Ferroamp AB (publ)

So, hello and welcome everyone to the Q1 report from Fairampe. My name is Kent Jonsson and I am the CEO and I have with me William Ryan, the CEO here, to be able to answer questions at the end of this meeting. Today's agenda, here we will focus mostly on questions at the end, it will be the focus. Very short about Fairampe first. We have the market's smartest hardware and softwares platform for the optimization of production and consumption of electricity in properties.

A little from the market here.

Statistics from Svensk Solenergi. Here you can see that the report has gradually increased during Q1. This will result in an increase in the distribution of systems and thus the number of connected systems during Q2. It is a decrease of normally 6-8 weeks from the previous report to the connected. The other picture from the market is that the effects of the gifts are beginning to come now to a larger number of customers. It will be introduced in the last few months, in 2026. This has a big impact on the owners. Here the unit companies measure the highest consumption during a day and then they are debited from the highest consumption during one or more hours. If you look at a standard villa, it is up to 7000 euros per year and if you have an electric car, it is about 17000 euros. Here we have the smart system option to save money to customers between 5 and 16000 crowns per year. A lot of good things have happened during the period. I will list three things briefly. The first is the ability to save money for customers in a simple way. We have now launched Farrer AI and this means that you just put on Farrer AI via a button in the app and then Farrer AI will perform all optimizations. You can save on effect tariffs up to 16000. You can also save money on spot price control and increase and maximize your own consumption of your own electricity from solar cells. This is a simple and very good tool that will appeal to the wide mass of customers. We got the first year of the award from Ära with a start in the beginning of next year. I want to emphasize that this is our first step out of Europe. I think this will be very exciting for us and this will start a very interesting year in 2026. We have also started a pre-release emission of 76 million. This will ensure our liquidity needs until we are cash flow positive. The tax rate started 12th and the tax rate is 1.31 per share.

Financially, we start with the

turnover. We see that we have a low turnover in quarter one. We have gone out with these numbers earlier in relation to the pre-release emission. We get in a little better on turnover and result. Here you see that we landed on 21. It is a little better than quarter four. We are of course not happy with this. It is a still a watchful market and the systems of the most sales from the gross I think that we will be somewhere in the north of 40 percent. I think we will get there with the help of the new cost-optimized products that we will put in the market and a normal product mix. EBITDA minus 10 in the quarter. It is the best since the record quarter Q2 2023. What is worth pointing out here is that in Q2 2023 we converted 143 million in that quarter. Now we only convert 21 million and still have a comparable result. Of course not satisfied with a minus result, but it goes in the right direction. We are on the right track. The rate of return. I would like to highlight that if you remove the effects of the quarter, we have a adjusted operational rate of return of minus 8. It feels good. The stock market is going down, but there is still a large increase of 190 million in sales with the current discount. So a big increase there.

The focus for 2025. The strategy for 2025

is basically focused on getting the turnover up. We are not satisfied with 21 million, of course, and we work hard to get that turnover up in the rest of the year. Development. We are working on cooperation with Ära. We also work with Weakity Grid and finish the last products for the new cost optimized products. We are also developing and supporting operating services where less AI is released in the first version and will continue to be improved over time. Then I will round off the presentation and open up for questions. You can write in the chat or email to public at ferroamp.com as usual.

Then we can start with a question here in the chat. How is the underlying demand for the products? Considering the stock market at Skogsvisten, it is difficult to see what pace installations are happening outside the customer.

I would say that the pace has been stable during quarter one. Perhaps a little lower than the average during quarter four, but it feels stable during quarter one.

Another full question.

It is difficult to see what pace installations are happening outside the customer.

We can follow it in real time. We see when the systems come up online. We have a secure system with all equipment and data storage in Sweden and within the EU. We also have the possibility of soft upgrade and upgrade with new services without having to send out any staff. All of our systems are connected and we see in real time when a new system comes. How much stock is left at Skogsvisten? We have not gone out with any volumes, but we have said earlier that at Enstor it is empty and that is where you should order. At De Resterende it is on the way to finish. We think that the most will be finished here at the last distributor towards the end of the year. We see with the current results that all systems will not be empty until the end of the year. That is the pace we have now.

I have also received a question from Milen. Do you think there will be a market turn in 2025 if not when?

I am not afraid to speculate. It is extremely difficult to speculate how it will develop. I am still very convinced that the basic driving forces will exist. A turn will come. This is an important area. We have relevant products and solutions. A turn will come for us and for the other products. But to speculate when it will come is not a big deal.

How is the trade agreement with Safe Vault and why does the sales happen in separate companies? Who owns the vehicle to X-Ladders and off-grid products?

We have since the

beginning worked to create an ecosystem around our core products. We have always worked with an open standard interface to build this ecosystem. We have now cooperated with two companies that want to bring products that connect to our core products. The niche products with a smaller volume initially. We do not see that it is a business for us to put resources on this in the present situation. If it turns out that this will be an attractive market segment where we could have a good trade agreement, then we will of course put resources on developing products. But right now we are focusing on our core products that have a higher volume potential.

There are many contests among installers. Has it been botched and is the market for solar energy metered?

It is difficult to say if it has been botched. I think that many industries are having a hard time holding out to the wait for a turn in the market. It depends on when the turn comes. That is what is controlling whether it has been botched or not. As I said, I think it will turn the question of when.

Can a villager calculate the solar energy supply with currently relatively low sports prices?

I think you can calculate a complete system if you have a smart system. If you have a system that is called a stupid system, then it is very difficult to calculate a solar energy supply. You need to have this smartness so that you can save on, for example, effect tariffs. There are many systems that only optimize on spot price, which means that you can concentrate your consumption on a cheap spot price hour. And thus, you will have very high costs. I would like to emphasize that you need a smart system that takes into account effect tariffs, spot prices and own consumption. If you have a system that can balance and optimize, either if you want to do it yourself, because you are interested and want to spend half an hour a day to set the schedule, or if you use VORFAR and AI, then you can get a reasonable and attractive return on time.

Why do you see no sales from Svea Solar?

We have hoped to get started with Svea Solar, and we still have the hope of getting started during the second half of the year. But we have not started there yet.

What are the expectations for support services? How will this offer expand and when? Support services,

I think that what everyone learned after FCRD, the FCRD income was large, everyone only focused on FCRD. And now everyone was very disappointed when that income stream disappeared. What I think everyone is beginning to realize is that there are significantly more income streams. And now it is more about having a system and a solution that allows you to use all possible income streams and earn money on the income streams that you can earn on that day, that hour. With a smart solution, I see that there is money to earn on a VPP solution, outside of the measure, to be able to offer its flexibility. There are good markets and there will be money there in the future that makes it worth it to be part of that market. But you have to optimize your own consumption before the measure, because it will be important to see if I want to use my electric car charging control, my battery control, to avoid effect tariffs or if I want to put out the capacity to be able to sell it to an electric power company and earn money. You have to be able to balance between what you use to save as much money as possible, save and earn money. This underlines the importance of having a less A-like solution that can help there, because it becomes very complex for a single customer to control this. So I want to give a hit on smart systems.

Now support is offered for other batteries, the other ESS batteries. What impact will it have on the total of FairRams products, positive or negative? I think both,

but in the end positive. We have a lot of turnover and profit from battery sales today, but we do not have much more value, so we have a very low margin. We are working towards openness and we see that when the battery market has stabilized, I'm talking about both protocol, stability and security with the batteries. When they reach the level where solar cells are today, we will be open to all batteries. That has been our strategy since the beginning. In our long-term strategy, we have a business plan that is based on the fact that we do not have revenue from the batteries themselves. It's about equipment for batteries, where we focus on controlling the batteries smartly. But we have kept the solar panels, the passive panels, and we will not offer the modules themselves in the future. There we will have the control of solar panels and battery modules. That is our core business. I think it's the right way to go. We will always have the most efficient batteries at any given time, at the best price. There is a lot of competition out there. If you lock yourself with one battery manufacturer, you will have difficulty being competitive over time. Our system as a whole will benefit from working with the best.

How does it look with FC RD support in other markets than SE3?

We work on this. We are in the early stages of the trade. We are working and hopefully will be able to present some possibilities in the coming months. The application that has been in place since last year and the Swedish power has long lifetimes right now. I can't answer what it depends on, but it takes a long time.

I have a question from the email. Do you see that you can continue to keep the costs down? Yes,

absolutely. We have worked very focused on reducing the costs and then they are reduced to a permanent lower level. We see that they will continue to decrease. We have already marked that we will go down another 2 million in the cost mass during Q2. We reached our cost goal a quarter earlier and we will continue to increase the cost and see 2 million less in Q2 already.

What needs to fall in place for FC RD to go with profit?

We have said earlier that we need to be somewhere north of 40 million in turnover, depending on which product mix per quarter. With the current cost base, then we are profitable. If we continue to reduce the costs, then we need less turnover. But somewhere around 40 million, then we are pretty confident that

we will earn money. That was all the questions.

Thank you for listening

and for the good questions. I wish you a nice day.