Minesto AB (publ)

Hello and welcome to today's webcast with Minesto, where CEO Martin Edlund and CEO Augusto Kvibling will present the year-end report of 2024. After the presentation, there will be a Q&A, so if you have any questions to the company, you can send them in via the form to the right. And with that said, I hand over the word to you guys.

Thank you, Ludvig. Welcome, everyone. We would like to run through a little bit of the achievements in Minesto over 2024 and comment on our priorities for 2021. for 2025 and ahead. And in doing so, we'd like just to first do some remarks here on the big picture of markets and stuff, comment more on the financials, and then go into more details on the focus where we are right now. So maybe first then, and there will be a Q&A session, plenty of room for that, hopefully also within the hour that we've set aside. So just first for everyone that isn't very well acquainted with what we do, we're an ocean energy technology developer that sits on one of the world's most heavily protected from a patent perspective technologies and a completely unique setup, really, really tailor-made to convert energy from ocean currents and tidal currents. So you see on the screen here the principle that a decade ago was spun up from the military aircraft manufacturers saw. We're based in Gothenburg with our technical team, with our commercial team, and we have our first customer engagement and test site in the Faroe Islands in the North Atlantic, a few hours flight from Copenhagen. So this is who we are. And if we then move into some comments on the market and the big picture, I think it's fair to say that from a geopolitical perspective, there's a lot of turmoil and speculation on where we will beheaded in many aspects, in many dimensions. One thing that we want to underline is that when it comes to energy, security of supply will be a rising star. And we are offering solutions that will open up a local new renewable asset in terms of ocean currents, tidal currents, which means that many countries and many areas in the world today where you have limited domestic sources of energy will be able to open up in that sense. Then of course, on an even bigger scale, climate change will not stop. The scientific evidence is overwhelming and it doesn't matter what MAGA web podcasters are saying from Iowa. We will see this planet headed in the wrong direction if we don't move heavily in favor of technologies such as ours. On the financial market, The development from a share perspective for Minesta has been really disappointing if you're looking a few years back in where we are. I think today there's discussions on clean tech or green tech, and it's being bundled in a way where local service companies where project investment engagements are mixed up with companies such as ours. I think it's time really to start separating the different types of investments and opportunities associated with so-called green or clean tech investments. We're sitting on a strategic energy technology with a global market and we positioned uniquely in this, in actually making this useful for mankind. So that's where we are really fighting to position Minesto as we move forward. At large, of course, the energy demand is increasing and it's shifting in what type of energy we're using. And particularly if we look at electricity. So seeing the electricity demand skyrocketing compared to the growth of energy means that we will really, really have to work hard, especially when we're doing it in a transition phase into renewables. There are markets where you will see that the renewable generation will have to increase by thousands of percentages over the years ahead, and where we're actually moving backwards today because the energy demand is overpowering the growth that we can achieve. Indonesia, as one of our largest markets, is a good example of that. What we also see is that ocean energy now is really being considered by actors looking into the future. Since there are novel technologies introduced such as ours, it's not been picked up in a way that will be good for Minesto. But the changes now from International Energy Agency, the EU agenda moving forward is really helpful in putting us into the energy transition as a part of it, not only from what we are talking about, but what sophisticated or renowned institutes are doing around the world. And in this, of course, contributing to this energy transition, with a predictable, affordable and renewable solution is a very, very good match in all of the markets that we target around the globe. And of course, it's not about making a small dent in this. It's a matter of contributing for real. And we believe that with a market growing with our technology, we're already at the potential now where we will be equal to nuclear on earth and for many markets far beyond that in our local contributions. So, all my horses here on the bigger picture and have my CFO, Gustav Twibling, comment a little bit on the year-end report. Thank you for now.

Hello everyone, my name is Gustav Twibling and I'm CFO here at Minesto. So, first of all, thanks Martin for this introduction. As you all are aware of, Minesto's year-end report was published earlier today and we will be going through the figures of the full year of 2024. We will start with the section total income which shows a decrease mainly explained by the reduced capitalized development work. The lower capitalized development work is expected since the D12 was launched earlier in 2024. Hence the launch of the D12 Minesta had a commercial scale dragon to present to the market, which wasn't the case in 2023. This in turn explains the reduced capitalized development work. Moving forward to the operating expenses. So there's a decrease in the operating expenses in 2024 compared with 2023. And operating expenses consist of all expenses that are cured during the year, excluding personal costs. The decrease in operating expenses is primarily explained by the launch of the D12 during 2024 and the longer uninterrupted production runs, which require fewer service interventions during the period. Further, there is a decrease in the personal cost in 2024 compared with 2023. One aspect of the decrease of the personal cost is the merging of development work into our facilities here in Gothenburg and a more flexible and cost-effective operational team structure when it comes to our site in Västmanna. And moving forward to the cash and operating cash flow. So we start with the cash and cash equivalents, which are strengthened in 2024 compared to 2023. This is explained by the overall cost control within the organization. There are also several ongoing workstreams to further strengthen the cash position, which include a Q1 wellness program, public funding, and also sales. Sorry, I was a little bit too fast there. So we have the operating cash flow as well, where you can see a reduction in 2024 compared with 2023, which are in line with the current plan for Minesto and also the roadmap to commercialize the Dragon technology. The reduction should also be seen in the light of the D12 launch and that Minesto early, the D12 launch early in 2024, and thereby Minesto could present that commercial scale Dragon to the market. As you can see at the table here, as the table shows, there's a decrease in the number of full-time employees, which is explained, as previously mentioned, by the merger of the development work into our facilities here in Gothenburg, and a more flexible and cost-effective operational team structure at our site in Westmanna. Then we will move forward to the intangible assets. There is an increase of the intangible assets in 2010 to 4, and then explained by the continuous investment in the dragon technology here at Minesto. When development work is conducted and if it meets certain criteria, the cost related to the development work should be capitalized or accounted for in the balance sheet according to the current account regulation that Minesto follows. This means that Minesto has built up a significant amount of intangible assets consisting of vast amount of knowledge, experience and capability during the years of the development of the Dragnet technology. Further, the entire assets exceed the current share market value of Minesto. And then we will jump into the last slide for the financial parts here. This is the warrants program. So the Q1 warrants program, also named T04, will be executed in March this year, and the strike price of the warrants is based on 70% of the average share price during the period between the 3rd of March to 14th of March. The subscription period follows directly after, and will be open between the 18th of March to the 1st of April. The warrants will be subject to trading until the 28th of April. After closing the subscription period, the warrants will be transferred into shares into Minister ABIA. So I think that was it for the financial. So with this, I will go back to Martin so we can elaborate further on our positions and plans moving forward. Over to you, Martin.