GomSpace Group AB (publ)

Welcome to today's event where we have the pleasure to present GOM Space. Today's topic, the Q4, 24 and of course the full year report. The results fresh from the press this morning will be the subject and of course ending with a Q&A and we already got a lot of questions in. So perfect. I think we will get us very wide around in your business case. So that was today's presentation and answer question. We are joined by CEO Carsten Wachmann. As always, you're very welcome to in the box down below to ask questions. During the presentation, we will take the main part in the end. As we already have gotten a lot in, you can try and see if it's answered in some kind of way already. That would be nice, and that would make a better flow. But for now, I will hand the call over to you, Carsten.

Thank you very much, and welcome back to our Q4 in 2024. results here. And happy Valentine's Day, everybody. It's today. So hope you've done what you needed to do for your family and your closest. We will today talk about... Okay. I can't get the presentation to move, so it should be moving now. Here we go. Perfect. A little bit about investor communication. We'll talk about the journey. You've heard it before, but I'll keep repeating it. It is a journey we're on. Highlights, of course, from the past quarter. A bit on the market guidance that we sent out before Christmas and restated here, repeated. Denmark, Arctic and surveillance. I've seen there are questions and speculations online. What about that? And Gump Space. So I'll talk a bit about that and then a summary. But first, cloud chain communication, my main mottos. Investor communication, a little service here. Remember, we, of course, have quarterly reporting, but we're doing Q1 and Q3 as shortest trading statements. The reason is to get information out faster to you, and we feel the information we give there is quite good guidance. New this year, 2025, is we will be guiding on revenue, EBITDA, and free cash flow. Remember, in 24, we only had guidance. Actually, ever since, back since 23, we guided on free cash flow. So now revenue, EBITDA, and free cash flow is our guidance. Also, remember, I will give immediately release press releases when there's something major that happens that can impact the share price or your valuation of the company. So just remember, I am obliged to do that. Whenever you're looking for information, vice versa, say anything, I'll say something for sure because I have to. And then also other press releases of information that I think it might be helpful for you to know. If you want to follow us with other messages, not everything is suited for a press release, follow us on LinkedIn, on Instagram, Facebook, et cetera, then you'll get an update on what's happening on certain customer projects, releases, launches, et cetera. So remember this. Okay. Remember this one, 2023. We had to create some clarity. We made some major decisions on the turnaround of the company. There was a big reduction of cost. 2024, much more clarity. We're working towards having business units, product business units. It's in place now, and now you'll also see that we can start reporting much more specifically on that. We have a program business that is set up and we have North America. So basically, this is what we have been working towards. It's been working all through 2024. And now also for the market, we are going to report a bit more directly in those two or three business areas so you can follow that. We'll talk about cash later on also. There are some questions on that. But for now, my judgment is can we afford to be patient because some of this stuff takes time? And the answer is yes. And I would also say we're pretty well on the way. We have a more than 25% growth on the top line. That's not bad. Okay. Highlights. Free cash flow in a quarter plus 17 million. That's great. It's actually making us positive for the quarter, but also for the full year. Remember, that's a milestone. I'll get back to that. It's a little bit less than last year where we had 21 million, which actually our first positive free cash flow quarter in a very long time, more than two years. Our cash possession has increased to 82 million from a 61. So we had a good positive increase there. EBIT, and I'll speak slowly because it was a bit complicated to read. I understand that our EBIT for the quarter is minus 21 million against 26 million in Q4. However, sorry, Q4 2023. However, we have made approximately 19 between 19 and 20 million negative adjustment due to two things. warranties in relation to contracts and products and deliveries. Why? Because I feel that this is good business practice. We have a lot more contracts than we've had ever before. There are more demanding requirements. It's normal evolution. So we are now installing a practice of we should actually put some numbers or some figures to the balance sheet. There's no cash involved. It doesn't impact our cash flow, but we put it in our balance sheet. The other one is we're a bit harder on our inventory. We have deemed that items that are not moving, we have strengthened the requirements for how fast an item needs to move or how slow it can move before we take it out. So we also done impairment testing that altogether between 19, 20 million. If you want to compare likes for likes, we did not do that in 2023. So you can argue that our real result was minus 2 million against minus 26 for the quarter. Take it as you like. It's good business practice, I think. And we are trying to do this better into the future as well.

And I guess the question is always here when become one time items become always. And that's why people can sometimes mind that. But there's no indication here. It's a clean up on your On your inventory, which a lot of companies sometimes do, and the warranty will now be progressing as normally. I guess that when you make contracts, you will make a normal standardized warranty claim for that.