Freemelt Holding AB (publ)

today's presentation with Freemelt. With us presenting today, we have the CEO, Donald G. Lund, CFO, Martin Granlund, and Regional Manager, EMEA, Victor Valk, presenting. If you have any questions, please hit the form located to the right, and we'll take that up during the Q&A. And with that said, please go ahead with your presentation.

Thank you. Okay, today's agenda is mainly about the RQ4 result, but also the closure of 2024. And as we always add a specific topic during these webcasts to zoom in on, today we have actually added two. It's defense and also then region EMEA. So please raise any questions through the chat during the presentation, and we'll try to answer them during the end of the webcast as well. So welcome to all. This information may be a bit of a repetition for some of you, but as we gladly have thousands of new shareholders since the beginning of 2025, I want to just make a brief, let's say, recap on who we are, but also what we do. So at Freemelt we develop metal 3D printers and of course we try to develop and work within areas where additive manufacturing adds value. So when it comes to the Freemelt technology this is really in areas where the demand of high complex and high performance materials and applications are needed and this is typically seen like in defense in energy and also in medtech. Our technology is not really, let's say, limited to any kind of materials, but also here we have tried to focus on materials that really make sense and add value for those applications. So we mainly work with tungsten. Tungsten can be used pretty much in all three of the applications, defense, energy and medtech. We work with titanium, which is mainly within Medtech for orthopedic implants, and then copper, which actually can be used both in energy and defense. How FREEMA differentiates within 3D printing? I mean, 3D printing has been pretty much up for 40 years. It's a lot of different kinds of suppliers. We are in something called an electron beam powder bed fusion, which represents roughly 10% of powder bed fusion manufacturing. The remaining 90% is laser. But we have a unique system to any other system in the market. We have modular printers. And the main reason for this is really to reduce the cycle times in production. So really get up productivity, which means that you can reduce your cost per parts manufacturer, which is absolutely critical when you talk about serial production. Our go-to market is both through the academia side. And the reason for this is that it's still a lot to educate the market about the values of additive manufacturing. And here we try to first use the universities and research institutes to develop new material processes, but also new applications for the industry. But also to bring PhD students that have been at the universities, that have really been taught about additive manufacturing and free manufacturing technology. And when they then go out to the industry, they keep this in mind and bring that value to the industry. And then the other segment that we work directly with from, I would say, last year is the industrial side as well. And here, a few of the agreements that we made last year is with Saab Dynamics in defense. And then we also had two major achievements end of last year, which is in the orthopedic implant side. We had three different kind of offerings of machines, as you can see on the left side. One open source research machine called Freeman One, and then E-Melt is our industrial concept for Sierra production. Despite that we only, let's say we are in the eighth year now, we are number two in the world in this specific segment after GE, which is number one. And we have so far sold 31 machines. If we then quickly look into those industries that we mainly invest our time and engagement with customers, the first one is defense. And I think I don't need to dwell too much about the focus that is in defense at the moment. I mean, I think actually these numbers that you see on the slide here, must be revisited. I think the most probability growth will be even higher, especially if you look into Europe that just recently made a decision to ramp up the investment defense substantially in Europe. We are exposed, as you can see as well, to different kind of defense companies. You know, as we are a public company, I can only, of course, share what we have shared publicly. But these are a few that at least has been okay to share names. So it's both with research institutes working with defense industry and, as you can see, some industrial names as well. If we go then to energy, same kind of thing here as well. I mean, really, because of the geopolitical situation we are facing now, energy and let's say to become more independent on energy sources has been really ramping up the increase of focus here as well. One of the areas that we are heavily exposed to, and I would say that we have an extremely good position, is infusion energy. And here you can also see a couple of names and companies and institutes that we are working together with when it comes to fusion. And UKAA is someone that we have been working on for pretty much a year and a half in different projects, but also now we sold an industrial machine to as well. And then last and definitely not least, Medtech. And this is mainly when it comes to orthopedic implants. This is the industry so far with highest adoption to seroproduction with additive manufacturing. Having that said, only 5% of the world's orthopedic implants are produced through additive manufacturing. The industry claims that it will be more than 20% by 2032. So it's a huge increase expected from an AM perspective in the medtech side as well in the next couple of years. So, let's then zoom in on our first focus area in this webcast, so defense. And again, where we have seen a huge increase in interest only during, I would say, the past 12 months as well. And I personally must say that, you know, during my two and a half years at Riemann, I've never seen an application where AEM can bring such a high value as well as it can for defense and I will try to explain how as well. So first of all when you hear the name additive manufacturing I mean this is a process where you add powder layer by layer And the powder, just to give you an understanding, I mean, the powder is a size like a strand of hair, which then you melt layer by layer. So at Freemelt, we have an electron beam technology, as I said, and one of the key benefits here is speed. So what you see on the upper right side here, the green dots, you might think that it's a lot of lasers that are pointing. But actually, this is one electron beam moving four kilometers per second. So extremely fast. It actually melts roughly 3000 spots per second. And what we also have, we have a high temperature process, which makes the material properties higher. become the best. And it's also in vacuum. So this makes it possible to actually manufacturing parts in new type of materials and get the highest material properties, which actually is not possible with traditional manufacturing technology like casting. And if you take tungsten now that is in such a focus, especially in defense and energy, Here, which has the highest melting point, it's actually not possible to cause because the mold will actually melt them. So here additive manufacturing really brings a different level of value as well. But let's then come back to defense. So, I mean, as all of you know, I mean, defense is highly sensitive application. And this is where, especially in this geopolitical situation, you really want to be in control of the entire process, from the material to the final part. And if we go, you know, back... you know, a few years when we didn't have this geopolitical situation. Actually, a lot of the components, even in defense, were actually manufactured abroad. So we had outsourced that manufacturing. And this is why now the defense industry really quickly wants to take back the full control and manufacture all parts locally where the part will be used or needed. And the good thing here with a 3D printer is that it's a digital process. You can even place it in the battlefield as well if that's where the parts are needed. The other great value with additive manufacturing is that this is, as I said, a fully digital process. So this means that you don't have any kind of design limitations, which means that you can design and you can manufacture the end functional part in one process. And I mean, the time to market to really ramp up volumes quickly, which is also extremely important now. And as I said before, Europe is now quickly trying to ramp up volumes. And this is really where additive manufacturing can add another level of value as well. So in a really efficient time, first develop the prototype and then ramp up in serial production, it's definitely something that where AM brings a huge value to the process. And I think also, I mean, all of us have seen that, for instance, if you take the ongoing war now in Ukraine, then it's also a new type of weapons that are being used, such as drones, hypersonic missiles, for instance, And some of these applications require really high material quality to manage the extreme temperatures that are generated in it, for instance, high speeds, for instance. And this is where materials like tungsten have been a very high demand and interest recently. And as I said before, here at Freeman, we have a very strong position in how to manufacture tungsten with full density and crack-free as well. So I hope this gives you a better understanding of the value that AM and Freeman's technology brings to the defence industry. And on the next slide here, I think You can see a few more examples. This is from one of the big US defense companies. They bring up, for instance, when it comes to creating new parts, again, it's a digital process. And the time, as I said, from prototyping to serial production, it's pretty much seamless, which then reduces the time, but also the cost for the client. But you can also improve all parts. And I think here, if you zoom in on the middle part of the slide, again, tungsten. So by using new materials, such as tungsten in this case, and printing tungsten. So in some cases, you can actually manufacture tungsten by high pressure, but then you cannot get the full density and then the crack-free part, which means that you don't get the properties you can get with additive manufacturing. And then lastly, one of the greatest benefits with AM is that you can build the functional part in one process. So instead of like traditional manufacturing where you're manufacturing different parts and then you weld them together to get the functional part, Here you can do it in one process, so again, from prototype to Tessera production, much more efficient, but also the product becomes much more stronger as well than having different kind of welding points. So with that said, I would like to hand over to Victor.

Thank you, Daniel. So thanks for having me here. I started with Female just over a year ago, last year, February. And prior to that, I've been with another Swedish company, Sandvik, for about 10 years, where I had different positions in their mining and rock technology business. So over the last year, I've been mostly focusing on getting a structured approach in sales for the EMEA region to generate volume of both prospects and leads. And I believe that currently we're starting to see the effects of that, where we have a really good-looking solid sales funnel for the coming quarters, both at the end of the sales funnel, but also still at the start where we're filling them up. We're seeing good engagement both within industry as with research. So with industry, we have engagement with all of the focus industries like implants, defense, and energy. I'll actually get back to that in the next slide. But with defense, next week will be at the European Additive Manufacturing Military Symposium, where you basically get people from industry as different defense organizations across Europe who focus mostly on additive manufacturing. So it will be a really good opportunity to meet the industry. And we had great discussions. progress as well with energy last quarters with both studies and feasibility and actual machine sales to UK. At the same time, we have a lot of activities ongoing research. So we are working on several tenders to actually get more machines out there to that part of the business. So one of the things we do is we keep track of how our industrial customers are proceeding towards industrialization. And we have identified different steps towards industrialization, where we start at material qualification studies, then application testing, prototype printing, and from there actually checking production scalability before we see it actually being ramped up in the industrial use. And over the last months, we have also seen a lot of progress of our customer base moving from initial material qualification studies closer to production scalability testing. So with UKAA, a couple of years ago, we started with a material qualification of tungsten for fusion energy plants. And last year, we started the second study with them. And this year, in the first quarter, We got an order for a qualification study with them to actually check production scalability and also qualify the parts to be used in the new energy plants. At the same time, we've seen that they also have decided to invest in the machine themselves so that they can continue to do this in-house with our support. Also, we see that new companies are coming in when it comes to fusion energy. So we started with material qualification, the first study together with Oxford Sigma, another company from the UK. Last year, we also successfully finalized a material qualification study with Saab. And this year, we started working on an application testing study with them as well, which we will also conclude during the first half of this year. We also have good traction with the implant industry, which Daniel already mentioned, they are most ahead when it comes to industrial use of 3D printing. So we have two projects ongoing with two major OEMs of implants and we are continuing to work with them and we expect to see the first results during this year. As we proceed, we'll continue to track the different studies that we start and also see how they move up in this path from material qualification all the way to industrialization. Just to highlight, there's only a couple of companies listed here. Last year, since the start of 2024 in EMEA, we have started with 23 of these studies in all different industries that we work with. So I think I would like to pass the floor now to Martin, Daniel. Thanks, Victor.