Canatu Oyj A Ord

Hi everyone and welcome to this news conference on Kanato's full year 2025 financial results. My name is Mari Makkonen and I'm in charge of investor relations. Today our CEO Juha Kokkonen will begin with key messages, then CFO Mikko Vesterinen will cover the key financials and after that Juha will return to discuss highlights and outlook. Following the presentations you will have the opportunity to ask questions. You may type in your questions into event chat already during the presentations. But without further ado, Juha, please go ahead.

Thank you, Mari. Kanatu is now, especially in the semiconductor domain, stronger than ever. There are four key points. We have now successfully deployed our first semiconductor reactor. Our customer FSD has made significant progress of making their own product validated. And on top of that one, we today announced that one of our existing customer has made purchase order to Kanatu to order long lead time components for the second reactor. That way that they can secure product delivery at the time they need it for scaling the operations to the next level. Then we have strengthened the organization with new talent, both in the leadership team as well as throughout the organization. Industry and especially semiconductor industry signaling a strong paradigm shift now when Advanced semiconductor is moving to the 2 nanometer node and starting next year further towards A14 nodes. With that one, we do see kind of the high demand for CNT pellicles. And in overall, when it comes to all of these advanced applications where CNT is needed, Kanatus proprietary tri-deposition process outperforms traditional CNT vet process. Our top line message today is that Kanatu is in a strong competitive position and has built solid foundation to capture customer opportunities. If you look at firstly the market drivers in semiconductor domain, the artificial intelligence and especially advanced semiconductor ecosystem is on a strong and accelerating growth trajectory. Rising demand for advanced chips continues to drive adoption of high-power EUV scanners, driving new nodes, like I was mentioning, 2 nanometer, and as a next step, the A14 nanometer, to reduce, increase their power, reduce the kind of the energy consumption, and doing things faster. And it is driving CNT pellicles. On automotive side, we do see two key drivers that are relevant for Kanatu. The higher level autonomous driving and assisted driving requires increasing number of sensors. For Kanatu, the most relevant sensors are the camera sensors, and those sensors with high optical requirements. Secondly, the thermal energy optimization, of battery electric vehicles through localized heating that can be like windows, windshield heating, and the next generation solar panels where energy capturing kind of the capability will increase significantly from the current state there. On operational progress side, the first CNT100 semi-reactor has been licensed to FST and is ready now for mass production of the CNT pellicle membranes. And this is, of course, has been very important foundation for company that now the kind of the solution, product and technology from Kanatu's perspective is ready for the mass production. We have made also progress in CNT Pellicle validation, that kind of full product validation with our partners. We have combined and deepened the relationship and technical discussions with major players in the ecosystem, including our existing customers, but with new customers as well. And this is supporting active negotiations on new orders, both existing, like announced today, and prospective customers. Then we have deepened our collaboration with Denso, who has been our long-term partner, to improve CNT conductivity. That means, as an example, that wind-sealed heating is happening faster and more efficiently. And then develop the large-scale chamber so that currently our limitation is 60 cm wide, that you can scale our production and the capability to address full wind shield size as well as the solar cells. And these are kind of the very important for the future automotive applications. Then from the revenue perspective, Canada's revenue has been growing like five years in row and almost 100% until this year. And this year, there was a disappointment from the perspective that our revenue decreased by 24% in second half and in full year, 29%, being full year 15.6 million. And the decline was mainly due to kind of what we already communicated in our announcement in mid last year, that if we are expecting, we were kind of expecting to get reactor orders, if we would get those new ones, that would have been higher. And if there would not be new reactor orders, that was the case, this revenue would have been smaller. So as Kanatus, we... Let's say over 90% of our revenue is coming from the five main customers and these reactors are playing a key role at the moment there. So this was the kind of the case in this year. Then we have been investing for growth. We have accelerated investments in medical diagnostics. by creating an expert team and advancing technical capabilities with clear focus on delivering ultra sensitive proof of concept solution and alpha prototype for hormone testing in this year. And this is targeting so that we would be ready by end of this year for preclinical studies. We have built business development team to create a solid pipeline of new high-value application for our CNT with enhanced resources. We have strengthened our ecosystem collaboration and public funding to accelerate time to market. And then we have upgraded our manufacturing capability for higher volumes. We have been building our second factory so that the total production space will be over 5000 square meters and enabling multiple parallel reactor builds. So infrastructure is complete and the clean room remains on track for completion in first half of 26. And now I hand over to Mikko, our CFO, to cover key financials.

Thank you, Juho. So like Juha told, the revenue last year and the second half declined on a year-on-year basis. And the drivers behind that were slower than anticipated customer approvals, which delayed both revenue recognition and then also had an impact on the follow-on reactor orders. Margin-wise, our cross-margin despite the decline in the revenue increased, and that was driven by the changes in the revenue mix. So a larger share of licensing-based revenue and a lower share of reactor sales, among other things. At the same time, the EBIT decreased substantially, which was driven first and foremost by the decrease in the revenue, but also due to our investments in the future growth. recruiting and the headcount has increased on full-time equivalent basis like 20% in the second half and almost the same number for growth for the full year. Capital expenditure increased in second half by over 50%. On a full year basis, it remained on a similar level due to full year 24. Our capital expenditure is by nature fluctuates between the half years, and for instance, we announced last year an investment in the Pelmis particle scanner, which was expected to arrive by the end of last year, but that was delayed due to this year, so that kind of has an impact in our capital expenditure at times. Pelmis is now expected to arrive during H1-26. Despite the decline in revenue or cash position, an equity ratio balance sheet remains strong, and that obviously gives us flexibility going forward still to invest in growth and also a good negotiation position. Then if we look at the revenue by business unit, so semiconductor business unit made revenue of 10.8 million in full year 25, automotive almost 5 million. So automotive grew very well year on year, and that growth was driven by strategic cooperation with Denso first and foremost. On semiconductor side, decline was driven by these reasons we have already mentioned. Delay in customer approvals and lack of follow-on reactor orders. On the good side, we were able to, like you have said, complete the SAT for the first reactor last year, and then we also sold a commercial license to FST in the second half, and that was also fully recognized as revenue in the second half. With regards to inspection membranes, the revenue or demand decreased in absolute terms, but it continued to be a significant or considerable contributor to our revenue throughout the year 2025. Now I hand over back to Juha.