Maven Wireless Sweden AB (Publ)

Hello, and welcome to today's live interview with Maven Wireless, where we will talk more about their Q4 report that they released this morning. The outline is that we will start with a presentation by Anders and Fredrik, and then we will end with a Q&A. Make sure to use the chat if you have any questions, because then we will take up those questions during the Q&A at the end. And with that, I think I'll leave it directly to you. Because no one is interested in me talking to you. Perfect. Thank you, Hugo.

Absolutely. Anders Sollin is me. New CEO since January 1st this year. In my role, I will co-lead this session with Fredrik Ekström, who is the current CEO. We have had a very good handover period here in recent months, so thank you very much for that. Fredrik will go through Q4 results, because he was responsible for it last year, and also talk about data centers. Interesting vertical. Before we start, three messages from me when I look at this and get to know the organization. When it comes to this presentation, we are disappointed with the Q4 report. There is nothing else to say about it. It is disappointment. We are now taking concrete actions to stabilize the business in the short term, but also to lay the foundation for turning this trend into a positive profitable growth trend in the future. And thirdly, I invested 5 million kronor in the emissions this fall. I believe in the company, I believe in the market. After coming in here, as a board member, you don't really see what's really happening in the business. But I've had a positive view of what's happening on the market with customer activities. I'll come back to that in the presentation, but I'm positively satisfied with what I've seen so far. Then I'll hand it over to you. No, before I hand it over to you, Fredrik, we'll talk about an exciting news we got on Wednesday. We got a big order from Tomex, which is our partner in Austria, for 4.8 million euros. 51 million kronor. And Tomek delivers to ÖBB, which is the traffic agency in Austria. This is from a drama agreement, but it is still proof of our strong relationship and that they are very pleased with us as suppliers. And it is also strong evidence that the combination of public safety and cellular in train tunnels is a market that we are leading in. So it's really fun to get this order. And that also means that our order volume is now over 100 million again. So it will continue to rise from here. But Fredrik,

Yes, thanks for that. Then we will look at what we achieved under Q4. The net turnover landed at 30 million kronor. And it is of course the result of the order book we have. So it is what it is. Just like Anders was talking about, it is a result that we are not satisfied with. Now it is a good sign that we will receive larger orders again. Worth noting then, if we go down in the figures here, we note a gross profit margin of 45% during Q4. And that is a parameter that we are satisfied with during the quarter. It is a little higher than what we have as a means. So it's good, it gives us a gross profit margin of 42% over the year. And that's where we are historically. So 45% isolated during the quarter is good. And that is the result of a profitable product mix, as we call it. And what does that mean? Well, it often means that it is an overwhelming public safety, i.e. blue light radio products we deliver on those accounts. which normally has a higher gross margin than pure cell products. The order entry landed at approximately 33 million kronor during the quarter. In general, what are the effects we see? What is it that makes us get this result during quarter four? It is that we continue to see this spread of orders on our larger contracts, frame contracts. The effect that we talked about during quarter three has continued into quarter four. I would like to point out that it is not that we have a higher loss of business, but rather that we have a continued drift into the future of business. Back to Anders' previous slide, it's a good sign that we now see a big order coming in. With that said, we have several businesses that are dragging ahead that we see that we have good chances of drawing in during the year. Det var det. Den här omsättningen med den kostymen vi har så innebär det ju att vi också gör förlust i kvartalet. Så vi har ju ett rörelseresultat som är negativt åtta miljoner. EBITDA på 4,9 negativt. If we go in and look at the trends, how it looks here, both in terms of revenue and order book, then we have quarterly here. So we see that the sales of 30 million is clearly lower than the previous year. And slightly lower than Q3, so we have about the same problems as Q3 and Q4 this year. Where we saw in the beginning of the year, especially Q2 2025, was a good quarter. Then the second half of 2025 has been a disappointment. If we look at order entry and order book, then in Q4 we have not announced any bigger win, but it is a collection of more standard businesses during the quarter that builds up to 34 million in order entry. So it comes up from the previous quarter Q3 and then builds that we have an order book at 71. And now we have taken several years, but above all now this big call for more than 50 million. Again, as I have already mentioned, we have the negative EBITDA and the graph to the right, where we see the entire trend over the year. If we then look to the left, where we have the turnover, then we can note that we are again, as we have always historically been, very strong in Europe. In Q4, we can actually note that the Middle East has been a little stronger than normal, so it has been a little stronger in the Middle East during Q4. That's what you can note in the figures here. I would also like to note, which is also stated in the report, for those of you who have already gone through the whole report, that we have worked with activities on new technology sales during 2025. Here we have actually begun to see positive results. There have been very low figures on new technology sales in the beginning of 2025, which have now improved quarter by quarter. We look forward to further improvement this year with the activities we carry out. This is a positive trend. Moving on to this reference picture, this one I have shown many times, this palette of different verticals and different types of projects. As Anders also said, we have this with tunnels and especially train tunnels and the mix, where we as a company are relatively unique, where we have all types of technologies, both public safety and cellular, and can link it with digital solutions in all directions, where we address these big projects, train tunnels, road tunnels and so on. Here we see a number of such projects and reference projects. What I'm going to talk a little bit more about this time is data centers. Last quarter we talked about hospitals and why we have good products for hospitals, also this mix. If we go a little bit more into data centers. So we have started to address data centers and we have previously communicated that we made an interruption where we now have products approved for Microsoft's data center. Under 2025, we will deliver approximately 10 million on these data centers with Microsoft as the end customer. So far, we have only delivered in Europe on their data centers. And Europe is only one part of that portfolio. If we look at the data center globally, if we look at the picture here, there are huge amounts of capital invested in data centers. Here is a figure from T-Advisor of 455 billion dollars that is being spent here in the data center. And right now it is no secret that there is a lot of AI driven on the expansion of the data center. In the data center, we address communication. We have nothing to do with data storage and that technology. What we do is deliver communication solutions so that those who work and are in the data centers can talk to each other. And here there are different strategies. We have public safety solutions, and that's what we deliver to Microsoft. Very secure communication. Microsoft has chosen not to include mobile data in their data centers, but they want their own private blue light radio, Motorola walkie talkies in principle, so they can talk within the data center, but they can also talk between data centers with that type of communication. We are in dialogue with several other bigger players who have data centers. There are other ideas about how to do it. There are other big players who want to include everything, both blue light and all cellular data, including 5G. So this is a very interesting area, an interesting vertical. If we then have started to scratch on this, deliver about 10 million in 2025, then we see that we with our product mix, with everything, can address all types of share requirements. Cellular, mix. or public safety only to data centers. This is an extremely large market, so we see that we can do many times more in turnover in the coming years on this vertical. So really interesting area.

Thank you, Fredrik. An exciting vertical, of course, and we have discussions with more players, bigger players than Microsoft, and also in more regions than Europe. So this is a focus area, of course. I'm going to go through what we're doing and what actions we're taking to turn this trend around, but also some of my thoughts. It's a month in, so bear with me, but pretty interesting thoughts when this company comes in. We will start with a decision we have made. It is not surprising that we have a challenging cash flow situation where we have two very negative quarters in a row. So a decision we have made is to cut our OPEC costs. We have set a target of 10-15% and actually why We set a standard because there are some more commercial related parts of this that we still want to wait and see if we succeed or not. But 15% corresponds to about 15 million on an annual run rate basis. And we intend to have the target image of the run rate on OPEX in the later part of Q2. So this is going to be on track and decided. We are also taking an increased focus now to drive in feedings where some customers are a little behind. I will personally mix my idea and we also have a partner that we talk to. We do not have a big problem in this area, but we have a partner who has not paid where we will probably use a a cashier if we don't get that payment. So we do that on that side. And then it is clear that we continuously look at all possible different financing solutions, whether short-term needs would arise or long-term needs for later steps to come back and see how we could accelerate growth. But there are no decisions on that, but we monitor the situation closely, I can say about that. I have gone through the last eight quarter sessions here to look at messages, what messages have been communicated here. And there are two messages that have been more frequent than others. And that is North America and Nimbus. So it's just as good to talk about them and not hide it. We can start with Nimbus. It has been with all quarters. And of course it has been delayed. And we had hardware problems in 2024 that we fixed. But the plan was that it would come out last year. And the reason why it didn't come out, it was not because it was complicated technically, but because we chose to prioritize other customer deliveries. So we had a certain capacity and we prioritized that. We still see that Nimbus has a very interesting position in the cellular market, so this opens up a part of that. We have now secured a number of customer trials and I like when you come out with new products that you have customers who drive us, you get an extra push. So now we have a number of customer trials here in April that will be executed. And yes, our expectations are that they will go well and after that we will start to roll out this product commercially. And we are now also starting to discuss how we are going to ramp up the production here. We will take it slowly and carefully because we are where we are. But a very interesting area we are now spending more time on. We are still optimistic about the opportunity on the market. It will be very interesting to see how our trials are upgraded by customers. The second part is in North America. We have also been trying to break in for many years. There was a small order at the end of last year, but we have spent a lot of money. We have a high OPEX run rate in North America. On top of that, we have the dollar depreciation and we have tariffs. We are not satisfied with what we have achieved, of course. We have an interesting trial that takes place in Public Safety. It will be carried out during the Q1. Our expectations are that it will go well and in that case we expect to get orders. What is interesting with that is that we change focus a little more towards Public Safety. So that is one track we are now looking at more. But we are now making a clarification of our strategy. Vi kommer också att se över våra kostnader. Vi tror fortfarande mycket på USA-marknaden, men det kanske inte är där vi tror på den större, kortsiktiga tillväxtmotorn. Så vi kommer återkomma till Nordamerika när vi har sett över strategin. Men vi finns kvar. Vi fokuserar mycket smalare till en lägre kost för att stegvis komma in på den marknaden, kan man säga. So that's North America. Some reflections then, as new CEO. Of course, I've been in the board, but when you go in, you get to know a little more when you dive into the organization. And of course, what are the strengths that exist here? This is a well-established and proven company. You have succeeded very well. This is Swedish technology that is proven globally in the market and you get a number of big customers. Strong technical competence is the technical team that exists. They are safe among the sharpest in the industry and they have an innovation DNA. It is very important to keep that and make sure that they have more time to work with innovation, which they didn't do last year. Strong customer references in many different verticals. Now we heard about data centers, but you have drawn different verticals here for many quarters. And it is clear that several of those references can be used in other regions. Strong culture, strong commitment. People work hard, people work and are committed and we do a good job. It's a good gang. And then we have a long-term board that is aligned with our strategy and also big owners of the company. So it feels very good and very safe. Challenges? We're losing money. We're burning capital right now. That's never good. In my book, when you do that, you know what the highest priority is in the company. It has to turn. Of course, that we don't grow is the biggest problem. We have to grow. We can't be at this level and have a cost that is close to what we need to be able to be on this market. We have too few customers and that also became clear in Q4. We are dependent on the frame rate customers. They are very seasonal when they make orders. That's why you see a pretty up and down effect between the different quarters. So when it goes two quarters with that customer base and they don't order, then it becomes like this. Had we had more customers, had we had Nimbus out there, then of course we would have had more legs to stand on. That's what we have to fix. We still operate as a small company, for good and for bad. It is needed when you are an entrepreneur. It creates a hell of a momentum and pressure. But when you scale up and get a little bigger and you have a little more advanced customers, you have to professionalize that a little bit. And we have a very broad focus. And that's what we're trying to narrow down. There are two things that I reflect on. I did this exercise with the leadership group here in January. One is that basically everyone in the leadership group who has worked there since the start, most of them, They agree. That's how it is. If you understand where we are, it's much faster to come up with a plan and execute it. So that's very good. The other insight I have is that my two previous jobs, I came in at Cinch, CLX Communications as they were called then, 300 people, a very similar situation. And my last job at Z-Display was also a similar situation. It was a company that consisted of 10 companies that I had bought. So it was a little different, but it was not growing problems, you worked in silos and so on. So I have the tools to fix this. I know what to do and it feels very, very safe. If you look at the existing opportunities, it is clear that we will grow with our existing customers and there we have to do an even better job of serving them and getting closer to them and working more strategically with them. We are also now considering which customers we think we can grow more with and spend more time on that. Working with getting new customers. That was something that was initiated last fall with a new sales manager. And really setting a new way of how we go to the market. Which customers should we focus on? With which use cases? Where? Coach the sellers, drive the sellers significantly harder. So we see this starting to give results. We will launch Nimbus, strengthen the go-to-market as I mentioned, and then we have to manage our costs and cash in a very clear way, especially now in the near future. So that's a big focus. Focus on growth. It's not just about things. It's what's going to turn this transformation in the end, and it's profitable growth we're looking for. even better to keep our customers and make them happy, professionalize how we run the company's execution and then also come back to the market a little more with proof points that we actually is still a technology leader. Nimbus will be a proof point for that. And we also have a new train repeater during the second half of this year that we are working on, Tor G2. So this is also important. And then it is so that our software that we develop all the time, releases with new features on it, so that we always do new things to improve our portfolio. So that's the focus. And actually, Back to my two other jobs, there are three things that we will focus on. It is a much clearer focus where we choose a few things that will drive this transformation. The second part is execution, that we really become better at delivering on what we say, that we get the machine in place. the structure, the processes, the KPIs and really get better at rolling out what we say. And the third part is actually leadership and commitment. Make sure that you look up a little more and think a little more and that you are aligned as a company, that everyone knows where we are going and everyone feels a commitment. That's what we're implementing now. A little, as I said, one month in, we will continue to meet a lot of customers and travel, but what are the positive signals that I feel that we are on the way, even if it takes time? The order from Tomek, absolutely. We also expect our customers to spend more money this year than they did last year with the discussions we've had with them. I meet a lot of customers now, about 10 customers. They are very positive to me in relation to the relationship and the history. Then there are things we have to fix and get better at, but a very good positive atmosphere and want to do things together. So it's a good foundation to stand on. The sales funnel that we are now measuring a lot and we are looking especially at new customers. What is fun now is that the number of new customers is increasing more and more quarter by quarter. And this is what is needed so that we can grow and so that we can become more stable over the quarter. And that Nibus will come closer to the launch. We have pressure from the outside. And now it's the sellers' task to get the first order, so we have a little race on that. So we're going to start delivering that. And then we have, there are probably three markets that we work with to try to break into, you could say. It's North America, it's India, even if we have a little business in India, and then it's Australia. And the market that I feel the most momentum on right now, where I actually believe that we can get the biggest impact on this year, is Australia. So there is a lot of focus on Australia. We will come back to that. But it also looks promising. We see the situation seriously. We take actions to handle it. And we see a beginning of positivity for the future. Which we then have to deliver on month after month, quarter after quarter. So in the long term we will continue to build a leading national global company. That's all for me. Hugo.

Thank you. Excuse me. Thank you for these presentations. Very exciting. And to be able to follow this during the coming years. And I have, of course, a bunch of questions here. As we say, one of the most important is that we will grow here forward. I think we should talk a little bit about what has been under 25, why you didn't grow. You mention, among other things, that there are too few calls for existing framework agreements, but then also new customers. And then I think above all that we should focus on new customers, because that's where we can get new money, so to speak. How do you get to these? to the new customers. What is the strategy for Nutram?

Can you share a little bit? I think it's actually that you build a professional hunting sales organization. I already mentioned that we are going to describe much more clearly what an ideal customer is. What does it look like? And then we define which use cases we are strong in. Just doing that makes us much clearer to the seller. This is what you are going to do. We increase the hit rate. That's one piece. The other piece is that there is a very big difference between what we call a farmer's account manager or a hunter. We need more hunters, more hunter mentality. And that requires a different dynamic. And that's what we've switched out a few sellers. There are a few who are in performance management now. And that's coaching. And that's education. But above all, it's to be out there and create new contacts. It's not a huge industry. So it's not difficult. They know who we are. But it's to be out there. We had a goal in... In Q4 on having 150 new customer meetings. Just to force sales. You have to meet new customers. 165 meetings were cancelled. And it's not that many sellers we have that do it, so there's no talk about what's going on out there. The sales manager, he's on, he's on, so it's fun.

Meeting 165 new customers. New customer meetings during Q4. It's impressive, a lot in one quarter, you have to say that. If you also talk about new customers, then you talk about interesting markets, North America, India, Australia. Why these geographies, what makes them a little extra exciting?

I think that the biggest growth in the near future will come from where we are strong. It's Europe. It's the north, it's Europe, it's the Middle East. So that's where we put the biggest part of the pressure and focus. Then we want to selectively, we will not spend so much on it, but the USA is the largest market in the world. And if you get in there, it will be big. I usually say it will be zero to another currency than the crown if you succeed. It's big, but we should slow down the pace. India is a huge market. I've run a lot of business in India. It's a difficult market with a lot of price pressure. We're going to have a few trials with two customers during the spring. And then we'll have a discussion about the price level. If we think we can do big business there. We're already in India when it comes to trains. And now with the trade agreement between the EU and Europe, it also makes a bigger interest for European companies. So it's not here and now. In the long run, it can be interesting, so we evaluate that. And then Australia is a Western market that Europe works with, so it's a well-known business climate down there. And we have employed good people there who have done a good job. Exciting. That's exciting.

In addition to India, we are one of the few Western companies that have actually come through the new processes in India that are called Trusted Source. And it is as such that India is trying to hinders Chinese, especially Chinese technology, from entering the country. And in order to do that, they have introduced higher requirements and new processes, where every company that wants to export into India must then be approved in many areas and be classified as a so-called trusted source. And Maven Wireless is already there. And within that framework, Then you have to include specific products that also have to be approved in this paraplu, Trusted Source, because then they very carefully analyze where these products come from, what is in the products for components and modules. And there we have also got our products up and it is quite unique in the current situation that we are already through as a Western company, Mail and Wireless, in India. So this is exciting, we are also to carry out 5G trials in India, where we are now lowering equipment. Now they have released 5G, how it can disturb air traffic and so on. Now they will start building 5G with our types of technology. And our products fit in very well there. We send down and do these trials. Then after that, as Anders was a little bit about, it is necessary to get the businesses. It is also known that India is a country with high prices and a certain business methodology, so of course that should also come through. But the potential is definitely there.

And when you mentioned trials, you said that you are running a public safety trial in North America. For us who are not rich employees, what does the trial mean? What do you have to go through here and what opens up for opportunities later?

Yes, and this is the first time we do this. This is a customer in the Midwest. They have bought this trial. Not a lot of money, but they have bought this trial. And the equipment will be sent at the end of this month. We have done training with those technicians and they are just waiting for the products to arrive and we want to test them. And we have agreed on what to test. It's testing the products, they have never seen them before. They have seen them on paper and they are very interested and see that this is new thinking on this market. This is advanced on this market. And we have started discussing what this could be implemented to start with. But it's a Midwest, a small customer, it's a proof point, but it's a step in. So we hope for that. But of course, business is business. You don't win everyone, that's the way it is. We need to step in a little sometimes, but it's exciting.

And then I also thought about this with We went through where you sell. 60-70% is outside the Nordic countries. Then it becomes a different currency. If you sell in dollars or euros, the crown is stronger, so you have negative effects. It's good that you don't blame that.

We have all our production and purchasing material costs in euros, so we do the most we can to sell in euros. A larger part of our personal costs is in crowns. That's what we're trying to minimize. But of course, dollars in the US is something we're looking at how we're going to handle if we start to grow there. So that's something to think about when we set new prices.

And when you were talking about data centers, Why do you want blue light products in a data center?

There are different strategies, as I said, so the fact is that there is not a standard approach to it all, but it is up to each one who owns and runs the data center. As I mentioned, our existing customers have a strategy and they have thought like this, they are a little bit into Yeah. 100.0000% security here. That's why we just want to take away the anxiety. We want full security. We only use a private blue light radio network that is 100% dedicated only within our walls. That's roughly how one resonates. Then there are others who resonate the other way around and say that we can have control of this. We want to have full bandwidth on 4G, 5G also in order to be able to use it in our communication. So there is, and I think both are well thought out, but you have to find your own strategy there. What is good for us is that we can offer both strategies.

Exciting. Finally, I would like to address you, Anders. You have a long experience from Ericsson, so you know a lot about this industry. You mentioned that you see it positively and that it is a very exciting and good market. Can you tell us a little bit about what you see about the underlying market here in the future?

First of all, it is a very large market. And we are a very small player. So it is necessary to take a small part of that market so it goes very well. That is the basis. Then it is so. The need is there and it increases. And there are more and more demands on interior coverings. The more you demand. You have the safety aspect that appears. You have different verticals that appear. You have old equipment that must be replaced. You have new standards that come out when it comes to, for example, public safety that you have to deal with. So it happens a lot in this market. Then it is a little different here and it is very different from market to market. What role do operators have to build here? I have had meetings with quite a few companies in England and then it is so that the operators build very little interior design, but it is other players who do it. And then it's the players that you sell to that do it. Either it's a neutral host that sells 10-year contracts to, for example, property owners, or it's other companies that do the installation and support of our products. Whereas in other countries, the operators can be very active. For example in Australia, where the main operator is very active, both in construction and public safety. So it differs from market to market. So a slightly different angle on Telco than what I am used to, which is exciting. So a lot of other customer discussions than just operators, which I like.

What I especially take with me from it is the technical development that drives the exchange of old products as well. And that it happens in both cellular and public. At the same time, but at different speeds and rolling out in different markets, of course. But that's the trend we're in right now. I think that's a very interesting and important point. Thank you very much for coming and presenting and telling us a lot more. And thank you very much to you who have been watching.

Thank you, thank you.