Freemelt Holding AB (publ)

Hello and welcome to today's Finwire broadcast presentation with Freemelt. After the presentation, there will be a question and answer session. So if you have any questions, you can submit them using the form on the right. With that said, I'll hand the floor to you, Daniel and Martin. Please go ahead.

Thank you and welcome everyone to our Q4 and full year 2025 webcast. Let me start by summarizing Q4 and the full year 2025 and then just say a few words of how we see the year ahead as well. So 2025 was a record year for Fremont. We delivered 54.5 million in net sales, which is up 172% year over year. We have also expanded our installed base by 40% and we have now 40 machines in operation. In Q4, we posted 15.6 million in revenue, which is an increase by 91% versus last year. On the order intake, it was softer than previous quarters, but it also reflects longer decision cycles, so not a slowdown in interest. The activity levels and customer engagement remain high. We started 12 new paid customer products during the year and ended the year with nine active products. So the underlying commercial performance remains strong. Operationally, we took an important step by outsourcing production to Skunfield. This gives us a scalable supply chain aligned with future increased demand. so looking forward the outlook is strong we enter 2026 with a mature pipeline more industrial relationships and the supply chain ready to support share production customers so the macro trend in metal am and especially high performance materials are accelerating and epbf is positioned exactly where the demand is going fast So with our strategic moves now in fusion, medtech, energy and China, we have put the company in a much stronger position to convert project activity into long term industrial business. So all in all, I'm very pleased with 2025. And I'm excited as well about Fremont now moving into 2026 with a good momentum, with a technology platform aligned where the market is heading. So we expect continued commercial progress, continued industrial traction and continued shift toward larger, more strategic opportunities. Let me put the broader market into perspective. The metal AM market is large, it's growing quickly and importantly, it's still early in its industrial adoption. Today, metal AM represent only a small share of total high value metal production. But the adoption curve is deepening as more companies transition from traditional processes to additive manufacturing. And I think a great example is Apple, which has already shifted its watch casing to AM using laser powder bed fusion. And this is a major validation of powder bed fusion as a scalable industrial technology. And this is exactly the type of shift we expect to see across multiple industries. Within Power BI Fusion, laser is currently the dominated technology, roughly 90%, I would say, which means that in ePBF it's having 10%. But I think the important part is that ePBF now is positioned to grow significantly faster because it enables applications that laser cannot address, like refractory methods, reactive materials and high temperature components, all of which are increasingly important in energy, defense, aerospace and advanced medtech. So one, today's adoption is still coming from relatively low levels, the direction is clear, the market is moving, large players are committing to AM, and the highest value segments are leaning toward exactly the areas where Fremont is strongest. So in short, the opportunity is big, the transition is underway, and Fremont is positioned in the part of the market, which is expanding fast. So before we move on, I want to zoom in on what our customer products really represent, because for us, they're not only short-term revenue, which of course also is positive, but they are actually signals, signals that the market is shifting, that industrial customers are leaning in, and that ePBF is becoming a part of the solutions for the most demanding applications in metals. And what we see here is the early phase of a much larger transition These products you see on the screen here, I mean, with Fusion for Energy, UKAA, with Saab, and leading Matic OEMs, they're all examples of companies that are preparing for something bigger. I mean, where AM is not just like a niche capability, but the core part of critical components, how they should be designed, how they should be qualified, and in the end produced. So I think it's important to remember as well that the adoption of additive manufacturing is different for those different industries. Let's start with Medtech. I mean, they have already adopted to additive manufacturing and even powder bed fusion as well. but it's a regulatory industry they which means it's it's a high entry barrier as well but where the reward is is big in a relatively short to medium term because a medtech oem they will invest for production line which means multiple machines not single machine purchases if we then take defense for instance i mean here money is not an issue i mean funding is available but the industry require redesign of products, really to design for additive manufacturing, requalification. And this takes longer time before the larger volumes will be demanded. So the big reward is more on the medium to long term. And then lastly, if you take fusion energy, for instance, Here it's in its design phase and here we actually have a good possibility to influence on manufacturing technology towards EPVF. So here I would say relatively big reward in short to medium period of time. In 2025, as I mentioned, I mean, we added 12 new paid projects and when we closed the year, we had nine active projects and it's important to to keep in mind that these are funded application driven projects so where customers are moving through the full industrialization workflow as you as you can see here on the screen as well so these products are strong forward indicators of machine demand each one moves a customer closer to locking in epbf as their platform So for us, I mean, paid products, as I said, they are leading signals. They show commitment. They validate the readiness of our technology. And it's really important. They build a pipeline for long term industrial customers. So just a short update on on those projects that you see on the screen as well. So fusion for energy, I mean, these are tungsten tiles for plasma phase involved for fusion reactors. I mean, we're making really strong and good progress here and have a really good relationship and collaboration with fusion for energy. Saab, here it's two projects, different stages, one in qualification and then the other one in application testing. Both are progressing well and according to plan. And then the MedTech OEMs, which is in more the proof of concept, also in good progress and to be continued during 2026. Now, given everything we just walked through, I mean, the acceleration in meta layer market, the shift we're seeing from major players like Apple, and the clear industrial traction reflected now in paid customer projects, we've reached an important conclusion during 2025, and that's to scale with the market. Fremont must scale now as an industrial company as well. And this is why we made a strategic decision to outsource the manufacturing of our machine assembly to Skamfilm. So, I mean, if we... talk about the industrial customers, they want a partner who can support them, not just in the technology development, but in a consistent high volume manufacturing way as well. And this is exactly what Scunfield can provide. So now we have access to an industrial production platform, even with a global reach as well, and established quality systems, so with the ability to scale up capacity when the demand increases. It also actually reduces our capital need, lowers our operational risk, and it gives us a supply chain that can keep the pace with the transition we see unfolding in the market. So this decision is directly connected to the trends we saw on slide three and four. The market is moving faster, larger players adopting to AM, and EPF is positioned for above market growth. And during Q4, we managed to transfer the production to Scanfil, which was a key milestone for the quarter. Let's turn to China, because if we talk about where Metal AM is scaling the facets right now, This is the market you simply cannot ignore. I mean, China is moving extremely quickly in general, I would say, for additive manufacturing and especially in sectors where high performance metal matters. So for a company like Fremont operating in EPBF and where end applications are highly demanding, being present in China, I mean, it's not nice to have this is essential for us. But entering China, I mean, in the right way is even more important. And that's why our partnership with ULE stands out. I mean, ULE is not the quality typical OEM reseller or equipment reseller. I mean, they're a large public holistic engineering company with a global footprint and deep expertise in high quality metal applications. And particularly in the energy sector, which is one of the strongest long-term fits for UPVF as well. So this is not a transactional distribution setup. It's a strategic partnership with a partner who understands both materials and industrial requirements that we are targeting. So this partnership positions Fremont inside the fastest growing additive manufacturing market in the world with a company that already has the customer relationship. and the application knowledge and the industrial credibility needed to scale ePBF into real production. So delivering our first industrial machine e-melt to EULE in Q4, that's the first step in this strategic journey. And before I hand over to Martin for the financials, I want to briefly zoom in on Fusion because this is also an era where Fremont has built a strong position over the past years and where we continue to see a very solid traction. We are already deeply embedded, I would say, in the European fusion ecosystem through our work with ITER via Fusion for Energy and our long-standing collaboration with UKAA, so the UK Atomic Energy Authorities. And these are some of the world's most advanced programs in high-temperature metal applications. And EPVF is proving to be a very strong fit for these type of refractory metals and component design that fusion requires. So now, I mean, we're taking an important next step. We have entered an intended partnership with Novartron Fusion Group, which is the only private fusion initiative in the Nordic region. And what's significant here is not just the collaboration itself, but how we intend to work together. I mean, this is not the single product relationship. This is a strategic partnership where we combine our strength from early stages component design all the way toward building a broader Nordic ecosystem around fusion. So for Freeman, this means two things. I mean, first of all, we continue to validate ePBF in one of the most demanding application areas. Secondly, we position ourselves right in the center of what could become a key reader and cluster for fusion technologies. So I think the message on this slide is real, that fusion is moving, the demand for advanced materials is rising, and ePBF is well positioned. And together with Novartorna, we have a partner to drive development forward here in the Nordics as well. So with that said, I want to hand over to our CFO, who will take you through the financials for the quarter and the full year. Please, Martin.

Thank you, Daniel. So the fourth quarter was characterized by strong sales, modest order intake and good cost control, I would say. And if we start to look at the on the left side, on the order book, we ended the year with an order book of 11.5 million SEK. This is down 7% from the same quarter the previous year. The order intake in the quarter was modest, like we said, less than 1 million SEK. This is coming from a much higher order intake in the second and third quarters of 20 and 23 million SEK each. But as Daniel alluded to in the beginning, there are uh the ordering takeover quarters does vary there are prolonged customer dialogues and and there are sort of um that's the background to to to to to the temporary dip If we then turn to the right side, we look at the net sales. In the quarter, we booked 15.6 million SEC, which is up 91% from the same quarter previous year. This includes two machine sales, but we actually had three deliveries, but one of those machines is a rental machine standing with a customer, but two machine sales booked. 82% is from machine sales, 10% is aftermarket. We expect this over the longer term to grow, of course, as part of overall sales. And the projects were 8% of net sales in the quarter. Full year, Daniel already mentioned, 54.5 million SEK. This is an all time high ever for the company. The second best year was 2022, which was 37 million SEK. So quite a jump. We also want to highlight the jump in other operating income in the quarter. So we have as we have outsourced production to the supplier Skånefjell we have sold production inventory to them for 4.6 million SEK and you will see those bookings under other income and other operating expenses and these were done without the margin so same amounts on both lines They will also be looking to the first quarter. There will be more inventory sales to our production partners Canfield in the first quarter with the same sort of terms. But we'll come back to that when we report for the first quarter. so on the next slide we look at the cash flow for the quarter operating cash flow a negative 6.9 million sec this is 23 percent better than the same period last year it's down from the previous quarter where we had a break-even result for the operating cash flow Cash That Bank quarter end 32.1 million SEK. And what we also want to highlight is that after quarter end, we have managed to receive debt financing from Almi. But also from one of the leading Nordic banks where there is additional debt and guarantee financing from a bank. And this is the first time in Fremont's history where we have received this kind of financing. So that's good news. then finally i want to talk about the warrant again as we did the last quarter so um looking at our financing strategy going forward i just mentioned the debt financing that we now have in place but the listed warrant is of course an important part of the funding strategy going forward So as you probably remember, in the rights issue beginning of 2025, there was also a warrant as part of the package, and this warrant expires in June this year. Holders of the warrant will be able to purchase shares at the market discount. So the structure of the warrant is very favorable for the holders. So I just want to really underline the importance of taking action. to subscribe or taking action to sell the warrants, if that's the case, so that they don't end up worthless in people's portfolios. I'll stop there and then take it to the Q&A session. Thank you very much.