Ferroamp AB (publ)

So, hello and welcome everyone to quarter report Q1 from Ferro Amp. My name is Kent Jonsson and I am the CEO and I have with me William Ryan, CFO 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 overview first. We have the market's smartest hardware and software platform for the optimization of production and consumption of electricity in properties.

A little from the market here.

Statistics from Swedish solar energy. Here you can see that pre-registrations have steadily increased during quarter one. This will result in an increase in the sale of systems and therefore the number of connected systems under Q2. It is a reduction of normally six to eight weeks from pre-registered to connected. The other picture from the market is that the cost of effects is starting to come now with a larger number of customers. It will be introduced at the latest under 2026. And this has a great impact on villa owners. Here, the energy companies measure the highest consumption during a day, and then they are debited from the highest consumption during one or more hours on average. If you look at a standard villa, it is up to 7,000 more expensive per year, and if you have an electric car, it is approximately 17,000 more expensive. Here we have, with our smart system, the opportunity to save money for customers between 5 and 16 thousand kronor per year. A lot of good things have happened during the period. I was going to mention three things briefly here. The first is just this opportunity to save money. for customers in a simple way. We have now launched Ferro AI and this means that you just turn on Ferro AI via a button in the app and then Ferro AI does all the optimization. And then you can save on effect tariffs up to 16,000. You can also save money on spot price control and increase and maximize your own consumption of your own produced electricity from solar cells. So this is a simple and very good tool that will appeal to the wider mass of customers. A little about Ära. We received the first order from Ära with delivery at the beginning of next year. Here I want to emphasize the important thing, and the important thing here is that this is our first step out of Europe. I think this will be very exciting for us and this will start a really interesting 2026. Vi har också dragit igång en företrädesemission om 76 miljoner. Det här beloppet säkrar vårt likviditetsbehov tills vi är kassaflödespositiva. Täckningsbehovet startar 12 och täckningskursen är 1,31 per aktie. Financially, let's start with the turnover. We see that we have a low turnover in quarter one. We have gone out with these figures earlier in connection with the previous emissions. We come in a little better on turnover and results. Here you can see that we landed at 21. It's a little better than quarter four, but We are, of course, not satisfied with this. It is still a watchful market and most of the systems are sold from Grossisternas lager and not from us. So nothing that contributes to the turnover. A large part of the turnover comes from the sale of batteries. The gross margin is still not satisfied with this gross margin. I think that we will be somewhere, a company like ours will be somewhere north of 40%. And I think that we will get there with the help of the new cost-optimized products that we will put on the market, as well as a normal product mix. The EBITDA, quarter minus 10, 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 A comparable result. Of course not satisfied with a minus result, but it goes in the right direction. I'm on the right track at least. Cash flow. Here I would like to point out that if you remove the one-time effects in the quarter, then we have a adjusted operational cash flow of minus eight. So it feels good. I would like to point out again that the storage is going down, but there is still a lot of access to 190 million in sales value with current discounts.

So a lot of access there. The focus for 2025.

The strategy for 2025 is, in principle, completely focused on getting the turnover up. We are not at all happy with 21 million, of course, and we are working hard to get that turnover up in the rest of the year. Development, where we are working towards cooperation with Ära. Vi jobbar också en del med Weekend2Grid och färdigställer de sista produkterna för de nya kostnadsoptimerade produkterna. Vi håller också på att vidareutveckla stödoptimeringstjänster där färre AI nu är släppt i en första version och kommer kontinuerligt att förbättras över tid. Då tänkte jag avrunda presentationen där och öppna upp för frågor. Ni kan förstås skriva det i chatten eller mejla det till public at ferroamp.com som vanligt.

Yes, then we can start. We have a question here in the chat. How is the underlying demand for the products? Considering the storage and storage systems, it is difficult to see what type of installations occur outside the customer.

I would say that the pace is Har varit stabil under kvartal 1. Kanske varit något lägre ansnittet under Q4, men känns stabil under Q1.

En annan följdfråga på den. Är det svårt att se vilken takt installationerna sker utomskund?

Yes, we can follow it in real time. We see when the systems come up online. We have connected, secure systems with all equipment, all data storage in Sweden and within the EU. And it also has the opportunity for software upgrades and upgrade with new services. OEDR without having to send out any staff. All of our systems are connected and we see in real time when a new system comes in. How many teams are left at Grossisterna? We have not gone out with any volumes, but we have said earlier that at a large company it is empty and there you have started to order. And for those remaining, it is on its way to end. We think that most of it will end here at the last distributor towards the end of the year. So we see now with the current state of affairs that all teams will not be empty until the end of the year with the pace we have now.

I got a question from the mail here as well. Do you believe in a turn in the market by 2025? If not, when will the turn come?

I do not dare to speculate there. It is extremely difficult to speculate how it will develop. Jag är fortfarande väldigt övertygad om att de grundläggande drivkrafterna finns. Alltså en vändning kommer. Det här är ett viktigt område. Vi har relevanta produkter, relevanta lösningar, så att en vändning kommer för oss och motsvarande produkter. Absolut. Men att spekulera när den kommer, det

How is the business situation with Safe Vault and why is the sale happening in separate companies? Who owns the BeagleDX chargers and off-grid products?

Since the beginning, we have said and worked to create ecosystems around our core products. Vi har alltid jobbat med en öppen standard öppna interface för att bygga det här ekosystemet. Nu har vi då samarbete med två bolag som vill ta fram produkter som kopplar mot våra kärnprodukter. Det är nischprodukter med lite mindre volym nu initialt. We simply do not see that it is a business for us to put resources on this in the current situation. If it turns out in the future that this will be an attractive market segment where we could have a good trade, then of course we will put resources on developing products there. But right now we are focusing on our nuclear products that have a higher volume potential.

There are many contests among installers. Has it dropped and is the market for solar energy met?

It's hard to say if it has. I think there are many in the industry that have it a little tough now and are waiting for a turn in the market. So it depends on when that turn comes. That's what controls whether it has fallen or not. But as I said, I think it will turn, the question is when.

Kan en villaägare räkna hem solcellsanläggning med nuvarande relativt låga sportpriser?

Alltså, jag tror att man kan räkna hem ett komplett system om man har ett smart system. Jag ser att om man har ett, om vi låter oss kalla ett dumt system eller ett mindre smart system, då är det väldigt svårt att räkna hem en solcellsanläggning. You have to have this smartness so that you can make savings on, for example, effect tariffs. There are many systems now that only optimize for spot prices, which means that you can concentrate your consumption to a cheap spot price hour and thus attract very large costs. I would like to emphasize that you need a smart system that takes into account effect rates, spot prices and your own consumption. Have a system that can balance and optimize this. 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. Eller om du använder warfare och AI. Då kan du få en rimlig och ganska attraktiv återbetalningstid.

Varför ser man ingen försäljning från Svea Solar?

Vi hade hoppats att komma igång med Svea SLR och vi har förhoppningen fortfarande att kunna komma igång under andra halvan mot årsslutet men vi har inte kommit igång där än.

Vad är förväntningarna kring stödtjänster? Hur kommer erbjudandet att expanderas och när?

Alltså stödtjänster I think that what everyone learned after the FCRD, the FCRD income was big, everyone put it only on the FCRD. And now everyone became very disappointed when that income stream disappeared. What I think everyone now begins to realize is that there is... Now it's more about having a system and a solution that allows you to use all possible income streams and be able to earn money on those income streams that you can earn money on that day, that hour. So with a smart solution, I see that there is money to earn on a VPP solution, that is, outside the measure, to be able to offer its flexibility. There are good markets and there will be money there in the foreseeable future, which makes it worth being on that market. But you must at the same time optimise before the measure, your own consumption, 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 that capacity to be able to sell it to an electric network company and make money. So you have to constantly To be able to balance between what you use it for. To save as much money as possible. Save as much as possible and earn money. So this underscores even more the importance of having a Ferro AI-like solution that can help there. Because it becomes very complex for a single customer to manage this. So smart systems I want to hit a blow for.

Now support is offered for other batteries other than the ESS batteries. What impact will it have on the total of Fair Arms products, positive or negative?

Well, I think it's both, I would say, but in the end positive. Vi har ju en del omsättning och även lönsamhet från batteriförsäljningen idag men vi adderar inte så mycket mervärde så vi har en väldigt låg marginal medvetet där. Vi jobbar mot öppenhet och vi ser ju då att framöver när batterimarknaden har stabiliserats så pratar jag både protokoll stability and safety for the batteries. When they reach the level where solar cells are today, then we will be open to all batteries. That has been our strategy since the beginning. So we actually have in our long-term strategy a a business plan that is based on the fact that we do not have revenue from the batteries themselves. It is around the equipment for batteries, there we focus on controlling the batteries smartly. But we have kept the solar panels away, the passive panels themselves, and we will in the future do not offer the modules themselves. We will have the control of solar panels and battery modules. This is our core business. I think it is the right way to go. We will always have the most efficient batteries. at any given time for the best price. Because there is tough competition out there, and I think that if you lock yourself with one battery manufacturer, you will have a hard time being competitive over time. So our system as a whole will benefit from working with the best all the time.

What does it look like with FCRD support in other markets than SE3?

Vi jobbar på det här, det är långa handläggningstider och vi jobbar och kommer förhoppningsvis att kunna presentera några möjligheter här under närmaste månaderna. Men ansökningar finns inne sedan förra året och Svenska Kraften har långa ledtider just nu. Vad det beror på kan jag inte svara.

Det tar lång tid.

En till fråga här från mailen. Ser ni att ni kan fortsätta hålla ned kostnaderna?

Ja, absolut. Vi har jobbat väldigt fokuserat på att få ned kostnaderna och då får ned dem på en permanent lägre nivå så att vi ser att de kommer fortsätta ner. Vi har redan flaggat för att vi kommer att gå ner ytterligare 2 miljoner på kostnadsmassan under Q2. Så att vi nådde ju vårt kostnadsmål ett kvartal tidigare och vi kommer fortsätta den resan och ser 2 miljoner mindre i Q2 på fredag.

Vad behöver falla på plats för att Ferroam ska gå med vinst?

Vi har sagt tidigare att vi behöver vara någonstans- lite norr om 40 miljoner i omsättning- beroende på vilken produktmix per kvartal- med nuvarande kostnadsbas. Då är vi lönsamma. Fortsätter vi kostnaderna ner, då behövs det mindre- But somewhere around 40 million, then we're pretty sure that we're making money.

Yes, that was all the questions we had.

Yes, good.

Then I have to thank you for listening and for good questions. And I wish you a continued nice day.