Insplorion AB (publ)

Hello and welcome to Kvartalsrapporter, today with InSplorion, whose management, on the link, will present bookings and the latest company events. Those of you who are watching live can, as always, interact with management and ask questions, and you do that in the chat. We will handle the questions after the presentation. With that said, it is high time to greet Johan Rask, CEO and CEO Olof Andersson. Welcome. Hello, how are you?

Good day. Thank you, Karo. My name is Johan Ask. I am the CEO of the company and along with me is Olof Andersson, our Chief Operating Officer.

I would like to conclude with a strategic overview of the income distribution as follows. Please go ahead and take us through the presentation. Thank you very much, Karo.

We will start with some short and comprehensive comments. If we look at the figures, in Q4 we have taken an extra large reduction of the immaterial access due to the planned business. The cost is simply less than what we have booked. If we remove the deductions, the result is actually a little better than in the comparative period before then. At the end of the year, we had a cash bank at a little over 2.5 million, and we calculated that to the end of March. A few things have happened this quarter, and not least after. We started this with an announcement with Mantec, and then a specific application was given to them, which we discussed. Somewhere around here, the company also announced my departure on the end of April 6th, but also that a strategic overview was initiated based on environmental factors and the market and things like that. Then, unfortunately, we were forced to report that RISE stepped out of the market for ATEX certification. So, in the middle of all this, we were forced to change the certification organ. It was unfortunate, but the new organ is very good to work with. It is mostly Olle who manages that part, but we expect to have the product tests done here in March-April, and then follow the examination of the quality management system to get the ATEX certificate up. On the positive side, we also received the official order from the Concilium Safety Group of approximately SEK 700,000. And after the end of the quarter, perhaps the most important event, the Board of Directors announced that a strategic overview has been completed and that we have reached a principal agreement with Mantec to sell the hydrogen sensor business to them for SEK 5.5 million. And a little background here. We are still convinced that the long-term potential is there. It has happened quite a lot in the market, especially in sustainability, during the past year, and it has been developed in a very slow pace. Projects that are delayed, changed, downloaded. Not often do these potential customers wait for us in this case. also on funding in its own. This creates insecurity both on the industrial plan, customers take longer time to decide and think about their plans, and even in the financial context, investors become less willing to risk, of course, you see that the risk increases and therefore less willing to invest. And when we look at this, we see that in order for Inspiron to succeed, we need long-term, stable conditions to realize this business. And it is against the background of all these things that the board has said that the best way forward is a business with Mantec. And Mantec, without going into details, It is a company, especially in fuel management, that handles a lot of different types of fuel, but especially hydrogen, where you have come in. And many times, I have a good password here, it's a good home, they talk many times with the same customers that we talk to, but from their point of view, for hydrogen. If it can be a ship or whatever it is, it should both be forced there, it should be stored, it should be filled up. And all the way up to this, of course, you need to think about the security and leak detection as well, as we stand for. If you look at how this business looks, they actually take over all staff and even premises, which means that the lion's share of all costs in what is today InSplorion will disappear in connection with the fact that the business is closed. Our goal is to do this before the start of March, and we will need to call an extra vote to carry out this. We expect to get it within not too long. The agreement will be in place first. What is left in Sporjan is the instrument business, our legacy, and of course the marketplace at Nasdaq. Since we are still talking about the Instrument Affair, I think that Olle could say a few words about what it consists of.

Yes, exactly. But then I can explain a little about the Instrument Affair, which, as Johan says, is what will remain and will not be included in the income sales. The instrument consists of three parts. One is Sensors, which are consumer goods that those who have bought instruments from us will use in their equipment. Then we have the instrument hardware. where we have a number of different models for different types of applications, depending on what the customers have been interested in looking at. And then, in addition to the hardware instruments, there is also software that manages data collection and presentation of results and such. And what you can remember is that these instruments are finished products. that can be sold as they are, so to speak, does not require any further development. And there are also established distributors on various markets that handle customer contact and such.

Today, a base is installed out there on somewhere around 30-35 instruments. And then we look at the way forward. So it's actually quite straightforward. We need to carry out business with Mantec. We need approval for an extra SEMA, of course. And at the same time with this, realize the value of the instrument portfolio and the marketplace. Primärt tänker vi genom ett omvänt förvärv, där någon kan få både synergi i att bredda sin instrumentportfölj, men också samtidigt detta bli noterat. Exakt hur det är, vad som kan hända där får vi naturligtvis återkomma till, men det är planen helt enkelt. Det var egentligen den korta presentationen som vi tänkte ta, Caro.

Then we're going to open up some questions. Yes, great. We've received a lot of questions and I see that you're writing in the chat. So I was just going to recapitulate here, partly for myself and then if there was any uncertainty here. Turned over acquisition. What business constellation will be listed on the stock market? Do I understand correctly that it is Instrumentaffären that is listed on the stock market?

It's the current Explorium, you could say.

When you presented the result here, if we hadn't done a revision, then the company would have been profitable. And then I take it as if the underlying business showed a positive result.

Did I understand that right? No, it's not that. It's a better result than the previous year.

The timeline is March. At the start of March, we will have an extra vote. I have a question here. How will I, as an shareholder, act in the future? Then I have the instrument business and I wait for the vote. I go to the vote, of course. But you simply wait and then you have to see what happens.

As soon as we have something to present about how the business looks in concrete terms, we will of course do that. And that is something we are working on, of course. But if we have something, we will talk about it.

If you look at the part that is lifted from here, we have a question here. Are transactions with Mantec dependent on Atex certification?

No, not yet. They already have ATEX-certified products and a quality management system that is already verified and audited. Of course, things have to fit together there, but it's a part of everything.

And then when it comes to the cancellation, besides voting, this can be a bit difficult to answer, but I absolutely understand the question. Are there any conditions for the cancellation of Mantec that may be difficult to meet? Or is it now, shall we say, that it is technicalities and formalities that we have in front of us? How much can you answer such a question?

That's a very good question, but what we're doing right now is to come up with some binding agreements. Of course, there are always a lot of paragraphs and things like that, but my personal assessment is that we're going to reach a goal with them, and not too far in the future, quite soon, quite simply. There's nothing there that we're discussing that would be a show-stopper.

I have a question about the instrument business. What can it be worth? If I may rephrase it a bit. If I understood Olof correctly, the instrument business consists of sensors, instruments and software. Hardware is ready-developed products where there are distributors and a distribution. What can it be worth and what should we look at? Should we look at the cash flow or how should we relate to the instrument business? That's a good question.

We have put quite a bit of focus on that over the years. But despite that, it generates nothing special. in the previous years in consumer goods and things like that that come in. The company has a long history on the instrument side, so there is a business there. How much it will be worth is also how much someone is willing to pay. We will investigate that soon, of course.

If I can expose my ignorance and try to create a time perception if we connect this to hardware, what does a time cycle look like from talking about selling a product to selling the product so that you can get any perception?

That is of course a very, very good question. This is a business where you have sold a Porsche instrument Many times academics, but they are dependent on taxes. If they have money, it can take a long time. In such a job, it is important to choose the prospects that are closest to completion, like all sales.

But very varied. Or do you want to? No, I don't have much time. We have talked about it quite a few times. It is a difficulty with that type of sales, that it can take many years. But the nice thing is that it can also show up. It happens from time to time that we get someone to resume contact with us, which we may have started to sell to three or four years ago. So there is a

Exactly, and I don't have exact numbers on that, but the research instrument market is a very large market. There are many companies in there, so there is absolutely no doubt.

I'm thinking a bit like a follow-up question, and it will be a statement that you can of course comment on. But if you think that it is research, then the customer in this case is perhaps more interested in quality What hinders the sales when you've been there is their own foundation. That means that it's a bit of a sticky business and that it's not a business. It doesn't have as much to do with the product as their foundation. That means that there can be pent-up demand, as they say in English. Is that right? Because the world of research is a bit different.

I would like to claim that it is correct. It is a stick in business when you have the instrument. Many times you want to make attempts and get publications and study something new. This is an advanced analysis instrument that you can use to look at phenomena or problems from different perspectives and come up with good research on it.

I have a follow-up question here. When we talk about the Instrument Affair, have you received any interest from the Instrument Affair after you announced the strategic overview? We can add that the Instrument Affair was included in the strategic overview.

The entire company was included in the strategic overview, of course. I don't want to comment on how many interest we have. We didn't think it was an idea to try to sell and make a conversion if we hadn't seen that there was interest.

So you could say that there will probably be more news about the instrument business. If we repeat the timeline, we will have an equity meeting before March. It's a bit of a provocative question, but will there be information about the instrument business in between? Or will it be first, first, then, then?

We are trying to do things in parallel, of course.

Where do you turn if you want to know more? Do you turn to Instrumentaffären?

You can contact me or Olle. Thank you for that.

We have covered the questions we have received and the ones on the web. Thank you for this. Thank you very much. We thank you for watching. If you have more questions, we refer you to our CEO Johan Rask and CEO Olof Andersson. Thank you and goodbye.