Maven Wireless Sweden AB (Publ)

Hi, and welcome to this live broadcast of the Maven Wireless Q2 report. For those of you who don't know me, my name is Hugo Lysjö. I work as an analyst and follow Maven Wireless. But with us to tell you about the development during Q2, we have the CEO and co-founder Fredrik Ekström. Welcome, Fredrik. Thank you, Hugo. Fredrik, you will start with an overview of the quarter, and then we will conclude with some questions. With that, I hand over the picture and words to you, Fredrik.

Thank you very much. I'm going to start by to give an introduction to Maven Wireless for those of you who don't know us very well, and then come in on quarter two figures and talk a little about what is happening on the market and what is happening for Maven Wireless and our investments. So first and foremost, Maven Wireless, we are a product company. We develop and sell products for indoor and tunnel coverage. For mobile telephony, all standards, everything from 2G up to 5G. But we also have a parallel product structure for what I usually call blue light radio. That is, radio systems for police, fire and rescue services. Vi har också en del specialprodukter för täckning på tåg och fartyg, alltså sådant som rör på sig. We created this company in 2016 with the ambition to develop world-leading products, the best digitalized, more software-based products on the market and take market share and grow to become the largest company on the market. And that is the journey we are on right now. We have started with eating our way into Europe. We have established ourselves in the Middle East, out in Asia. And the latest investment is a daughter company in America with a local office in Los Angeles. We are now building another organization to enter the North American market, which is actually the largest shareholder market in the world. In principle, we find a third of the global market in North America. It is basically Canada, USA and Mexico, where the USA is the absolute largest shareholder, of course. The entire world market in 2023, the so-called day market for indoor and tunnel coverage, was 10 billion US dollars. With our products, we can address about a third of it. It is Mayweather Wireless, part of the addressable market. As I mentioned, we develop cellular systems 2G to 5G. We make these blue light radio systems, products for trains and vehicles. We also have in our products, all our products are then broadband, we cover the full bandwidth. This means that in the same products we can then regenerate the spectrum of all operators, so we cover the full bandwidth. With 5G, for example, we cover the entire C-band, so all operators get coverage through the same product. What we have also done here with our 5G products is that we can cover what is called private 5G networks. The spectrum that is allocated in different countries for private actors to run local networks in their offices, in their factories. This means that you can install a Maven Wireless product to get public 5G at the same time as your own private 5G network. That is also important. Here we see the overarching palette of our product portfolios. We have a simpler system called repeaters. It is units that are standalone. You pick up a radio signal from the macro network outside, leads into this repeater, filters, amplifies and sends in radio coverage inside the house in inside-house antennas. And one desk can cover a smaller office, a smaller place than a business building and so on. There we also find these train repeaters that sit one unit per car typically. Then we have the fiber feeders where you can connect hundreds, even thousands of such radio remote units in a fiber network. As I mentioned earlier, we have digitized this. So it's digital fiber links, high-speed links that connect up to a central unit that you see down to the right in the picture, a central master unit where radio signals are connected from the different operators. Already there we digitize all these operator signals in this master unit. Then we can distribute these digital coverage signals Simply on these high-speed fiber networks. Out in the coverage area. We can route them in different ways flexibly. Out in this airport, out in the gallery, out in the tunnel system or wherever it may be. Here we have a palette of some projects we have done in the near future. Here we see typical projects, tunnel projects, road tunnels, train tunnels, here also tunnel system. We also see some pictures of different types of trains, where we have these train repeaters. We also have some new interesting verticals on this picture, including the mining industry, where we sell with partners who then install for mining. Among other things here in Sweden, we have LKAB Sweden, where we work with a Swedish partner. It is actually Saab that has a division that installs technology in mines. where we then install our equipment for radio coverage in the Kiruna mine, which is a very interesting project where you then move the entire Kiruna city to further prospect in the mine. Cool project, really. Then we also see a data center where we continue now, where we are certified to be installed in Microsoft Data Center. And there we continue. It is like a crane that we have opened. Microsoft has over 200 data centers. We have probably done almost 10% of them. So that journey continues and we are now also looking at other types of data centers. The hospital area continues as well. We have brought home more orders for hospital coverage where we have a unique product where we can actually mix both public and mobile telephony together with this blue light radio, Rakel as it is called in Sweden. Combine it in a unique product that does not take up so much space and that is important at the hospital. Here you need all the space for your own business. Here we can offer a product for both mobile phone and rescue service. And that's the key here in the vertical. Nimbus. I have talked about it before. It is our new strategic product for 5G high-speed indoor heating. This is what it looks like. We started this launch last quarter. This launch continues. Here we have variants so that we can address the entire world market for 5G indoor heating. It is primarily this C-band that exists in principle in the whole world in a few different versions. We can of course also build in these older technologies such as 4G, for example. But what we can do in this, we can then build what is called 4x4 MIMO 5G coverage. That is, overlay the 5G signals four times to maximize the bandwidth for each operator. And that makes us unique. I will also say what has happened here during the quarter is that we have received a very good reception of this product. Customers discover that it is unique, it is superior in many ways. We have received two first test orders, I should say, from India and from Switzerland on this product. So that's a good sign that we have done the right thing. I will return to Nimbus, but first I want to show this picture. Ericsson released its Mobility Report here during the month of June. Here is an excerpt from it. Here we see these red stacks, which represent data amounts quarter by quarter on the market. Here we see data from 2017 to 2024, quarter one. Here we see a huge increase. If we go back even further, even more historically, there will be very small stacks. And then we will think that it was even further back when we started building 4G. And that is what is still going on in many countries. Now we get 5G on the macro network. 5G is going to start being built indoors with Nimbus type of systems. And this is the problem that needs to be solved. This is an enormous amount of data consumption that we have here and now. And that's not enough to just operate 4G networks. You can't meet this amount of data. We have a great need for 5G out in the countries. And Nimbus is the solution for indoor coverage. Here it gets a little more technical. What I want to say with this picture is that the Nimbus product is optimal for meeting this amount of data. It is unique, no one can distribute as much data as this product. If you look down to the left, you can see different impressions. This is how the radio modulates the radio channel. And if you have a good radio channel, you can have a higher type of modulation, as we see here. To the left, a low type of modulation. To the right, a very high 10-24 QAM. That's where we have the Nimbus. And if you look at competing systems, they are roughly in the middle of this scale. And what is missing in such a modeling degree? It has a direct bearing on the data speed. which you see above, so if you are in the middle, you are theoretically at a maximum of 877 megabytes. And where we are with Nimbus, we have almost double the amount of data transfer in the air. Unique. We have also built in, we continue to dominate fiber, data speed over fiber. We have three times the data speed over fiber, so we don't limit the amount of data in the air, so we have a limiting part of the fiber network. Also unique. The third important aspect is what I'm talking about. 4x4 MIMO for 5G. To be able to build it built-in in the same unit is also unique. And that's what we've also received feedback from the market. This is an optimal product to be able to do in one product. That's what we get very good feedback on. That's how we're going to get into the market. This product is again optimized for indoor 5G coverage, offices of course, airports, galleries, we have resorts, casinos, hotels. But we also do design together with customers here and now, where we combine our products for tunnel coverage, our Stratus product family. where we have it in many places in trains and road tunnels together with the Nimbus in the railways for platform coverage. And it is actually on the platforms in the railways that most data is consumed. When you step on the train and the train goes into the tunnels, then it is a maximum consumption of those who get space on the train. But on the platforms where you stand and wait, there can be people who are going on several trains, that is, much more people than maximum capacity in a train. Therefore, you need more capacity on platforms in the tunnels. So a perfect combination, our Stratos high-effect for tunnel coverage, Nimbus for platforms in the tunnels. Okay, that was the introduction. We are going to look at the figures that we have done during quarter two. We see here on the left, here we have revenue of approximately 53 million, isolated under Q2. We also see a gross margin of 41 percent units. And as I always say about these figures, you should not stare blindly exactly at that quarter. On both figures, actually, because the gross margin, we always have effects on certain quarters, it shoots something over these 44-45% that we talked about. Last quarter we had 47%, it is now called 41%. We will look at maybe a little more than a quarter. So we are where we are supposed to be. Year to date we are at 44% and that is where we should be. If we look at order intake and order book, we have order intake at 39 million, which is 14% higher than the previous quarter. We have an order book at the end of the quarter of 58 million. What we see on the order side is that some slightly larger projects have slightly a little extra time to make decisions. There are some restrictions on the market, so there are some longer time to make decisions here and now, especially for larger projects. The split on the turnover we have, we see to the left, it's about as we see backwards as well. We start our sales in the north, spread to Europe and then we have two shelves for the Middle East and APAC. So this is roughly as expected. Again, here it is slightly over the quarter, so it is a little better to measure this over several quarters. But this is what the previous quarter looked like. If we look at the EBITDA-EBITDA margin, we have an EBITDA of 2.8 million and a margin of 5%. And here I would also like to specifically mention that we are doing a lot of extraordinary investments here and now. We have a lot of one-off investments, we have a lot of costs we take. We pay off these type approvals for the American products. that we have behind us, which is very good, which opens more doors now on the American market. We have invested quite a lot in Q2 on the Nimbus launch and the construction of demo systems for Nimbus. We build up the entire central rack with Orion's helix units and Nimbus products so that we can easily bring the whole system out to the customer, put them on a tunnel platform, easily pull out Nimbus platforms, run system tests, actually for several days if necessary. Det har vi satsat på här. Det här är en effekt av de satsningar vi gör för att växa vidare in i framtiden. Det är viktiga satsningar vi gör. Highlights during the quarter. There are a lot of business and breakthroughs that I especially want to highlight that we have carried out during the quarter. I want to start by talking about Silvertown Tunnel in London, which we have communicated earlier, but what is the last status is that the picture you see here to the right are our actual units that are installed in the tunnel under Thames in London. Here we connect the operators in the UK, O2, Vodafone, EE. And this is the first cellular project we do in the UK, which is the largest market in Europe. Super important reference for a stepping stone on this market. Very important to get this established. And I am very pleased that this has now happened, that we have this isolated on this share market. Only Great Britain is worth about 490 million euros during this year for today's system. Very important market. Further, if we go a little north, we have done a similar maneuver in Ireland, where we have now sold together with Neutra Host and installed at Dundrum Town Center, the picture on the right. It's 140,000 square meters with our Maven system, and it's a unique system. We have then mixed the old FDD technology for 4G coverage with the slightly more modern TDD technology in the same remoteness, which none of the suppliers who normally have sold in Ireland can do. This has been our breakthrough on this market. This is also now installed and running during the quarter. Also very important to enter this market with three Vodafone and EIR as the main operators. A third breakthrough during the quarter is that we have received our first ever order from Italy. Italy is one of the top five countries in terms of market, tunnel and indoor housing. There are many tunnels, especially in northern Italy. And this is now a system that we have been ordered to deliver to a tunnel in the Bolzano district. It is a train tunnel between Bolzano and Mall. This will be delivered during Q3. Vi har fler offertar på fler tunnelprojekt i den här regionen ute som vi arbetar på. Det är en väldigt intressant marknad, återigen eftersom det finns så mycket tunneltäckning och behov på den här marknaden. Then I want to talk a little more about India as well. We have a strategic investment there, we have a local representation, we have a seller in an office in Delhi. Also, in addition to this Nimbus order that I mentioned, we have taken another order together with a neutral host in India for a 5G system that will then be installed and tested in India. And this Neutral Host Partner that we have here, it's their picture on the right of the Indian map. They have already secured a number of airports and metros, tunnel system. They have 21 airports and if you look at the whole of India, there are 137 public airports. All these airports need to be upgraded with at least upgraded 5G coverage. India is one of the countries in the world that consumes most 5G here and now. So this is a need here and now. So this is a very interesting breakthrough. It is very interesting to get this in place. A test system for 5G to move on to, for example, with this partner, airports and railways. We have the Maven stock here, and I'll leave it for others to comment on. That's it.

Brilliant. Thank you for a good presentation by both Maven and Kvartalet. I still have a few more questions. Let's just think a little more generally on Q2. How do you feel about the development? Are you satisfied with your performance here during Q2?