Ferroamp AB (publ)

Hej och välkomna till denna investerarpresentation av FaroAMP. Den som presenterar är jag, Kent Jonsson, vd. Med mig har jag även William Ryan, CFO. Jag börjar med en väldigt kort bakgrundsbeskrivning av FaroAMP för er som är relativt nya till FaroAMP. Ferramto offers the market's smartest hardware and software platform for the optimization of solar energy production, energy storage, electric car charging and soon also control of heat pumps. En av våra styrkor är att vår plattform uppdateras löpande med hjälp av mjukvara, vilket gör att den är alltid modern. Till exempel system från 2016 kan köra vehicle to grid och AI tjänster idag. En annan styrka vi har är att det är svensk kvalitet och ett högt säkerhetstänk i vår plattform. Let's move on to some market trends. Here we see the statistic that they are available from Svensk Solenergi. It extends only to May. They have not released June and July yet. But here you can see that the light green pre-requisites, the light green stacks, have gone up, even in April. Then it has shifted down a bit in May. We hoped that this would result in an increase in connected systems. Unfortunately, this has not happened and it is a bit unusual that it is a uniform development since Q2 is normally a very strong quarter for solar cells. We can also look at statistics from Skatteverket. Here there are three whole years, 2022, 2023, 2024, and the first seven months of this year. If you then count up the first seven months to a whole year this year in some form of prognosis, you can see that the light green charging point staples are quite stable. De ljusgrå staplarna för installation av lagringbatterier, de ökar år från år även i år. Tittar man på de mörkra staplarna, så installation av solceller, så har det en stor peak 2023 och sedan har det fallit tillbaks 2024 och kommer att fortsätta falla tillbaks även 2025. Some business highlights here from quarter two. Start with our Färd och AI. It was launched in April. The most important aspect here is that it is very simple. People who are not so interested or so skilled in Programming or scheduling, etc. etc. They can now be done in a simple way with a push of a button in an app. Easy to set up for AI. And then you get access to all the fantastic possibilities with our system when it comes to optimization. You take into account effect tariffs, spot prices, as well as weather, sunlight, and also the use of the house historically. So you optimize this, and we see that you can save up to 30 percent. And then I compare with a standard system with solar cells and batteries where the surplus from solar energy is first stored in the battery and when it is full, it is exported. So from such a fairly simple standard system, if you add our AI, then you can save up to 30% of the total energy cost. So it's a big savings and this has gone well. We have made a fairly small introduction, I would hardly call it a launch, but we have about a third of our customers who have batteries today, who have connected in and run this. So it seems to have gone very well and it will develop and become even better in the future. A little about ERA here. Just to remind you that ERA is for us a very strategic partner and will be an important step for us out in Europe. under nästa år då tas ut på stora marknader som Tyskland, Italien och England. Så det här är väldigt viktigt för oss. Det pratade vi om att vi fick första orden under Q2, det har vi sagt tidigare och nu kan jag också säga att de testinstallationer vi har kört under Q2 har också gått väldigt bra. Så att det rullar på och det känns väldigt spännande. Safety, in general, has been a big issue in recent years. And there we think it is extra important with the safety of our electricity supply. We see how painful it is in Ukraine. even in the Iberian Peninsula, where there are darkening and so on, thanks to the shortcomings in the electricity infrastructure. And there we see that our products and our customer systems, where you have production and storage locally around Sweden, it gives a a good stability. If you have large production facilities, you are very vulnerable to disturbances if the large production facility breaks down or is damaged in any way. So it gives a lot of stability. But this is based on the fact that the equipment cannot be controlled by, for example, foreign power. Because if it can be controlled by foreign power, then these local facilities around Sweden can be made to cooperate and deal with the damage to the electricity network. So this is why we think it is very important to maintain a high level of security and we are working continuously to maintain it and also increase it further in the future. Safety is an important thing for us and something we have worked a lot with and will work with.

Some financial figures.

The turnover for Q2 is a disappointment. We still see a slow market. We have stable market shares, but the market is still slow. We also see that a large part of the sales is batteries for us. If you look at the gross margin, it remains at 22%, stable, but at an all too low level. This is linked to the fact that a large share, an abnormally high share of our sales is batteries. So when we start selling more from our warehouses of our products, bruttomarginalen per automatik att gå upp. Sedan har vi även kostnadsoptimerade produkter som inte vi har fått ut på marknaden än. Det handlar om att vi har lager av externe produkter, men när vi får ut de kostnadsoptimerade produkterna så kommer det också innebära en förbättring av bruttomarginalen. Jag har sagt tidigare att i At the end of the day, in some kind of stable position, we will be able to be at 40% in the gross margin. And I still think that is realistic. But we are still at 22%. EBITDA. First, I can just briefly mention that in the report, if you read it, if you read it quickly, you see that it is a positive result. But that depends on the one-time effect. And the one that is gone, we have an EBITDA that has gone down to minus nine. This can be compared to the previous year. Then we had minus 21, 21 million. And we are on a much We have a much lower turnover this year than we do this year. This really points to one of the big highlights in the report, that we have succeeded very well with the cost savings. We have set an ambitious plan to halve the costs and we have exceeded it quite a bit. The cost savings have gone really well, and from there we see an improvement in EBITDA despite much worse sales. The cash flow. There we have a large post where we have paid off our debts to suppliers of about 19 million. At the same time, the remaining debt of 15 million was written off. So you can say now that if you slide over to the balance sheet, we have a fairly clean balance sheet now, which feels good. You can also see that our stock is starting to move a little carefully. There we have over 100 million in finished products. And if we then manage to increase the sales from the warehouse, it will of course have a great positive impact on the cash flow. In short about the strategy, there we of course have a focus on getting sales started and it is To continue to find good and strong partnerships, to find new channels, but maybe above all to expand and support the sale of existing channels. If you look at what we put in our development resources, the collaboration with Ära is now in an intensive final phase, to be done with the last things. a lot of resources, but it's going well. It feels very exciting, as I said earlier. We are also working on further developing support services and our optimisation service, Ferro AI. It works well already today, is very popular with our customers, but we see a pretty big potential to continue to develop it, so we put a lot of energy into that. Vi håller fortsatt på att jobba med fler av nästa generations kostnadsoptimereda produkter. Vid CaterGrid är vi färdiga med fas 1. Vi har en produkt att sälja. Nu avvaktar vi, diskuterar mycket med biltillverkarna för att få dem att öppna upp den här marknaden på riktigt. Då kommer vi väl att snabba på utvecklingen av nästa version av VQ3D. Där tänkte jag stanna och öppna upp för frågor. Jag vill bara påminna igen att ni kan ställa era frågor direkt här i chatten eller via mail på publicatfairbank.com. We have received a few questions on the e-mail. I can start with one. What do you think about your position on the market in the future? I think it is strong. We have three things I can say. The first is an offer. We have recently launched a new battery offer. Force H3, which is a high-quality battery with very good price performance. And this will continue to develop during the fall, so a strong battery offer. Then I would say that our optimisation services for R&I, we are probably the only one that in a good way handles effect tariffs. I see I don't see any of these big global players who will do a job around effect tariffs. Because it is a very local, regional event. And if you are a big global company, I don't think you will address this. And this is a big and important thing in Sweden. When this is rolled out to the last networks, the electricity networks under 2026. Under 2026, everyone will have electricity tariffs, or effect tariffs, I should say. Effect tariffs, and it will be hard. The last is safety. I think this will become a bigger and bigger question. And then being a Swedish manufacturer with a high safety level, it will be It will be a big advantage in Sweden and also within Europe. European products are needed on the European market and there we have a good position. So I think those three things, batteries, effect rates and the security situation, will give us a good position in the fall. Hur stor är den underliggande efterfrågan? I vilken takt utvecklas installationer ute hos slutkunden? Den är ganska stabil skulle jag säga.

Den rör sig om kanske 20 system i veckan, någonting i den här tiden. Hur nära är en normalisering av grossistlagren?

Det varierar från grossist till grossist. En är normaliserad, en är på väg och två är väl lite längre bort, kan man väl säga, av de större. Vad är nästa generations kostnadsoptimerande produkter? Excuse me, one more time. What are the next generation cost-optimizing products? We have a new e-hub that we will launch in Europe in connection with Ära. We also have a new battery control unit, which we call ESO, which will come in the fall here now, which will achieve higher efficiency. Så att det är väl de två nya i närtid egentligen. Är det rätt uppfattat att kassan inte behöver vändas för tillverkning av produkter givet lagervärdet i det kortare perspektivet?

Kassan inte behöver användas, eller vad?

Exactly, that it doesn't have to be reversed for the production of products, given the value of the warehouse in the short term. I interpret it as not having to be used. If we manage to get the sales started, then it will contribute to a good financing. If we get the sales started from our own warehouse, then we have a good cash register. And then we definitely don't need any more money to start manufacturing. Was the company's burn rate exclusive manufacturing when the cost savings got full effect against current sales? Yes, 9-10, somewhere there, 9-10 million in the quarter. With current sales then, you mean? Vad är förväntningarna för intäkter utöver hårdvaruförsäljning, intäkter från AI och stödtjänster etc.? Förväntningarna för intäkter utöver hårdvaruförsäljning? Jag skulle säga att They will come, but I don't think they will come until the beginning of next year. It will be a bleak beginning. We haven't seen any bigger ambitions around this. They will come and they will be built up slowly, but they will come. But it's nothing that we expect to have a big impact in the near future.

Varelaget är på 104 miljoner.

Hur stor är försäljningsvärdet på det inräknat med kampanjer etc.? Jag skulle säga att det är 100 miljoner i stort sett. Och mer egentligen.

Ja, men vi skulle säga 120 kanske. With current campaigns.

Were you most or least satisfied with Q2? We are most satisfied with the cost savings. I would like to say that it is one thing to just cut down costs and then erase everything. I think, or we all think that we have succeeded with a very strong cost saving, while in principle we have retained our capacity to develop, sell and serve customers, and maybe even increased it. So in the wake of that capacity increase, we are very proud to be able to save so much money. So that's the big highlight that we're proud of. What we're not proud of is that we haven't been able to take market shares. The market is going slow. It's hard for us to influence, but we can influence the market share. We would have hoped to be able to take a little more market share, but we haven't been able to. It is, as I said, stable, but disappointed that it has not increased. What kind of partnership are you working with? We are trying to find channels where we can find sales channels. So the most important thing for us is to find partnerships where you can reach out to customers and get sales. Then installation is a simpler thing. Then we have a lot of partners so that we have good capacity for installation via our partners. But our current partners, we lack a little sales capacity. When do you reach a positive cash flow? That's a very difficult question. But if you look at our EBITDA, minus nine, you see our warehouse, which is paid products. So if we manage to sell nine, ten million from our warehouse in the quarter, then it is a positive cash flow. So from that aspect, if it's the right type of sales, it's enough with 10 million more. And then it could go fast. But yes, I hope to work for us to be able to reach a positive cash flow this year. But it's hard to speculate where the market is going. Men jag tror att vi kan nå det utan att marknaden måste bli dramatiskt mycket bättre. Det handlar om att vi ska ta marknadsandelar och det tycker jag vi borde klara. Vi har en bra produkt, en bra position och vi borde kunna kapitalisera på det. Och då ska vi kunna nå positivt kassaflöde i år. Hur tror ni försäljningen kommer se ut under Q3-Q4? Alltså, här och nu så The market is still slow, I would say. We don't see any clear signs that it will turn or go up in the near future. So I think the market will be slow. Maybe we'll see a small improvement towards Q4. We see weak signs of that, but it's very uncertain. Our hope and our belief is that we will increase the market share on a slow market. How is the product mix in the warehouse? The main value of the product mix is on e-hubs. Especially the small ones towards villas. Then we have a slightly larger number of e-hubs as well. And then we also have a relatively large number of SSOs in numbers. And it is a number that corresponds to the number of e-hubs. The key is to get started with the ESOs. Then the SSOs will also disappear. We have a smaller or smaller batch of ESOs. We will launch a new product during late autumn. How are you going to increase your market share? I think it's about these three things that I mentioned as the answer to the first question. The battery invitation is important and we have done a great job there. I think we will be very relevant regarding our battery invitation. We will have a very competent battery, tested, good quality, Pylontech Force H3, and it will have a very attractive price. So I think that the battery offer is perhaps one of the most important things. Then also in the course of customers getting their invoices home and starting to get involved in the invoices, You have an invoice for electricity bill and one for mobile electricity costs. What has happened in the last year is that the invoice you get from your electricity company with electricity bills is often twice as large as the one you get from your electricity company. Man tar då nacken i skis Contra Tibber, så är Nacka Energis nätfaktura dubbelt så stor som den rörliga från Tibber eller Godel eller någon av de här. Och det här har inte kunden riktigt insett, för alla pratar om spotpriser och pratar om vad mycket en kilowattimme kostar och så vidare. Men de stora pengarna att tjäna, det finns på enhetsavgifterna. And especially if you have effect tariffs. And there we can make large savings for the customers. And when this now goes up for the wider mass, then you will start looking for a system that can solve this for the customer. So our technical platform will be able to help them. At the same time, we also see that By the end of the year, the 60-year-old will disappear. And then it will be so that an old system, there you will only be able to sell out electricity, overrun electricity on the network. And at negative prices, you will probably have to pay to get rid of your electricity. And it will be incredibly painful to go minus sunny days. And with our system, you can actually close the export at negative export prices. So we are also relatively unique with that. So these technical advantages will give us a good position. together with Sweden and high security. So those three things. Batteries, optimisation, saving money on effect rates and the security situation. I think that will benefit us. We have a follow-up question on market shares. So you will take market shares with the help of batteries, but it is not you who produce the batteries? No, we take market shares thanks to the fact that we have a a good battery supply in our system. So we often sell systems where there is an energy hub, a smart hybrid inverter, an SSO solar cell, an ESO and batteries. And in a normal package, the batteries are for half the cost, half the investment. And that we have a very attractive battery offer when we sell a package. That will benefit the package sales. So that's completely right. It's about using batteries to sell, above all, more of our systems. Did you answer this? In that case, I missed it. Thank you for answering it again. The question is, how is the product mix in the warehouse? The product mix in the warehouse is that we have, what should we say, can it be energy hubs, especially small, but also slightly larger XLR stands for, if I were to guess something, maybe 65% of the warehouse value. SSO's for maybe 30, 25-30. The rest are ESO's and some batteries that go in and out. We take batteries home on order, almost. We have a very small warehouse. But they go in and out of the warehouse, and depending on when you do storage and storage, there are more or less batteries. So I would say something like that.

A question here on the e-mail.

Vilka nivåer siktar ni på gällande bruttomarginalen för den nya generationens energihub? Vi siktar på en marginal som i slutändan ska vara någonstans norr om 40 där också. Vi tror att vi i vår produktportfölj då, exklusive batterier, men det som vi själv utvecklar och tillverkar via partners, där ska vi sikta på en snittmarginal på drygt 40 procent. Sen sista frågan från mailen här. När ni räknar på att vara lönsamma vid 40 miljoner i omsättning Hur mycket ungefär kan vara batterier i den produktmixen för att kalkylen ska gå ihop? 50-50 ska jag säga. Halvt en alltså.

Ja, det verkar vara alla frågor. Det ser inte ut som att någon skriver något just nu.

Så då får vi tacka för oss. Tack så mycket och får önska en fortsatt trevlig dag. Tack. Hej.