Netcompany Group A/S Capital Markets Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Yiwei Zhou - SEB, Research Division - Analyst : Yiwei from SEB. Also a follow-up question on AI. Do you see any change in the market dynamics or customer demand -- for the solution. And we know Netcompany has been sort of mainly focused a lot on the customized application development. And do you see any host in your service offerings and capabilities if you sort of capitalize this mega trend for the next 4, 5 years?

Question: Yiwei Zhou - SEB, Research Division - Analyst : Yiwei from SEB. I have two questions here. Gustaf, you talked about this decentralized model structure with each partner in charge of like 1 to 200 people. My question is, how easy to reallocate your resource between those organization. Because -- I guess, the growth outlook and growth profile has been also different with each sector.

Question: Yiwei Zhou - SEB, Research Division - Analyst : And the second question is regarding the market growth. Could you give us an update on the growth for your addressable market?

Question: Yiwei Zhou - SEB, Research Division - Analyst : Wei from SEB. Just one question here. So if you suddenly got price pressure from competition, how would you adjust your delivery model price pressure from competition, price cut from your competition, how would you adjust your delivery model to maintain your profitability? Unidentified Participant But you can't -- I mean, if you go in as an IT expert and you do an estimate and you do a quote, then most of the salespeople will adjust the price to be competitive. But then you have to take the hours back to the project because they cannot deliver at a lower cost than it was giving in the growth. You can't I mean you can only work effectively and reuse, reuse, reuse. That is how we try to do it. Reuse foundations, everything like I was together with a team or like 35 people I was giving birth to Amplio back in 2015. And it's just thinking of how can you do things smarter. That's the only way you can save time and [lost] money. By always doing the right thing, don't try to do something just because you want to save money because it won't work in IT. You always have to do the right thing because IT are just 0 and 1s. And it won't work if they are not in the right combination. Unidentified Company Representative Perfect. We have a last question from Matt. Unidentified Analyst Thanks [Matt Vikanig]. So I guess Intrasoft has also been unboarded with this methodology. Is it simply plug and play? Or what has been sort of the main challenges with getting Intrasoft on this methodology? Unidentified Participant At the moment, we actually have two methodologies. Intrasoft is an old company, even order us. They have their methodology. So they run their project. But then we have projects where we run together where we have like the tax in Denmark, then we run our methodology. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2023 / 8:00AM, NETCG.CO - Netcompany Group A/S Capital Markets Day Unidentified Analyst What is the plan going forward then? Because if you run on this one, if you do combined projects, wouldn't it just be easier just to go on this methodology. Unidentified Participant Oh, yes. That takes a little while. Unidentified Analyst Okay. How long will it take to... Unidentified Participant I've got no idea. To be honest, I don't know. -- is the big -- I mean, Intrasoft is a big company, and they are a very qualified systems integrator just like we are. And if you go in and ruin that business by saying that you have to do it our way, they have a very well working their way. And there could be two ways of doing things right. So we are not as arrogant as to say that ours is the only way. This is just the way that works for us. Unidentified Company Representative Perfect. Thank you so much, Leeny. And thank you for speeding up. We now have 45 minutes for lunch. And please follow Ana to the Canteen and be back at half past one. Thank you. [Break] PRESENTATION Unidentified Company Representative I hope you enjoyed your lunch. And I'm very sorry that we had to skip the tour around the premises. I'm sure you will get to have a look around when we are done after the last presentation. But now I would like to welcome Alex and Lars, to represent our products and platforms. Alexandros-Stergios N. Manos - Netcompany-Intrasoft S.A. - CEO and Director Thank you. So I hope you enjoyed lunch. We're going to try to keep you awake here. Customs and tax, already touched upon it before. I'm going to be talking a bit about the products, trying to keep it as high level as possible, so you can get the main -- the gist of what's behind them. And then Lars who's setting the team for customs and tax across Europe is going to be talking about how we actually take these products and try to penetrate customers and markets. So this all started a good 23 years ago when we started doing little bits and pieces of solutions for customs for different customers. And then we realized that that's part of a bigger ecosystem, and that maybe we should start tying them together. So that came around 2006, I think, with ESnet, the full custom system in Greece, where we try to combine many different modules and build a complete system, which worked out and they still have the same system. Hopefully, we're going to replace it soon with our newer system. But then we got involved with a major integrator in Belgium also through our work in TAXUD. And we started working on the (inaudible) in Belgium. And that's where also in partnership with this big integrator, we realize that it makes sense for a system that goes in every single country and does pretty much the same thing to invest and build a product. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2023 / 8:00AM, NETCG.CO - Netcompany Group A/S Capital Markets Day So we started with them. They did a lot of the analysis. We did a lot of the development, and we ended up with the DMS system that we successfully sold to the Netherlands, the import part only. And later on in the U.K. around '17, '18. It also became clear that these systems need to be more modern in architecture in the components they use. They need to be open source and so on and so forth. Our partner was not too hot to invest more. So we decided to go ahead and invest it and keep the majority of this ourselves. And that's how we thought and we came up with ERMIS, which we started developing in 2018. The development team at some point, reached 110 people. And the idea was to basically follow the UCC, the unified customs code as is dictated by TAXUD and build a full-blown system that we could then sell to many countries. And hopefully, that system would be standardized enough so that the amount of work that needed to be put in every country would be relatively low. This is the map of where netcompany today has installed one or more systems. As you can see, I tried to count them this morning, there are about 25 different installations, ranging anything from a full system to a component, a risk management component, a transit component, or a combination of those. The ones in the squares that you see are where ERMIS has already been sold, a component of ERMIS. And I would say the most complete ERMIS system today lies here in Denmark, where we have put in operation import export and transit, and we are continuing and are going to be on time for the requirements of the European Commission. One more slide, if this works, okay. Don't be scared. It's just custom system is a framework. It is not just one big application, okay? What we focused on after working in such environment for 18 years, was to build a system that separates the business processes from the technology, so you can always improve on the technology later on, but not have to piss off every user whether customs officer or external trader or operator, change their work completely. We just separated the two. And in that way, the system acquires longevity, obviously. We have also made it modular so that each one of these systems can be deployed pretty much by themselves. That allows us to enter new markets easily. They don't need to buy the entire framework. They can buy transit. But once we're in and they bought transit and they see how well it works, Usually, we start selling other stuff. We started selling the EMCS. We started selling the tariff. We start selling all the other components that in the end bring us to ERMIS. So one last word for this. The green shows how much of the product has been completed. Going back to your question before, so with ERMIS, we are very far into finishing the product up based on the requirements that we know up to today and will be applicable until '27. After '27, there's going to be new requirements so we will have to again continue. Before I hand it over to Lars, it's modular, it separates business from technology, which means we can continue evolving it for many years. It allows us to very quickly put bids together. It allows us to put bids together very quickly because we have done it many times before. It allows us to be very competitive depending on the market. Some markets are more willing to pay amounts, some markets are less. Having a product allows us to balance the price and it also opens a lot of doors. So that's the story between ERMIS, and I'm going to hand it over to Lars to talk about what we've been doing. Lars Langer Thank you, Alex. Yes so, as Alex said my name is Lars. I've been with the company for 15 years. Since 2016, I've been developing the Danish tax administration. And since the beginning or just before New Year, I've been heading our global focus on tax and customs primarily within Europe, across the group. So I'm going to briefly talk about how we utilize ERMIS as a platform or -- and as a product here to ensure that we get the most of it. So we use it for 2 things. We use it to expand in markets where we're already in. I have a -- I brought the Danish case and I brought the U.K. case, which I'll show you in a while and then to open new markets. I sometimes joke that this is the easy vertical to be the leader of. And the reason for that is that we are being helped a lot by the European Union and UCC and the [MFF] plans with the deadlines that are in it. So all the 27 countries are forced to do something about their customs solutions. And on top of the European Union helping us with the deadlines, we also have the ERMIS platform, which is a unique selling point for us as a group. That makes it easy to ensure that we have these high-level discussions with stakeholders in markets that we're already in. If they don't have ERMIS, they are probably struggling with meeting some of the MFF deadlines, having ERMIS gives us access to high-level stakeholders within the markets that we are already in. And that's, of course, something that we're utilizing, which, for instance, you'll see in both Denmark, U.K. and soon other markets as well. And then if they have ERMIS and if they have the full implementation of ERMIS, we don't stop there because there's a lot of things that needs to be done as an IT landscape, which is also something that the U.K. case will show us. It's not just -- we are not in for selling the product alone. We REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2023 / 8:00AM, NETCG.CO - Netcompany Group A/S Capital Markets Day are in for delivering on the European milestones on time and in quality, helping different countries meeting the deadlines set by the European commissions. So in new markets, we can be everywhere. So where we -- so we try to focus our efforts on the markets where we know the countries are struggling with meeting the MFF deadlines. And that's something we know. And they are -- that makes them -- yes, that makes them want to listen to us. And then, of course, we position ourselves as the partner of choice, not only because we have the standard product, but also, as you'll see, because we have already delivered on the European milestones here in Denmark. So we have a -- we can basically do an end-to-end implementation for the countries. They don't need to worry too much about anything just to give us the full responsibility and use the [methodology] to deliver on time. Yes, I think I'll -- due to time. If we take a little bit look at the DK case, I brought the DK case here to show you that we have, again, a holistic view on how we do customs within the different countries. We are not just in for selling the product. There's actually a lot of other revenue that comes around selling the product, which we are the right ones to deliver. And we have many, many years of domain knowledge that will make us the right partner of choice. So if you look at Denmark, actually, not a lot of it is a large contract, so a lot, but not a lot is actually spent on the platform. A lot of the effort is spent on the project itself. Even though it's a standard product, there's a lot of EU requirements, how to deliver this. You have to have comply with EU certification standards. You have a lot of conformance testing. You have a lot of integration testing with other countries, you have a complete system landscape already existing within tax and customs, within their customs, so there's a large implementation project. And as you see with these contracts and it's the case in Denmark, as is the case in many other contracts -- countries when you get these contracts they are everlasting so they're without an expiry date, so -- which also makes it extremely important to ensure that we come in not only with the software, but also ensuring that we will be developing and maintaining these at the customers for the years to come. And the Danish case has also showed and with some other countries, we'll also show that if we do well, which we did, the original Danish case was import only, then we will expand our footprint in Denmark, we have -- we were awarded transits and exports as well, which was actually the size of the original contract as well. So that's something -- it's extremely important that we do well within the custom and deliver what we promise on time. Again, ERMIS is the starting point, when we get into the customer, we have discussions with them. We try to figure out what their pain points are, and we try to find out what value can we bring sometimes in some cases, maybe it is only the product and then maybe we shouldn't push for a lot more. But often, they have a whole range of problems that they tell us about and that we will listen to and try to help them with. I have the U.K. example below, but I'll tell you about it just now. For instance, in the U.K. case, we had Netcompany-Intrasoft had won the contract of implementing transit as a module, selling the software and doing some integration around it. We use this to have high-level discussions with HRMC, luckily in -- as in Denmark it supports revenue and customs, which means if you have high-level discussions with customs because of ERMIS, you automatically have high-level discussions with the revenue authority as well. But that's a side note. So in our discussions with them, we became aware that they were concerned whether they're traders, the one who was supposed to use the system had enough time to test and onboard on the system. We came and we showed them the plan from Denmark, where we -- they actually have from half year to 4 months to onboard the system, and they were very happy about that. So we ended up not only having the software, the product and the implementation, but also having everything around it. So it's a case where we take the risk on behalf of the customer, not only implementing the product, but ensuring that they meet all the deadlines that they received certificates from the European Union and so forth. So this is what we are doing within the customs area, and that's also what we'll be doing within the taxation area. We've been talking a lot about customs here, probably next year, it will still be customs, but it will be a lot about taxation as well. Well, that's your slide. Alexandros-Stergios N. Manos - Netcompany-Intrasoft S.A. - CEO and Director Yes. Okay. So yes, another similar story, another 25-plus years in taxation, having developed many systems and deployed many systems, having worked with third-party systems like PSRM from Oracle. That's actually how we met Netcompany. We did the tax system around PSRM here in REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2023 / 8:00AM, NETCG.CO - Netcompany Group A/S Capital Markets Day Denmark. We also did systems for Qatar, Kuwait, in Australia, in Mozambique, as Intrasoft, we were all over the place. Now we're coming more towards Europe. But -- so again, around 2019, '20 and after a lot of back and forth and after many of the partners backed out and didn't continue with their platforms and products. We decided that the time had come to also invest in building a tax platform, which we called Icarus, which was a bad name, but thinking of AIRHART and what you said before, I think we need to reconsider. So it's now called NC Tax, which is wonderful. I have no problem with it. And if we go to the next one, Lars, just because we are running out of time. So again, the design for this is very similar again, separating business from technology, again, building different modules, knowing that customers many times want to change one part of the system or put in something new. And we intend to use the same strategy that we did for customs to try to penetrate as many customers for tax as well. And tax is going to be as big as customs. Most of the taxation systems around Europe are old or beyond old. Things are moving forward. the commission is also trying to put some ground rules that affect all countries. So we think that this is going to be a very important area for us, for Netcompany, for the future. We have released 1 in July, this summer, and that's going to allow us to do demos and proofs of concept and so on and so forth, something that most customers want to look at and then we're going to have a system that should be ready to start deployment sometime early next year. The gradients of blue are similar to the gradients of green before it just shows where we stand with maturity on each one of these modules. So this is a product that is about 2 years behind, I would say, customs. But as far as market need, I think we can be very, very close to when that's going to be needed. The good news is usually in most countries, the Ministry of Finance is responsible both for customs and tax. So if we manage to get into most Ministries of Finance around Europe with customs, then we should already know who to talk to for this. And I think Lars is already doing this in some of the customers, building up the knowledge for what's coming down the road. And I think that's that. Questions? QUESTIONS AND ANSWERS

Question: Yiwei Zhou - SEB, Research Division - Analyst : With what have you experienced so far, is it more a low pricing or a high margin? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2023 / 8:00AM, NETCG.CO - Netcompany Group A/S Capital Markets Day Alexandros-Stergios N. Manos - Netcompany-Intrasoft S.A. - CEO and Director Both. We've experienced deals where we have high price and very nice margin and deals where we decided to go in strategically because we feel that there's going to be a lot of business coming behind where we had to sacrifice a significant amount of license fee to get in and then make it back from services down the road. So that gives us that flexibility. Unidentified Analyst Maybe one question on competition. Can you talk briefly about the competition today, especially within customs? And maybe also, I guess, European Dynamics also has a quite good system. So why is Intrasoft [never] beating them in the tenders going forward? Alexandros-Stergios N. Manos - Netcompany-Intrasoft S.A. - CEO and Director Now that's going to be difficult to answer. Why is it going to be difficult to win. First of all, I don't think the solutions are comparable, okay? And that's what I mean by difficult. I think ERMIS is a real product designed from the beginning to be a product, to be able to be maintained as a product, to be able to be further developed as a product and to be able to be modular. The competition is developing on the back of contracts and what they have is not really replicable, okay? I don't think our track record can even compare to European Dynamics, okay? And I think that together with Netcompany, we will now be moving away from -- we're going to be the clear leader of this market. And I think you're going to see this in the upcoming tenders. Unidentified Analyst Maybe just a follow-up. So looking at the slide, you were in 5 countries, right, with your system -- plus 5 countries. That's so far... Alexandros-Stergios N. Manos - Netcompany-Intrasoft S.A. - CEO and Director So far -- in the last 2 years, Yes. Unidentified Analyst Do we have any dominant players in the other countries? Alexandros-Stergios N. Manos - Netcompany-Intrasoft S.A. - CEO and Director The only player that has probably as many installations as us, is ED, not as many, the next level. There isn't any other dominant player with the custom system right now, yes. And the space is also similarly small for tax. Frederikke Linde Perfect. Thank you very much, both Alex and Lars. Alexandros-Stergios N. Manos - Netcompany-Intrasoft S.A. - CEO and Director Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2023 / 8:00AM, NETCG.CO - Netcompany Group A/S Capital Markets Day PRESENTATION Frederikke Linde Now it's time for our next speaker, Thomas, who will talk about AMI, our EU wallet. Please go ahead. Thomas Rysgaard Christiansen Thank you. That's the one. Hello, everyone. My name is Thomas Christiansen, and I have now been with the company for 5 months. Before I came here, I was the CEO of Kombit that did a lot of the transformation of the municipal sector, their infrastructure and so on. And so I was actually a major customer here in this store. So I have obviously an insight from that side of the table, too, which is kind of fun when you're traveling around now with the Netcompany hat around Europe. So kind of cool. When we're talking about digital government, I have decided I want to zoom in on a couple of things that I think are exciting right now that are going on. We're going to talk a little bit AMI, the platform that was part of the presentation this morning as well. And then we're going to talk about the EU wallet, which is something that's very exciting. So the AMI platform is really our platform where we connect with the customer. The businesses, the authorities use this platform to connect out to the customers. And they do that through a single access point where you have different services. So you can basically deliver a lot of services through this platform. And what's really cool about this platform is that it's compliant with a lot of law. It's compliant with a lot of different GDPR, things like that. So we can use it in a lot of different contexts. So I think this platform is probably going to be one of the platforms that we're going to see a lot of utility of in the future. So you're going to see a lot of different use cases for this platform. What we're seeing right now is obviously the authorities think this is a great platform, and we're seeing banking, insurance, those type of businesses can see a real use of this platform. And obviously, when we're talking wallet, this is also what we can use as the foundation. I'll return to that in just a second. So today, what we're using this platform for is, obviously, we're looking at our EU wallet foundation mit.dk, which some of you may know, here in Denmark, where we have a portal where we can have public as well as private services. And today, we have this portal out there, and we're actually for a lot of Danes providing their e-mail, different other services through this portal. The COVID-19 passport was also done on this platform. So that shows a little bit of how broad this platform is. And then we can archive which is kind of cool because what we can do is we can actually have data from a lot of legacy system in this platform, and then we can use it to provide services. which I'll show you in just a second. And then the digital post that we have here in Denmark is now on this platform as well. So all the mail that we are sending to the citizens is going through this platform. Let's do a deep technical dive into this. No, we're not. We're basically just going to talk about a couple of things here that's important around this platform. First of all, we can connect. So there's a lot of different ways we can connect out to clients, to customers, to citizens. So this is what comes out of the box with this platform. We can act. So there are certain things we can do. We can request signatures, payments, things like that. So we can have this much more event-driven than we've seen in the past. And then again, the archive, which is a lot of companies are asking for this, how can we bring in the data from all of our systems, our legacy systems and then use it in our business processes to actually come out to the clients. And then like I said in the bottom, you have a base where you can have GDPR, security, MeMo, which I'm going to touch on, and a lot of capabilities that comes right out of the box. So this is a great advantage for a lot of companies and institutions to be able to use this platform as it sits today. So here are some of the use cases right now. Again, we're looking at the wallet. I'll get back to that. Digital post, mit.dk, where we have a lot of big partners, private entity in the platform, and we have a lot of obviously, authorities in there that are using it for their communications, the Digital REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2023 / 8:00AM, NETCG.CO - Netcompany Group A/S Capital Markets Day Post. You can see the numbers. So when we're talking about Denmark, a lot of the communications that we're doing in the public sector goes through this platform. So we're also talking to a number of banks, 50-plus banks about how can they use the archiving function to pull in data from their legacy systems and basically use it in their service the way they provide services. And here's just some of the use cases that we're running through that you can do now in real time once you have that data. So this is very powerful. And it is a powerful way for companies that are sitting on a lot of legacy to basically put it into play when you're communicating and doing service journeys with the customer. So this will become a very powerful tool for a lot of authorities as well as private companies. And this is just for banking. This could be insurance, but it could also be an authority -- an authority anywhere in Europe. So let's talk about the most exciting thing going on right now. The digital identity wallet, the EU identity wallet. So this is actually a proposal that was done by the commission back in '21. And this is, by all means, a move against all the big tech companies where EU is saying, we need to control data here in Europe. We need to find a way to take ownership to that data. And so some of the goals of this wallet is basically having a digital ID across all member states in Europe. It's also about storing our own data on our devices, so basically carrying our own data. It's about making services available from the public sector as well as the private sector, so also across borders and then being able to share only the data that we need to share. Today, we share all data all the time. So this is the way the EU is actually saying, let's get control of this data. And then obviously, make it easier to move around Europe. As you'll see in the bottom, the success factors that the EU has pointed out, obviously, usability and security, interoperability and the wide applicability is also about how many sectors can we get in here, how many private companies can get in as well as the public sector. One of the discussions we're having right now is obviously the usability versus the security. Can you go with the highest level of security and still attain good usability? That's at least a discussion that we're taking part in right now. So here's a picture of basically what this thing is going to do. So you are going to have verified services in there. It could be your driver's license, your passport, could be your diploma. And you're going to be able to use those in different business context. You're going to have the person-to-person validation, so basically showing ID across borders, ID that's now verified. And you're obviously going to have person-to-business as well as business to business attestation that you can use. If you look down in the corner. So this is what we're working on right now. This is what we are -- we won in the end of last year. So basically, we are now developing this framework together with EU. It was Intrasoft, that won this contract, and we are working together as Netcompany on providing this. So this is going to cover all 27 EU member states. This is the framework they're going to work on. So this is how the standards are going to be, this is how it's going to look. So this makes it very interesting for every member state because they need a national wallet. So basically, once this act is passed, it will say every member state should have a national wallet within a certain amount of time. And I'm thinking we're going to be looking at '26, '27. And then you're going to have issuers of different documents that's going to be in this wallet that's going to be certified. So this is just a rough schematic of how the ecosystem looks. As part of this, there is a lot of use cases that are being looked at right now. So there are 4 big consortiums where you have a number of EU countries as well as a number of private and public sector players. And the first one is on travel. You have payments. You have all kinds of e-government services, e-prescriptions, e-signatures and then you have education. So they're covering major areas with this in their pilots. So I think the way Netcompany looks at this, I think we look at it a little different. So I think a lot of the member states may look at this just being a container for certified documents. So basically, like here in Denmark, you can have your driver's license, you can have it on your phone, you can show it to somebody. But it really isn't that different than having it in a paper form. All it is, it's on your phone. So we see this much more as a business platform which is event-driven where we can drive different business applications from the public as well as the private. So I think the way we look at it now and what we're building into the platform are all these different capabilities, the ability to read, pay, sign, chat, book, give consent and so on. And we're building it on a format that's been developed by the Danish digitization agency, which is called MeMo. So instead of sending you a flat PDF, we're going to start sending you a document that can contain data. So in that document, we can actually prompt you to do something, make a payment, go somewhere and sign up, give consent, whatever it is, and we can do that in the document. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2023 / 8:00AM, NETCG.CO - Netcompany Group A/S Capital Markets Day We can also collect data in the documents. So when it comes back, we can actually take that data and put it in our back-end system. So this means we can avoid a ton of big integrations of systems to systems. So this is a huge deal, the way we look at this. So this actually means that we're going to be able to design journeys around services. So when I'm out and I travel around Europe now, I talk to them about maybe it's time to let go of the idea that every service needs to be on this big homepage with thousands of services and then the citizen need to figure out where they need to go and how to do it. Maybe we can do it much smarter. Maybe we can do it on mobile devices and maybe we can do it in a way so we actually guide the citizen or the customer or the client through this. So when I travel around, obviously, one of the things they tell me is, "okay, what is this going to look like? How is it really going to be different?" So I bring with me a couple of these different use cases. So how can you use your national ID in the future? Once you have a certified ID, how can you select or just share certain parts of your information? Somebody just needs to know that you are above 18 or below 18, that you have a valid driver's license. Why do we have to provide all data? So this is one of the things that EU is pointing to, how can we have our educational diplomas and so on, so we can share them easy with employers. So there's tons of use cases and ways we can use this wallet as a business application as opposed to just a holder of documents. This is where the AMI platform really gives us a huge advantage when we are talking about this with different member states. One of the big issues around Europe right now is actually on health care. In Denmark, we have very good registries around health care. So as a patient, I can find a lot of information about my health. That's not the case when we go a little bit south of the border. They don't have the registries. So here, the idea is, why can't we carry our own health data? Why can't we have it on our device and share it when we need to with the doctor, with the hospital or with an insurance company. And this is becoming a much more relevant discussion when we are down there where the maturity is a little lower. So this is something that's really getting different people in the different EU countries excited because this allows them to maybe digitize in a different way than we did here in Denmark without all the big registries and so on. Maybe we can do this using an infrastructure of mobile devices. I just -- this is just an example of how you can tie together services. When you rent a car, why would you have to go stand behind a counter? You've got your ID, you've got your driver's license, you've got insurance, you've got your payment for them. And then you just throw your key over in your digital key chain and it's valid for the time you have the car. So these are the kind of service journeys we're going to see in the future and a different way of delivering services. I just threw in my travel schedule for the next couple of months. As you can see, there is a ton of interest around this. This is not something where I necessarily need to call around and say, "Hey, what's going on, guys? Do you think you want to hear about this?" This is the other way. So we are getting calls. I mean France have not necessarily been aware of Netcompany, but they are now. So their government know they need to do this. And maybe it is a good thing to talk to Netcompany. We're building the infrastructure, we're building the framework and this is maybe worth talking to somebody like us. So we are really getting a lot of attention on this. I think that was my quick run through. QUESTIONS AND ANSWERS

Question: Yiwei Zhou - SEB, Research Division - Analyst : A question on the Danish operation. And just looking back over 5 years, previously, when it comes to the large tender, large contract and Netcompany was basically the sole vendor to win the large ones. But over recent years, we also see the trend that some competitive players also included in those framework agreements and contracts. Is it fair to assume the competition has increased? I'm asking because we have heard public agency have talked about, they want to introduce more competition, especially in the public segment.

Question: Yiwei Zhou - SEB, Research Division - Analyst : And can I just follow up here. Could you confirm that Netcompany has not been more aggressive on the pricing when it comes to the large tenders.