Maven Wireless Sweden AB (Publ)

Hello and a warm welcome to today's report interview with Maven Wireless. With us here to tell you more is the company's CEO and co-founder Fredrik Ekström. The presentation will be like this. Fredrik will start by presenting Maven Wireless and a little bit of the development during the first quarter. And then we end with a Q&A session which is led by me. But where you also have the opportunity to use the chat function and chat in questions that you want to ask Fredrik. And with that, I think I have finished talking and hand it over to you, Fredrik, who is the main person and your presentation.

Thank you, Hugo. Always nice to come here and talk about Maven Wireless and what we have had for us during Q1. I'll start a little short with putting ourselves on the map. We are a product company. We develop and sell products for indoor and tunnel coverage for the cellular market, mobile telephony, but also for blue light systems, i.e. for police, fire and rescue services. We sell out over the world, as we see on the map where we are represented. Our main market today is Europe. This is where we started the business, this is where we started the sales. And we sell over 80% here and now. on the European market. This is mainly due to the Middle East and especially Southeast Asia. We have our expansion markets here and now mainly in Australia and North America. We are also looking, of course, at existing regions to grow there as well in the Middle East and Asia into more countries on those markets. Here we have a palette that describes some reference projects. This one also describes verticals. I think this one also describes type projects, so you can understand where our products are used. We can see different types of tunnel projects. There are train tunnels, there are road tunnels. In recent years, we have also started to sell into the railways. I will talk about some news there later in the presentation. We have oil and gas, we have trains, that is, on trains, creating coverage inside the trains, where we also have very good and nice news that we will talk about later in the presentation. We also have a vertical for data centers, where we, as previously announced, are certified for Microsoft Data Center. There is also a sale that goes according to expectations. We invoice and deliver on the vertical. We have also launched a vertical for hospitals, where we are uniquely positioned with our solutions. And when we talk about our solutions, we have complete product families, both for mobile telephony and for blue light radio. And here we see our palette with the families for mobile telephony. The blue-marked products are the products that are the interface to the base stations or the macro network, which also digitalizes the signals to send them further to our radio remotes that are in the coverage area, the yellow units. where we have high-effect products that feed a lot of radio effects out in the tunnels, or the new Nimbus low-effect with built-in antennas for indoor high-speed coverage. We also have these free-standing repeater units, the more green-marked units, train coverage, which is the TOR. We also have free-standing repeaters, which are then installed individually with an antenna outside, take radio signals, filter and reinforce inside-house antennas. It is then the cell product groups. Similar to the blue light radio side with the blue, i.e. the base station interface digitalizer, which then drives the radio remotes in the coverage areas, the yellow ones. Here we also repeat both high-effect and low-effect repeaters for blue light radio. Here is a picture that gives some types of examples for indoor housing coverage. How does it look in smaller and different sizes on projects? If we take the simplest case, where you install one or maybe a few repeaters, then you can imagine that you can cover a building up to 10,000 square meters. It's a small project for us. Eparepitrar. Such a business is typically worth less than half a million kronor. But there are lots of such businesses. A medium project, as we see it, and we have a unique solution with this Cirrus where we can pick up signals from the macro network and build a small DAS network where we cascade these radio remotes. And we sell that in a package like that with a handful of up to 10 radio remotes. And it can be a business per piece for a couple of million kronor. A larger project, a day project, is normally between 5 and 15 million. We see that here. It can be a hotel, hospital, larger galleries and so on. Normally a good bit over 15,000 square meters. There we have that configuration with typical Orion, where you have dedicated base stations on site or a base station hotel where you then build up your day system for that indoor heating. Then we have what we call a megaproject. A megaproject is over 10 million kronor. It is the larger buildings, it can be large stadiums, it can be casinos, it can be airports, it can be tunnel tracks. It is large areas that need to be covered. There you can also imagine that you configure both high-effect and low-effect remotes. In a tunnel track, typically how you think right now is that you use high-effects radio remotes for the connection itself into the tunnel tube, where you shoot out a lot of radio effect in leaking cables. You then use this Fibre 2D antenna, low-effects DAS remote with built-in antennas with very high bandwidth, including 5G, to take care of a lot of capacity. Typically on platforms in a subway, where there are a lot of people, especially in rush traffic. There, more bandwidth is needed than in the tunnel pipe, where there is a full-loaded train car that is the capacity requirement. So, some examples of how we configure, how we meet the requirements from there for indoor heating. If we jump into what we have done during Q1, we have a sales during the quarter of 49 million kronor and a gross margin of 44 percent. We have this 49 million in turnover. We could have done more, but we had a somewhat weak start in delivery from factories. We lacked some critical components. There are a lot of components, and some of them are single source, in our solutions. If something is missing, we can't complete production tests and deliver. We had a situation like that, with some critical components that didn't keep up, that the supplier needed to send back. That's why we had a weak start, especially in January. But we have got up during the second half of Q1, so we have a good pace in the factories now. And we have that with us also in April. This means that we land for Q1 at 49 million. Order intake Q1, 55 million. It's an increase of 18% compared to Q1 last year at 47%. If you look at the whole graph historically, 55 million is the highest value for Q1 ever. The Q1 is traditionally a little weaker than the other quarters in terms of business, where the Q4 is traditionally the strongest. Many orders put more in the Q4, empty out budgets, and then it becomes a slightly weaker start in terms of business. This is how it traditionally looks. So 55 million all time high, 18 percent over previous year. If we then look at the isolated Q1, what have we delivered here? There has been a lot of focus on our core market, Europe. Framförallt på våra två stora ramavtal nere i Europa, i Österrike, Schweiz. Mycket leveranser för stora tunnlar under de här ramavtalen. På topp tre leveranser ligger faktiskt också datacenter. Vi har haft många datacenter som har blivit levererade under Q1. EBITDA. har vi på 2,7 miljoner, vilket motsvarar 5% i marginal. It follows our revenue, which of course is EBITDA. We also continue our expansion investments, which I described briefly at the beginning. Especially on our new expansion markets, North America, Australia, where we have extra investments. We have a weak cash position. And if we look back, we can understand a little bit if we look at the EBITDA graph, where that cash position comes from. We also see the turn here on that graph. We also see a turning point in our cash position that we will strengthen during Q2. We are also doing a couple of different measures to strengthen it. We have started up factoring a little bit now during the month of March. Not so much, we have done in the order of magnitude 5 million in the month of March. We will continue with selected factoring on selected accounts and invoices during quarter two. We also have an extended credit time on selected production invoices. We will use this mix over the coming months to strengthen our cash position. We will generate positive cash flows during quarter two. Highlight section. I want to start there with that I have had discussions with investors. I have heard questions about what strategy we have with our press releases. We have always had, of course, an information policy where we follow all the requirements on us as listed companies, all MAR requirements and so on. But until then, we have now clarified how we share business events that cannot be considered as major. And here we have four examples where we want to inform the market about important business events. When we get bigger businesses, and these are what we call megadeals, businesses with a scale of 10 million kronor and bigger, we think that is a big deal and it is reasonable to pressurize it. At the same time, we don't want the press to share too often, so that it becomes flashy, so to speak. But this is a good benchmark. This is a big deal for us. It's still not enough with the turnover we have, but it's also relevant information. Vi är också ett expansionsbolag, därför är det också relevant att vi pressmedel och informerar om när vi då växer in på nya marknader och in i nya länder. Det är också väldigt relevant information. At the same time, new verticals. When we start doing business in new ways, new verticals, new areas. I can take an example. We have not yet made a stadium, for example. It would be typically one of those. It's a completely new vertical. We have not done such a project yet. If we were to take home such a business, it would be natural for us to At the same time, again on growth, a large part of the market is mobile telephony driven by the cellular market. It is important for us, we are talking about an important growth area. It is also natural that we get sales directly to operators, carriers, it is important information. So this is how we think, this is our guide on how we share business news about exciting events. As previously announced, we have done business in Azerbaijan, where we have installed, together with local partners, Public safety signage in some government buildings in Baku, also in what we see here on the left, the so-called Flaming Towers. Vi har nu också under kvartalet tagit hem en ytterligare order genom samma setup, samma partner. Vi har fått en order om en handfull remotes som en första del att komma in i Baku's tunnelbanan. There is a system in the entire railway that gives Tetra coverage. They want to start by replacing the system that does not work fully. This is the first trigger in this exchange work. So we have then taken home this first order is about one million kronor. There is now a potential to maybe tenfold that deal in terms of size if we can then secure up and replace all tetra systems in this railway. And if we are in place, there are all the possibilities to discuss, to get in on the cellular side and so on and grow on the technology side, of course. So this is a very fun step forward in this market with this customer. Jag är väldigt nöjd och glad över vårt avtal i Storbritannien, där vi har signerat ett avtal direkt med en tågbyggare, där vi då är indesignade för att montera in vår nästa generation av tågrepeater direkt i den här fabriken för höghastighetståg. So that means that we have started the development of a variant of the train repeater that will support not only four cellular bands, but all six cellular bands. All legacy bands in Europe. So this will also be a step forward. It is a revolutionary product. There is no other that can support all these cellular bands for the European market. So this will be unique. And it is one of the factors why we were chosen. There are plans for trains. where this product is to be used. And with the plans that already exist, this business is worth about 200 million kronor. Det är ju väldigt bra för oss att komma in och bli indesignade redan i tågfabriken. Vi har ett motsvarande scenario med Stahler idag, så det här är också ytterligare ett steg att komma direkt in i tågfabriken, vilket vi tycker är väldigt bra. Är man indesignad där så finns man som en option för ytterligare fler kunder framöver. Det här är vi nöjda med. Sjukhusvertikalen nämnde jag kort inledningsvis. Vi har då under Q1 vunnit ytterligare ett sådant här i Sverige. And here we are also uniquely positioned because we combine both cellular protection and Tetra, Rakel and the next generation of public safety protection in a combined solution. It's unique for Maven Wireless. And we do that for hospitals. And why is that important for hospitals? Well, because hospitals want to operate as hospitals. They have enough equipment, they don't have a lot of extra space. We can then offer a compact solution to still distribute all the technologies that are needed for staff, for employees, for visitors, for the rescue service. The second shot we make, there is a lot left to do. The conclusion here as well, I want to mention activities, the most important activities. We are doing a lot of other things, of course, but how do we drive growth? from here and forward. What is absolutely most important for us to drive growth here during the year is this. Top three activities. We will secure and win more new customers. And we do that with our existing sales team. We create new interfaces, we pick up new contacts, we do new marketing campaigns, we establish new partners, but we also find new customers with existing local partners. All these things are important for us to win more new customers to drive growth. To drive growth, as I mentioned earlier, is to enter new markets. North America, Australia, new countries in Asia. There are many more countries we are looking at. It can be Malaysia, it can be Thailand, we are looking at Mongolia, we are looking at new countries in the Middle East, Qatar and so on. There is a lot, a lot left to do. The last important point that has been discussed in previous presentations, we are going to make more growth in mobile phone systems. That is, the cellular market. It is actually the largest, absolutely largest part of the market. It represents 83% of the market. And there we are underweight, we are going to grow more in cellular. And there we have the Nimbus platform, which is also a bridge into that. And that Nimbus we have now produced a new revision of the hardware that has been released to the factory, where we are now waiting for a new revision of the hardware, where we will continue with field tests together with customers during quarter two. So it is also unique in that it covers the full high-speed 5G band on the 3.5 GHz band. For all operators, it can also cover legacy bands. It is an important component to integrate directly into the needs of operators. There I stop and open for questions.

Yes, thank you for a very good presentation, Fredrik. And now it is also like that for everyone who is listening. If you have questions, ask them in the chat and I will try to answer them with Fredrik as well. But I think I'll start and that we start a little more comprehensive and discuss a little more annual income, market and so on. 55 million annual income now in Q1. Is that something you are happy with? And what is your opinion that the market feels like right now?