Mynaric AG

Hello, and thank you for standing by. Welcome to Monarch Fiscal Year 2023 Preliminary Results and Fiscal Year 2024 Outlook Webcast Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to turn the call over to Tom Dinges, Vice President of Investor Relations for Moneric. You may begin.

Thank you, Operator. Welcome, everyone, to Moneric's preliminary full-year 2023 results and 2024 Outlook webcast call. Prior to this webcast call, we released our preliminary full-year 2023 results and 2024 Outlook, which are available for download on the Investor Relations section of Moneric.com. Before we begin today's formal presentation and remarks, I must remind you that this presentation and oral statements regarding the subjects of this presentation are preliminary results as we not complete our European filing and include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. All statements other than statements of historical or current facts contained in this presentation are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and assumptions, that are difficult to predict or are beyond our control, and our actual results may differ materially from those expected or implied as forward-looking statements. The forward-looking statements included in this presentation are made only as of the date hereof. Neither we nor any other person undertakes any obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation or otherwise. This presentation may include certain financial measures not presented in accordance with IFRS. Such financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity, or performance under IFRS. With that out of the way, we have a great agenda for you today. We'll begin with opening remarks by Mustafa. Following Mustafa's remarks, Stefan will discuss our preliminary full year 23 results and our outlook for 2024. Following the formal presentation, we will take questions from analysts. We anticipate this webcast will last no more than one hour. On the webcast today are Mineric CEO, Mustafa Veziroglu, and Mineric CFO, Stefan Berg von Bülow. With that, it's my pleasure to turn it over to Mustafa for his opening remarks. Mustafa. Thank you, Tom.

INERC reported solid results for the full year of 2023. Order momentum was excellent in 2023 and early 2024, as evidenced by record backlog of terminal units. Our team did a great job in landing new customers as well as winning repeat business with existing customers. Our current backlog now stands at 829 terminal units, including our most recent award from Rocket Labs in support of the SDA Trans2 transport layer program. As a reminder, just a few short years ago, our backlog was standing at 40 units. Increase we reported over the past couple of years is a testament to the strength of our core technology, as well as the execution and high degree of customer service on our sales team. It also demonstrates the strong belief our customers have placed in us to support their next generation satellite communication networks. Our funnel of new opportunities remain very strong across both the government and commercial sectors. We remain disciplined in our investment strategy to support the future growth of the business, and our pipeline opportunities remain the highest in our history. Since the last time we spoke with you, the industry has continued to make progress in terms of constellation deployment, funding, and design. Let's start with the government sector. The US Space Development Agency is now past the initial deployment phase of its constellation. and has awarded all Trench 1 and nearly all Trench 2 awards to prime satellite contractors. We expect the first launches of Trench 1 satellites should begin later this year or early next year. Within the SDA, we estimate we have the highest, largest market share of optical terminals, and we are now in the early phase of our manufacturing grant to meet the needs of our multiple prime customers for this program. I'll be somewhat slowly, we're finally seeing movement in other government constellations. On I2 constellation, or Europe, the bids for the technical specifications were submitted while the major government funding has been approved. Since then, the European Commission has asked for final bids from the consortium by the end of this month. We recognize that there are potentially both economic and political factors at play here that are outside of our control that could delay the final decision of the constellation And right now, we're in a wait and see mode. Similar to the SDA program, we're seeing other governments across the world, initial steps to develop and deploy their own SDA-like constellations, given their unique regional security concerns. Many of these are moving into RFI phases at this time. Importantly, the team has worked hard to ensure we're in a position to meet the needs of these significant programs once they're finalized. Next, switching to the commercial opportunities. We've talked for some time now about a number of large opportunities for low Earth orbit satellite constellations. We're happy to say many of these are now moving into RFP stage. Some of these are well known to most of you as they're very large Mecca constellations, while others are smaller, more regionally focused or specific use case focused constellations. Importantly, capital is slowly starting to flow into these opportunities that's allowing the constellation operators to start to move forward with their selections for key critical subsystem suppliers such as Monarch. Hopefully, we'll have more to share with you in the coming months when we anticipate that these decisions will be finalized. In total, these large commercial and government constellations represent an opportunity in the multiple thousands of terminals to be delivered over the coming years. We believe we have the right technology, manufacturing scale, and capability to capitalize on these opportunities. Last year, we talked about three focus areas for MINARIC. Production readiness, continuous process improvement, and streamlining the product development process. With the completion of our first product shipment at the end of the first quarter of this year, we've now moved on to the early phase of the big push for our production ramp. On the process of improvement front, the team continues to refine the production process as we look to ramp shipments throughout the remainder of this year. We made significant progress in this area in just a few short months, but a lot more work is still left to do to meet the production levels we need to achieve. Process improvement isn't our only focus. In November, we moved into a new 11,000 square meter or 120,000 square feet facility in Munich. This facility is significantly larger than our prior production facility and also allowed us to combine most of our product development, administration, and production capabilities all within one building. This not only gives us the capacity to support higher volumes of unit shipments, but also improves our product development as our product development engineers are now only a short walk away from the production lines. In addition, throughout 2023 and into 2024, We've added key staff members, promoted a number of employees into senior leadership roles, continued to optimize our non-production processes, and accelerated our supply chain procurement to ensure we can meet customer deadlines. We feel comfortable with our existing footprint and headcount to meet our current and near-term expected shipment goals. I'm confident we are well prepared for the opportunity ahead, and I believe we have the right team with the right solutions and the operational structure and capacity to capitalize on the opportunity in front of us. With that, let me turn it over to Stefan to walk you through our results and outlook in more detail. Stefan? Thank you, Mustafa.