Ferroamp AB (publ)

Hello and welcome to the Q&A report for Q1 2026. I'm Kent Jonsson, CEO of Ferro Amp. I'm joined by Jan Stensen, CFO of Ferro Amp. I will try to go through the images quickly and give room for questions at the end. For those of you who are new, very briefly. We develop our own hardware and software here in Sweden. We develop it for Swedish-European relations and with a high degree of security. This is appreciated by our customers. Vi hjälper kunderna att på ett enkelt sätt hålla nere kostnaden på bägge sina elräkningar samtidigt som man kan delta i flexibilitetsmarknaderna. Här har jag en bild idag bara kring marknadsutvecklingen. Den här är från Skatteverket. Det handlar om miljöavdrag, grönt avdrag. And it's just private people. And this is... The time is when it is desired. So you can take it with a pinch of salt and maybe look more at the trends. I have broken out Q1 from 24 and 25 to compare with the current Q1 this year. Where you can see trend-wise, you can see that the charging points are quite stable. Batteries go up and the sun goes down. I think that the sunset is a bit exaggerated, given that we had significantly more snow and ice on the roof in January and February this year than we have had in previous years. So this is still a bit exaggerated. I still think it confirms our feeling about the market that batteries go stronger and the sun goes a little weaker and charging points stable. Some highlights then. During the quarter, we have introduced our first in-depth sustainability guidance. which shows a good progress. We are very proud of the development and the report, so please take a look at it. We have also talked about that we saw a sales increase at the end of last year and it led to a production increase and it made it possible to secure funding. in order to cover this production increase proactively. And it took place in Q1. Then, in the next two pictures, I will talk about TREFAS and ESO. Let's start with TREFAS. We launched it down there at the Elmia fair in the middle of February. It was a great success, I would say. And we have seen a great demand for this product. Det här handlar om en väldigt flexibel backup-lösning där man då kan börja med att utnyttja ett stationärt batteri och sin egen solproduktion för att skapa en viss uthållighet på en, två dagar. Man kan sen komplettera med en dubbelriktad laddare från Faro Ampt som man kan använda sitt elbilsbatteri som backup och då kan man få en till två veckor And the possibility to go and refuel the car in a fast charger where there is electricity. And the third step is that you can connect a diesel generator and drive for a long time. So there is the possibility to use the backup functionality in different steps. And it is quite unique, but what really stands out and that customers and installers appreciate is that there is a soil solution in this package. Usually, when you buy a backup solution, you have to maintain your own soil and this costs somewhere Mellan 20 och 80.000 att gräva ner jord. Och bor du då på en stenig mark, kanske på en kulle, så kan du inte hitta jord alls. Så då kan du inte ens ha en backup-lösning. Men med den här lösningen så har vi en elektronisk övervakning. Så att det är väldigt enkel att installera. Och den är inkluderad också. Så det är ingen merkostnad för jordtag. Det är den här stora grejen. Vi har också lanserat en ny produkt. Vi introducerade den förra veckan och började skeppa den här nu i mitten av maj den här månaden. Den här är vi väldigt stolta över. Den är billigare, den är enklare för kunder att använda och den är enklare att installera. So this is a relatively large thing that comes in good timing when batteries have a larger demand than usual. So this is our battery control hardware. I will mention a little about the short development in our new cell channels. I have commented on them earlier. I said in February that we would see an upheaval in Ära and Älvi, and we have seen it. It was a little late, but we still saw it. And I said that we would start the sale of Vattenfall in Q2, but it was previously laid until March. So yes, some delay from Ära, some earlier from Vattenfall. And we see a clear increase. And I also said in February that the big volume effects will come in Q2. And we see that too. I'll get back to that later. Some financial highlights. Looking at the reverse, before I think it's pretty exciting. Q1 is a slightly weaker quarter for us in general. We see that our existing old cell channels have increased compared to previous years. And the new ones we just talked about have grown compared to previous quarters. Vi ser att både det gamla växer och det nya kommer till utifrån Q1-nivåerna. Jag tycker att det är lovande. Jag skrev också i rapporten att vi hade redan i slutet på april ett ordervärde, alltså beställningar fakturerat och order inne. For Q2, which was larger than the entire Q1. So in the end, Q2 had surpassed Q1's turnover. So it feels stable in Q2. The gross margin is unfortunately still not satisfactory. We know what to do and we are working on it. And just to repeat what it is, one is the product mix. It's about the fact that right now there is a high demand for batteries. So it's battery purchasable for customers who already have solar energy. Then we also still have storage out at our distributors, which will end during the year. So these two The factors make the product mix more for batteries and there we have a lower margin. So the product mix is an important part. The other part is that we will get cost-optimized products to give a better margin. The price of ESO 15 gives us a clear margin strengthening. These are the things we will work with in the future. We have a plan and we will get up in margin in the future. EBITDA, minus 9 for the quarter. A small improvement from last year. When you look at the graph, you first think of the deterioration of Q4. It is not as dramatic as it looks. It is mainly due to lower sales and gross margin. And then less active work. So I would say that there is less drama in those figures. We see that positive EBITDA requires increased sales and gross margin. At the same time as we keep the cost level. And we have said that our goal is to reach a positive EBITDA at the monthly level during the coming years. And we hold on to that goal. The cash flow. Here it is a little more complicated to explain than usual. Most of it is teaching effects. But I'll give you a short explanation. We had Fortunately, we saw a big increase in sales. We had to start production and increase it. And then we were proactive and got funding through SEB and Almi. When we then went over to a factoring solution from SEB, this led to some technical effects on 15 million, as you can see. It can be seen in the customer feedings, respectively in the factoring debts. In addition, we have on top of the operating cash flow, there are also 16 million input effects. It's about customer feedings, a little advance that we have put in from new manufacturers. And then we also have a advance to Our battery supplier. So it's the three big positions that are the one-off effects on the operational. Summa summarum 31 million is affecting and this will be reversed in the cash flow in Q2. I can also point out that if you look at the entire cash flow statement, the check credit is not included in the liquid funds, so it is unused. Here I just repeat that we keep our focus on increasing sales, increasing gross margin and keeping costs. So we keep the focus here and our development work is also identical. We stick to it. It's about integrating us with our larger partners to create more value for our partners and their customers. We develop the support and optimization services we have. And then we continue to work with next generation cost-optimized products. Now we have launched ESO 15. That was one clear sign. There will be more products in the future. So we continue to work with them. And we go to grid. Vi tror att någonting kommer att hända under det här året. Det kommer att börja lossna och vi tror att under nästa år, kanske mitten av nästa år, så kommer det här att bli en attraktiv affär. Så att vi ska vara förberedda tills det inträffar.

Ja, då tänkte jag stanna där utanför frågor.

Japp. Yes, there have been a lot of questions and I think we'll start at the end with some sales related questions. Yes. And then we start with a question here about Ara and Elvi. Can you develop what specifically slowed down the growth of Ara and Elvi during the Q1? Was it customer demand, installation capacity or other bottlenecks in the supply chain?