Canatu Oyj A Ord

Hello everybody, ladies and gentlemen, dear investors. Let me shortly introduce myself because we meet in many cases for the first time. My name is Dr. Maximilian Slavinski and I'm since May the new CEO of Canatu. I'm part of the semiconductor, automotive and new energy industry since almost two decades. My first 100 days at Canna2 have been progressed and they have just confirmed my hopes to join a company leading in one of the most emerging segments in the entire deep tech industry. We will present today, beside our H1 results, some remarkable achievements the company has been able to perform within the last 100 days. You most probably heard already yesterday about our great news of our recent reactor order from FST. The first since our SPAC. The first since almost three years. And most important, even ahead, our new plan to target more than 100 million euro revenue by 2030. We will furthermore present today our Polaris program. We published already our management reorganization, and I will go a little bit deeper into this today. We will present our new strategy towards targeting more than 100 million revenue by 2030 based on a focused and fast execution in organically strong, growing and profitable markets, as well also presenting our vision for 2035. A third pillar of our Polaris program will explain our implemented cost measures, securing a disciplined cash management with a streamlined Kanatu, including headcount adjustments. I believe that today's presented achievements are testimony what the Kanatu team is able to improve and transform in a short amount of time. as a result of an energized team willing to win. I hope you will come to the same conclusion as me, experiencing this company just performing a pivotal moment for future success. So let's start. Where is Canna II already world-class? I think Canna2 has proven already in the past that we are able to industrialize products and to mass manufacture them based on our dry deposition technology. And I think good examples are about 1 million sensors we delivered in the automotive and defense industry, as well as more than 5,000 inspection membranes, fault-free since 2021. This is a strong foundation. We also are short before entering new markets, promising strong growing new markets. In particular, of course, the CNT pellicle market as well as heaters for advanced ADAS systems. Canna2 is very strong in industrializing the property tuning of CNTs. And this property tuning is resulting in physical properties responding to the most important challenges of the industries we are targeting. And last but not least, Kanhatu has established very deep and long-term relationships to global leading companies, which I have to say is in that magnitude remarkable for a company compared to Kanhatu's size. Here, the company is already world-class. Nevertheless, that's not enough, and Kanhatu needs to improve. Kanatu needs in particular to improve in the execution to hit its commercial ambitions. And therefore we need to be more focused. We will present today a strategy reducing the complexity of our company, the complexity of our operations. We had in the past too many balls in the air and we have to catch the most valuable ones. We have to invest all our resources into scalable product roadmap execution instead of engineering projects. Kanatu needs to be in future more customer-focused and less research-driven. And last but not least, the allocation of our development resources needs to be based more on commercial metrics. Therefore, we introduce the Polaris program, our transformation program of the company. We already published the changes in governance. We have now a five-people executive management team, fully staffed from next week onwards. We recruited Bernd Meyer as CMO and Walter Braun as CTO to experience international executives with a strong track record in our target industries. We changed the old new business development department more to a fellow office with a stronger focus on our IP strategy. We established new departments to support top-line growth, in particular business development to tackle the OEMs of our end markets, as well as new product management functions in the business units to accelerate time to revenue, as well as focus stronger on productization. The project management will go back into R&D in the future. And last but not least, the business units will have the project ownership of our most important R&D projects. With respect to the strategy, we are clarifying our business models. The semiconductor business unit will remain a product business in the inspection product line. In the semiconductor manufacturing segment, so the bigger part of the TAM, we will focus to be an equipment and technology provider. The former automotive business unit, which is now the robotics, mobility and defense business unit, will be a pure product business with a clear focus on strong growing markets in automotive, robotics and defense. The medical business unit remains a product business. We have prioritized on our roadmap based on the value we deliver. A strong indicator for this is the euro per square centimeter value we introduced to evaluate the value our products deliver. And we stopped selling engineering services. In the OPEX adjustment, we are planning to reduce the headcount up to 17 full-time employees. We will limit our yearly capex until 2030 to less than 6 million per year. We are introducing the revenue per employee in 2030 as a new KPI, and we will discontinue low-value R&D projects. Oyj A Ord is our commitment to achieve more than 100 million in revenue by 2030. And we add the vision to grow with more than 20% per year CAGR until 2035. Let me shortly talk about our executive leadership team. This has been restructured. Oyj A Ord Oyj A Ord The business units will in future be internal customers within the company, in particular owning the business cases and the business unit strategies, while the operational leadership will sustain the executive management and the business unit leaders in their daily work. What remains is of course our core. Kanatus DNA is a dry deposition technology. It's a strong, competitive mode. And as mentioned, we have proven already in the past with about 1 million sensors delivered in the automotive and defense market, as well as more than 5,000 inspection membranes that we are able to industrialize and produce products, differentiating products based on that technology. Along the three business units, we work in different business models, including manufacturing partners, enabling us to integrate up to OEM level. Our backbone remain our strong patent portfolio, where we will even more aggressively grow the number of patents and families in the future as a backbone, also enabling us to commercialize, of course, royalties and fees in the future. Our three business units are tackling from different directions, I would say, very hot markets in our society. For sure, the most discussed market and maybe also the most interesting market is the artificial intelligence market. As you know, artificial intelligence is not working without memories, GPUs and CPUs. Oyj A Ord When we think about humanoid robots, we also have to talk about actors and sensors, and we are pretty fast at LIDAR and other solutions, as well as tactile sensors. This is an example, when you include humanoid AI, how two different business units at Cana2 tackle the same end market. A similar situation we have in autonomous driving. We talk a lot about the ADA CETAs, but of course, an autonomous car needs also memories, GPUs, and CPUs. Also here, again, two business units are part of the same end market with different positions in the supply chain. We do successful business already today in the defense market, and we target two expenses. Also here, beside our RMD business unit, GPUs and memories will be important in future defense solutions. And Kanatu is, of course, targeting to be part of the semiconductor manufacturing industry. And last but not least, medical diagnostics. Here we are even integrating up to a full solution provider. And again, semiconductors will help in the analysis of diagnostics and improving its efficiency. So it shows... Our business units deliver from different perspectives to the most important end markets of society without increasing the complexity of Kanatu. Let me shortly explain the just mentioned discipline portfolio prioritization. I mentioned in the beginning that we allocate in future our development resources in particular with respect to commercial indicators. Here you see an example how we will prioritize in future our product roadmap. You see that we fully focus on the highest CNT per square centimeter value we identified for our most promising products and on the other side also focus strongly on high growing end markets. As you can see, extreme high value we expect to deliver in the hormone testing market as well we already proved to deliver in inspection filters. While in the RMD market, we have even a wider portfolio, a wider end market spectrum and extremely organically strong growing markets, in particular when we think about robotics and industrial sensing. About our markets. I know it has been already evaluated a lot of times. And here I want to highlight first of all the semiconductor market. On the right side you see the advanced node market starting from 7 nanometer and below in the structure. You see that the 2 nanometer and below segment is just a minority part today. Oyj A Ord But with 25% CAGR along the next 10 years, a very, very strong market in that segment in the future. Underlining our growth ambitions not only until 2030, but even until 2035. A similar picture for the autonomous driving market. The ADAS market is already big today, but dominated by ADAS Level 1 and 2. Just starting is ADAS Level 3 and 4. While our heater solutions might be an add-up in ADAS Level 1 and 2, they become a crucial aspect to increase the safety of ADAS Level 3 and beyond. And again, we talk about a segment growing with almost 20% CAGR in the next 10 years. Again, underlining the just mentioned long-term growth ambition. How does this strategy translate into shareholder value? We just drafted here the most important milestones. We already achieved in the past important milestones in the RMD and semiconductor segment, and we just achieved another very important milestone yesterday with our third reactor order to be achieved. But of course, The next important step in the semiconductor industry will be the qualification of the pellicles at the device side. That will be the moment the dry deposition technology, the CNTs based on the Canna-2 technology will enter the end market. And this we will have to achieve with our customers as a next big step. In the medical business, we will pretty soon start the FDA pathway. And of course, in the RMD business, we will finish the development of the ADAS heaters and will in particular roll them out in the most autonomous car driving systems. With that, I will hand over now to Mikko for a deeper dive into the financials.

Thank you, Max. So let's start with the financial highlights of the first half. Our revenue was 4.2 million, which is a low number that we acknowledge. But at the same time, we want to emphasize that our long-term potential and our long-term pipeline, they are intact. We did not lose any business to our competitors during the first half and our competitive position remains as very strong. Secondly, our gross margin remains on a good level, and this we take as evidence of inherently good profitability of our business. We just need to scale up the revenue. And thirdly, what we want to emphasize is our strong balance sheet. It's debt-free, our cash position remains good, and these are very valuable assets. in the growth phase and in the industries we are operating. In connection with the strategy work, what Max just described, we also updated our financial targets So we continue to aim at more than 500 million in revenue in 2030. But given the markets where we are operating, we are confident that if we reach this, we should target also a high continued growth thereafter. Therefore, we have a target of reaching a minimum 20% CAGR from 2030 to 2035. Additionally, given the decisions what we made during this process, i.e. that we will operate with the reactor model in the EUV pellicle business and that we will focus on scalable product businesses in elsewhere. We are confident that we can make this growth happen in a very resource and capital efficient way. And that means that we are targeting to reach average revenue per employee of over 400,000 euros in 2030. And we do see that this can be done with less than 6 million of average annual capex from next year onwards. This year, like we have previously also said, will be a peak year of capex for Kanatu. We currently see that the capex this year will be maximum 13 million euros, so less than before anticipated. Oyj A Ord Then let's dive a bit deeper into the first half figures. Semiconductor revenue was 4.0 million. That was a result of lack of new reactor orders. But like yesterday announced, now we were able to close one new order, very big and important milestone. And the second big factor there behind this Semicon revenue was one major inspection membrane customer who was working down their high inventory levels. It's not that we, our position in inspection membranes, competitive position remains unchanged, very strong. And we expect that the demand for these membranes will pick up again once the inventory levels get back to normal level. This is also a reflection of a fact that our product has been better than anticipated. It has a longer lifetime than what we originally expected and the customer expected. In robotics, medical and diagnostics, our revenue in first half was 3.6 million, and that was mostly a result of completed engineering projects. There we had a potential to make even higher revenue, but due to this decision to refocus our resources to the areas and efforts which we believe will create most shareholder value in the longer term, we did not continue some projects there. And that's kind of a short-term pain what we were trading for longer-term gains. margins cross margins remained good although they decreased year on year basis but that was a reflection of changes in the revenue mix in terms of like profitability potential of these different businesses there's no changes everything looks remains good that said operating expenses did continue to grow in first half and that was driven mostly by continued headcount growth But now, like Max told, we are taking measures also on that front. And at the same time, we also increased our investments in the R&D activity, especially on the medical side. And these new premises, meaning new factory, also brought some new costs into our P&L. Investments, like I said, were high in the first half and will be high in this year, but mostly they are now done. So first half investments, capital expenditure amounted to 10.5 million. With these investments, we have significantly expanded our capacity and also increased our quality control capabilities in a very meaningful way. Balance sheet cash position remains strong, as I said. Then about the outlook this year, like we yesterday published a pre-information in connection with this reactor order. Despite the reactor order, we do see that this year revenue will decline significantly compared to the previous year, i.e. 2025, 15.6 million back then. long-term potential remains intact in all business areas. This decline this year is a factor or result of things progressing. Of course, not everything is in our hand. It depends some things on our customers and further on their customers. That's beyond our control. Then obviously we need to improve our own execution as well. That's what Max already highlighted. And further, like I said, we have made some conscious decisions that we do not continue certain businesses and certain operations. And that will bring some short term pain this year. But I think that's from the financials. Now I hand over back to Max to conclude.

Yes. So to conclude. We presented today our Polaris program and the Polaris program includes 12 major changes we implemented in the last 100 days within our company. This will be a foundation for the future success I strongly believe in. The company will focus even more on profitable top line growth underlined by the newly introduced CMO department. On the other side, we will improve our R&D execution efficiency with the CTO department as project management lead and the business unit as project owners. With these measures, I'm confident that Kanhatu will succeed in building a 100 million plus revenue company by 2030. with a vision to reach levels up to 300 million by 2035 based on the just mentioned 20% plus CAGR from 2030 onwards. Thank you a lot.