4C Group

2022 Q4

• Net sales MSEK 91.0 (98.0)
• FX adjusted organic net sales growth -13% (99%)
• Software revenue MSEK 54.3 (65.7)
• EBIT MSEK 9.7 (27.9)
• EBIT margin 11% (29%)
• Adjusted EBIT MSEK 9.7 (30.4)
• Adjusted EBIT margin 11% (31%)
• Net income MSEK 5.2 (23.9)

2022 Q1-Q4

• Net sales MSEK 331.3 (261.2)
• FX adjusted organic net sales growth 18% (44%)
• Software revenue MSEK 211.6 (159.5)
• EBIT MSEK 28.6 (47.1)
• EBIT margin 9% (18%)
• Adjusted EBIT MSEK 43.9 (49.6)
• Adjusted EBIT margin 13% (19%)
• Net income MSEK 26.3 (39.0)

A word from the CEO

Substantial growth and a momentous year for 4C Strategies

As we are closing the fourth quarter and ending 2022, we see that previous disruptions around the world continues to create unpredictable challenges for the world’s businesses and organizations. The war in Ukraine continues to play out with no immediate end in sight. This continues to affect, but also to alert Europe to invest in both their capability and readiness. Throughout the year 4C Strategies have proven that we have the expertise, and especially the software, to support our customers to navigate in this changing landscape.

During the fourth quarter of 2021, our comparison quarter, we reported our highest net sales in a specific quarter ever. Similarly, the fourth quarter was our strongest quarter in 2022, and I feel confident with our activity level and sales. Net sales in the fourth quarter reached MSEK 91.0 (98.0), rendering in a FX adjusted organic net sales growth of -13% (99%). Our software revenue totalled MSEK 54.3 (65.7) during the fourth quarter and MSEK 211.6 (159.5) on a yearly basis. This indicates that we are progressing and strengthening our position as a software company. On a yearly basis, net sales amounted to MSEK 331.3 (261.2), with a solid growth of 18% (44%).

Noticeable signings within the defence sector secure future growth and strengthens our market leading position

The fourth quarter includes several noticeable new and extended contracts, which goes to show that our software Exonaut is the preferred option for training and exercise management. Our long-term relationship with a Nordic defence customer was prolonged through a five-year agreement with an option for a further two years. This agreement gives us confidence to address the rest of the defence market within the Nordic region. In the UK, our long-term partnership with the British Army continues to develop, with expanded scope within our deliverance of Exonaut. The expanded scope includes the ongoing project of implementing and developing MyExonaut as their choice for tracking individual training which has been expanded during the fourth quarter. In the North America segment, our existing projects with the US Army continue to progress as planned, which gives us a solid platform to further deepen the cooperation with existing clients and improved opportunities to address new clients.

Executing our business plan – establishing an organization for further growth

4C Strategies is a growth company. In alignment with our growth targets, we are establishing an organization to fulfil these objectives. Since the public listing, focus has been on investing in a strong and efficient sales force to embrace the needs to reach the targeted growth. During the fourth quarter, the sales force has been reinforced with dedicated and competent people to support targeting our addressable markets, with a main focus on penetrating the corporate sector. To maintain and attract new and more clients, we have continued to invest in our software Exonaut with more developers and competence to have continuous improvements of our solutions. Operational expansion costs for the organization are crucial for achieving further growth and to support our customers in building a safer society. During the second half-year 2022, these operational expansion costs amounts to nearly MSEK 14.

In financial terms, our adjusted EBIT amounted to MSEK 9.7 (30.4), rendering in an adjusted EBIT-margin of 11% (31%). On a full-year basis, the adjusted EBIT totalled MSEK 43.9 (49.6) with a margin of 13% (19%).

Customers upgrade to Exonaut Next Generation

Exonaut Training and Exercise Management has long been the first choice of allied forces that want to effectively plan, design, execute and evaluate training and exercises. As we proceed and succeed with the development of the new fully web-based platform, we see more clients migrate to the platform with successful results. The next generation of Exonaut is fully web based and on a futureproof platform that will enable us to release a wider range of dedicated products across the defence, public and corporate sectors. With a new modern design and user interface, high-level security, and cloud, hybrid and on-prem deployment options, coupled with a sophisticated integration framework allowing users to in connect to their existing systems, Exonaut continues to lead the way in training and exercise management.

With a growing interest from the public and corporate sectors, we have focused on strengthening the capabilities within our resilience solution during the fourth quarter. Besides adding new key features and capabilities, we are currently evaluating new solutions within the resilience domain that can be launched to the market. This will strengthen our capacity to address these sectors and gain market shares, which allows for continued growth within future software sales. In relation to this, I am happy to announce that we will establish further presence in the United States during 2023, with a team dedicated to address the non-defence market. All this in line with our growth plans.

Building a safer society, now and for the future

2022 has been a momentous year for many reasons. We can look back at a year where the world has fundamentally changed yet again, and from our perspective, the task of understanding crisis, continuity and risk management has never been more relevant. During the last quarter, 4C Strategies has attended exhibitions such as AUSA in Washington and I/ITSEC in Florida, as well as BCI World Hybrid in London, where we have presented our product and services, demonstrated our platform, and given our insights to a record-many interested potential clients. I am very proud that we continue to grow our international presence, with a continued significant interest in our software and services across all different sectors. This will support our growth journey and give us the tools and platform to further create value to our customers and shareholders. Going forward, we will use this year’s accomplishments as a baseline to increase our impact and help the world build safer societies. We’re more committed than ever to make that happen and to help the world change for a better future.

Magnus Bergqvist
CEO, 4C Group AB (publ)

Read the entire report in the attached PDF.

Invitation to webinar for the presentation of 4C Strategies’ Year-end report, Jan - Dec 2022
Today at 09:30 CET, a presentation will be held where analysts, investors, media and other stakeholders are invited to participate. The presentation will be a webinar where 4C Strategies’ Magnus Bergqvist (CEO) and Anders Nordgren (CFO) will comment on the published report and answer questions. The presentation will be in English.

Afterwards, the presentation material will be available on 4C Strategies’ website under 'Reports and Presentations'.

For participation at the presentation:
Sign up here