Unibap AB (publ)

Hej och välkomna till Unibas presentation av Q2-rapporten. Tyvärr kommer inte Johan kunna vara med idag. Han tror jag är med på sändningen men tyvärr har han ingen röst just nu. Vi har tagit in Anders istället som kommer presentera lite senare. Som vanligt så spelar vi in den här sändningen samt ni får gärna skriva frågor löpande under mötet. so we get a smoother flow at the end of the meeting. So all the questions you have, write them in the meantime and we will answer them at the end of the presentation. We will start with financials, then we will go through the highlights for the quarter and what happened afterwards. Then we will present new launches, that is, what we have sent up in the round, our user case for defense, and then we will go through what we usually conclude with the ambitions for 2025 and what we have achieved. When it comes to the financial figures, as you have seen, we make a weaker quarter in terms of revenue, and that is dangerous. till den svagare orderingången de tidigare månaderna. Vi ser också att därför går ju också ebit ner väldigt mycket, men vi har också en engångseffekt på en nedskrivning av tidigare kapitaliserat eget arbete, hänförligt, to our product ix5 200, which we activated in connection with the end of the book in Q4 2023. And that was the product that we brought to the Israeli customer. We have now, for one and a half years, tried to find new customers, but we have noticed that our customers instead choose our standardized ix5 and therefore do not judge that there is a market for the product. Kassaflödet är positiv den här månaden, främst sannförligt till kortfristiga fodringar och att vi har en minskad accounts receivables, det vill säga kundfodringar. As we have previously talked about, EBITDA C is in parity with the current EBIT, since we are relatively close between our activations and our deductions. But in this month, one should bear in mind the decline that we had at 4.5 million, which affects negatively. Under the month, we activated both new models at ix10, the new product generation and softwares, or software work. So that's what we see is a slightly higher activation for this month. Then we move on to Anders, who will now talk about, or sorry, we have highlights first. Henrik Fredin will start in September and follow me. After Q2, we have been able to write a framework agreement with Loft Orbital. During 2022, we got our first qualification project with them. We have delivered runs during 2023 and 2024 to them. Now they have converted this to a framework agreement. Loft as a company has businesses in three countries, which are the USA, France and the UAE. And they have two own constellations, one in Europe and one in the UAE, on 10 satellites each. And the order we have received on them at 1.39 million euros is for the UAE constellation. We are waiting for export conditions, but we think we will get it. The second part that has happened after Q2 is also that we have written a framework agreement with Argotech. Även de som skrev ett kontrakt med dem under 2022 för leverans av tre stycken batcher. Vi har levererat de första två och de har skickat upp satelliter från de batcherna och nu har vi mottagit ett ramavtal med exklusivitet mot dem för att leverera edge computers to their constellations. And therefore their future constellations, including the third batch on the Eride constellation. Now we turn to Anders and the upgrades.

Yes, thank you so much. I might start by introducing myself since I don't usually attend these meetings. My name is Anders Persson and I work as the product manager at Unibap. I've been doing this for almost two years now. And I jumped in instead of Johan to take this more, what should you call it, the pedagogical part of the presentation where we tell a little about the things we are doing and try to describe how our computers are used in space. And as Emil said, I thought I would start by telling you a little about all the upgrades that we have actually been involved in during this year. It is a pretty clear sign that we are growing. We are involved in more and more satellites. And the first one I was going to mention is the one that went up around midsummer. It was a SpaceX Transporter launch, which is SpaceX's big rocket to shoot up satellites in low Earth orbit. And on this launch, there were actually nine different satellites from three different customers. And that is a new Unibap record. The old record was two, so a fairly large increase in the record. And there were several interesting projects that also came up in space on this mission. First, maybe we can mention Bifrost, which I think we have talked about at these meetings several times. Bifrost is a Swedish-Danish defence cooperation on a satellite that will enable surveillance of the Arctic and be able to find ships, especially in the Arctic. And on Brifrost, we are included with an IX-5 and also with softwares to enable onboard detection of aircraft, for example. On this launch, there was also a satellite from D-Orbit. D-Orbit is our main recurring customer, one could say. We have collaborated with them for many years, above all, to enable others to test softwares in Rymden. This collaboration continues until 2022. Together, we have tested over 40 software applications in Rymden for third-party users. This is also a very exciting area of use for high-performance computers in the field, the ability to update the software. And I don't think this is just a juniper record, but perhaps also a world record in the number of times that you have actually replaced the software on a computer in the field and made everything work. And now we are sending another ix5 with bio-work to continue this service. Then the big post of Unibaptatori that was involved in this mission was Argotex Satellites, which took the next step in their Earth observation constellation Iridehio. We have also talked about it before, I think. It is an Italian state satellite constellation that will help the Italian state to access independent space data. We are also involved with IxM, but also with software products, because these ArgoTech satellites also have our new software product Unibap Loom, which is a software for creating full-fledged satellite images that are ready for analysis directly on board the satellite in space. So this was an exciting shootout that we all followed, almost even more exciting was otherwise a launch that went up on May 17th. This was a rocket lab launch in New Zealand. The special thing about this launch was that it was the first IEX-10. that came up in space that followed along here. It was on a Japanese satellite from a company called IQPS, which together with JAXA, shot up this computer. And just a few weeks ago, they actually shot up another EXTIA on the same satellite platform. These IQPS satellites come together to build up also a constellation for Earth observation. But when Argotech uses hyperspectral cameras to look at the Earth, IQPS instead uses space radars, called CESAR. We contribute to this constellation by enabling the satellite to have a better understanding of where it is in space. This is called precise point positioning. If you want to carry out an analysis of space data in space, it is very important to know what you are looking at on Earth. And for a satellite to understand which part of the earth's surface it is depicting, in order for it to be able to do that, it must also understand where it itself is in space with very high accuracy. This position determination can of course be done with GPS, for example, but it is not sufficiently accurate if you travel at such high speed as a satellite does. So in order to be able to establish its position with high accuracy and then be able to transfer it to high accuracy in the image you have taken, advanced calculations are required, and for them computers are required with a calculation capacity in the same class as what iX10 can offer. And this ability to not only collect information in space, but also make it accessible for analysis, for example, by giving each pixel in the picture a coordinate and a time stamp. This is something that is very important for, above all, defense permits. And I thought I would give a little introduction to how we look at future use of high-performance computers in space just for this defence application. Space information has been used in defence for a very long time. It was perhaps one of the first real applications for satellites, even in the 1960s. But traditionally, space data has only been used for strategic analysis, one could say. It can be that you want to map an opponent's infrastructure. For that, space data can of course be effective, but it is actually only possible to map quite static infrastructure. You can see if someone builds a new port layout, for example, but you cannot see which ships are stationed at this port. because that requires a significantly higher update frequency of information than what the traditional space data collection has managed to achieve. We are starting to achieve that now, but we see that in the future we will need to take another step, go from the strategic domain all the way to the tactical domain, all the way down to the target field, where users can get immediate, immediate information from the field. Here we have prepared a small presentation on a more schematic level of how this works. In the traditional case, you had a satellite that had one type of sensor on it, They loaded the information down via a ground station, into a database, where the user eventually took out the information, did an analysis and sent it on to the users. Maybe not on the field, but rather at the desk. What you can do in the first place to improve this situation and start moving from the strategic domain to the tactical domain is that you can of course add more satellites. These are the satellite constellations that we often talk about. You are supposed to see more satellites and more land stations, and then you can get a faster update of your information. But this only means that you can get down to hours in time until the user gets the information. To reach even further, you have to free up more capacity on board the satellites. for this link budget to fund the information to the ground. It is being raised very quickly. But here, if you add edge computers to the satellites, you have the ability to compress and condensate the information you collect, which means that each satellite can collect more information and In that way, you can reduce the latency in the transfer to the end user. But still, maybe just... Yes, you can come down for an hour, but not much more. To get all the way forward, you also have to add the intelligence that is on the satellite. The satellite must carry out the analysis itself. And can you do that in a smart way and also condensate the amount of information sufficiently you can access completely different types of connections to space. For example, regular satellite telephone networks. This makes it possible for the user to have direct contact with the satellites and immediately get the answer to the analysis they perform in space. This is what will be required to get all the way to the tactical area. Here we are very far ahead. For example, if you look at the Bifrost satellite, as I mentioned earlier, it has many of these building blocks. So we are really on the front line of this development. And just to exemplify what this will do in the future, it was quite a remarkable event that took place during the summer. Ukraine managed to end a large part of Russia's strategic bomb flights. through a drone attack, spread over all of Russia. This is a typical example of how one could use this type of low latency information from space. What is important for that type of operation is that you have very immediate access to information from places spread over the entire Earth. In this way, a satellite would quickly be able to identify which aircraft are available an airport, make the decision whether to conduct an attack or not, and immediately afterwards make an analysis of the effect of the attack. And we see a very large interest for this in quite broad Nya kundgrupper. Framförallt, vi hade rubriken att det händer saker i Europa på den här presentationen och Europa har ju varit beroende av den här typen av information från USA tidigare, men nu ser vi att i Europa så finns det ett stort intresse av att skaffa sig den här typen av kapaciteter på nationell nivå. Och som avslutning så har vi här lite exempel på vad vi ser ligger och bubblar. Over time, it has mainly been the United States that has driven the development, perhaps primarily through the SDA and the Golden Dome initiative that the United States has taken to track missiles, for example, from space, which has required high-performance computers on board the satellites. China has also announced a lot of initiatives when it comes to having a lot of computing power in the orbit. But Europe has followed, but in recent years we have really seen this awakening, where several new initiatives with a lot of computing power are planned, both in Europe and in other parts of the world. So we see that a lot of things happen, and quickly, within this area of use. Then I'll leave it back to you Emil. Thank you Anders.

Then we will go into a little bit about the ambitions and what we have achieved and what has changed. As Anders mentioned, we have delivered our first software solution up in space via Ergotex in the riding constellation and Loom, which is very positive. Through the Jax upgrade, we have achieved TRL 9 for the iX10, which was one of the goals this year. The last thing is that we have had a good annual income in the beginning of Q3, but the decline in annual income that has occurred during the year to Q3 and hopefully Q4 puts pressure on our revenue. But through our fast delivery capacity and the dialogues we have, we believe that we will still be able to achieve at least 30% growth for the year. Then we are done with the presentation. If you have any questions, write them in the chat and we will answer accordingly.

I can briefly mention regarding the shootings that even if we have had a record number of shootings so far this year, we still have many left. under året och i slutändan så kommer vi att ha ungefär 30 enheter som skjuts upp i år. Bara en majoritet faktiskt kommer att vara i X10-teknologi så det fortsätter hända saker.

Yes, we've got a question.

Can you tell us a little bit more about how things are going in the USA? And we can mention something. We have established a an office in the USA, or a company under, what do you call it, a daughter company? Yes, a daughter company in the USA.

Where we now have two employees. I don't know what to say.

Loft is probably a failure of the US investment. Loft is in fact Partly a French company, but actually it is an American company. A major player in the commercial market in the USA, but also taking fast steps to get involved in the defense market. So it is a very positive collaboration that we have managed to establish in the USA.

Vi har fått en fråga till, vilka är era konkurrenter? Och vad ska man se där då?

Vår största konkurrent kanske är företag, satellitoperatörer som själva försöker bygga högprestanda datorlösningar istället för att köpa produkter av en underleverantör, skulle jag säga. Otherwise, there are a number of start-ups that try to do similar solutions that we do. And also some more established players who may not have computers with the same performance as us, but at least higher performance than what a traditional simulator has.

Så det spänner väl upp ungefär spektrat av konkurrenter.

Sen fick jag en fråga om hur hårt drabbas vi ekonomiskt av tullarna gentemot USA? Och vi har ingen påverkan ännu. Just now, there is an investigation into the freedom of trade for our types of products. Then we have a question from Christopher Westergren about how we take the revenues in the books. Here you can see that we have four parts. When it comes to hardware and computers, we usually take the revenue at the level when we send them to the customer. The licenses we have, we take in the course of the contract period for the licenses, where we have a mix of one year, three years and lifetime. Then we have the customer project and then we take the revenue on the processing we have. The customer project is if they want us to change something, usually on on the computer, but we prefer to do it via the software. And then we have support, and we work on it for a number of hours, because then we sell support buckets, and then we take it per hour.

We have received a question.

Can you quantify installed bases and lighting?

It depends a bit on... We have different types of data solutions that we deliver. We have what we call an application development system, which is a simplified version of our room computers. that can be used for software development above all. And that is more or less a normal computer with normal computer features. Then we have two types of more space-adjusted computers, where one type is used above all to build up preliminary satellite models on Earth. which is used to test the total capacity of the satellite. It is usually called an engineering model of the satellite. In addition to these, we also have the computers that are sent up into space. For space computers, the light length is always dependent, especially on the planned light length of the satellite. Typically, it's usually around 5-7 years. We do see a transition to shorter lifespans, I would say. If you had gone 20 years backwards in time, then the expected lifespan of a satellite would have been 15-20 years. But due to the fact that there is a certain space-freeze mentality in the space industry again, and development, when it comes to sustainability, actually takes big steps, we also see that the expected lifespan of satellites decreases because you simply want to fill up with new updated satellites faster.

I don't know if that was an answer to the question.

We got a question from Björn about how we see the development of quantum computers for the use of satellites. And what experiences would be feasible and what are your solutions? Quantitators are, of course, exciting. Things are happening on the ground that are definitely interesting. But from a technical point of view, the biggest challenge for a computer, no matter what type of radiation environment it is, and that's a lot of the work we do, is to get Teknik som funkar bra på jorden att också fungerar i rymden. Vanliga halvledardatorer har en viss känslighet mot strålning, men de flesta av de kvantdatalösningar, åtminstone de jag känner till som tas fram just nu, är ännu mycket mer känsliga för den här typen av påverkan. Många kvantdatorer måste inneslutas även på marken i tjocka to protect them against cosmic radiation that flows through the atmosphere. Therefore, I do not think that this kind of quantum computer solutions for calculations that are being made on Earth will have any obvious effect in the future. But with that said, there are other areas of use for quantum technology that do not require that type of stability and protection from radiation. For example, quantum technology could get a faster adaptation to be used in cryptography, for example, in space. And that is something that we are interested in. This would not be a replacement for the products that we build, but a complement to them. For example, if you want safe communication between two computers, you could use quantum keys.

Any more questions?

We have a question from Mattias Trygg here. How do the efforts and resources on soft and hard goods divide? And here we still have more of them against hard goods. And if you take the revenues, about two-thirds of the revenues will come from hard goods, but one-third from soft goods.

Fler frågor?

Men när man kan säga vidare på den frågan är väl också att mjukvarubiten expanderar ju relativt hårdvarubiten kontinuerligt när det kommer till resurserna också.

Fler frågor?

We got a full question from Mattias, if we have all resources in Sweden. Yes, today. The resources we have in the USA are two sellers.

Any more questions? Vi väntar ett litet tag till om det kommer fler frågor.

Efter vi inte kommit in fler frågor så ska jag vilja tacka så hemskt mycket för att ni har tittat på den här presentationen av Q2-rapporten samt där Anders har presenterat lite försvarsanvändningsområdena och de uppskjutningar vi haft. Så tack så hemskt mycket för ert intresse.