Maven Wireless Sweden AB (Publ)

Välkomna. God morgon. Anders Olina, vd på Maven Wireless som presenterar kvartalsrapport idag. Vi kör igång direkt. Varsågod Anders.

Välkomna till Maven Wireless Q2 rapportering. Det här är mitt andra kvartal jag rapporterar sedan jag blev vd 1 januari i år. Vi har haft ett intensivt kvartal. Många aktiviteter och många beslut har blivit fattade och vi levererar ett kvartal i rätt riktning. Men det finns mer att göra. Thank you very much. Hello? There was someone who had to mute, I think. The level of income we have means that we can run around the company. We have lowered the costs, which has had an effect in Q2, and we have maintained the gross marginals. Thank you very much. We have also worked a lot with refinancing and expansion of the financing frames we have. We have increased the loans with Almi. They have gone up to 14 million kronor and we have also received loans from Novion Bank with 10 million kronor. We have an RCF of 5 million kronor and we are now also implementing a Thank you very much. We have also secured five new customers. I probably mentioned it in the last quarter's report that we need to broaden our customer base. We need more customers. We need more customers that are the types of customers we want. And now we have secured five new. We have a growing funnel. Even if the order book in June was a little lower than what we had hoped for, we have big businesses that Thank you very much. Om vi går vidare så är det här, förutom ledarskap och people engagement som är oerhört viktigt för ett bolag, så är det de här fyra stycken huvudområdena som vi har satt som prioriterade områden för 2016. Det första är att driva lönsam tillväxt. Jag nämnde just det här med fem nya kunder. Vi har 13 nya kunder fram till dagsdatum, vilket är ett rekord för Maven. We have now broken into a large one-meter vertical in France. It is also a very large vertical in general. We continue to invest money in coming into Australia and the USA. We have also looked at how we package and price our services and softwares, and we have launched a new concept that we are about to roll out. And we have also launched Nimbus and Helix, two new products that are now on the market. We have defined and set up which KPIs that concern delivery and quality that we follow regularly. Very much customer interaction. I have probably met 50 customers and prospects since I started. And we work closely with our large customer projects that we support them with their needs. We have started to start now, which will intensify during the second half, how we work with our production partners in a more strategic way. It has been quite tactical and it has also not been the case during the first half of 2020. We have been working on some simple processes to make sure that we use our tools better and also that we have the competence in the company that we need for the future. Technology leadership is very important. Despite the challenging quarter, we have continued to invest in technology leadership. It is extremely important. It is a keystone for us to be able to win new customers. Nimbus, I mentioned, I will come back to it as well. We have also made a large software delivery from an old contract that has been a bit of a mess and we have now delivered the last functions before the end of June, which is a big milestone for us and for that customer. Thank you very much. I also mentioned our refinancing that we have done now and an expansion of the financing that is in place. We have also put over some of our up-to-date agreements, including our office in Kista, which has been in a good position to negotiate. And we have also improved how we work with count receivables and escalations. And that is also something that will continue to be improved when we implement factoring in the company. So that's a little bit of what we work with in the company to drive a more continuous positive trend direction.

Thank you very much.

Thank you very much. This is a critical communication solution for the third railway line in Toulouse, which is France's fourth largest city. It is 21 stations, 26 kilometers long and a lot of it is underground, so it fits us perfectly. Det som också är intressant här, och det börjar vi se lite mer här, det är ju då att det finns ju en drivkraft till att tillhandahålla mer bredbandsnära tjänster, även för kritisk kommunikation, såsom bilder och videos. Och då börjar vi få förfrågningar som gäller både att stötta den nuvarande kritisk kommunikationslösningen, som i Frankrike heter Tetrapool, But also new 4G, 5G-based solutions, which in France are called Future Radio Networks. And we do this in the same product. So this is one of our unique opportunities that also contributes to why we won this business. I just did a little search on railways, how many there can be around the world, and it's about... This is an interesting vertical for us, which is quite close to the area where we deliver train tunnel coverage, for example, as we do in Austria and Sweden. Finanser då på en hög nivå, om man tittar då på, börjar med NetSales, så är den ner från Q2 förra året, vilket var ett rekordkvartal, bara gratulera. Men om man ser då vår försäljning på närmare 45 miljoner kopplat till de tre senaste kvartalen, så är det en... Thank you very much. Thank you very much. Thank you very much. We have a stable order book at 95 million, which is an increase from the order book we had a year ago. So we feel on a stable basis for the second half of the year. WELCOME TO THE SHOW We have received some small orders from the US, Asia and Australia. They are small, it is early, there is no time to talk about them yet, but there are some small businesses there. You can say that AIPAC and the US are the new priority areas where we put OPEX on to be able to generate growth on those markets in the future. And we are very happy with a positive EBITDA. If you compare it with Q2 last year, it is not as high, but we also had a significantly lower revenue. And it is a clear improvement from the last year. Thank you very much. PNLen ser ut så här egentligen. Vi har ju jobbat väldigt mycket med kassaflödet under första kvartalet primärt. Vi har en kassa idag på 5 miljoner. Vi håller på att implementera en factoringtjänst för att supporta framtida tillväxt och vi har också mer. I och med att vi har en RCF på plats så finns den också möjligt att utnyttja. I'll move on to operational highlights from Q2. Thank you very much. We also have an employee, a business development person, in this area, Public Safety, who will focus on the USA. And what we see here is actually that the success we have a lot in Europe is linked to more complex systems and larger systems. So here we have a person who specializes in selling public communication safety solutions to complex environments. We are also now in the final phase of getting these products finally approved. They have several different laws of approval when it comes to the United States, but we are in the final phase of approving products to come out on the market in the United States. We also have a system integrator that we have worked with for a long time, but it is more opportunistic. But we send in offers every other month to different prospects, but nothing has stuck yet. But it is a good collaboration and we work well together. We have a more selective, less ambitious plan when it comes to the total US market in the near future. We are now focusing more on public safety. We are now focusing more clearly on certain types of customers. And we are also very engaged, me and sales manager Jürgen Krigsman, in all the prospects that we now have and work with in North America. Nimbus, as we have mentioned, we have had a number of trials with success. We are now working with a new system integrator to be able to secure a first order. And we are planning more trials primarily in Europe as a first step. So good reception of the product, but as usual, it always takes a little more time than what you want. Lite mer highlights operationellt. Vi har levererat utrustning till 25 olika projekt. Jag tycker det är lite intressant att följa och se vad går de här produkterna till. Det är ju tunnlar, tågtunnlar, vägtunnlar, flygplatser, datacenter växer, intressant område. Wireless Sweden ABihood So we signed eight new customers in Q1. Six of them now have got our products for the first time and are now getting to know them. And we have historically seen that it is a way to grow. As long as these customers have the potential to grow, this is the natural next step in the customer journey that we have started with them. We have hired a new CFO, Karin Jakobsson. Very, very pleased with that. She will start on the 10th of August. She will come with a broad experience to support us on our next growth journey. So I look forward to that. And we have, as I said, also lowered our operational costs with about 20% of Q2 compared to run rate in 2025. And that is in the upper part Thank you for watching! To sum up the short quarter before we go into Q&A, we are very pleased with positive EBITDA and positive operating profit. It gives us confidence that we are on the right track sequentially. We are of course comparing to Q2 last year, which is a little tougher, but we are pleased with that progress. We have at least managed to achieve during the first half of last year. Vi har också gjort en omfinansiering och skaffat oss en bättre kassaposition. Det tillsammans med lönsamhet gör ju att vi får mer flexibilitet att supporta vår tillväxtagenda. Att vi inte behöver vara lika mycket fokuserade på det som vi har varit taktiskt under framförallt första kvartalet. Thank you very much. Thank you very much. We continue our investments in go-to-market. For example, Australia and the USA cost money, but with very small income. But we believe in that, and we also continue to invest in technology leadership. So Q2, one quarter in the right direction, but of course there is more to do. So I'll stop there, and Janne, we can start Q&A.

Yes, but thank you so much. I have a little trouble with my voice here, but I hope you can hear what I'm saying. There are questions in front of me, at least. I can just start, and you have mentioned a lot about the customer pipe and so on. I wonder, who are those customers you have taken? Where are you strongest? And how does that sales process look like, really? And maybe especially at the data center, if you can say something about that.

Yes, that's a great question. That's the way it is. We often don't want customers when we go out with the name, and we don't do that. We try every time. I would like to have a quota in Presley, so it's a bigger business, so Presley releases it. We have said that if it's a business over 10 million kronor, or if it's new vertical, then we go out with it. So this is an early customer journey for new customers. If you look at these five customers we took in in Q2, then it's Thank you very much. Thank you very much. Datacenter är någonting vi har pratat om. Fredrik har pratat om det också förra vdn här. Det är ju ett jättestort område givetvis. Vi har nämnt att vi rullar ut till Microsoft i Europa. Thank you very much. Thank you.

Are there any questions from the audience? Can you please ask them? Okay.

Is there someone who is muted trying to ask a question? No, I see someone talking. Yes, come on.

You have tested Nimbus with two potential customers. Will they join and become customers?

Haha, yeah. Thank you very much. Thank you very much.

Thank you very much.

Okay, thanks.

I'm still a little curious about the data center market. How do you actually see it? How do you work up this sales pipeline? How wide are you there? How many businesses are you working on and how many are you losing? How does the hit rate look like?

Oh, Jesus. Bra fråga. Det är svåra frågor. Vi jobbar ju med systemintegratörer, vilket gör att vi inte har direkt kontakt med slutkund. Det gör att vi kan skala affären väldigt mycket. Vi sitter ju inte med den här slutinformationen speciellt mycket. Men det vi ser är att WELCOME BACK! It's not a huge system, but it's a system, and we deliver systems for critical communication solutions. It can be between half to maybe one million per system that we sell, but it's an increasing trend. And what's interesting now is that the distributors that we work with, they have now started to open up discussions with other companies than the customer that we deliver to today. And everyone knows that a lot of data centers are being installed around the world right now. So we believe in that segment. It's probably one of the more interesting segments that we're working on.

And what is it exactly? You said that some people want mobile technology and others absolutely don't want it. But what is your edge there? Why do they choose your products in data centers?

Yes, right now it's primarily critical communication solutions that we build for the data centers that we have. They like the product. It's a digital, modern, very simple to use platform that has a low total cost of ownership, which is stream-snowing, and which meets the frequency bands and the technical requirements that they need. And then you start to install it there, and you come in to a larger customer and they start to install it there. What they can also do is that they can talk to each other between the data centers, which means that you also create an extra stick in S, because they want to be able to talk to each other via this system as well. It's around those areas that make them like to work with us. And then I also think it has a lot to do with people and how we work with these customers as a company. So we are very close to them and work very close to them. And it's also many times you need approval from the state for the specific frequency bands you need to be able to use this in respective countries. And then we have technical people who are dedicated to working with them. So it's clear that how you run the camp management is also a strength I want to highlight.

Okay. If you could bring up a couple of things that have been good here during Q2. Some real hallelujah moments. Okay.

I think that coming back to black numbers, I had a boss at Ericsson once who said, if you have red numbers, there is only one focus. If you have black numbers, then you can start thinking about strategy. Thank you very much. Thank you very much. It opens up a lot. And I also think that we focus on winning new customers. Because it is incredibly important that we get the feedback that our technology and our commercial offers hold. And we get that feedback. And that's what it's all about in the future, to grow. So that's the three things I would raise as highlights from Q2.

Okay. And when you now have black numbers and went out, what will be your strategies for the rest of the year and forward? What is the focus?

The focus is actually, as I mentioned in the beginning, we have five prioritized areas, four plus to secure leadership and competence to get to the next level. And there is a lot of focus on driving profitable growth. We have a lot of focus on making sure that our customers are satisfied, both our existing customers, but also new customers who come in when they first meet us and our products, that they get a positive experience of that. And three, to lift up, is to continue with technology leadership, which is fundamental. What we also do, actually, to drive growth, is our whole go-to-market. We have made a rather radical change of it since our new sales chief came in during the fall of last year. We have replaced a few sellers, but we have, above all, strong focus We have a focus on what we should focus on, which prospects, with which use cases, which markets, which products. And then we are also very engaged in all of these businesses themselves to get them to our customers. So, the funnel that we now have, that grows and is very interesting, now it's time to process it, and now it's time to close, close, close the businesses that will close here during the rest of the year.

Is there anyone who has anything else?

Hi, this is Wax Johnson. Can you comment on the strategy for the American market? Is it so that you work with... Which strategy have you chosen?

Yes, we have had a fairly broad strategy. Now we have narrowed down the strategy. We have, for example, said that the cellular market, which is the largest market, is very competitive. It is controlled by three large mobile operators. And if you want to get into it, it takes a lot of effort. And we don't have the money, the advice and the long term to do that right now. So we have narrowed down the strategy where we focus primarily on public safety. Where the operators are not decision makers. Where there are much more distributed decision makers in the different states. And then we try to focus on the use cases that we are strong on. We focus, of course, on the larger states, the larger markets, where the money exists, which is often the east and west coast. But it's a narrower strategy and more focused on use cases and public safety, I would say. And then we are also more engaged personally in the discussions we have. But we don't have... We have to get products out on the market, but we have to get them approved. And that's the phase we are in now to be able to take the next step there. And we don't have that. We haven't had that before. Okay.

Can you describe a little bit about the competition situation in Europe? Are there any new competitors that are emerging? Or do you see an increased competition?

Jättebra fråga. Vi ser små spelare håller nu på försvinner i Europa. Det är två stycken som är under Chapter 11, vad det nu heter, i de respektive länder. Det är jag lite osäker på. Så vi ser att det är några små som försvinner. Primärt, varför försvinner de? De är för små och de har inte fortsatt att investera i teknologiledarskap. Then we see some of the big ones that do things and grow on the cellular side. Then there are several others that we hit technologically and commercially, and that's the businesses we're now picking up. So, in the short term, we feel that we have a good offer. If you look at three to five years, it can happen a lot. We are now entering a strategy work during the fall to think about how we think that these markets, both the cellular market and the critical communications market, how will the market develop in the next three to five years and what What position do we want to take and how do we want to get there? We will work a lot more with strategy this fall. Can you comment on this with currencies?

You talked about the dollar earlier. How much does the variation on the dollar hit on our cost side? Can you give a short example?

Yeah, vår primära kostnadsmassa när det gäller cost of sales är euro, och så gott som flesta av våra kontrakt skrivs i euro. Thank you very much. Thank you.

Okay.

Om vi tar en sista fråga så tror jag vi rundar av där. Tack så mycket för en bra presentation och kul att det var så många som var med.

Jätteroligt. Tack allihopa. En fortsatt trevlig dag. Tack Anders. Ha en bra sommar.