And all graphics and slides and videos that will be used today are also of course shown in the live stream. So let's kick off this Capital Market Day and what better way to do that than for me to introduce the President and CEO of Nordic Entertainment Group, Anders Jenssen. Hello, Anders. Hi, Simeon. Great to see you again. You too. It's been an extraordinary year on so many levels. So just share with us how has it been for you and how has life at NAND changed? Well, it's been a remarkable year, of course. And I think the answer is to say that everything has changed and nothing has changed. Everything in the sense that in March, we went from business as usual to almost all of us working from home almost overnight. And we continue to run the business, which means that nothing has changed. We continue to do what we do. We're actually doing it even better than we did before this whole pandemic hit us and we're not out of the woods yet. So we're more encouraged even though we are concerned about the situation. It changed a lot and then it changed nothing. Well, I know that you have a lot of interesting and relevant information to convey today. So I leave the floor to you to give all the updates on strategy, direction and culture. Thank you very much. And thank you everybody for streaming in today. I know there are many things that you can spend your time on. So the fact that you are here today with us means a lot to us. It's a big day for us. We have many things that we want to share with you all. We have a packed agenda. You will hear from me on a couple of occasions. You will hear from Philippa Wallerstam, our Chief Content Officer, Kaijof Klein, our Chief Tech and Product Officer and of course, Gebel Katrina, our Chief Financial Officer. And there are many things that I know that you have queries and thoughts about and we will try to unpack everything as much as we possibly can to make sure that you get a good understanding of the plans that we are laying out today. And of course, as Sabinjes said, your questions are very, very important for us. So please make sure to ask all the questions that you have. Before I continue with today's agenda, I would like to share a few words on my sort of personal perspective on where we are as a company today. And the first part of my presentation today will be about the direction and the culture that we're building in NAND Group. I've had the privilege and pleasure to work in the telecom media tech sector for the last 20 plus years. The journey has taken me to different parts of the world and it has given me the opportunity to work with many, many fantastic people. 2 things that I've carried with me all the way and that are probably more true today than ever before. First one is your ability to work through constant change. Change is at the heart of everything that we do and to navigate change is not easy. And that's where the strategy and the culture need to meet to make sure that your ability to drive change in a good way is secured. The other part is diversity. Diversity in the sense that you must be able to take in everything that you can get from the outside from your people. I've worked in different parts of the world. And one of the most fantastic things with doing that is that you meet different kinds of people with different perspectives, different backgrounds, different points of views and that makes you stronger as a professional And if you operate a company, that makes you stronger as a company. And I think that holds true more ever than before today and for NAND Group, definitely. So I'm going to start to talk about our journey as a company and what we are building. There are a couple of takeaways that I would like you to keep in the back of your heads when you listen to our presentations today. We are of the firm opinion that we're building something truly unique. I would dare to venture as far as to say that we are actually doing this most significant and actually largest venture into streaming that any European media company has done before. This is truly unique. It's also something that takes a lot of focus and a lot of clear direction for everybody working on it. And as I mentioned, change is at the heart of everything we do. And the only way we can stay relevant is by embracing change. And now we think the time to take the next step is here. It is time for us to explain to all of you where we think we should be going to create the best value for all key stakeholders, our employees, the societies at large where we operate and of course our shareholders. It starts with a purpose. Our purpose as a company is what defines everything that we're doing every day on the job in every part of the business. And a purpose cannot be complicated. It must be something that everybody in the business can relate to, believe in and contribute to. For Nend, we worked with our purpose and we involved all of our employees to define a very, very clear path a purpose that will create a long term perspective for us as a company. Basically, what we're doing every day is to future proof our business for the next year and the years after that. And it need to create energy. You need to believe in it, you need to want it and you need to be able to go the extra mile to get there. Our purpose as NAND is about telling stories. It is what we do. We tell stories. We want those stories to touch lives, to create a perspective, to entertain you, to make you laugh, to make you cry, to make you potentially change your opinion, to kill time, to win time, all those things that a good story told in the best possible way can do. And when you do all those things in the right way, you expand your perspective and thus you expand the world. I think in this day and age, this is probably more important than ever before. And as history has shown us, entertainment and pop culture plays a crucial part in times when change and need for new perspectives is more imminent than ever before. We have created a model for how we want to work with this purpose and it starts with sustainability. Our values is the foundation of everything that we do. I have told everybody on our team many times that we are building something. Nenk is a construction site and we will remain a construction site for the foreseeable future. We're laying the company brick by brick every day. And we do it with a base in our shared values. Then we take our company through the value direction, through an employer value proposition, our vision and our purpose. And today we want to talk about our vision to become the European leading streaming champion. It's a venture that will take a lot from us and there is a lot of things that we need to explain to clearly outline how it's possible. But the time is now. We think there is no better time than the present to continue on this. And our foundation grounded in our values starts that journey. We've created models to be able to allow us to make informed and smart decisions grounded in our way of working. Sustainability is a word that is used a lot these days. What is sustainable and what is non sustainable? And I think all of you listening, if you consider to work for a company, to invest in a company or think about a company's future, if there is no path to achieve sustainability, that company has work to do. And the sustainability in our view starts with everybody knowing exactly what we're doing and what we're not doing. In business, I've learned sometimes the hard way that saying no is actually the hardest part. There are so many good things they want to do out there. Sometimes you find some shortcuts. Sometimes you just have to say no. Opportunities that are not grounded in who you are as a company and where you want to go should not be pursued. And for that, we have created a very strong format for how we want to operate as a company. We want to be a force for good. Our industry, the entertainment industry, is the conservative one. It is driven by tech change now, but everything behind it is still very much founded in how things used to be. And that's one thing that I was told and have been told many times over the years that I've had the pleasure of working with this is that that's not how we've been doing it. And that's not sort of the way it's been done. Not so much because of unwillingness to change, just because there is comfort in doing things the same way. The problem arises when what used to be the way of doing it is not the right way. There are ways to change our industry that will create change in society. It's everything about creative freedom and balance between those contributing to that creativity. Is there enough women contributing compared to men? The answer is no. Is there enough diverse perspectives with people with different points of views and different ethnical backgrounds in the entertainment industry today? The answer is no. Is there enough light shed on parts of the society where you can create fantastic entertainment but it's not done because it's not sort of it just doesn't fit the frame of how things are usually done. That need to be changed. When you get that done properly, you will achieve something that everybody in any industry is aiming for, growth. You will find new customers, you will find new fans, you will find new ways of monetizing what you're creating. So never has it probably been more true than ever before in our industry that a force for good is a force for sustainable long term business in the entertainment industry. And that is something that we definitely want to achieve. And we are 100 percent convinced that stakeholder value is shareholder value. If you invest in a company that is very clear about how we treat our employees, how we deal with our customers, how we deal with those partners that are working with us, that will pay off and the investors will see it through the ups and downs and the wins and the losses. If you are fundamentally grounded in how you work with stakeholder management, founded in your values and who you want to be as a company, you create shareholder value. You have to walk the talk. I think we have seen in our industry and you just have to go back a couple of years during the Me Too period that a lot of people said all the right things and did very little. And we cannot sort of say that we weren't part of history, but we can do everything we can to change the future. So walking the talk and again saying no to things that you don't accept is absolutely fundamental in creating a sustainable company in the entertainment industry. And we remain relevant through change. I will come back to change many times during today and how we want to change things. Sometimes it's a revolution, but most times it's an evolution. But the change is always there and that's how we stay relevant. Our history has proven it. It's in our DNA who we are as a company. Even if NAND is a young company, we come with a long history of driving change. Now we want to speed that up and make it something that is profoundly built into our future. So today we will talk about the next chapter in our journey. We are building the European streaming champion. We are investing more in streaming and have higher ambitions than anybody has ever had before in Europe. We think it's time to define a path to a future that is not dictated by fantastic companies, but nonetheless companies on the West Coast of the United States of America. There is innovation in Europe, there is innovation in the Nordics, there is a willingness for us to take the leadership and to drive that with our streaming service. Our Nordic core markets will continue to grow and you will see margins expand. And I will break down in detail in the not too distant future exactly how that is to be achieved. We want to reinvest and create operational leverage in new markets and there will be a separate section on that later in the agenda. And we want to optimize our portfolio to make sure that it's built around those assets that contribute value, reduce operational risk. And if it doesn't sort of fit those parameters, it's probably something that we should consider in different ways. Two examples is of course, the first and largest one to date is our joint venture with Telenor in Alente for our DTH businesses and the studio businesses that we consider non core for our future operations that we are now having a process to divest. I don't see any obvious next optimization opportunities in the near future but I think they will come and we will be ready to embrace the opportunity if and when they come. We have established leadership positions to be able to get to where we want to be with these new next steps. We have the content, a unique mix of content. And of course, we will talk a lot about content today. We have a world class tech platform built over many years and with probably lower budgets than many of our global competitors. But it is nonetheless a platform that can compete with the best. You will hear more about that from Kaj later on. We are very open for partnerships. Today, we announced that Via Play would be the home for STARZPLAY in the Nordics. Filipe will talk about that later. But it's a unique way from what would normally be 2 competitors to actually work together to create additional value for both parties. You will see more of that in the future. And last but certainly not least, people. And I admit that I am slightly biased here but I think I have the best team in the world. Definitely dedicated, definitely passionate, definitely competent. We launched in a new market on April 1st in the midst of the pandemic when it basically hit us the worst and most of the people worked from home. Everything worked exactly as it should. We couldn't send anybody to Iceland. We couldn't do the events but the marketing took place as we planned. The content came up as we planned and the growth came as we hoped. That is a sign of strength and was a good dress rehearsal for what we have ahead of us. The targets we have communicated today, you will hear many times during the day, but it is a step change in our history, a step change from a growth company to a significant growth company, A step change from operating on stable margins to margin expansion. And a step change to a company that is of significantly bigger size in the future and with significant better leverage to manage that size into profitability and shareholder returns. That is what today is all about. But this first section has been focused on you hearing from me what kind of company we want to build. And it's that foundation, that ability to execute that you should have in the back of your heads when you hear about all the plans we have for our operations going forward. Sabine? Thank you so much, Anders, for a great opening and also a really clear overview of where NAND is heading and why. And we're going to have some questions, of course, from the viewers after your next session. But I wanted to pose a quick question that came to mind. You referred to the importance of really walking the talk and being a value based organization. So what are the sort of main ESG challenges and opportunities for NAND in the years ahead? Yes, I think the biggest challenge is to embrace it fast enough to understand the sustainability and your way of operating in the society defines your success or breaks it. And I think large corporation in this day and age has a massive responsibility to be very clear about who you want to be. And if you achieve that, you will prevail. Not only will you prevail, you will come out from everything as a winner because it's very clear who you are, how you drive change and how you contribute to society. Then people will want to work for you and you get the best people and that's what it's all about. Absolutely, really being aligned with your purpose and your interest stage. I know you're going to talk about your next section, which is about the Nordic opportunities. So I leave the floor to you. Thank you very much. Now we're going to continue and we're going to start the first deep dive of the day into our Nordic core operations. The Nordics, where we have built our operation, is residing on a number of fundamentals. One key fundamental is that we have taken our structurally challenged operations in linear TV ad sales and in radio and in traditional pay TV distribution, maximize the value of them and reinvest in our future. There is a good path to continue to do exactly that. There is no reason to believe that we have to change everything overnight. That model works. But we have now hit an inflection point where the growth areas will be bigger than the declining areas and you will see the operational leverage come over the coming years. We're going to talk a lot about streaming today and we're going to talk about Viaplay almost completely. But let me share a few words first what do we see ahead of us for advertising sales, which is something that you often ask me when we have investor roadshows, when we have our earnings releases and when we have meetings, where is the ad market going, especially now on the back of the pandemic? And the answer is, of course, we don't know. We expect it to recover somewhat in the coming years. But for the benefit of the projections that we are giving you today, we're expecting a low to single midget growth in advertising starting with 2020 as the analog comparative year and the years to come. It's going to be flattish to slightly moderately growing. It could get better. Good news around the pandemic is of course something that helps this. The TV media and the radio media will play an important role when many companies invest themselves back from the impact of the pandemic. But it is a flattish view that we have on this part of our business and that is what is residing in the numbers that you've seen today. The rest now we will focus on our subscription businesses for the remainder of the day. ViaPlay is what we would call a must have service. And we don't mean it in the literal sense that everybody must have it, but it's big enough for a lot of people to talk about it and thus create top of mind that will allow it to go to the next level. And for us, we've always had this 3,000,000 threshold in the back of our head saying that's where we need to go to see the next level of ability to grow and to drive profitability will come. And that is where we stand now. In front of us, we have a journey to capitalize on what we have built, but also making sure that we don't leave any growth behind. There is still significant growth in the Nordics. The Nordic asphalt penetration is getting close to 60% in the households, in the 12,300,000 households in the Nordics. We believe that in the strategy period that we're talking about today, it'll go up to roughly 80%, probably slightly north of that. Stacking is a new description, talking about the number of SVOD services a household holds. Stacking is part of the future that has been accelerated probably during the pandemic. I think it's here to stay. I think we will see proliferation of services before we see consolidation, both in business terms and in household terms. You want to make sure you don't miss out. And then people, all of us will find our favorites. And those 3 to 4 services per household is in a reasonable expectation the coming years. And that means the market size will more or less double in the coming 5 or so years. This growth opportunity is significant and we don't want to miss out, which is why we are continuously investing in that growth opportunity, investing in more content, in more innovation in tech and ways to take quantum leaps up to the 6,000,000 subscribers that we have been mentioning today. We have a strong leadership position to capture this growth. The content that entertains millions of households every day, Sports, which I will come back to, will be a significant lever in our ability to take the next step. And then of course, our people and the tech behind it. All of that is now established, especially on the slightly volatile sports side of things, where we have secured the key rights until 2026 or longer. That gives us an ability to be more firm around how we see our coming years, more firm around the numbers that we are communicating today. We have a proven track record. A proven track record doesn't mean that you're done, but we're well on our way to achieve what we want to achieve. We have a resilient business model. It's not that long ago that our business was more or less fifty-fifty between ad sales and subscription businesses. Today, subscriptions represent roughly 70% of our total revenues and ViaPlay represents slightly more than 30% of our total revenues and growing fast. In the last 12 months, ViaPlay has grown the subscriber base with 31 percent up to the current 2,800,000 subs and the ambition to get to 3,000,000 at the end of this year. We have been growing profitably up to for the last 3 years when we were part of MTG as a business unit and as a separate company and listed in Stockholm. We have been growing profitably in the Nordics. We have also demonstrated that we can take action when needed. When COVID-nineteen hit us, we took early and very swift actions to mitigate the negative effects of COVID-nineteen. We reduced prices for sports when it was clear that everybody would be without sports for a while. That helped us. Of course, we had to give away revenues as a consequence, but churn was virtually 0. To mitigate the effects of the revenue loss and the more soft advertising markets, we have taken out significant cost from the company this year. Some of it we have learned that we can probably innovate further in the coming years and create more cost efficiency. Much of it will come back, but it also shows that we have the levers and the toolbox necessary to deal with ups and downs if and when they come. So the operational track record, I dare to say, is pretty clear. We are targeting 6,000,000 subscribers by 2025. How will we achieve that? Well, if you look at our 3,000,000 subscribers that we are at currently or at the end of the year, I should say, we will be able to we will have to add roughly 20% per year just organically. That will take us to 6,000,000. The dilemma is, of course, if the market growth slows down. So how do we get to the SEK 6,000,000? Well, 1st and foremost, we don't think the market growth will slow down that much. We are continuously investing in content that will allow us to take a more than fair share of the growth to come. But we have also decided to make investments in new sports rights that will allow us to move both revenue and subscribers to significantly higher level rather quickly. It comes with a cost, which is why the margin ramp up that I will talk about soon will take a little bit longer. The priority investments to drive streaming growth is of course about content, it's about product, data and tech, but it's also about distribution. Our wholesale business is a significant part of our business and our plans is pointing to a high single digit number in the coming years. This will be achieved by smart investments in content, making sure that our content, our channels, our streaming platform is something that our distribution partners want to continue to invest in and bring to their partners. We have invested in sports content in all the markets. Much of it will go only on ViaPlay. A lot of it will also go on linear channels and we will seek to repurpose and rethink how we distribute that content to create mutual value between us and our distributor partners. That is a significant leader in the streaming growth. Then I've mentioned sports. We have probably the strongest sports portfolio in the world. If we count the number of AAA rights that we hold across our markets, the current 5, the coming 3 in the Baltics and Poland, it is a uniquely strong position. Those who don't do sports say they prefer not to enter it because of the risk of losing sports rights and because of the high cost that it entails. That's true. It is something that you need to invest heavily in to be able to prevail in. If you just invest in a couple of rights, you always run the risk of losing those rights means that you are massively exposed. Operating what we are operating today is a portfolio job, making sure that things are complementary in a clever way, making sure that you put the money where you can really move the needle and then make sure that you're broad enough to hit as many relevant segments as possible. And make sure you have enough so you can say no if something goes completely crazy in a bidding. And you need time to build your position. One of the key tasks that we have been focusing on for the last 2 years is to renegotiate and try to put ourselves in a position where we have as much time to work with our sports rights as absolutely possible. And as I mentioned before, all the key rights are extended to 2026 or longer. Premier League in a groundbreaking agreement over 6 years, where we from 2022 also take over the rights in Norway. And then we have added a few more key rights that will allow us to continuously build our business as we have been doing, but also allow it to take the next step in distribution, namely skiing, World Cup of ice hockey until 2028 and the Swedish national team in football qualifications and the Nations League from 2022. These are rights that build a complete perspective on how we want to create value for ourselves and our partners. And we have the time to do it. There is nothing that we could potentially lose during this strategy period. There could be things that we may want to add. I don't see that many to be very frank right now, but there could be opportunities that we may want to embrace. But there is nothing that we have to focus on defending in the coming foreseeable future. This is a unique position. Having talked to people that has been in the industry for a long time, nobody has heard about this situation before. We're very proud that we have managed to put ourselves in position because it gives us the line of sight and the ability to plan according to how we create the best possible value. Scale is key. Even if the Nordics is getting more penetrated and more mature, they are far from being a saturated market and the scale will continue to create significant upside for those who managed to take a more than fair share of that scale coming in the markets. Subscriber volume growth is of course key. We want to grow in line with or preferably better than the markets every year. ARPU increase and the way we increase ARPU is of course by working with pricing, smart pricing that makes our customers continue willing to pay for the service to see the value, but also an ability for us to get better paid for the services. We have price increases planned. We are looking at various ways of maximizing the portfolio and packaging. You should expect that we will do price increases in 2021, market conditions and the pandemic permitting. We think the time is right. We have built a service that shouldn't be benchmarked that much up against especially the global. So we are in a position to stake our own claim and say, this is the value currently that we think is the appropriate one in the market. Exactly what that is, we of course will tell our customers first, but it will come in 2021 market conditions permitting. Sports, we will adjust gradually as new rights kick in or and when inflation is something that we have to deal with. So also sports will be adjusted. But we do think that there is reason to also take a good close look at how our portfolio is built. Is it really one package fits all? Or should we think about different kind of packaging structures? That is something that we have been working with. For the benefit of the plans and the numbers that you have seen today, we have not built in any major portfolio changes. Anything that we will do should be value accretive to the base case, the base plan that we have presented today. Then we have invested heavily in 2 significant opportunities in sports. In 2022, the Premier League moves over to our platforms in Norway and Formula 1 moves over to our platforms in Finland. This allows us to move customer bases. These are 2 sports rights that are the AAA rights in the 2 respective countries. Customer bases will follow with that move. It gives us a significant operational leverage in pricing, but it also comes with significant cost. This happens at the second half of twenty twenty two and takes us into 2023. So that will have an impact on how we build our journey to the 15% margin that we are talking about. Once we hit that breakeven point and go from there, operational leverage is significant, especially from 23% to 25. That's a journey that we think is extremely attractive to be in, an opportunity to take ViaPlay to the absolute next level in Nordics and to make sure we grow in 2 markets where we have been growing well, but slightly less than we have done in Sweden and in Denmark. We also have ambitions to step up our position in Iceland and will in a not too distant future announce 1 AAA ride in sports in Finland, in Iceland that will also allow us to take over a significant part of the sports market in Iceland. And for those of you watching please don't take out your rulers now and watch and look at this curve and try to hit exact numbers. This is illustrative. But our journey from the underlying 7% margin that we're operating at today to the 15% that we are targeting for 2020. That journey is not a linear one. You should expect us to grow our margins somewhat next year and then to remain reasonably stable in 'twenty two for the reasons that I just explained. And let me repeat them again. In Norway, Premier League, in Finland, Formula 1, only half a year. That takes us into 'twenty three before the operational leverage really hits in. We have new rights, especially the football in Sweden to be mentioned, Swedish national team that would be part of distribution negotiations that gives us more leverage in the coming years that also only give us half a year. Then we have inflation for Premier League in Denmark and in Sweden. All of those things means we have a very stable, foreseeable future for how we want to create value, But it also means that we're plateauing a bit on the margin expansion before it really takes off. That's the journey that we're looking at. And that's the reason why you will see revenue and OpEx growth grow as they are in the coming years. I have no doubt in my mind that this is a value creating journey that takes us to the next level. But it also means that we are investing. Underlying without the new rights, we continue the journey that we have been on for quite some time, growing our base and growing our margins like for like. Then we add new opportunities on top to get an even better margin along the way. That is the journey. And I'm sure you will have questions on this when we come to it but it's in a crucial part on how we build our Nordic operations. Key takeaways here. There is a significant value creation opportunity to be created from the position of strength that we have been working very, very hard to create. Our target of 6,000,000 subscribers by the end of 2025, doubling from our expected outcome of this year, it is not only an achievable target, a target that we will work very hard to beat and just the numbers behind it support that. The markets continue to grow between 15% 20% and we take our fair share and we add the new opportunities on top, you quite easily arrive at SEK6 1,000,000 and some potentially. We are targeting an organic sales growth in the Nordics, 13% to 15%, like for like underlying continued growth and then new rights coming on top, driven by price increases and driven by further distribution opportunities. That will take us to a total EBIT margin of around 15% in the Nordics in 2025. With that, a lot of information I know, but we will have time to go through Q and A now and we really look forward to unpack and discuss this with you as much as possible. This is very important. This is the spring stone for our international expansion. And with that, Sabinho, I think we're ready for questions. Absolutely. And Anders, thank you so much for laying out this truly exciting future vision. And please do come and join me in the Q and A corner because questions are coming in already. And of course, I want to remind all of our viewers, if you want to pose a question to Anders and of course our coming speakers, don't forget to do that in the question form at the bottom of the page in your browser. Now before I take a question from the audience, I wanted to refer to something you spoke about. You said that you expect to double the ViaPlay subscriber base and also double your Nordic revenue sales over the next 5 years. So where will this growth primarily come from? Well, in the Nordic environment, there is still a lot of direct to consumer growth to be captured. I think business to business and wholesale will continue to play a very important role and potentially an increasingly important role as we see a change in the industry where a lot of households are trading down from traditional TV packages replacing with streaming services. There's a lot of value in that migration. And just disrupting the markets and trying to get the customers over to streaming is not the most value creative way in our view. We want to create value together with the distributors and that will mean a lot of streaming reaching households through business to business and wholesale. And I also want to say, where do you expect or who do you expect rather will offer the main challenges for ViaPlay? Will it be the global giants or actually the local players? We have a lot of respect for competition. And I think we are making a market together. And we don't see particularly anyone being more difficult to compete with than the other as long as we make sure that we stay very clear about what is our value proposition. Then we will love to see as many streaming services as possible in the households. But if you trade down and stay around 2 or 3, Viaplay should be a must have or top of mind service. And that we cannot do or achieve by focusing on they do that or they do potentially that. We just have to stay focused on what we're doing. Stay focused on what we're doing. Okay. So now I'm going to transition to questions from our viewers. And the first one is, have you considered adopting sign based targets? And how do you plan to deal with the rising energy consumption from streaming? 2 questions for me. Yes, that is a very good question. And of course, we need to put a lot of pressure on our suppliers, especially in the back end, on how to create more cost and energy efficient solutions because there will be a lot of energy consumed as a consequence of this. I do think the alternatives would not be better. So it's more a matter of making sure that you define the framework for doing that, absolutely. And the next one is, did I hear right that you're planning to divest your stake in Allante? No, no. Okay. No. We are divesting studios, the non scripted and the content marketing and events business. Alente, we own 50%, together with our partner Telenor, and we'll continue to do so. Okay. And isn't NAND future success very much in the hands of premium sports content right holders and major third party distribution platforms? On the latter third party, I would say absolutely not. When it comes to the sports rights owners, I could flip that and say how much of their future is in the hands of NAND. And by saying that sort of rhetorically, I would say that we have created a very attractive future together. And of course, there would be competition. And we know that many will try to take the sports rights that we have from us. The only way to deal with that is to have as many as possible. So if you have to, you can let go of something, but then deliver a fantastic product. So the sports rights owners see the merits of working with you and make sure that you get awarded for as long as possible, so you can create a lot of value and be very, very difficult to compete with when it's time for renewal of the rights. And that's what's so unique with our current position. We go beyond the current strategy period that we're talking about today, 2025, before any of the key rights expire. And by then, we will have renewed what we need to have and potentially added something else. We'll be nurturing that collaborative approach as well. Indeed. The next question. There will be several changes in your content in Norway during 2021 to 2020 2, can you talk about how you'll manage the winter sports Champions League switch in 2021 and the addition of Premier League in 2022? Yes. I think the switch from Champions League over to winter sports and the new Europa League and Conference League rights is not a sort of it's not a like for like switch. So we'll just make sure that when we take over winter sports in Norway and we know the value of the sports and the pride that comes with that sport, we will do our utmost to deliver a fantastic experience to the Norwegian households. But it doesn't replace Champions League in any way, shape or form. Same goes for the other leagues. These are rights that will play a role for ViaPlay, but they will also play a significant role to continue to drive sales on our linear channels. And we are determined to make these rights as widely available as possible. So we build up credibility around the next step, which comes when Premier League moves to Via Play in 2022. Exciting times ahead. So the 5th question, what is the sorry, what is the ARPU growth potential in the Nordics? And what have you learned from the past in terms of potential price hacks? Yes. The ARPU growth is, of course, determined by the willingness to pay that we all sort of give to streaming. And the more services you see, of course, more share of wallet is taken from other parts of your monthly entertainment. And as I mentioned before, I think we will see more proliferation before we see consolidation. So whatever price increases, thus leading to ARPU increases that we do, we need to be balanced up against potentially leaving some growth behind. So whatever price increases that will drive ARPU growth we have on the horizon, they will be significant, but not massively significant. We need to make sure we strike that balance. So I would say the ARPU growth that you should be looking for in the coming 3 to 5 years is a low to is a high single digit to low double digit number. Okay. Does the Nordic now I'm saying it EBIT, it might be EBIT, margin target of 15% include a stable advertising margin versus the current level? Yes, the margin is, of course, a consequence. You talk about the operational margin or the actual money that we make. Well, if we talk about the money that we make, the answer is yes, because we will take out cost to complement for decline. The operational margin will remain fairly stable, assuming that the market remains to be there and assuming that price increases can be sort of executed and implemented as we think is the right way and that competition sees things in the same way. Then you will see sort of a stable continued profitability coming out of advertising sales at slowly declining operational margins because it's a declining business. And then we have what is your growth assumption for the other subscription revenues until 2025? Other subscription revenues, which includes wholesale and carriage fees, is a high single digit number in the expectations that we have. And I recognize that that is probably a bit higher than many have anticipated. And that is sort of coming from the investments that we've been doing in making our various platforms more relevant. And we hope to be able to present something that is very appealing for those partners we have around other subscriptions. And they keep on coming in, Anders. So I'll continue here. Does how big is the subscription Yes. We are probably looking at a potential between 300,500,500,000 subscribers, not just isolated to those two rides, but everything else that we're doing. If you take that as a ballpark and then just add a growth in the market between 15% to 20% and believe in the fact that we will take our fair share and hopefully a bit more, then you quite easily arrive at something slightly north of 6,000,000 subscribers in 2025. 6,000,000 subscribers in 2025. At the moment, that seems to be all the questions that have come in, but do please continue to send in your questions because we will be able to address them, not least when you're back on stage in a bit of a while. And with that, I want to mention that we will take a 5 minute break. But this is just to get a bit reenergized because we'll be back with Philippa Wallenstein and Kai Ove Kleen. So please be back in 5 minutes. See you then. Nordic Entertainment Group is opening up to a whole world of possibilities. You ready? I was born ready. Hit it. Every day, our streaming platforms entertain millions of people across the Nordic region. Really? And this is just the start. I know that stuff. Our original series are writing a new chapter in Nordic storytelling and winning And And series. Right. And our sports coverage is truly in a league of its own. We're already a Nordic streaming success story. And now we're aiming to become the European streaming champion. This is great. We will launch Fireplay in 10 new markets by the end of 2023. Do you like what you see? Yes. We have the technology, the content, and above all, the people to make it happen. Smile. We're going to make history. From the Nordics to the Baltics, and now to Poland and the USA, welcome to a world of entertainment. Don't you forget it. Welcome to Nordic Entertainment Group. Nordic Entertainment Group is opening up to a whole world of across the Nordic region. Really? And this is just the start. I love that stuff. Our original series are writing a new chapter in Nordic storytelling and winning prizes around the world. Mister President, I'm Thomas Svanberg, the new ambassador in Washington. We show the biggest movies. His name's Bond. James Bond. And series. Right. And our sports coverage is truly in a league of its own. We're already a Nordic streaming We will launch via Play in 10 new markets by the end of 2023. You like what you see? We have the technology, the content, and above all, the people to make it happen. Smile. We're going to make history. From the Nordics to the Baltics and now to Poland and the USA, welcome to a world of entertainment. Don't you forget it. Welcome to Nordic Entertainment Group. Nordic Entertainment Group is opening up to a whole world of possibilities. You ready? I was born ready. Hit it. Every day, our streaming platforms entertain millions of people across the Nordic region. Really? And this is just the start. I know that stuff. Our original series of writing a new chapter in Nordic storytelling and winning prizes around the world. Mr. President, I'm Thomas Svanberg, the new ambassador in Washington. We show the biggest movies His name's Bond. James Bond. And series. Is that right? And our sports coverage is truly in a league of its own. We're already a Nordic streaming success story. And now we're aiming to become the European streaming champion. This is great. We will launch Fireplay in 10 new markets by the end of 2023. Do you like what you see? Yeah. We have the technology, the content, and above all, the people to make it happen. Smile. We're going to make history. From the Nordics to the Baltics, and now to Poland and the USA, welcome to a world of entertainment. Don't you forget it. Welcome to Nordic Entertainment Group. Nordic Entertainment Group is opening up to a whole world of possibilities. You ready? I was born ready. Hit it. Every day, our streaming platforms entertain millions people across the Nordic region. Really? And this is just the start. I love that stuff. Our original series of So a warm welcome back. I hope you all feel energized to yet a continuation of the Capital Market Day. And there were many question adders that came in. So I thought would it be okay to just to take a few minutes, like 10 minutes to close a few more? Okay. I'm super thrilled. Thanks for asking all the questions. Definitely. Thank you for asking questions and please do continue to send them in. And like I mentioned before, use the question form at the bottom of your screen in your browser. Just pose the question there, click and then I'll get it up here in my iPad. Okay. So the next question was, what is ViaPlay's market share in the Nordics and where are the main competitors? The market share is something that we have to basically calculate for ourselves because all market data is not available. But we expect it to be somewhere between 25% 30%. My latest calculations with everything we know is pointing to something fairly close to 30%. But of course, it's not written in stone since not all market data is available, but close to 30%. Close to 30%. And the main competitors, I would say, again, the market is different in the different Nordic countries. And we typically have one strong local competitor in all the markets. They also typically play a slightly different role than Viaplay in the ecosystem, so to speak. So I don't think there is a particular competitor. And again, it's about making sure that there is a reason to buy, a reason to hold on to Via Play compared to all the other fantastic content that is out there. It is impossible to point to say we have to be better than these girls and boys. We just have to be the best at what we can be best at. Taking the next question here, they're coming so quickly. Can you talk about the demand and willingness to pay for Premier League in Norway compared to Sweden and Denmark and compared to Champions League and the winter sports? It is Norway is slightly more the price points are slightly higher in Norway that we can see from the current incumbent holder of the rights that also actually quite recently issued a quite significant price increase. So exactly where we will land in Norway remains to be seen. But there is a slight upside on willingness to pay compared to the other markets. And it is very different compared to the skiing and to Champions League. Champions League, if I take that as an example, it is a fantastic ride. We've had it for many, many years, been part of building it up in the Nordics. We are letting go of it in Sweden and Norway. Competition simply made it too expensive and then you have to let go. Then it's not you can't hold on to it for emotional reasons. But it's also right that really only starts at the last parts of every season. And if it's the wrong teams, it's difficult to get the returns you want. And we've learned that over the years. And I'm sure the new rights holders will see that as well. Premier League is not like that. Premier League is relevant. Even if you have the winner of the whole league defined many rounds before the final round, people still have their favorite team that they grew up with in the Nordics. English football is in many, many Nordic hearts more important than Nordic football. And that is a very, very attractive position to have when you work with the subscription business. And that's why it is in a league of its own, so to speak. Thank you for clarifying that. And content creation is a significant cost. Is there a key figure of content cost to revenue percent that you target and that you can share, for example? And is it expected to increase or drop as a percentage of the revenue in the coming 2 to 3 years? Well, the answer is yes. We do have fairly specific targets on where we want to land for specific types of formats. So we make sure we balance the portfolio properly. I can't give it away because that would be giving away a little bit of negotiation upside that we want to retain when talking about content developers and producers. But we know very well where we want to land. But it's also a scale game. Our original productions will of course benefit in the sense that the cost per viewer or subscriber will go down the more markets we can capitalize on it from. Even if there is an additional cost for the additional market, that is lower than the value in attracting more viewing from your subscribers. Okay. And the next one is ViaPlay will go a year from 2021 to 2022 without either Champions League or Premier League in Norway. How will this affect pricing and the subscriber base? Well, I think the subscriber base, assuming that we don't do price increases, which you can probably assume that we will not do, unless we have sort of a strong proposition to articulate the price increase from. Then the value of the skiing, the new football leagues, which will most likely have a Norwegian representation in Conference League and Europa League and a few other things we have up our sleeve. I don't foresee significant churn. We have seen that over the years that people subscribing to service only for Champions League are actually quite few. Okay. And is there a plan to build sub brands to attract niche audiences that today can't find relevant content under the Via Play offering? No. We don't have any plans for niche brands. And to be very frank and very direct, I'm not so sure I think it's a good idea in a massive growth race, pro filorate your ability to drive marketing through 1 strong brand is difficult. And I've learned that the hard way in previous life. Next one is, is your definition of a subscriber the same in 2025? Or will it be the same rather as it is today? Yes, subscriber is not a person. A subscriber can have multiple subscription as a person. And the subscriber definition in our industry not so long ago were very much linked to households. And that I think will change. A subscriber is an RGU, a revenue generating unit. 1 person, I pay for 4 different ViaPlay subscriptions for my kids that have moved away or are studying. And that makes me sort of a person holding 4 RGUs. And that's the way subscribers should be viewed in the future. And then we have besides growing the portfolio, what kind of streaming tech are you planning to add to the ViaPlay platform? Well, Kai will come on shortly, talking about our tech journey. And I really encourage you to listen, all of you watching you on that one because it's super interesting. It is a scale game, but it's also a smartness game, knowing where to play and where to stay. So we don't break our backs on innovation that we can't really take all the way. Machine learning and AI is something that is very, very appealing, both from a user experience and from a cost efficiency point of view. But Kai will come back to more details later. And then we have one. There were some media articles about Netflix losing subscribers in Sweden recently. Did that have any effect on bioplay? Well, 1st and foremost, we don't know if it's true because they don't report like that. So I really don't want to comment on whether they gained or lost subscribers. I know that we have been gaining subscribers every quarter in line with or slightly better than our plans for a number of quarters now since we were listed as a separate company. So if anything and if that's true, we're gaining market share. And then we have after the 2022 uplift in sport rights costs, what will be the aggregate rights inflation? After that, we're looking at an inflation that is a low single digit unless we add something new. So it's always important to talk about like for like, meaning what we had going forward. And we've built in inflation in all the contracts that we hold and we know exactly what hits us when. And that is something that is in control and the big step up is in 2022. But we could, of course, decide to go for something new if there is a very obvious opportunity in it and then we would articulate exactly how the payback on that will look. And here, one more. Can you say what sort of churn do you assume for the future? And how does it compare with what we have seen in the past? One thing that I have learned working with SVOLF streaming is that churn as a definition need to be revised to some extent. It is there is a churn and return behavior that you have to take into account to see whether your churn numbers are actually good. If you take a a customer that churns and then returns when your favorite show comes back or because you decided now I'm going to do bioplay for a couple of months, should we count you as a churner if we don't have to spend SAC when you come back because you come back anyway? So we have seen churn going down by the traditional sense. If we would clear out all the churners and returners, I would say churn is actually very, very low. But it's a different kind of behavior than in say a mobile subscription or in many other kind of subscription businesses. So we have to find a smart way. We haven't cracked that one yet, but we have to find a smart way to articulate what good low churn actually means. Andres, thank you so much for so eloquently and knowledgeably really answering all of these questions. Thank you. You'll be back on stage soon. And of course, thank you to all our viewers for also being so engaged and sending in questions because it truly is your questions that are the relevant ones. So do keep them flowing. And with that, as we've heard, content is central to everything we do at NAND and what a unique offering NAND has, truly showing that NAND is the Nordic storyteller that is Nordic in heart and global in mind. And we're now going to dive deeper into the world of content creation as I now have the pleasure of welcoming a person who knows everything about content when it comes to NAND because she is in charge of it. So please give a warm welcome to NAND Group's Chief Content Officer, Thank you so much, Sabine. And thanks to all of you for joining us here today. I'm going to explain what it is that makes ViaPlay's content offering so very unique. And I would like to start by sharing the 3 guiding principles behind our content offering. We always keep our customers first. We stay focused on our Nordic storytelling and our global partnerships. And I'm going to explain a lot more of what I mean by all of this and where could be a better start than our customers. We categorize our Via Play customers into 4 main segments. We have the families with children. We have the power couple with no children. We have the series junkies and the movie night crowd. And what we've seen is that our most loyal customers are actually the families. And that is since they are the ones that can truly benefit from the broad range of our offering. And I'm going to give you a bit of an example of that. We have a family with a young child enjoying some of our fantastic kids' series, maybe Paw Patrol or Peppa Pig. You have an older child, maybe a teenager, who's enjoying some of our fantastic young adult shows. You have one parent who's, of course, addicted to our Viaply Originals and another parent who's a sports fan. That's a lucky one because that person can enjoy all of our fantastic sports. The family may or may not come together in the weekend to watch one of our movies. But the point is that with ViaPlay, we would like or we want to offer something to everyone in the household, but they don't necessarily have to watch it all together. So why are customers joining via Play in the first place? And what we've seen here is that 50% of all of our customers actually join via Play for a specific content title. And in many cases, this title is one of our own Via Play originals. And when we look at sports, the same number is actually 90%, meaning that 90% of all of our sports customers are joining for a specific ride. This just shows how incredibly important content is. And once we've got the customers to join, of course, our main priority is to make them stay. And what we've seen here is that usage has a very strong correlation to retention. And that is, of course, very natural. Just think about your own gym membership. If you're going to the gym several times a week, you are probably a pretty happy customer. But if you realize that you haven't been for a while, you may start thinking about canceling your subscription. And no surprise, it's exactly the same with ViaPlay. And that is why we are so focused on making sure that all of our customers are constantly using our product. And of course, that starts with great content. And when it comes to new content, we have a true advantage versus most of our competitors. Many are referring to weekly releases. On Via Play, we are releasing new content every single day. And since there is so much to choose from, it actually puts a lot of pressure on the second point, personalization and content discovery. And it's really important for us to make sure that your via play is tailor made to your needs. And this is an area that we work extremely closely together with the consumer insight and product and tech team to make sure that your via play is as tailor made to your preferences as possible. The last point is very much hygiene, but still extremely important. As a ViaPlay customer, of course, you should be able to access your account wherever you want on your device of choice. And leaving our customers for a while to understand how we are constantly working on strengthening our content offering, I think it's time for us to dig into our real content offering. And of course, I would like to start with our Nordic original drama. Our Nordic originals are really at the heart of everything we do. We have now launched more than 50 Nordic originals since 2016, and we are planning to launch 30 new originals next year. We are starting to really get renowned for our originals, both locally and even internationally. And I will give you some examples. This fall, we have been double awarded here in Sweden for Love Me, while Patti san actually won the best series in Cannes. And yesterday, when the C21 nominations were announced, both Patti san and Love Me were nominated to C21 as well. This just proves that our Nordic originals are really starting to attract also the global audiences. And if we look at the importance of our Nordic Originals among our own users, we can also see that the share of consumption is significantly increasing. The overall consumption on originals 2019 versus 2018 has actually doubled. And this is a trend we're going to continue to see. Since the more original productions we produce, the more important they will become and the stronger we are as we are strengthening our library of originals. And leaving our successful Nordic originals, of course, the natural next step for us is to enter the international original productions. Here, we have launched 8 productions to date, and we have 10 international series coming up already next year. This is really an opportunity for us to be part of the real, real large scale productions. And it's also an opportunity for us to make sure that our Nordic stories truly travel. And in some cases, it can be that we have a Nordic story maybe based on a strong Nordic IP, but we decide to tell the story in English since we really want to attract all global audiences. But it's also important to mention that Nordic storytelling doesn't necessarily have to be Nordic stories. It's also about how we are telling the stories. In Nordics, we have a unique way of telling the stories. And for us at NAND, we are also staying very true to our values here when it comes to diversity and inclusion. And that's about, firstly, the stories that we choose to decide, but also we're working very hard on who is in front of and behind the camera of these productions. And this is an area where our international partners really like to work with us since we are truly at the forefront. Leaving the scripted productions aside for a bit, I would like to talk about our unscripted productions since I actually think we haven't really given ourselves enough credit for our unscripted productions to date. This is our heritage. We've been producing local shows for the last 30 years, while some of our competitors are just entering this field. Next year, in 2021, we are planning to launch 50 unscripted local productions, and they are ranging from everything from reality to family entertainment such as Masterchef, Robinson, Fort Bayard to true crime documentaries. And the documentary genre is an interesting genre because what we've seen is that it's really working very well on SVOD. So we have high ambitions. And some of that you will see great proof of already in 2021. In summary, looking at what we are producing in the Nordics, it's quite easy to conclude that there's no one else producing as much content as we do in the Nordics. So why are we producing so much? Of course, it is since our own produced shows is really driving sales. It's also driving brand awareness, and it is giving us our identity. And it's fair to say that our own produced shows is really the key differentiator in our content offering. And when we are looking at performance, we can also see that 8 out of top 10 of our best performing series in 2020 is actually our own produced content. So that is, of course, a strong proof that our own productions really are making a difference. But it's also very important to remember that acquisitions are still very important when it comes to consumption. And 80% of the consumption on ViaPlay TV and movies today is actually coming from our fantastic strong global partnerships. And we have very strong partnerships and collaborations with all of the main studios. We are working very closely with Sony, MGM, NBCUniversal, ViacomCBS, and even Disney and Warner, despite their direct to consumer focus. And one question that I very often get asked is, of course, are you going to be able to continue to secure strong acquired content as more and more studios are going directly to consumers? And the simple answer is yes. It's important to remember that it's far from all studios that have direct to consumer ambitions. And all of these changes in the market environment is also opening up to new opportunities. And we are the preferred partner in the Nordics, historically, due to our scale and strong presence in the region, and more recently, also due to our expansion plans and also our strong focus on Via Play Originals. In most of our international Via Play Originals, we are co producing with 1 of the main studios. So as an example, we will produce a strong title and we will secure it for our own markets, and we will work together with Sony or an MGM as an example to distribute it in the rest of the world. This means that we are helping them to strengthen their slate, and of course, that is strengthening the partnership. Another very exciting way of how you can strengthen a partnership is, of course, our newly established partnership with Starz. I assume that you've all read the press release. But I would like to share a little bit of my view on this. And of course, I am extremely excited that we are going to be able to offer STARZPLAY, which is STARZ direct to consumer SVOD service to all of our ViaPlay customers. They are producing some of the most fantastic, fascinating and exciting stories in the world. And I'm so proud that we are able to secure this for all of our customers. To me, this is not just proof that we are now the preferred partner in the Nordics when it comes to acquisitions. We are also the preferred partner when it comes to launching new SVOD services with. The final and very important part of our content portfolio is, of course, sports. And as you already know, we hold the world's most impressive portfolio of sports rights. But I would actually like to focus on our coverage of these rights. We are really focused on innovative storytelling. We're constantly updating our graphics and analyzing tools. And we are always working with the best. Our experts are the best since they've been in the big arenas themselves. As for sports, with all of our storytelling, we are also very focused on inclusion and diversity and making sure that we have the right representation in our productions. And this constant way of always refreshing and renewing the rights is the key reason to why we are also the preferred partner among our rights holders. And they know that when we take over a right or when we manage a right, we are going to make sure that we're constantly seeking new audiences, and we are maximizing the value of that right. This is how we have been able to maintain our extremely strong sports portfolio, and this is also why we are able to secure strong rights even in our new markets. Adding all of these pieces together is what makes us truly unique. And it is fair to say that there is no other player in the world that has this fantastic combination of local and global content as well as the strong sports. This enables us not only to compete with the locals, but also with the globals. And I would actually like to emphasize that as more and more new players are coming into the market, we do not necessarily see them as competitors, but more as complements since their product offering is, in most cases, so very different from ours. I would like to end by reiterating the guiding principles in our content strategy. And what you should remember about why our content is so unique, it really is, since we are always keeping our customers first, we stay true to our Nordic storytelling, and we are very much focused on global partnerships. I assume you would like to see what this fantastic combination looks like. So I'd like to give you a little bit of a hint. Thank you. Mayor. I want you to help me take out the nuts. Mom, you just have no idea what I'm going through. Welcome to the loony bit. Welcome to the Paradise Hotel. Thank you so much for that presentation, Filipe. It's truly amazing and really rewarding to learn about the content range that is available on Viaplay. And just to mention, one of my favorites is actually the one that we saw there, Enschede or Love Me Not Least for the performance of Josephine Bornenbusch. And I'm also really looking forward to, as a little hint, to the next drama series that she'll star in Orca. It's a lot about social distancing and the lockdown that we're currently in. Now with all this content being delivered to millions of NENT and via play consumers 20 fourseven, it is so important to have a state of the art streaming platform that is constantly evolving and innovating. So before I introduce our next speaker, let's take a look at a short video. And to talk more about this, I'd like to give a warm welcome to Nents Group Chief Technology and Product Officer, Kai of Kleon. Thank you very much, Svenja, for that introduction, and good afternoon, everyone. Thanks for tuning in this afternoon. My name is Kef Klein and I run Product, Data and Technology. I'm here today to talk about ViaPlay, a product that I have spent more than 13 years of my professional career building. There's no doubt that we've been a pioneer in the streaming space since we launched the first version of ViaPlay back in 2007. Initially, it was very much about getting the basics right. We had to secure the content rights to stream over the open Internet. We had to launch applications for smart TV devices and mobile telephony. And we have to establish the proposition of watching anywhere and any time to differentiate us from linear television. We've been building on this technical foundation and setting the bar higher and higher for ourselves in the following years. The Sochi and Rio Olympics were really important for us because it made it forced us to bring ViaPlay from being a niche product to becoming a household brand, to prove to ourselves and to the market that we can launch big public sports events anytime to the market over the open Internet, thus controlling the infrastructure. During this period, we also spent a lot of time building new features and new functionality. We expanded our device footprint to cover most of the consumer electronic market, and we launched a number of new content sections on wire play, including the bespoke linear section and the bespoke kids section. We also innovated a lot around our different business models. To add on our subscription, we added what we call add on functionality to do top up packages. We launched a rent and buy store. We had pay per view, and we launched a number of very innovative distribution partnership integrations. So we really added a lot of functionality. Now as our sort of product development capability has strengthened, we've taken a lot of this impressive list of functionalities into scalable, rich and easy to use experiences. And I think to prove that scalability, we today do more than 50000 hours of live sports every year. And that's the starting point. From here, we're just going further with the launch in Poland, with the skiing rights coming into play next year and with some of the sports rights that we're launching in the Baltics. Our emphasis on personalization has also taken our personalization to the next level. We launched sharp recommendations, personal profiles and even targeted communication in the product to really lift out that specific thing that was important to every user. So all this work that we have put into the product during these 13 years has now culminated into a product that is rich in experience and easy to use and is ready for expansion. I truly believe that we deserve our place to become the European streaming champ. Now you don't have to take my word for it. We provided a number of different data points here today to to demonstrate that this ability is in fact true. In the last 2 years, we have increased the average number of active days by as much as 15% per user. We have also increased the share of power users out of our total base by as much as 9%. These two numbers confirms how we've been able to engage our user base further and to a larger extent than in the past, although already coming from high numbers. One reason to this success is our robustness. We have outperformed our SLA for now 8 consecutive quarters. And even now, during this sort of tumultuous corona period in 2020, we've continued to deliver on these numbers, with viewing minute numbers per user increasing by 10% and also something that led to our churn this year having been reduced by 0.4 percentage points, which is a pretty good number given all the sales we pushed in the beginning of the year. So to conclude on our current position, we like to feel that we have stricken a fantastic balance between what the customer desires, what is commercially viable and what is technically feasible. And this balance creates a very solid foundation for our future expansion. So we couldn't be more thrilled knowing the fact that we are now taking a launch in the Baltics does not require a new platform. It does not require a significant change to how we're doing things. Instead, we're relying on this Nordic foundation and to scale that into more markets. But there are a few things that we need to decide. First, what so how do we go to market? Do we choose subscription? Do we want to do a rental store? Do we do sports? Do we do live? Do we do documentaries, kids? Do we do pay per view? There are a number of options that we can choose from, from the flexibility of the platform. But once we have determined what we want to do, we'll create a local currency and payment method. We will ingest and publish that local content that we secured the rights for, and we'll add those translations needed to the site, to the app and to the media. And there we are, ready to go, ready to launch. Sure, this is a lot of work, that goes without saying, but it's not utterly complex. In fact, it is just doing more of what we have been doing in the Nordics for many, many years already. So it's a competitive market out there. How do we secure our competitiveness in the Nordics and as we expand to new countries? It's a pretty crowded place, so I think you sort of need to bring your A game to win. We have listed here 5 key focus areas which we feel are very important from a product, technology and data perspective in order to win. And I'm going to elaborate a little bit on each one of them. First out, and for sure the most important one, is customer focus. It's at the heart of what we do. It's at the heart of what we believe in. We believe in turning everyone's attention to the user so that you can develop the right solution at the right time and in the right way. That's how you deliver a brand promise and that's how you deliver customer expectations. One example of our indisputable customer focus is how we're organized in our product data and tech department. We're organized alongside the customer funnel. So we have people spending every day optimizing for finding, acquiring, activating and onboarding new customers. Then we have other teams that follows that process. So they take on to make sure that people or sorry, users find content they love, that they are inspired, that they stay, that they become loyal customers. Now we have a 3rd set of teams working on something we call customer segments, and that's about expanding the funnel so that more people can flow through this pipeline, that we can approach and target more segments of the market. Here we have people working with sports, with kids and other specific areas of the market. Now our second bet to develop and strengthen our competitiveness is building a learning culture. In a strong learning culture, you focus on understanding and learning from all of your actions so that you can do better next time around. In a learning culture, you gather insights so you can iterate in fast feedback loops and launch upgrades and updates continuously. It may sound obvious to a lot of you, but it actually takes quite a lot of work to establish a well functioning learning culture. I'm going to give you a few examples of how we work with building a learning culture. We invest heavily into user research. User research is sort of an assortment of online and offline tests to validate assumptions to validate our assumptions. It could be a user study, a focus group, an interview or a lot of quantitative data. When you aggregate all of this, you get a view of what the customer wants. So when you have that, you start building your feature. You try to say, what do we want to do? What do we want to do? But before going to market broadly with such a feature or such a function or such a change, you want to make sure that's really work. So you do AB testing. You launch a platform that supports what we call continuous integration. Continuous integration pretty much means that you can release snippets of code or snippets of software at any given point in time so that you can stay quick, flexible and agile throughout your development process. Of course, a big part of building and believing in a learning culture is that you have data. You have access to data, but you also have the capabilities to use the data. We know that investing in this area allows us to build a much more intelligent product that has both a high degree of personalization, as Filipa was mentioning before, and automation. And this also translates into much more precise communication because all this is tightly integrated in a digital product. Finally, we do believe in having very informed employees across all levels of the company because the magic really happens across the entire team. So here are 3 ways which we use to work with data. We gather sort of user generated insights that can cut through the clutter and demonstrate what actually works. So then we take that data and we circle it back into the product to build new experiences, to build personal and relevant experiences. An example is our onboarding flow. When we sign up new customers, we ask them a number of questions. What do you like, for example? Based on that information, we cater a personal experience from day 1. That is highly relevant for those users. Today, 90% of our user base enjoys a personal landing page and a personal experience on ViaPlay. This gives a greater sense of personalization indeed, which is also reflected in our communication. If we do push notifications, if we do in product communication, that is all based on your profile, on your specific profile and on your specific behavior. Our approach is to empower our teams and to give our teams customized data wherever they are in the organization, because we believe that's the way to sort of democratize insights and democratize decision making and to build a very strong company. Now when it comes to our competitive edge on the operational side of things, it's clear for us that we need to stay both elastic and resilient. Elasticity is important because you want to balance your cost to the demand at any given point in time. And our focus on delivering unparalleled uptime with robust, resilient and secure platform is critical for retaining our customers' trust. Cloud based infrastructure is a very good tool to manage it's a very cost efficient tool to manage scale because you can scale up, but you can also scale down. So you don't have to have the same baseline in terms of infrastructure in primetime viewing as you have the next morning. You can constantly adjust. Or when going into a new market, you don't want to do a big bang. You want to invest gradually so that you can be smart about how you grow. Availability is the 2nd key point in terms of resilience and elasticity. And why is that? Well, any digital product will, of course, need to be available. But if you have a live sports service, it's even more important, I would claim. And it is something special with delivering streaming because you don't have end to end control. You don't control the Internet. You don't control everyone's Internet connections. So we invest heavily into monitoring, into redundancy and even into sort of disaster recovery procedures to ensure that we can deliver uninterrupted experiences. On top of that, we take our technical requirements around securing our content very seriously. One reason for that is that we recognize that piracy is a growing problem and an industry wide problem, and we really want to do our part to address it. That includes protecting the content, but also participating in industry wide forums, in content protection committees and other lobby groups to help bring this problem to life. Now jumping from products and processes to our people. At NAND, we assert ourselves as a main player on the job market. It's by having a strong brand proposition and by having an attractive engineering environment. We believe in diverse and inclusive teams that ultimately will yield the best results and foster a culture where ideas can flourish. So tech recruitment is highly competitive. I think everybody knows that. And to attract and retain a strong team, whether internationally or locally, one thing you need is you need engagement. You need employee engagement. We need people to feel like they are actively contributing to something that matters, to our purpose and to our mission. Furthermore, we need to push our technical capabilities. We need to offer an engineering environment where people can learn and develop well into the future because the thing is there is no end state when it comes to software development. You always have to modernize. You always have to enhance your platform to stay relevant and to retain staff. Finally, it all comes down to the brilliant minds working here at NAND. In the product data and tech team, we are about 300 from 35 different countries. Not only is it fun to have such a diverse team, I love it for sure, but it also brings out very inclusive products. To wrap this up and with all this being said, I hope you have a clearer picture of how our product data and tech will enable NAND's future growth. There are a few things that I wanted to bring with you as you leave here today. One, we have a very solid foundation with a robust and flexible platform that we can lean on. We have a strong team with experience of building intelligent, easy to use and rich experiences. And with these two pillars, we really hope that we can invest in content and marketing to grow our business in the Nordics and to grow our business internationally. Thank you very much for tuning in. Thank you very much, Kai. And really fascinating to hear that so much is going on each and every day to develop platform and make the user experience even better. Please join us. Thank you. Now I'm sure that we have many or I know that we have many questions from the viewers to both of you. But just a quick reminder to our viewers, you know that you can send in questions at this moment to Kai and Filipe by going to the question form at the bottom of the screen in your browser. Now before I am taking any questions from the audience, I just wanted to address a quick question to each of you. If I start with you, Philippa, both you Anders and actually you Kai talked a lot about diversity, content and diversity. Tell us, what are you doing to promote diversity both in front as well as behind the camera? Yeah. For us in the content team, it's an extremely important question. We work very closely, of course, on our own productions to make sure that we have the right balance on all productions. And I think we are or I'm actually very proud about how far we've come when it comes to gender diversity. If we look at our own VIA PLAY Originals, many of the most successful ones are completely created by women. And in that area, we truly are leading. The area we are now focusing on is sort of other minorities where we have a bit more work to do. And when I speak to my sort of Head of Nordic scripted, her main focus now is actually finding the pitches we're not even getting because they are the ones that we are very interested in. I would also like to mention outside of our own produced content, there is of course a lot we can do in bringing in broader perspectives to ViaPlay when it comes to acquired content because inclusion is of course making sure that we give space and opportunities to different types of content. And I think our new collaboration with Starz is a fantastic example of that. They are famous for being very strong at just diversity and inclusion. They have some really interesting stories. And I'm also really proud to say that in the very near future, we are also going to be able to launch a lot more non English, non Scandi content on via Play. These are all sort of different examples of how we are broadening up our horizons. Really exciting, exciting future when it comes to content. And Kai, Via Play is of course an amazing platform, we heard that, and it has a surge of subscribers, which also is accumulating a lot of data. Does that contribute to the platform gradually getting smarter? And if so, what are sort of the results of this? Yeah, I think it is getting smarter actually by the day. Well, the thing is that you could pretty much personalize or customize every interaction point you have with the user if you want to. I think the trick is that you want to personalize it in a way so that it's friendly to the user base. You don't want to be annoying. You want it to help them find new content that is relevant to their preference and to help them subscribe to favorite sports team, their favorite series, so to help them really find entertainment easy in their life. Sort of that subtle navigation and facilitation. Balancing. Yes, balancing. Okay. Now we're going to come to the viewer questions, which are the most interesting ones. So sort of with Philippa, to what extent is developing and producing your own content a key part of your strategy? It's a very important part of our strategy. It is really the key differentiator. And as I said, like just looking at this year, 8 out of 10 of our top performing series is our own content. So of course, that's extremely important. When it comes to the acquired content, it's also very important. So I wouldn't say we can just go for our own content. We need the acquired as well. But the beauty is that the acquired content is sort of easier to replace. It's more if we are not able to secure one specific title, we can relatively easily change it for another title from another studio as an example. And that is since the acquired content that we have is not really brand building as such. It's more extremely important for retention. So we need both and the sports. Once again, that balance that we're talking about. And Kai, besides growing the portfolio, what kind of streaming tech are you planning to add to the ViaPlay platform? I don't think we have a specific thing that we want to add in terms of streaming tech. We're continuously trying to build new things that we think will work, that will bring in more customers or make our current subscribers more happy or watch and being more engaged. So, yeah, I think there is no specific thing as such. Because I know Anders mentioned in the beginning about machine learning and automation and AI. Machine learning is a technology and a tool that is very promising because it enables you to do so many things, not only personalize the service, but you can also automate a lot of your processes that will obviously cut costs down the line. So we use machine learning already today on the numerous places across the platform, and we'll continue to do that more and more as we evolve. Thank you. And then, Filipe, lockdown showed some strong statistics on video streaming for music content. Is this a category where you could be present, as an end or is it reserved for platforms like YouTube and Spotify? No. I would actually say that no categories is reserved. Sort of we are interested in everything that we think can be interesting for our users. We did a bit of it ourselves this year to promote artists mainly and be able to give something to our viewers. But we've also seen this year that consumption is increasing around 35%. And we are constantly evaluating and looking at sort of new opportunities and new categories. So if we can just find our way of doing it in a way that makes sense for our customers, it's definitely something that we could do. The tech would allow it. Well, if TIC enables it, then that's at least at the beginning. Kai, will you be looking to create more animated originals after the success of Fixy? I think we are in the process of evaluating the performance of Fixie and what new formats that could be relevant for us going forward. I think it would be a fantastic opportunity if we can find a way to use some existing formats, if it's a book or something, and create an animation on top of that. And I think that's something we're discussing as we speak actually. Yes, something we're working together on. Well, that's good. Tech and content always needs to merge. That's how it becomes the best product development. And Philippa, in your overall content cost evolution, how important will the original cost investment development be? Or is there a time when partnerships offset the investment needed to keep growing the that we want to take because now we are entering a lot new markets. And of course, we want to make sure that we can secure our own originals in those markets. So yes, even though potentially we could sell a bit more to partners, we may decide not to. So I would say it lays very much in our own hands. And we will do a little bit differently for different productions. We don't necessarily have one fits all. And that's a little bit of our strategy as well that we are able to be flexible. And Kai, continuing with the viewer questions, will your technology costs go up or down in the Nordics? And what will drive this? I think that our cost per subscriber will continue to go down the more markets we go into because it's simply economies of scale. I don't foresee that our cost in the Nordics is going to increase much, but rather this is coming from investments into the new markets. Philippa, how is Disney plus doing and how much of a threat is it? Yes, it's a good question. And it's I think they're doing really well. For us, it doesn't really have an impact because that's also a little bit what I was talking about with some of the global players and Disney is a perfect example of that. Their product is so very different from ours. It's a fantastic product if you are a family, but it's not sort of the full service as we have with Via Play. So we haven't seen any churn from Via Play on to Disney Plus. I think for those subscribing to Disney, it will most likely be as an add on. And I think that's what we're actually going to continue to see from many of these new globals entering the market. They have very much of a niche product compared to us. And I think as Anders was talking about as well, people are stacking up with multiple subscriptions. So it can actually enable us to drive streaming even more. Good perspective. And Kai, how do you view the opportunity to white label the ViaPlay platform internationally? I think white label could be an opportunity to enter a specific market, but it's also taking on substantial work. Not only is it a lot of technology work, but it's also a completely different business model for the company. I think we are focused on the direct to consumer market. We're focused on ViaPlay. We're focused on taking that international. And that's our focus right now. And Filipa, is the STARZ deal that you've been talking a lot about a model for the future? And will STARZ help ViaPlay in the U. S? Yes, very good question. Again, it's definitely a model for the future. It is groundbreaking since it really is 2 SVOD services working together to the benefit of the consumers. And as Starz is present in more than 50 markets, of course, it's an interesting partner for us also in our new markets. And again, the different models may look a bit differently depending on ours and their strength in the different markets. And that's also a bit of the beauty with this partnership. And Kai, bouncing back and forth here, but I thought it makes it more dynamic and interesting. And I mean, the viewers, wow, applaud you all for these questions. We're just going to I'm going to snap them on. What developments in product and tech most excite you when you look into the future? I think there are a number of things happening on the market. Firstly, 5 gs is coming. I think we haven't seen all the innovation that can come on the back of 5 gs. When you have increased performance and reduced latency, you can do a lot of really nice things, I think. Natural language processing is another one. Today, all media companies, especially those with an international approach, spend quite a lot of money on translations, whether it is for subtitles, dubbing or just the site as such. So if you could, over time, use AI to do all the translations for you in one way or another, maybe not fully to 100%, but a little bit of it, you could reduce quite a bit of cost. That's super interesting as well. And Philippa, are you thinking of producing ViaPlay Originals in English? I think you tapped into that a bit. Yes, for sure. We already are. And next year, we are launching 10 English ViaPlay originals. Exciting. And Kai, how easy and cost effective is it to add new languages to the ViaPlay platform? You touched a little bit upon that. Yes. No, it's fairly straightforward, I would say. Of course, it's a bit of work, but it's not complexity that the platform doesn't cater for. But you have to do it, so to say. Yes. Felipe, as non scripted content is your heritage and a huge strength, why are you planning to divert that part of the business? Yes. So heritage and a huge strength, why are you planning to divert that part of the business? Yes, okay. It's sort of we are buying a lot from our own studios, but we are also buying a lot from others. And I see that is not going to change. So the content we are buying from our own studios, we will continue to buy. But we are actually buying today a lot of our content from other studios. So it doesn't it's not going to stop us. In terms of from how my team is working with the studios, there is no difference actually. So we won't see any difference in the content offering. No difference in the content offering. Okay. And Kai, how will the launch in the U. S. Impact the technical demands on the ViaPlay platform? So the idea is that we will serve the U. S. From the infrastructure we have today. Obviously, we have a number of partners on the CDN sort of streaming side, and those partners are all global. So they have infrastructure all across North and the world, so to say. So that will automatically just scale to new markets. So the launch as such, there are some challenges around different privacy policies and there is different payment methodologies. And in the U. S, they have a few more devices. They have Rooko is a big player. Amazon Fire is a big player. So we'll need to push out via play applications on those devices. But the core of our platform, that will remain the same. Let's see. And Philippa, what is the average age of Avaya Play subscriber? Do you know? Yes. No, we don't sort of we have been focused. We don't have sort of an average age and the ViaPlay subscriber is VIA PLAY subscriber is 32 years old. But we have been sort of focused somewhere around 20 to 49 or sort of a broader segment. But that is now actually expanding in both directions. This year, especially with all of these changes has happened this year, we've actually seen that some we have managed to attract some of our older customers as well as we are and we are also really focusing on getting in the young adult segments. So we are producing quite a lot of young adult shows to also go a bit younger. So the idea is really that we should have something for everyone. Okay. Time is ticking on, but I do want to also honor our viewers. So I'm going to quickly try to get a few more questions in. Kai, how do you think ViaPlay compares to the global platforms in terms of user experience and capability? I think we're up there on par with most of the global brands. Well, some platforms have chosen to do this thing and ABC and we choose something else and the third one choose something different. So you all have to just follow and do things that plays with your customer base so that you align with what the preference is. And Philippa, could you elaborate on what will be unique about the international originals? It is very much we have different sort of angles to this. So I'm afraid this may not be a short answer. But firstly is, of course, our Nordic stories. We are planning to produce a few Nordic stories every year in English language. So that can be a strong IP or a famous person from the Nordics, but then it's also about the Nordic storytelling, the sort of the stories that we would like to be part of. And that's very much about the selection and the creators behind the different shows. So sort of that will be the main characteristics, but they will look very different. They will look very different. And just a short one, Kai. When will customers be able to share subscriptions between households? Share subscriptions between households. That's not a technology or product question. That's more of a strategy thing. How do you want your offering to look? What sort of package do you want to launch in the marketplace? So yes, let us come back to that. Let us come back to that one. If that's something you want to do later. Well said. And last but not least, Philippa, how much of your content portfolio in the Nordics is it possible to use in the new markets? For the scripted side, most of it and that's the plan. So we are planning to launch in the new markets with pretty much our full library of scripted originals. For the non unscripted area, it's a little bit more complicated because some of it is formats. But for the documentaries and the shows we have created ourselves, we can use all of it and that's the plan. As the last one wasn't tech related, I have a last one that is tech related. And how do you make sure that customer data is kept safe at all times? That I can speak about for 2 hours probably. In an elevator pitch. Yes. No, I think information security is a super important topic. We have dedicated teams focusing on that, whether it is personal data or any other type of data. Of course, we need to retain that and make sure it doesn't leak out. That goes without saying. And yes, we put in the efforts and apply the industry standard technology that is required to do so. Kai, thank you so much. Philippa, thank you so much. And to our viewers, thank you for being so engaging with questions. We're now going to take a 5 minute break. You're going to see a video during the break. And join us in 5 minutes when we learn about Nen's plans to expand outside the Nordics and the travel plans for ViaPlay. See you in 5. Nordic Entertainment Group is opening up to a whole world of possibilities. You ready? I was born ready. Hit it. Every day, our streaming platforms entertain millions of people across the Nordic region. Really? And this is just the start. I'm not that start. Our original series of writing a new chapter in Nordic storytelling and winning prizes around the world. Mister President, I'm Thomas Lambert, the new ambassador in Washington. We show the biggest movies Name's Bond. James Bond. And series. Right. And our sports coverage is truly in a league of its own. We're already a Nordic streaming success story. And now we're aiming to become the European streaming champion. This is great. We will launch Fireplay in 10 new markets by the end of 2023. Do you like what you see? Yes. We have the technology, the content, and above all, the people to make it happen. Smile. We're going to make history. From the Nordics to the Baltics and now to Poland and the USA, welcome to a world of entertainment. Don't you forget it. Welcome to Nordic Entertainment Group. Nordic Entertainment Group is opening up to a whole world of possibilities. You ready? I was born ready. Hit it. Every day, our streaming platforms entertain millions of people across the Nordic region. Really? And this is just the start. I love that stuff. Our original series of writing a new chapter in Nordic storytelling and winning prizes around the world. Mr. President, I'm Tomas van der, the new ambassador of Washington. We show the biggest movies. Name's Bond. James Bond. And series. Right. And our sports coverage is truly in a league of its own. We're already a Nordic streaming success story. And now we're aiming to become the European streaming champion. This is great. We will launch Fireplay in 10 new markets by the end of 2023. You like what you see? We have the technology, the content, and above all, the people to make it happen. Smile. We're going to make history. From the Nordics to the Baltics, and now to Poland and the USA, welcome to a world of entertainment. Don't you forget it. Welcome to Nordic Entertainment Group. Nordic Entertainment Group is opening up to a whole world of possibilities. You ready? I was born ready. Hit it. Every day, our streaming platforms entertain millions of people across the Nordic region. Really? And this is just the start. I love that stuff. Our original series are writing a new chapter in Nordic storytelling and winning prizes around the world. Mister President, come to Manso Vande, the new ambassador in Washington. We show the biggest movies Name is Bond. James Bond. And series. Right. And our sports coverage is truly in a league of its own. We're already a Nordic streaming success story. And now we're aiming to become the European streaming champion. This is great. We will launch Fireplay in 10 new markets by the end of 2023. You like what you see? Yes. We have the technology, the content, and above all, the people to make it happen. Smile. We're going to make history. From the Nordics to the Baltics and now to Poland and the U. S. A, welcome to a world of entertainment. Don't you forget it. Welcome to Nordic Entertainment Group. Nordic Entertainment Group is opening up to a whole world of possibilities. You ready? I was born ready. Hit it. Every day, our streaming platforms entertain millions of people across the Nordic region. Really? And this is just the start. I love that stuff. Our original series are writing a new chapter in Nordic storytelling and winning prizes around the world. Welcome back. I hope you're all feeling recharged and energized. Now it's time to travel and unpack the future plans, expansion plans for ViaPlay. So please give a warm welcome back up on stage to Nedgroup's President and CEO, Anders Jenssen. Thank you very much, Sabinje, and hello again for those of you who have been with us since the beginning and a warm welcome for those of you who have streamed in during the afternoon. For this bit, I'm going to unpack and talk about the travel plans that we have for the coming years. We have covered a lot of the ground in the fundamental that we have to take this super exciting next step in our journey. But of course, there is a lot of details to be shared to give you the full perspective on how we see expansion and why we think it's such a great way to create long term sustainable value for the company and for the shareholders. There will be a number of key takeaways that I would like you to focus on as I go through this presentation. We talk about becoming the European streaming Champion. And as I said before, I argue that there has been no such significant venture into streaming in Europe before. This is us taking a quantum leap into building something that is truly unique. But we're also mindful about how we operate our business, making sure that we take manageable risk. So we have a very disciplined approach to how we enter new markets. And I will take you through exactly what that is in just a bit. We have the success factors in place. You've heard from Filipe, you've heard from Kai. We've built something truly unique and proven in our Nordic core markets. Now it's time to take that operational leverage and roll it out in the world and harvest the benefits of having been early into streaming and being very focused on what we're doing. And we put all of this together. For us, it has actually been a quite easy decision to move down this route. We are full of respect for the challenges that it entails and the operational focus that it demands. And it is absolutely mission critical that we are very focused in how we execute this approach. But at the end of the day, there was no doubt in our mind that this was the way to create the next level of value for Nordic Entertainment Group. The rationale, streaming is the future. And it would be opportune to say streaming is the present because it is, but there is so much growth still to be captured out there. So I think the streaming opportunity is still a future one and will remain so for the foreseeable future. We have the skill sets needed and this is not something acquired easily. You need to make sure you have, of course, the right team. You've invested in the right infrastructure. You have taken clever decisions in how you manage your content portfolio. But you also need to align your company around the operational model that it takes to operate a streaming company. And it's not something and we have seen that in many legacy businesses, it's not an easy transformation for a traditional media company or broadcaster. There are so many things that hangs in the balance that you have to consider and think about. So it's actually an industrial move that takes a lot from the company. We've acquired that skill set by diligently focusing on becoming exactly that kind of company. And we have a best in class platform. We've invested a lot of money in our platform. It's probably peanuts compared to some of our global competitors. That doesn't mean that it's not as competitive as the ones that have spent a lot more money on the infrastructure. Because of smartness, because of the approach that Kai just described and because we think there are levels of investments that are smart to take upfront and smarter to wait with until you have gained additional scale. And this rationale combined gives us a very appealing case for the journey into new markets. Let me talk about our disciplined approach when we enter new markets. We have gone through with a fine tooth comb every single market that we could consider as remotely relevant in the near to midterm future. We've been looking at all the macroeconomics that you would expect, the fundamentals in that specific country, the household economy, everything that is quite easy to capture for anybody who wants to look at the fundamentals in a given country. We have looked at streaming penetration. We have looked at how the incumbent broadcasting companies have embraced or not the migration to streaming. And we have looked at distribution, whether streaming is something you do a little bit on the side and a little bit by necessity not to lose out too much to the globals. We have looked at the partnership opportunities and discussed every single market with those whom we think we will form attractive partnerships into those markets. That goes both for sports content and non sports content. On the sports side of things, it's a lot about knowing how you should play your position in the best possible way. There is no easy explanation for how that is done in the best possible way. That is all about creating sort of the best output from the craftsmanship. You have the context that you have created over time and how to articulate an upside to the rights owners in those countries. It may be something that is fairly near term or it actually may be something that we will be able to do a couple of years down the line, but already have identified. With all of these things taken in consideration, we have built cases for a number of markets and arrived at a phased rollout that starts with the 3 Baltic countries next year and I'll go through the first five countries market by market, then Poland, then U. S. And we have identified another 5 with this methodology. We launched Iceland on April 1 and that was no April fools joke. In the midst of a very difficult pandemic, of course, we considered at least for a very brief time to delay the launch. But ultimately and fairly quickly, we arrived at the conclusion that it doesn't really matter that we are in this current situation because we will roll out in the same way we did anyway. The only big difference was, of course, that a lot of key people were working from home. But again, we have invested in infrastructure that allowed and catered for that way of working. And that is something I think we will bring with us into the future. Place of work is a lot less important than productivity out of the people working in whatever place. So Iceland was launched in a record short time. We gained roughly 5% household penetration in Iceland. It has been growing and basically beaten our ambitions so far. It is a small country, so it doesn't move the needle that much in terms of our subs growth and our finances, but it was a very, very important dress rehearsal for bigger markets. And to be Nordic, of course, we have to include Iceland and we have ambitions to go to an even stronger position in the near term. The next three countries that we identified as obvious candidates to go into was the 3 Baltic countries. A number of good reasons and I'll come to the Baltics in a while, not necessarily just because they are close to home. And for many, a Nordic Baltic focus is the right geographical focus. We are a platform business. This has nothing to do with geography. The best opportunity may sit somewhere completely different. But we have identified the Baltics as markets that we would consider early on anyway, even if they would have been in a different part of Europe or even the world. Poland, U. S. And then we have 5 prime prospects for the next announcements. We expect to announce the next 5 markets during the course of next year. And we're building those cases still. And even if we are fairly mature, it would be premature, if not for anything else for competitive reasons to give sort of competition a heads up this far in advance. 20222023, we expect to do at least 5 more markets. But the approach that we have allows us to be opportunistic and we have inbounds. We have opportunities that have been suggested to us that we are considering and looking at. So this may change in the sense that we may add a few more markets earlier on, but this is what it is now. If you look at the flags on the slide, they are illustrative, but we consider the DACH countries, Benelux and U. K. And a number of other countries relevant for different kinds of propositions. We have 2 very distinct approaches when we evaluate a market, and we have 2 examples of it today in Poland and U. S. We have the broad approach that includes sport. That is a heavier investment for us, but it's also, of course, over time, something that allows us to build a bigger revenue base also in fairly small markets. It is an approach where we are aiming to be definitely top 3 in streaming in that given market. Then we have the specialized approach and we prefer to say specialized rather than niche. Niche is a bit, I think, a bit negative. It's more about segment relevance and being special especially relevant for that segment. You can be quite broad in a segment and thus not be a niche, even if that segment is pretty small on the market. And that is predominantly evolving around our Nordic storytelling. But over time, that will evolve when we produce originals, as we will, in our new markets, a Polish original, a Latvian original. They will travel to the other markets. And over time, we create a platform of high quality content that is in many languages. And for me, language as a barrier to entry will be less and less important over time. And that means we are creating something that over time would be certainly not a niche, even if it's fairly specialized in the beginning. Now to take you through the three areas that we have identified, The Baltics, 3 countries that we're aiming to launch in the first half of twenty twenty one. These three countries represent a €2,800,000 household opportunity. There is good growth coming from fairly low levels on SVOD subscribers. The penetration is hovering around 15% to compare to the close to 60% that we see in the Nordics, but it's fast growing. And we have good reason to believe that that will grow even faster the coming years. So while we may see a little bit of slowdown from very high levels in the Nordics to still high but slightly lower levels, we have good reason to believe that this will accelerate in the 3 Baltic countries. And of course, we are there to help make that market. The number of subscriptions per household is currently around 1 point 5. That will grow. We are slightly more conservative around the 2, 2.5 subscriptions per household. Stacking will come. It will come a little bit later. And we do need more globals to see the benefit with going into the Baltic countries to drive real stacking in the households. But we will be there to make and to drive that market development. We have secured for the 3 countries more than 10,000 hours of local and international content, movies and kids, our originals, of course, international series, local program that we have bought through local partnerships and relevant content from the neighboring countries. It is a very, very strong content proposition that in its own merit can compete with basically anybody. Key differentiator for us is, of course, our Nordic original portfolio that we know travels well into the Baltic countries. 3 AAA rights for all three countries, and this is one difference between how we act and how we have seen the local players play their cards when it comes to sports rights. We look at the Baltics as a region and thus have created a very attractive value proposition to the sports rights owners by acquiring all three markets. And that would differ from case to case. There are some regional opportunities. There are some country by country opportunities. And in most cases, it is, of course, related to the size of the markets. Aisokie with NHL, the most sort of significant and most premium league in the world. Formula 1, which actually then takes us to be a partner for Formula 1 in 8 countries and Bundesliga, the number one football right in the Baltic countries. This gives us a very, very strong platform to start from. But we are taking a slightly different approach in the Baltics than we have been doing in the Nordics and we do it because of the opportunity and the willingness to drive penetration. It is one package, all content, €9.99 per month. This is a very competitive offer, something that will allow us to hopefully gain traction in quite a few households that we can then work with to build our proposition with more sports rights, also slightly smaller sports rights and work with partnerships that allows us to differentiate our proposition over time. But this one package approach into a new market, also when it includes sports, is something that we believe will drive rapid take up and expedite the journey between launch, breakeven and attractive margins. That's the Baltic countries. They will see via play on their screens on March 9. The next country in scope is Poland, a significant sized country, 13,800,000 households to compare with the 12,300,000 households in the 5 Nordic countries, slightly higher penetration of SVOD than in the 3 Baltic countries, around 25%, slightly or similar slightly lower growth. There is a push needed in the market. We believe it will grow to 40% a push needed in the market. We believe it will grow to 40% to 60% by 2025. That can be accelerated further and we have good reason to believe that it will accelerate, but that is the underlying growth rates that we're seeing right now. And the number of subscriptions per household is similar to what we see in the Baltics. 8000 hours of local international series movies and kids content, this is very strong, actually slightly stronger than the Baltics given that they are covering 3 languages, so which means that we are slightly stronger on the local language going into Poland, a very broad, very attractive proposition. And again, I'm ready to claim that this in itself can compete with anyone. We have ambitions to produce local original content in Poland, not the kind of volumes that we have been talking about for the Nordic countries, but it is a big country. It is a country where we think diverse, interesting content will find a very, very large and attractive audience in the coming years. So that is something that we're going to work probably with local partners to do. And then we have sports. We have secured the number one sports rights in Poland and that is Bundesliga. It is a more significant football right than any other football right in Poland because of the number of Polish players playing in Bundesliga, the relevance as a neighboring country. And then there is one particular player. For those of you who know football and who follow football, you know who he is. You know that he is the one that scored 5 goals in 9 minutes just a year ago in something that has never been seen before. Some of the world's experts rate him as maybe the best footballer in the world. And we have a message from him. My name is Robert Lewandowski, striker for Bayern Munich. Being a Polish national with more than 100 matches for the national team. I'm very happy to announce that the big news for the day is that via play will launch in Poland in August 2021 and that Via Play will be the new home of Bundesliga for my countrymen. I'm looking forward to welcome Via Play in Poland. The great Robert Lewandowski, arguably one of the best Polish players in history and as many would argue, one of the best players in the world today. We look forward to come to Poland and to be the best provider of this fantastic sports rights and provide broadcasts that adds to the value of Bundesliga in Poland. If there are any Polish viewers out there, you have my word that we will do everything to take Bundesliga to an absolutely new level in Poland. We take the same approach in Poland as we do in the Baltic countries. 1 package, all content. Bundesliga will be supplemented by some smaller rights, but we are focusing on one right to build our position in Poland. The price will be PLN 34 per month, that's approximately EUR 7.5 per month, a very, very affordable proposition on a world class platform with a very rich entertainment offering, Bundesliga, covered by the best experts and the best studios on top of that. Again, our ambition is to drive maximum penetration as quickly as possible and get our foot in the door and make sure that as many Polish households as possible understands and appreciates and enjoys the benefits of ViaPlay. And ViaPlay will come to Poland in August 2021. Moving on to the United States of America, a rather well, a country that has been debated a lot lately. It is a country where opportunities are there to grab for those who are willing to do what it takes to get there. And we are definitely in the U. S. Or will come to the U. S. To make our mark in our very, very particular way. And you recall the 2 approaches that we're taking, the broad approach and the more specialized approach. The U. S. Is all about the specialized approach. It is a huge 130,000,000 household market. SVOD penetration is the highest in the world, around 80%. That will get very close to 100% in the coming 5 years. Then you have the number of subscriptions, where we have a journey towards an astonishing €500,000,000 plus number of subscriptions in the market. And the number of households, well, number of services per household, well, stacking is already a thing in the U. S. The average is around 3 services, may sound a bit low. But remember my question about churn and return earlier. There is a lot of churning and returning from different services. So the number of services available is quite significant. And people turn in and out depending on their preference. And that is something you have to be ready for if you want to create a position in the U. S. What we call specialized SVOD services, more tailor made for a specific segment is a huge opportunity. If we look at the growth over the last 5 years, we have seen a CAGR of 29% in the broad propositions and an astonishing 83% CAGR in the more specialized propositions. And that is, of course, because you find a very, very particular audience and you go for it. You don't need to reach everybody in such a huge country. And if you have the right fundamentals in your offering, the road to profitability could actually be reasonably short given the size of the market and the willingness to take in content that we see in that market. And we are building on our Nordic original and other Scandinavian quality content at launch. We will add more as we move along, especially since we will have content coming from our new markets. And over time, Via Play in the United States will be a Nordic originated European streaming service with a lot of high quality content in many, many languages. There is a strong appetite Scandinavian content. We did a survey not that long ago in Los Angeles, San Francisco and New York. More than 50% of the respondents rated on a scale 1 to 5 Nordic content quality for on that scale, high quality content known for being innovative in creating attractive stories, especially in the crime genre. Nordic Noir is a well known thing out there. But it's also something that people are ready to pay for. Over close to 60%, more than 50% said that they were ready to pay around $5 per month to subscribe to such a service. We know that we will not be able to market this all over the country. So we will find the pockets of opportunity in the U. S. And then there is the very attractive distribution opportunity, which is not embedded in the numbers that we put to market today. So a or a couple of attractive distribution agreements in the U. S. And we have some interesting discussions, we'll of course fast forward our position in the U. S. Quite significantly. We will come to the U. S. In late 2021. We have not set the price point yet. We need to hold a little bit back, make sure we arrive at the absolute best price point taking the opportunity and potential distribution agreements in consideration. 5 new markets in 2021, 5 more identified markets in 2022 to 2023. We target 4,500,000 subscribers by the end of 2025. This number is based on direct to consumer. You will see us announcing distribution agreements and then you will have a reason to upgrade that number. But we present what we know today and what we think is reasonable with sort of the investment levels that we're doing, especially in marketing. EBIT accretive from 2025 and onwards, we will accumulate losses of around SEK 2,500,000,000 to hit breakeven for these 10 markets. Then, of course, future will tell what kind of profile we can create during that journey. I think there is good reason to expect to hope for an expedited journey. This is what we know today. We need an equity raise to fund this expansion. And I think now is probably a very good time to let our Chief Financial Officer come up to the stage and take it on from here and then we take questions around our international expansions. Sabine? Thank you so much, Anders, for yet another interesting presentation and really exciting expansions plans for Viaplay. Please join me in the Q and A corner. And I was also thinking, speaking of all these travel plans, I have to sort of ask, will Nordic Entertainment Group remain at that? Or will it maybe transition and become global or even European Entertainment Group? We are Nordic Entertainment Group in our roots. And you can absolutely be Nordic and be a citizen of the world. And I think that's our heritage, and we're proud of it. But the opportunity is global. It's not Nordic. And I was also thinking as you mentioned the launch in Iceland Reykjavik now and also earlier. And you sort of realized it was done during April when there was lockdown around the world and no one could travel. So how did you solve that? Well, we had all sorts of activities planned and to make a big splash in the market and to have event and all those things that you normally do when you launch a new brand and a new service in the market, all of that had to be canceled. And as I mentioned, we had sort of quite extensive debates whether we should cancel or do it in a different way or whatever. And at the end of the day, the conclusion was that we're a platform company. Marketing is mostly digital. Our service will be up and running anyway. So why cancel? And it turned out to be the absolute right decision for no other reason than at least we got some great content to enjoy to the Icelandic households during a lockdown. So you could flip that to actually saying that, of course, we should launch. Quite a story in how sort of you can take a situation and really propel it into something positive. Yes. And it came very naturally out of the team. We started to base it. No, no, no, let's go. We're going to do it. After the first of disappointment of being sort of confined to our homes and the lockdowns and everything, we said, no, no, no, we're going to find a way to do this and get on with it. Clear signal of team leadership and also great leadership as well. So with that, we're going to come back with questions. But now it's time to talk numbers and also how NAND drives creation of shareholder value. And who better to talk about this than NAND's Chief Financial Officer, Gabriel Katrina. So I say the stage is yours, Gabriel. Thank you very much, Sabine. Welcome everyone. I am super excited about the opportunity that we have ahead of us, especially when it comes to international expansion. I will focus my presentation on 3 things. 1st is how we're going to drive value for our shareholders. 2nd is what is needed for us to be able to deliver on our plans. And 3rd, I will provide you with some key KPIs and some targets that are linked to the opportunity that we have ahead of us. But let me start with a brief recap of our 2020 performance. We had a very strong ViaPlay performance this year. We grew the subscriber base with 31% year on year now in Q3 and reached more than 2,800,000 subscribers. And we're targeting 3,000,000 subscribers more than 3,000,000 subscribers by the end of the year. We have also managed our profitability in a year of crisis. And we're back to profitable growth now on Q3 on a like for like basis for our continuous continuing operations. And obviously, our profitability this year was affected by especially driven by the decline in advertising, the impact of the restrictions in our studio productions and also on the proactive price decreases that we did in our sports products on the back of the sports events being canceled in Q2. But obviously, again, Q3 was a very strong quarter despite COVID-nineteen and also thinking about the additional cost that we had due to sports rights that shifted from Q2 and Q3. And if you think about what was driving the strong performance is the fact that the strength of our subscription, especially around streaming business, was very strong due to the subscriber growth and also in terms of revenues. Also that we had less exposure to advertising and especially through cost control with the €700,000,000 saving program that we are delivering in 2020. But if you look forward from the position that we have now, we're entering a new phase of value creation, which is primarily focused on growth. And the first component of that value creation is based on continued sales growth both in the Nordics but also driven by international expansion. We are planning to grow our subscriber base from the more than 2,800,000 subs that we have today in the Nordics to up to approximately 10,500,000 subscribers in 2025, of which 6,000,000 will come from the Nordics and 4,500,000 subscribers will come from international markets, of which roughly more than 2,000,000 will come from the Baltics, Poland and U. S. Alone. We are aiming also for group organic growth of approximately 18% to 20% over the next 5 years. And there are 4 key drivers of this growth. Number 1 is the VIABLAY SUBS and ARPU growth in the Nordics as we will see penetration continue to increase in the Nordic households, but also stacking, as Anders mentioned earlier, will continue to increase from roughly 2 services on average per household to up to 3. The second driver is that we will be adding new households to our service on the back of this key sports rides that we're investing in, which will drive growth especially on the short to medium term already now in 2021 on the back of the skiing investments, but especially in 2022 with Premier League in Norway and Formula 1 in Finland. The 3rd element in the growth will come from B2B distribution, including growth in our wholesale revenues. And number 4, of course, based on the VIA PLAY subscriber growth and the ARPU growth over time that will come from an international expansion and these international markets that Anders just talked about. The second element of the value creation is the long term margin expansion opportunity. And this is primarily driven by the Nordic margin expansion, going from approximately 7% today up to 15% in 2025, following the development that Anders described when he talked about the Nordic opportunity. And there are 3 things that will drive margin expansion for the Group. The first one is the ViaPlay subscriber growth, but also the ARPU increase due to the pricing power and also the increase in lifetime value as we see churn levels go down over this period as well. The second element is the growth on our wholesale business, which is also enabling us to invest in sports rights, especially in the Nordics. And the third element which is quite important is the operational leverage on our content cost, but especially when it comes to our tech and G and A cost as we scale the subscriber base. I think it's important to note that our operational lever on content cost will come in 2023 2024 as we continue to invest in the short term of sports rights, especially in the Nordics, but also we'll invest in content in general for our international markets. So if you combine all these things, it's important to understand that the margin expansion for the group will be a nonlinear journey because the Nordic margin expansion will come partly short term, but primarily long term as we're focusing on volume growth in the short term as the best way to create long term value and that we will have a negative contribution from the international segment until 2025. To achieve this, we are following a solid capital allocation and investment focus. And we're focusing on investments in 3 areas. 1 is content, the second is product and tech and the third in distribution. Content investments will increase across all categories from more than SEK 7,000,000,000 today increasing significantly over the forecast period in our plans that we're presenting today. And this is driven primarily by, of course, sports investments in new rights and also inflation with new opportunities being opened in the Nordics, but also the investments that we're making in the Baltics and in Poland. We will continue to invest in original content, as Filippa described earlier, going up to almost EUR 1,000,000,000 investments per year and this will have a negative effect obviously on the working capital going forward. And finally, we will continue to increase our investments in acquired content as this is also a key component of our Nordic, but also our international offering. Product and tech spend, as Karin mentioned, will continue to increase over time, but we will drive operational leverage as we scale the subscriber base. And the continued investment in distribution will continue as well over the period, both in terms of B2B partnerships in order to make sure that we can capture market growth and drive volume growth in the short to medium term. Obviously, this will have an impact on the ARPU, especially when it comes to the short and the medium term, but we will have pricing power over time when it comes to all these customers coming from B2B distribution. We will also continue with our portfolio optimization and especially to secure that we execute on the divestments of the Studios businesses that we have announced and that we secure that the Alente joint venture delivers on the synergies and also on the dividends that we expect from them to come over time. And obviously, all of this is supported by a very disciplined approach on both how and where do we invest our capital. If you look at all these content strategic investments that we're making, they will continue to have an impact in net working capital, especially when it comes to all the investments that we're making in sports in the Nordics and partly as well in the new international markets and also the continued scaling up of ViaPay original investments. We will have some positive impacts of recurring operations on the net working capital. But based on this increased investments in sports and via pre originals, we are guiding for a negative impact next year of roughly SEK 800,000,000 and approximately a negative impact of SEK 1,200,000,000 in 20 222023 with a more limited impact after that when changes become a bit smaller. Our international expansion will require significant investments. And it's important to understand that we can manage our Baltic's expansion within our current means and our current structure. But for further expansion, we need to raise equity. And let me explain a little bit more about this. The expansion plans that we have announced today will have accumulated losses of roughly SEK 2,500,000,000 until we breakeven, until 2025, with approximately 20% higher impact on the cash flow. We do continue to generate cash flow from the Nordics and we also expect some dividends coming from Alente of approximately SEK 1,200,000,000 now in Q4 and SEK 400,000,000 every year thereafter. But we ended the quarter the Q3 with a net debt of almost SEK 4,000,000,000 and at the level of 2.5x leverage. So even including the cash flows from the Nordics, the expected dividends from Alente and the potential proceeds from the studio sales and the fact that we're continuing to invest in the Nordics, we will have capital structure restrictions. And this is why we're aiming to raise more than SEK 3,500,000,000 in the equity markets to fund our international expansion. We are considering a number of options to do an equity raise including a global offering and we're looking at the different pros and cons of those different options at this stage. But very important, we're keeping our main goal to maximize returns for our shareholders while also being able to enable our expansion plans. The equity race has the objective to fund the expansion, but we also want to achieve other objectives. We want to be able to attract new investors. We want to align ourselves with global streaming peers. We want to increase the liquidity of our share, increase the research coverage beyond the one that we have today and enhance our capital markets profile in a more international setting. And this is why we are considering a potential secondary listing in the U. S. And also as part of this process, we will consider what is the appropriate capital structure and distribution policy. The exact structure of a potential equity issue is under review together with the Board. So no decisions have been made yet. And the plan is to first go and talk to our existing shareholders in the next days weeks to come. Moving on to our targets. We have, again, a unique opportunity for growth, and we are convinced of our ability to capture that opportunity. Based on our track record, our team and our culture. Therefore, we have set some ambitious but realistic targets for our group based on the trajectory that we have had, the investments that we're making and the plans and the opportunity that we see going forward. So in summary, our targets for the future are group organic growth of approximately 18% to 20% in the next 5 years, the VIAYPLAY subscriber target of approximately 10,500,000 subs of which 6,000,000 coming from the Nordics and 4,500,000 coming from international Nordic organic growth of approximately 13% to 15% in the next 5 years and Nordic EBIT margin of approximately 15% in 2025, following again the development that we described earlier and that is before associated companies and items affecting comparability. We also expect international segment to be EBIT accretive to in 2025. And again, we will have accumulated losses of roughly SEK 2,500,000,000 for all these ten markets that we have described today. For next year, the negative impact will be roughly SEK 400,000,000 euros and then the peak losses will come in 2023 and again EBIT accretive in 2025. So that's how we see the development. Our leverage policy is unchanged. So we're targeting to be below 2.5 times net debt to EBITDA. And we may go above this level from time to time, but we want to operate at a much lower level to reduce our financial risk as we're increasing an operational risk with expansion. So summing up, we have again a unique opportunity for growth driven especially by our streaming opportunity in the Nordics and especially long term international. We have a proven, scalable and future proof business model. We have a solid capital allocation and funded strategy and also the long term growth and margin expansion opportunity. All of this gives us the confidence that we can continue to grow our company, grow our revenues, deliver higher earnings, and obviously more value for our shareholders. That's it for me. Thank you very much for your attention. Thank you very much, Gabriel. And thank you for also conveying such an overview and interesting presentation. Please do join us. You really covered a lot of ground in a short time as did Anders. And that was very apparent because there is a flow of questions from the viewers. So, welcome. I thought I would just start briefly with a quick question to you, Gabriel, because it's you're clearly investing in both the Nordics and internationally. So if we look at how do you work to minimize risk and maximize return? Well, first I have to say that we start with having good plans for execution, right? So that's one way to minimize risk and secure that we can deliver value. The second is the fact that we are basing especially when it comes to international expansion, we are leveraging all the operations that we have in the Nordics. So as we go internationally, we can scale we don't need to scale very much when it comes to our operating costs and it's all related to content investments and some investments to distribute in this new market. And I think that the 3rd element is that we have some flexibility as well in our cost base, especially when we go to expansion and you think about content investments. And we also within those content investments, even though they are commitments over time, we still have flexibility to change those commitments or sublicense the content. So we have an embedded flexibility in our model in terms of how we scale and also how we can adapt if the market is changing or things are as we have proven this year when COVID hit us and then we managed to deliver the results that we have delivered. And Anders, taking it back a bit to the travel plans, how do you expect the local players in the new markets to react to your arrival? Do you think they'll be seen as competitors? Or will they maybe be seen as partners? Well, I think it's a combination of the 2. The natural backbone reaction to a new competitor coming into the market is, of course, to stake your claim and hold your ground. And we will see some of that. But we've had some inbound discussions before we could announce our plans. And we think there are good reasons to believe in some partnerships. But it's a competitive industry and we're there to compete and we can't sort of apologize for that, but we're quite open to different ways of working together. If it supports if it's mutually beneficial and ultimately in line with the shareholder returns that we are aiming for with this expansion. Okay. So now I'm going to address all or as many questions as we have time for from the viewers and there are a lot. So Gabriel, I'll start with you. What will the cash flow profile look like from 2020 to 2025? Yes, the cash flow profile will probably follow a similar development as our EBIT projections when it comes. It will be a non linear we talked about this non linear development as obviously we will generate cash flow from the Nordics, but we will of course invest in these opportunities that we have upfront coming in 2022 and 2023. And at the same time, we will have to also invest some cash flow in the international expansion. So we will see a non linear projection as well in terms of how the cash flow will evolve, but we see a big upside from 2023 onwards on how the development will go. So long term increasing. Long term increasing, that's always good. And Anders, given the U. S. Is a very competitive market, how does NAND plant plan to successfully win over customers from larger international and local players? Well, we don't. I think we go to the U. S. To create something that is not there yet. And in that sense, be more segment oriented and create a one stop go to place for high quality non English language content. There will be some English language as well, but to cater for a need that we believe and have good reason to believe is there, but not catered for today in a good way. So we don't expect anybody to abandon whatever sort of local or global player they have in the U. S. To come to us. But I do think also in those contexts, and Filipe talked about it a little bit earlier, there could be a flip side to that and see how could we actually work together because we come with a very complementary product. And so we're not there to steal anybody's position. We're there to add to the fantastic and ever growing demand for great content and more diverse content, which we think is timely in the U. S. Gabriel, could you clarify revenue generation from Allente, particularly the upselling to ViaPlay? For Nantgroup, Alente we signed a distribution agreement with Alente as part of us creating that JV. And we have a long term distribution contract with them with some upsides as Alente continues to push Viaplay distribution into their base and we get a share of that upside as they increase the penetration of that product. We can't go into the specifics of the contract for competitive reasons, but it is a positive development from what you see in 2020 going forward, yes. Anders, jumping a bit among sort of the theme of the questions, are you planning to sublicense the rights to the Bundesliga to any Polish broadcaster or keep it totally exclusive? Yes. If we were, I probably wouldn't say right now. But no, I think I'm going to be sort of straight. And I said, no, we intend to build our position around that. And any sharing of content need to be very value accretive to our plans for that specific market. But I think if there's one thing that we have learned and it's a good learning, they should never rule out any partnership or cooperation opportunities before actually exploring them. And I have another one to you. How does the Polish ARPU of EUR 7.5 have to grow for Poland to be EBIT positive by 2025? We haven't assumed any price. We built our case around this. And then depending on the success that we see, we can decide to grow our business by price increases in ARPU or get more and deeper penetration. It's a big country with more households than the 5 Nordic countries. And we're there to demonstrate the quality of the service that we will deliver. So we will go EBIT positive with the projections that we have at the price point that we have communicated today. Okay. And Gabriel, how much are you investing in originals? And over what period do you take the costs? And when will the investments even out? Yes. I mentioned in my presentation that we are ramping up to SEK 1,000,000,000 now in the next couple of years of investments in originals. And then obviously that has an impact on we put in investing upfront in those and that's why we see an impact on the working capital. I think that would start to level out in 2024 and the impact will be smaller. We amortized the originals on a 6 year period and that's why we have this impact. I'll keep on coming with the questions. Anders, to what degree will ViaPlay include a sports portfolio at the time of launch in the U. S. Market or later on? We don't intend to do sports in the U. S. I think the question came earlier as well, and it's a good one. It's obvious given who we are that we would anticipate also sports. I don't think that's a race to be won, to be honest. So we have a different ambition for U. S. And that doesn't include sports. So now that's really clarified, if not least. And also, Anders, if your vision is to be the European streaming champion, why risk investment and team distraction on driving into the saturated and competitive U. S. Market? Yes. We want to be the European streaming champion, not the streaming champion in just Europe. And we have evaluated a lot of markets. And it's not a saturated market. It grows. It is a huge market. We have the numbers supporting that the return on investment that we can get on the assets that we have coming into that market is significant. And we all I also believe that being a player of scale, there's a lot of knowledge to be drawn. And of course, we don't launch in a market just to learn a few lessons. But there is a good reason to be in the most competitive market. It sharpens you and it teaches you to be even better at what you do. And if you can do it at the same time as you create good sustainable value, well, that's a good mix. And Gabriel, will the capital raise of SEK 3 500,000,000 be enough to fund expansion beyond the 10 markets? The way that we see it right now with the 10 markets, eventually we will start to generate positive cash flows in order to fund further expansion. It will depend, of course, on the scale of that next phase of expansion beyond the 10 markets, but we assume that based on how we see it right now, then this would be enough for the time being. But if the scale of the expansion increases, then we might have to rethink our plans, of course. And Anders, could you confirm that the €4,500,000 international subscriber target excludes intake from potential distribution partnerships? And if so, could you quantify the opportunity from international distribution agreement in terms of subs and ARPU? Yes. Let me confirm the first thing that the absolute majority is direct to consumer. There are some small assumptions, but they are on no regret levels, especially as Kai alluded to, the device distribution system in the U. S. Is slightly different. So just adding a few new applications on Roku as an example is a sort of distribution B2B that we have built in there. But it is still sort of direct to consumer driven. I wouldn't venture into trying to quantify it because you could quite easily arrive at significantly bigger numbers. But then, of course, you have to take into consideration what ARPU impact it has and how you build the margins going forward. But I wouldn't be surprised if we announce a couple of distribution agreements before the launches in the second half next year. Exciting. Now there's such an expansion of questions for both of you. So hopefully, maybe you can address them after this event so that they're not left unaddressed. Because with that, that was our final Q and A session. And I would like to hand over the word to you, Anders, for a wrap up. Thank you very much, Sabine. So thank you very much for spending a full 3 hours with us this afternoon. We do know that your time is very valuable and 3 hours in front of the screen is a long time. I hope we've managed to convey the energy that we all feel for this next chapter that we start to write today on the journey for NAND Group. I want to thank you for many of you supporting us since we became NAND, for being with on this journey. I very much look forward to the consultations and discussions we will have over the coming days weeks and hope to clarify any outstanding questions that you may have. But again, my warmest thanks for streaming in with us today. And please continue to stay safe and take care. And I hope to see you soon, maybe even in real life in the not too distant future. Thank you. Thank you so much, Anders. And like Anders said, that concludes NENS Capital Markets Day for 2020. We trust that you found the presentations and also the discussions hopefully interesting, relevant and helpful and that you also stay tuned as Nen delivers on all that has been conveyed today. And a recording of the event in case you miss something or would like to see anything again, it will be available at nentgroupdot com later this evening. And also, as I mentioned in the beginning, all the presentation decks are also available on nendgroup.com/investors. And of course, the NAND IR team are, of course, always available for any additional questions or queries that you might have. And with that, all I have left to conclude is to thank you very much, Anders. Thank you, Gabriel, and of course, thank Philippa and Kai, and not least all of your viewers. Thank you so much for your engagement and, above all, your questions. And hopefully, we'll see you in person next time. But until then, stay safe, stay healthy, and thank you for watching.

• Slides