Freemelt Holding AB (publ)

Welcome to Freemelt's Q2 presentation 2025. With us to present, we have CEO Daniel Gidlund and CFO Martin Granlund. If you have any questions for the company, you can send them in the form to the right. And with that said, I give the word to you, Daniel.

Thank you. Welcome everyone to our Q2 forecast. So as we have received many new shareholders since the start of 2025 and continue to do so, we will just make a brief introduction about Fremont first. So Fremont, we were founded in 2017 by engineers coming from another successful Swedish 3D printing company called Arcam. So what we do, we develop and we sell advanced 3D printers for metal applications. And our ambition is to become a leading supplier in additive manufacturing. Our focus is where additive manufacturing, of course, can add value. And for our technology, and you can actually see on the screen as well, the green dots is what we call electron beam powder bed fusion, an extremely fast melting process. So here, this is not a lot of lasers. This is an electron beam moving four kilometers per second or melting more than 3000 particles. dots per per second so this technology typically is used where you need complex and high performance materials and also components which is typically needed and demanded by the defense industry energy like in in nuclear or fission and also fusion energy and also in medtech application Our technology is not limited to any kind of material, but our focus for the past couple of years has been in tungsten, titanium, and then copper. If you look into Fremont from a design perspective of our printers, we are unique. And why we are unique is that we have a modular printer. And the reason for this, and I think this is also where 3D printing for many has struggled a bit, is really to increase the productivity and really get short cycle times, which means that you get higher availability for producing, which means you get up your productivity and then get the cost done per printed part. Our customers so far has been a lot into research. So typically universities, research institutes. But since we launched our industrial machine mid of last year, we have also now been exposed to industrial clients more and more. The three focus areas and business verticals that we are having is all under substantial growth. If you look into the defense side, and I think the numbers actually is outdated now. I mean, now NATO has increased their budget. The European Union is also rapidly increasing their defense budgets as well. And here you can see a couple of examples of organizations, companies and so forth that we have disclosed. So far, we still have a few undisclosed that we can't mention as well. But just to mention one, Saab is one of the Swedish clients that we have worked with since last year. If we don't zoom in on energy, this is mainly fusion energy where we have a really strong position. This is also an energy source that is rapidly increasing. It's substantial investments happening here as well globally. And we have a very strong position here. And then last but not least, Medtech. So Medtech, and in this context, it's mainly referring to orthopedic implants, which actually is the industry which has the highest adoption rate of serial production through additive manufacturing. And here we have also two global OEMs that we have as clients. So let's zoom in then on Q2, which has been a record quarter regarding sales. So sales for this single quarter is actually in par with the full year 2024. Our ambition is to be a leader in Electron being part of a fusion solutions global, as I mentioned, and China is the fastest growing additive manufacturing market globally. why it of course was a breakthrough in the quarter when we also signed up a partnership with GeoLi to represent Freemant in China, Taiwan and then Hong Kong. And then lastly, the strategic agreement with Scanfil to manufacture our machines moving forward has also enhanced our supply chain scalability while we continue to grow our business globally. So, of course, I'm very happy with the sales numbers for Q2. This is a result of four machines that were delivered during the quarter and installed at customer sites. We also had great order intake in Q2. So we had 20 million SEK in order intake, which represents six new machines and also two paid customer projects. And one of them was a real prestige order from fusion for energy. So within the energy sector. Additive manufacturing is a technology that is being more adopted now for serial production. And the industry that already started this transformation, as I mentioned previously, is Medtech, so orthopedic implants. So here, big volumes of implants are already being produced through additive manufacturing. And therefore, it's a critical milestone also during the quarter when we had a delivery of our industrial machine email to one of the global implant events. So if we look at our total installed base, I must say that, I mean, we have an impressive number of 39 machines now, which means that we are definitely taking clear steps towards our ambition to being a leader in EPVF solutions globally. I think many people have maybe a perception about China as a labor-intensive, low-cost production country. But when it comes to manufacturing, China actually today is becoming one of the most advanced manufacturing countries globally, which means that they can produce really advanced and high-quality product in a very efficient way. Jone Peter Reistadt, Ph.D.: : China is also the fastest growing additive manufacturing market globally and it's also a country which rapidly adopt additive manufacturing procedure production, so this is why China is a key market for female to enter into as well. China is has also a rapidly increasing demand of orthopedic implants. Why the medical business is growing fast and then China has also stated that it wants to become a leader in renewable energy, such as fusion energy as well. All these focus areas and positive areas are actually also key focus areas for Freemant, why it's a great fit for us as well. And usually they are not a typical sales agent with several additive brands in their portfolio. They are an international industrial player with an extensive business success in areas such as energy. So for me, this is one of the most important strategic milestones for Fremont since it starts, actually. Another major milestone for Fremont, which also happened during this quarter, is our strategic agreement with Scunfield. And this is to outsource the manufacturing of our machines. This will substantially improve our production scalability. It will optimize our networking capital, and it will also free up resources to focus more on R&D, aftermarket development, and customer support. So this is also a critical step in our industrialization journey. And the transition of the manufacturing is progressing according to the plan and it shall be transferred prior to end of September. So with that said, I hand over to our CFO Martin.

Thank you, Daniel. If we first zoom in on the order intake order book and the receivables of the company. So in the second quarter, as mentioned, the order intake was 20 million. And in the first half of this year, 42 million. This is a number we started tracking this year and will continue to track going forward. And the order intake is, of course, the orders received in the period. We also track the order book. The order book is what the orders received, which have not yet been invoiced. So they haven't entered the financial books in any way. The order book total at quarter end was 14 million, which is 47% up year on year. Slightly down since the first quarter, but that's an effect of those orders turning into receivables, prepaid income and eventually sales as the deliveries are being finalized. So looking at the sales number for the second quarter, we only book revenues to the sales where we have completed deliveries. So uncompleted deliveries are still in the order book, in the account receivables or as prepaid income. So to summarize, we have a very strong order intake. We have a healthy order book. We have receivables growing very quickly, up to 20 million. And we have record quarterly sales, as we see on the next slide. 19 million is a record. We've never seen anywhere close to these sales numbers in a previous quarter. It contains four machine deliveries, and that's, of course, the majority of the net sales recorded, 86%. We have an aftermarket, which is 13%, but in actual terms, as you can see on the bottom graph, the green line, it ticks up quite a lot. We shouldn't expect this exponential growth going forward, although the aftermarket business will continue to grow as an effect of the installed base increasing. On the gray line on the bottom, we see customer projects and other. It's 1% of net sales. It's a very low number for the quarter, but I don't think it's in any way significant going forward, as we should see these project orders continue to come in and to see an uptick in customer projects going forward as well. Then if we finally look at the operating cash flow. So, Fremelt has a positive network in capital, which is good in the way that we can cover our short-term debts, but we also tie up cash as we grow. One of the things we've done to limit this effect is to outsource our assembly and manufacturing to a third party. This will limit the effect, but it will not completely remove the effect of more capital being tied up as we grow. So in the quarter, we had operating cash flow of minus 14 million. The main contributors are an increase in inventory and an increase in receivables. And all those are of course going to be cash in for the company in the future. So these are cash generating assets, but for the future. What we've done in the graph is to plot the operating cash flow versus the receivables, just to give everyone an idea of the sort of inverse relationship that we see, which is reflective of the growth stage that the company is in. So the negative cash flow has an inverse relationship with the increasing receivables that we see, which will be generating cash in the future. Thank you.