Invisio AB (publ)

Thank you very much and welcome to our earnings update for the third quarter. This is one of the strongest quarters in Visio's history that we are reporting. Our order intake was in excess of 500 million Swedish kronor for the first time in a single quarter, if we exclude the exceptional order we had on third-party radios in the first quarter. And if we look at a 12-month rolling scale, our order intake is now pacing around 1.5 billion Swedish. Also, that is a record. And even our revenues were strong in the quarter, the strongest ever for a third quarter, where we traditionally have a little bit of impact from vacation periods around Europe. Our revenues amounted to 350 million. Other highlights was our OPEX and EBIT margin that remained stable and also that our order book is now very strong and we have a high capacity for speedy delivery of volume orders given our inventory levels. So all in all, we are still very well positioned to take advantage of the opportunities that we see in the dynamic market that we operate in so a few more details on the order intake our demand continues to be strong across our full product portfolio and also in our main geographical markets which are north america and europe it is very pleasing to see the continued success for the products sold under the regular acoustics brand, especially in the US, where we received a large order during the quarter. And as we have said many times before, we anticipate increases in military spending from twenty five and onwards. Very many countries within NATO are announcing and have announced increased spendings that we think will benefit our business as well. We can see that many customers are increasingly opting for solutions that are field proven and ready and that does not need any type of customization. The more than 15 years of, let's say, market experience that we have with our solutions is definitely giving us an advantage from a competitive point of view. Our order book, as I said, is high at a value of almost 870 million Swedish kronor. And we anticipate about 80% of that will be delivered within the coming 12 months. We have a high inventory of standard products to a value of around 300 million. and the strong order book we have together with the inventory level indicate significant future revenues. The inventory level is something we have built over time consistently and we think this is a major competitive advantage for us also in the given climate today both for customers in the US and in Europe that we have inventory levels close to the customers that we can deliver on short notice. Turning to revenue, revenues around 350 million, highest ever for a third quarter. And if we look in comparable currencies, it was 355 million. The revenue year to date was also seeing significant growth. We are at 1 billion, 212 million and a little more than 1 million if we exclude the radio order we received in Q1. So a good development there. And as I said, in the third quarter, we normally have a few weeks where there are some vacation period in Europe that sometimes impact our deliveries. But still, we managed to deliver more than 350 million. Our growth margins are still healthy, a little bit lower in this quarter, mainly because of product mix. We had a little left over regarding the radio systems in Q3, about 10 million with a very low gross margin. And there was also a little bit of product mix in the total here. But this is just the, I would say, normal fluctuations that we sometimes see in quarters, depending on product mix, where we still have certain products of older dates that have a little lower cross margin than the ones we have recently launched. So all good. When we look at our costs, our OPEX, it is a stable trend for the last five quarters. In the second quarter of this year, we had a few one-off costs related to a cyber incident in our company in the UK and also to ESG activities. But apart from that, the trend is stable. Our OPEX was around 145 million, so a little higher than last year. And the majority of the increase is related to people, more people in R&D and sales, which is in full accordance with our growth strategy. So far in 24, more than 40 new colleagues have joined Invisio. And 25% about this are female. And this is in alignment with our ambitions to try to achieve a more equal gender balance like many other tech companies, especially in defense related industries. There is less females than males. And we are trying to balance that over time with our new hirings. EBIT margin is above our target and has been so for the last seven quarters. This quarter we ended at 16.3% and the operating margin for year to date was 17.1%. And cash flow in the quarter was very strong, impacted by sales that we did in the last part of the second quarter and where payments were received in Q3. A bit unusually high, but again related to that we invoice in the late part of the quarter and that our customers pay on time in the following quarter. A few major activities during the quarter. largest US trade show of the year takes place in Washington DC in October every year and this year the attendance was record high more than 45 000 visitors and 750 exhibitors from more than 100 countries and as usual this is a great opportunity for us to showcase our wide portfolio of products, including the newer ones that we have recently launched, including the new Invisio X7 in-ear headset, which we believe over time will be a very important growth driver for Invisio and a great contributor to our order intake and revenues going forward. But also the new control unit that we call V60 ADP all your data and power which is designed to address the demand for digitalization is also a product that creates a lot of attention and interest and trade shows and in addition to that the I would say state-of-the-art and new product line we have across both regular acoustic product lines and individual products like we are well suited with our product line for 2025 and onwards. As you recall, one of the big opportunities for our Rakel branded products are in the U.S. And here during the quarter, we secured an order for 170 million Swedish kronor from the U.S. Department of Defense for two different Rakel headsets, the RA5001 Raptor and the 4000 Magna. which are intended for use in combat vehicles. And this order has come on the backbone of extensive product testing for a long time with the Department of Defense in the US. So we are very pleased that they have chosen our solutions and of course, hope and believe that this will lead to further orders over time. So in summary, It's a little bit boringly put business as usual. We are in an industry where significant investments are coming over the next 10 to 15 years. We expect market activity to remain very strong for many years. The market trends are definitely in our favor. with a significant need for modernization of communication and hearing protection solutions across all of our markets. And we believe that we are well positioned with our product portfolio and our customer base to capitalize on the opportunities presented in this very dynamic market. So this concludes the short summary of Invisio's Q3

report and we are now open for questions please if you wish to ask a question please dial star 5 on your telephone keypad to enter the queue if you wish to withdraw your question please dial star 5 again on your telephone keypad the next question comes from daniel thorson from abg sundal collier please go ahead

Yes, hi, thank you very much Lars. I have a question on the order book here. You mentioned a number, I didn't hear that. Was it 80% of the order book is ready to be delivered within 12 months?