Ferroamp AB (publ)

I have a more positive quarterly report than what I have been able to do in the last quarter. What sticks out in today's report positively is the order block for Q4, as well as the operational cash flow for Q3. I present Kent Jonsson, CEO of ÖAMP. With me is our CFO William Ryan. As usual, I will try to briefly review the relevant parts of the quarterly report and then open up for questions at the end. This time we will use a new function in Teams, as you can see here. For those of you who are at the computer, up to the left there is something called questions and answers. If you click on that, a text window will appear to the right. You type in the question and press post. On the phone, at the bottom of the screen, you click on the three dots. Click on questions and answers, write the text and click on questions. So, it comes in. Then we will collect them here at the end and try to give as good an answer as possible. I'll start as usual with a short intro to Ferro Amp for those who are relatively new to Ferro Amp. We offer the market's smartest solution for the optimization of solar production, energy storage and electricity charging. We also have a strong patent for the distribution of energy between facilities. Det här ger ett kraftigt förbättrat återbetalningstid för fastighetsägare som har fler än en fastighet och möjlighet att dela energi mellan dem. En annan styrka vi har är att vi uppdaterar våra system löpande med ny mjukvara. Det gör att det alltid är modernt. Jag kommer tillbaka till det sen när jag pratar om Ferro AI. En sak som har blivit mer och mer viktig för våra kunder de senaste åren, som beror på det mer osäkra omvärldsläget, det är att vi har svensk kvalitet och en bra säkerhet i våra system. Det blir mer och mer viktigt. I'm going to take the two pictures I usually take about market statistics. The first is from Svensk Solenergi. There you can see the light green stacks that show pre-registering that you have to do to the electricity company before you can install and connect a solar energy system. The dark green are the actual installations. Det finns en fördröjning på en till två månader normalt mellan föranmälan och de som i slutändan blir anslutningar. Här kan man väl se att föranmälningarna ökar efter sommaren, vilket är ett mönster som återkommer. Installationerna följer med med en eftersläpning. Om det följer föregående års kurva så kommer det att innebära att det blir fler installationer i Q4 än i Q3, dock på något lägre nivå än Q4 föregående år. Den andra statistikbilden kommer från Skatteverket, handlar om statistik för grönt avdrag. Here, for 2025, we have extrapolated the nine months that exist in the tax office statistics. And we have extrapolated this to a whole year's worth to get it comparable to the previous three years. Here you can also see that solar installations continue to fall. Man ser att batteriinstallationerna fortsätter att öka och att laddpunkterna ligger ungefär stabilt, går ner något verkar det som. Viktiga affärshändelser under året. Här ska jag i presentationen beröra avtalet med Elvi och utökad funktionalitet IFAR och AI. Börjar med samarbetet med Elvi. As you probably remember, we signed a contract at the end of August this year. And in that contract, there was an estimate from Elvi's side on an annual value of 600 million under three years. And Elvi then, they offer an energy subscription to the villager. It is a fixed price for 15 years. And this business model owns, controls and optimizes the Alvis system with solar cells, batteries and heat pumps. I think this is a very interesting offer on the market. We see that this addresses a different type of customer, perhaps those who are less interested in technology, more focus on a good function, stable, safe. It's also safe to know what it costs every month in 15 years. It's also a possibility for those who want to avoid an investment on day one. So it addresses a different target group than the previous offer. So this feels exciting. We deliver the first systems within two weeks. And we see that, we calculate that Den här affären kommer att bidra med cirka 7 miljoner kronor redan under Q4. Och sen kommer den att rampas upp under nästa år. Så det här känns som ett väldigt intressant samarbete för oss. För AI då. I think this is a very good example of one of our great strengths. The electricity market is changing and we are adapting to that market. We know that it has changed a lot and it will continue to change, so we want to have a system that is updated and modern. Last quarter we talked about the benefits that came, which means a large cost that we can then pay for our customers. This time, a new change will be lifted on the Swedish electricity market. From January 1 next year, the 60-year subsidy will come. That is, you get a 60-year subsidy for each exported kilowatt hour to the electricity grid. That subsidy disappears. Which means that when there are minus prices on the market, a solar energy producer will have to pay to export into the network. This, we estimate, means at least SEK 1,500 for a standard villa. And this, as I said, I think this is a good example where our system We register a change in the market, we change our system so we can handle it. So we can handle this accumulation of solar energy when you lose money. We can also handle it for a system without batteries. This of course also means a potential for us to upgrade systems from other manufacturers that are not able to accumulate solar energy exports. Let's go into the numbers section a bit. Here we have the turnover. It is, of course, a disappointment. It is down in line with the market compared to previous years. But the joy that was the first of two highlights, as I said at the beginning, is the order block for Q4. We see that month after month since last summer, the order intake has increased. And already in the first weeks in October, we had passed the entire Q3 turnover in the form of order stocks for Q4. And it continues to increase, so I see that Q4 will be betydligt starkare omsättningsmässigt än Q3. Så det där är en efterlängtad signal. Bruttomarginalen ligger väl i princip kvar på en för låg nivå- som inte vi är nöjda med, förstås. Det finns två förklaringar till det här. One is that we have a storage of our core products outside the distributor. We have a good margin for our core products. We have a low margin for batteries. When there is a storage outside the distributor that we have sold earlier, when the system is installed, the mix of batteries will become unusually high in our sales. This means that the combined gross margin between nuclear products and batteries becomes low. This is where we see the biggest impact on our too low gross margin. The market situation has been a bit slow, which has meant that our transition or transition to our new generation products, which are more cost-optimized, has decreased. Vi ser väl att om vi får fart på säljet här nu så kommer det här att rätta upp sig. Vi får en naturlig mix och vi introducerar nya produkter med bättre bruttomarginal helt enkelt. EBITDA. It's a small improvement, even this quarter. In short, you can say that it is... And you should remember that it is a somewhat better EBITDA, even though we have a weak sales. In short, it is the cost savings that continue to have an effect. And I would like to stop here and note that I am very happy that we have succeeded with these fairly large cost savings and at the same time I see in the organization at our key figures that we perform better than ever. And yes, it is of course enjoyable when you can save money without having any negative effects. Now to the second positive signal that I mentioned at the beginning. It is about the cash flow. We have a markedly better cash flow, and we are close to zero. We land on minus 0.7 million for the entire period. Periodic cash flows are mainly loaded by two non-operational deposits. The first is 4 million in corona tax benefits. There we have two payments per year of 4 million, which means that after this payment of 4 million, there is a total of 16 million, which is our away from total debt. We have no other loans or check loans. But it comes into Q3, four million. And then we have about two million in advance to suppliers. And it's pretty normal now that we're starting to start up production of certain products. So this means that the cash flow for the period is minus eight. Fokus då rent det generella fokuset för 2026 för Ferro Amp är att vi fortsätter öka försäljningen i befintliga kanaler. Där har vi sedan innan sommaren ändrat vår strategi lite grann så att vi har start to engage more in the market and sell activities together with selected partners. We have announcements, activities in social media and also radio ads that generate good leads to our partners. And we see a very good effect of this. It is something that allows us to control market development more. and hopefully take market shares on a market. So it feels very promising and I think it stands behind a large part of the increase as we see now in Q4. The other big focus is to support the sales of Elvi and Ära in Sweden and outside of Europe. Vi är ju en central del i deras erbjudande och vi vill förstås stötta dem på alla sätt i att kunna vässa våra produkter och vårt bidrag in i deras erbjudande. Jag tror väldigt mycket på både Elvi och Ära. Jag har inte nämnt Ära så mycket den här gången, jag har pratat mycket om dem tidigare. Men jag tycker det är imponerande resor de har gjort så här långt och jag tycker det känns spännande att kunna få jobba med dem framöver också. The third is to increase the gross margin, as I talked about earlier. And then, of course, to keep up with the costs. We have made good savings. We will turn every time and try to save even more, while maintaining and strengthening the efficiency so that we get as much as possible out of every krona we spend. So this is something that we will not let go of. Then development. Most of us work with product development, hardware and software. So here we have four areas we focus on now and also during 2026. As I mentioned, it is integration work towards our larger partners. It is about developing support optimisation centres such as Ferro AI. It is now about preparing the production of next-generation cost-optimized products. The fourth point is an area that we have trusted for a long time and worked with. Lite på sparlåge eftersom marknaden inte finns idag. Men vi ser signaler att det här skulle kunna ta av under nästa år. Och då kommer vi att, redan nu, att börja att fokusera lite mer på virkelsegrid för att vara redo då när marknaden kommer. Och jag tror den börjar komma redan under 2026. Och sen kommer den gå fort. Jag tror... I think this potential within our industry, our segment, is the biggest potential I see in the next three years. And it will start next year. So exciting, very exciting. That was all I was going to raise from the quarterly report now. We have received a lot of questions, but I remind you again that you are welcome to ask questions. And then it is for those from the computer, up to the left, click on questions and answers. The text window comes up, you write in the text question to the right and click on the blue button. On the mobile, click on the three dots at the bottom of the screen. Choose questions and answers, write in the text and click on the blue button question.

So, William. Yes, we can start with the first question, which is, please follow up your financial goals that were communicated earlier this year. Should they be adjusted?

Yes, we communicated on December 6 last year, financial goals. I can start with the long-term ones, I see no reason to adjust here and now. The short-term goals for 2025, it was a positive operational cash flow during the first half year. Det nådde vi inte uppenbarligen. Vi var nära i Q3, men det nådde vi inte. Postdrift, EBITDA, månadsvis under andra halvåret. Ja, det är inte slut andra halvåret, vi får se. Men att justera de kortsiktiga målen, jag skulle nog... Ja, vi kommer att sätta nya kortsiktiga mål efter att vi har sett Q4. Jag tror att det ser ut som mycket kommer att hända i Q4 för vår del. Och det verkar att vara positiva saker. Så jag skulle vilja se Q1 landa. Jag gör inga nya utfästelser här nu utan jag vill se Q4 landa och sen efter där så får vi återkomma till kortsiktiga mål.