Ferroamp AB (publ)

Hej och välkomna till dagens webcast från Feramp. Jag heter Kent Jonsson och är vd och jag har med mig William Ryan som är vår CFO. Jag kommer att hålla i presentationen och William kommer att vara med och svara på frågor på slutet. As usual, I will try to go through this relatively quickly and focus on the questions you have. You can post them in the chat or email us. For those of you who are new, very briefly. Fairrump, we offer the smartest solution in the market. for the optimization of solar production, storage of energy and electricity charging. We also have energy distribution between properties. We update the software constantly so that you always have a modern system. We stand for Swedish quality and we have a high security around our products. I will move on to two pictures about the market that I usually show. The first one here comes from Svensk Solenergi. This is the most relevant to look at, it is the dark green. There you can see during 2024-2025 that it has gone down, but that it has stabilized somewhat during 2025. So it's a relatively stable level under 2025. A small decline, but nothing dramatic. The next one comes from the tax office. There we have statistics from charging points, which we see is stable between 2024 and 2025. You can see that the batteries increase quite a lot year after year, all the way from 2022 and forward, even 2025. Solar cells go down between 2024 and 2025. Which events during the year? I'm going to list three things. Two from 2025, which is a little about LV Ära and our agreement with Vattenfall. Then one point from the current quarter, about the three-phase backup. I start with our cooperation with Vattenfall. This is about our products becoming part of Vattenfall's supply, which Vattenfall will offer to its customers. This is a very important strategic step for Faro Amp. I think above all that this is a quality mark. It has been a long evaluation, a serious evaluation of us as leverantör till Vattenfall och vi har genomgått den och får nu vara en del av portföljen. Så det här är, tycker jag, en kvalitetsdämpel från ett stort och välrenomerat bolag som Vattenfall. Det visar också systemnyttan då, där vi kan erbjuda nytta både till fastighetsägare och elnätsägare samtidigt. Det här gör ju att vi blir extra relevant for a company like Vattenfall, which of course also wants to use the facilities to support the network. We plan a sales start for this under Q2 this year. Elvi and Ära, we have talked about it being in progress, now it is in progress. We have made the first customer installations under Q4. Det stod för blygsamma 2 miljoner av vårt kvartals omsättning i Q4. Vi ser att det är en tydlig upprampning under innevarande kvartal. Så det ser positivt volymmässigt ut framöver. What is good about Elvi and Ära is that it does not compete with our traditional channels, i.e. installers and distributors, so there is no cannibalization there. We see that Elvi reaches other customer groups who seek more security than anything else, perhaps unpredictability. Ära opens up new markets for us. We talked about UK and Italy as well as Germany. So it's not a cannibalization of our base sales or our basic sales. Then we had now under the Elmia fair. There we had a big, nice Monter. I can probably say that we were with marginals the most visited Monter without us offering some free stuff, but we actually had a lot of interest in our products. We also launched a three-phase backup. I think this is exciting because it has a flexibility and a modularity that we really like, which is in our DNA. And this one can of course use a stationary battery and run a whole villa for one to two days approximately. But there are also opportunities to connect your vehicle to grid charger and use your car battery, which is often significantly larger than the stationary battery. And then you can run your house for at least one and a half weeks. And then you have the opportunity to go to an area in the vicinity that still has the e-net running. And then you can do fast charging there and go back and continue to charge and run your house. And then, if it takes time, you also have the opportunity to connect a simple model of an electric generator. And then you can drive it for as long as you want. And this, as usual, works with both new and old preamp systems. Maybe the most important thing with this is that we really have to achieve simplicity and cost-effectiveness during installation. Normally, when you are going to install a backup solution, you get problems with landings. It can often cost 20-25 thousand, a lot of digging work and a lot of installations to get a landings. Den här tekniska lösningen använder en helt annan metodik och här räcker det med ett simpelt järnrör egentligen, 50 cm långt som man bara stoppar ner i rabatten eller genom gräsmattan. Så en väldigt enkel installation och billigt så att det är bra teknisk höjd good functionality with a sustainable backup. But maybe above all, the installation is very simple and cost effective. Some financial figures then. Q4 was a strong quarter, up 95% compared to Q4 previous year. And here I would like to point out again that this is mainly our regular channels, i.e. our base sales, where we, thanks to a very focused way of work, have managed to start our regular channels. that we know and have worked with for a long time. So the absolute largest increase is regular channels. The new partnerships, mainly Elvi and Ära, are worth 2 million out of this increase. Bruttomarginalen är fortfarande inte tillfredsställande. Jag har ju sagt att ett sådant bolag som oss ska ligga norr om 40% när allting är normalt. Nu är inte allt normalt för oss. Vi har fortfarande kvar lager, vilket gör att vi säljer onaturligt mycket batterier och batterier har vi en lägre marginal på, och ska ha en lägre marginal på, jämfört våra egna produkter. Så det kommer att rätta till sig när lagen hos distributörerna försvinner under det här året. Sen så har vi också nya produkter på väg ut, så att när vi börjar att få ner lagerna här, så kommer vi att gradvis börja introducera nya produkter som har a completely different cost structure. So they are cost-optimized in a completely different way. So those two factors will, over time, give us a significantly better gross margin. But unfortunately, we are left here for another moment. EBITDA. It went up to minus two million, a clear improvement compared to previous years. Vi har tittat tillbaka hela vägen till början av det här bolaget och vi hittar inget bättre kvartal. Det är fortfarande under noll, minusresultat, men det går definitivt åt rätt håll. Det ser bra ut. The main driver in this is the cost savings and the higher turnover we have, but we have succeeded very well with the cost savings. We have taken it up earlier and I think it still feels good. We have no immediate costs that we will attract, but we see that we have a very end-to-end organization that works very well and we will continue to keep track of the costs while we then pursue an even higher turnover in the future. The cash flow then, there we have had a target of to reach an operational positive cash flow. Now we have been close to two quarters on the straight line, but unfortunately we are a little on the minus side. But also here a big improvement over time. We also see that the cash flow during the year has been loaded with 8 million from a tax rate. Det är den enda skulden vi har kvar. Det är nu kvar 16 miljoner att betala över två år. Det här är det vanliga covid-uppskovet som många företag fick under covid-epidemin. Vi följer den avbetalningsplan som är satt. Som sagt var det 16 miljoner kvar, fyra installments under två år. We also received large deliveries of batteries in December that have affected the warehouse so that the warehouse has increased thanks to that. This is a battery that will be replaced during quarter one this year. And as I have said earlier, in time now that we will start selling a larger share of our own products in sales and that sales increase we will take more goods from our own warehouse. These are finished products that have already been paid, so we will get an extra margin on the cash flow in the future as sales increase. The focus is unchanged since the previous quarter. It is about increasing in the existing channels, i.e. our basic sales that we talked about earlier. At the same time, we also support Elvi and Ära in their sales increases. As I said, we see a clear upheaval during the current quarter. It looks positive for the rest of the year. We are also working to increase the gross margin in the way I said, and continue to keep up with the costs. Development. Där har vi nu integrationsarbete mot några större partners. Elvi och Ära, men även Vattenfall och några till. Vi kommer att vidareutveckla de stöd- och optimeringstjänster vi har. De fungerar bra idag. Jag skulle säga att det är marknadens bästa. Men vi ska fortsätta utveckla dem under året. Then we will release next generation cost-optimized products. Then I actually think that 2026 will be the year when it starts to move on, for real, with Vehicles Grid. And we are positioned very well there. We have a very good product, I would say, that fits very well into our ecosystem. It's about jacking it up to be able to get the backup opportunity I'm talking about per automatic. To be able to get the connection to solar cells and a stationary battery in normal operation per automatic. To be able to use your car battery to cut effect tops and other things. I see that there are other solutions, but they do single functions. I think what is nice about our solution is that it fits into the system and becomes an integrated part and can contribute with benefits to a number of areas. So I think this is the right way to go. It will be a relatively expensive investment for customers and then I think it is important that you get the benefit of that investment in several areas and not just one single area. Ja, jag slutar där och öppnar för frågor.

Ja, och då vill jag bara påminna igen om att man kan ställa frågor direkt i chatten eller via mail på public at fairramp.se. Jag har fått lite frågor på mailen som jag börjar med en därifrån. Hur ser ni på behovet av ny finansiering för närmsta kvartalen?

Yes, as we have written in the report, we are in final negotiations with one of Sweden's leading banks regarding movement financing. This gives us increased security, I would say. Den här är planerad för att tillfälligt stärka kassaflödet under perioder då vi kommer att rampa upp produktion etc. Vi har en stor tro på vår egen förmåga att under året börja generera kassaflöde. I would say that when we get a movement of financing in place via a leading bank, then I feel that there is an increased security. Here and now, I don't see any need for any new financing.