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Ladies and gentlemen, welcome to the uBlocks Q1 2025 Trading Update conference call and live webcast. My name is Sandra, the course call operator. I would like to remind you that all participants have been listened on the mode and the conference has been recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Rafael Duarte, Head of Investor Relations at Ublox. Please go ahead, sir.

Thank you, Sandra, and welcome everyone joining us today. As usual, I'm here with our CEO, Stefan Tetzala, and CFO, Camila Jaipur, from our offices in Tel Aviv. We prepared a few slides on our Q1 trading update, which we will go through and then open for questions you may have. And you're over now to Stefan for the slides.

Thank you, Raphael. Welcome everybody. Well, nowadays there's little good news and therefore I'm even more happy to share good news from you blogs today. Let's go on page number two. We anticipated that in 2025, we would get out of the severe overstocking situation we experienced in 2024. Indeed, revenue in the first quarter 2025 confirms this assumption. We saw a revenue increase of 26% year over year on a group level. In Locate, we even achieved a 43% year over year revenue increase. Despite the low base in quarter one, 2024, our strong position in structurally growing applications like automated driving is the main reason for this. On this chart, you see that also our short range revenue is on a strong recovery path. while our cellular revenue development remains as weak as we expected. Let's go to the next page, which is number four. There's more good news. We continue to significantly improve our profitability. Our stringent cost-saving measures and discipline show results. Within 12 months on a group level, we slashed losses by a factor of five. If we exclude our cellular business, our cash EBIT was positive in quarter one. This is driven by locate, while short range is still expected to break even in the second half of 2025. We used this challenging environment as a catalyst to accelerate uBlock's transformation into a more focused and resilient company. And needless to say that resilience has an even higher value today than yesterday. In summary, we achieved the turnaround and are looking forward to further growth. This will make our P&L very beautiful. Let's come to the guidance for quarter two 2025 on page five. We started 2025 with revenue growth and a significant improvement in profitability. We expect the positive momentum to continue into the second quarter when we target to reach a positive cash EBIT, excluding our cellular business. Our sharpened focus on Locate and the stringent execution of our company transformation pays off. For the business excluding Cellular, uBlocks expects revenue of 60 to 70 million Swiss francs in the second quarter of 2025. This reflects an increase of 15 to 35% versus the same quarter in 2024. and a gradual increase of up to 16% versus the first quarter 2025. Based on this top line, our cash EBIT margin is expected to be between 0 and 10%, again, excluding our cellular business. You see, our P&L is on a good recovery path. In the last weeks, we have faced a significant US dollar headwind, as all of us know. For the guidance, we used a rate of 0.82 Swiss francs per US dollar. At constant exchange rates, revenue would be about 6 million higher and cash EBIT would be 4 percentage point better. Of course, we are mindful of how global trade policy changes could affect our markets. The cost base adjustment we carried out in the last 12 months put us in a very solid position. We continue to monitor developments closely and maintain our strict cost discipline. To conclude on page number six, we started our transformation journey in 2023. Many of the changes we have initiated have become visible. And I'm happy that now the new uBlocks is gaining traction. We go after the right growth markets like automated driving and mobile robotics. We are the undisputed market leader in positioning based on our unique capabilities and we double down on this. And finally, we see us fully on track to creating sustainable value in line with our strategic theme, focus, innovate, execute. Thank you and looking forward to your questions now.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star followed by two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume of the webcast while asking a question. Anyone who has a question may press star and one at this time. Once again, to ask a question, please press star followed by one. It seems that we have no questions from the phone, sir. Back over to you for any closing remarks.

Perfect. So I see that as a good sign that there are no question marks. So you know how to find us. If you have any questions, you can reach out. Thanks a lot. Thank you and have a good afternoon. Thank you.

Ladies and gentlemen, the conference is now over. Thank you for choosing Coral School and thank you for participating in the conference. You may now disconnect the lines. Goodbye.