222% sales growth with positive result and improved gross margin

Group Financial Summary of first quarter, 1st January – 31st March 2023

• Net sales 41,069 KSEK (12,743)
• Order intake 35,417 KSEK (28,291)
• Orders from 21 customers, of which 5 new during the period
• EBITDA 3,874 KSEK (-4,173)
• Operating profit 2,590 KSEK (-5,288)
• Cash flow from operations -7,051 KSEK (-8,215)
• Earnings per share 0,05 (-0,11)
• Life Cycle Assessment -68% kg CO2e during operations of products

CEO’s statement

The group's sales of SEK 41 million during the quarter are slightly higher than the record sales during Q4 2022. The sales growth is 222% compared to the same period last year. Furthermore, we deliver an all-time high result with an operating profit of approximately SEK 2.6 million, which gives an operating margin of 6%.The order intake of 35 million comes from 21 different customers, of which 5 are completely new. Compared to the same quarter last year, the number of ordering customers was 12, which is an increase of 75% in the number of ordering customers. The order book at the end of the period is SEK 198 million.The availability of IC components has improved and lead times are also starting to get shorter. With current developments in the component market, lead times for IC components will be halved during the year. With a favorable product mix in the quarter's sales, slightly lower costs for materials and to some extent adjusted product prices, we reach a gross margin of 36%, which is slightly better than expected and clearly higher than the same period last year (28%).The group's expansion continues within existing regions where, in addition to existing framework agreements, we win new customers and projects in more countries. The geographical share of sales is growing in both the Middle East and Asia. Business development continues in the American market, where projects are now being evaluated with partners and end customers. Our subsidiary Maven Wireless Inc. is established with its own sales staff, and we have several partner agreements in place to speed up business development. After the end of the period, we have had our TETRA products approved for data centers with Microsoft as the end customer. Rollout has started in Europe with Italy, Ireland, Spain and Holland as the first countries. Microsoft has over 200 data centers that we can address with this solution. Furthermore, we have signed a new framework agreement with ONE Nordic and have taken home a first tender order of around SEK 9 million for an infrastructure project in Sweden. This framework agreement further strengthens our position in the Nordic region. Furthermore, in Sweden we have won additional projects both for the correctional service and for hospitals where our digital DAS solution will be used. In addition, orders continue for the mining industry with LKAB as the end customer with expansion in the Kiruna mine. In Germany, we have also won a project for the nationwide TETRA system BOS-NET.In the Middle East, our local partner continues to expand a modern radio network with our unique Public Safety solution with both TETRA and Public Safety-LTE integrated in the same digital unit. Further in Asia, we have received additional orders for Marina Bay Sands in Singapore.The group's expansion continues at a high pace, primarily through an improved delivery capability and complete product offering with modern products and solutions which are fully digital with support for 5G.Sustainability and cyber security continue to be important areas with increasing focus from both our partners and end customers. Our energy-efficient and maintenance-free solutions are attractive both from an energy and cost perspective, but also from a sustainability perspective. We also offer secure systems that meet the requirements for cyber security in the future where end customers can be confident in meeting local laws on cyber security based around the EU directive NIS-2.Finally, our global expansion continues at a high pace according to plan where we continue to digitize society with our climate-smart and secure products with high bandwidth both for 5G and for other critical communications.

Fredrik Ekström – Group CEO

Significant events during the first quarter

Maven Wireless receives EPO approval for the patent "Real-valued passband data transport in DAS"
With the new EPO approval, the company will validate the same patent in several of the European member states. This new patent protects Maven Wireless' digital DAS products and how the products transport data over the fiber network.
 
Maven Wireless expands further in the Middle East and receives an additional order of SEK 6 million
Maven Wireless has received an order via a local partner for a public safety DAS system to a value of approximately SEK 6.1 million. This order includes the latest digital DAS products for blue light radios that support both the old TETRA standard over the 380 MHz band as well as the new generation solution with Public Safety LTE over the 700 MHz band in the same remote unit. Public Safety LTE is the latest generation blue light radio that supports video and data transmission.

Significant events after the end of the period

Maven Wireless signs framework agreement with ONE Nordic and receives first order of SEK 9 million
Maven Wireless signs a framework agreement with ONE Nordic regarding both DAS systems and repeater products for mobile telephony as well as blue light radio systems and associated services. At the same time, a first order is received for mobile phone coverage for an infrastructure project in Sweden, amounting to approximately SEK 9 million. The agreement is valid until further notice, with opportunities for the parties to revise prices if costs change by more than 5%. There are no volume guarantees in the agreement, which can, however, be used for future projects for all ONE Nordic group companies.

Maven Wireless wins orders for Microsoft data centers
The group has had its products approved to establish secure communication in Microsoft's data centres with the first rollout in Europe. The approval includes the company's digital DAS system for TETRA communication where a uniform solution will be used globally. Establishment of the systems takes place starting in Europe, where the company has already received orders for data centres in Ireland, Italy, Spain and Holland. The sales value per data centre for the company is between SEK 0.5 and 1 million. Rollout of the corresponding solution is also planned for both Asia and the USA. Microsoft has over 200 data centres spread across the world.

8 new patents are validated in Europe for "Real-valued passband data transport in DAS"
Including the newly granted patents in Europe, Maven Wireless has 67 patents worldwide and has an additional 12 patent applications pending outside of Europe. The new patents protect Maven Wireless' digital DAS products and how the products transport data over fiber links. The patents support and protect Maven Wireless' operations throughout the European market.

The company receives a fourth patent in South Korea for "Carrier Aggregation"
Including the newly granted patents in South Korea as well as the new patents above, Maven Wireless has 68 patents worldwide and has an additional 11 patent applications pending outside of Europe. The new patent protects Maven Wireless' digital DAS products and how the products transport aggregated carrier waves over the DAS system.

The expansion continues with positive results and cash flow

Fourth quarter, 1 October – 31 December 2022

• Order intake amounted to 120,617 KSEK (40,731)
• Orders from 12 customers, of which 6 new customers during the period
• Net sales amounted to 40,698 KSEK (11,634)
• EBITDA 2,103 KSEK (-2,151)
• Operating profit 564 KSEK (- 2,969)
• Cash flow from current operations 986 KSEK (-13,315)
• Earnings per share 0,01 (-0,07)

Period 1 January – 31 December 2022

• Order intake amounted to 227,897 KSEK (111,147)
• Orders from 30 customers, of which 15 new customers during the period
• Net sales amounted to 101,446 KSEK (44,927)
• EBITDA 53 KSEK (-8,298)
• Operating profit -5,037 KSEK (-11,562)
• Cash flow from current operations 2,582 KSEK (-21,219)
• Earnings per share -0.11 (-0.24)
• No dividend is proposed
• Life Cycle Assessment -68% kg CO2e during operations of products

Significant events during the fourth quarter

Call off order from Swiss transport agency SBB
During December, the company receives orders of approximately SEK 88 million based on the newly recognized framework agreement with SBB in Switzerland. Rhomberg is the company's local partner who delivers the projects to SBB with Maven Wireless products
 
Extension of framework agreement with Telenor
At the end of the quarter, the company signed an extension of the framework agreement with Telenor. In this extension, the company has adjusted sales prices to compensate for cost increases in the production stage. The new agreement is valid until December 31, 2024.

Increase the number of share holders
During December, the company carries out an ownership spread through Avanza, which was oversubscribed, with this spread we get 2,300 new owners. As announced during the process, only parts of the spread are made with new shares as the company is not in direct need of working capital. The subscription price for the spread was SEK 15.15. The share distribution consisted of 1,089,109 newly issued shares and 584,966 existing shares.
 
Deloitte Sweden Technology Fast 50
Every year, Deloitte ranks Sweden's 50 fastest growing technology companies in the Sweden Technology Fast 50. In 2022, Maven Wireless will end up in 7th place. The company is the highest ranked company that also has hardware products. The list includes both public and private companies and covers all types of technology – from the Internet and computer equipment to Life Sciences. The ranking is based on the companies' average revenue growth over a four-year period.

Consolidated accounts
Consolidated accounts have been prepared for the first time for the parent company Maven Wireless Sweden AB and the wholly owned subsidiary Maven Wireless Inc which causes a difference with the comparison figures accumulated against reported figures of the previous year.

Trade shows
During the fourth quarter, the company participated in 5 different trade shows.

• PMR Expo in Cologne, Germany. This is a central fair for the European market for blue light radio and private networks.
• ADIPEC in Abu Dhabi, UAE. This fair focuses on the Energy sector and is relevant primarily to the "Oil & Gas" sector for the company in the Middle East.
• Maredi Technologies Solutions Day, South Africa. Here the focus was on reaching out to local mobile operators. The company presented operations and product range.
• GITEX World Trade Center Dubai, UAE. This is a global technology trade show held annually in Dubai.
• Sweden Joint Working Group on Digital Technologies and Economy, New Delhi, India.

The company has also carried out several activities for investors, among other things the company has carried out individual presentations during the quarter, a general company presentation together with Skills Corporate Finance. Furthermore, the company has carried out a company presentation at Avanza's Capital Markets Day. In addition, the company held several other dispersed market activities in connection with the ownership dispersion.

Significant events after the period

Anders Olin is proposed as a member of the board of Maven Wireless AB
The nomination committee intends to propose the election of Anders Olin as an ordinary board member at the ordinary general meeting in 2023. The nomination committee's complete proposal will be presented at the usual time before the annual general meeting. Anders Olin, born 1966, is President, Enterprise & Messaging at Sinch AB. Anders Worked within Ericsson between 1996-2017 with various executive positions within general management and leading product manager positions including EVP & GM AT&T account, EVP & GM Vodafone Global Account and VP & Head of Product Area Telecom Core. He has lived outside of Sweden for a total of 17 years, of which 10 in the USA. Anders has acquired 72,004 shares in Maven Wireless AB.

The European Patent Office EPO grants patents for ” Real-valued passband data transport in DAS”
Including the new granted patent, Maven Wireless possesses 59 patents worldwide and has additionally 13 patent applications pending outside Europe. With the new approved EPO patent, the company will validate the same patent in several of the European member states. This new patent protects Maven Wireless digital DAS products and the way how the products transport data over the fibre network. This patent supports and protects Maven Wireless’ business throughout the European market.

CEO’s statement

The company's sales of SEK 41 million during the quarter are the highest in the company's history, sales growth is 250% compared to the same period last year. The sales for the full year amount to SEK 101 million, which is a sales growth of 126% compared to the full year 2021. We have continued to focus on increasing the delivery capacity to convert the order book to turnover faster. Furthermore, I am once again happy that the company continues to deliver a positive result of SEK 363 thousand and a positive cash flow of SEK 986 thousand from ongoing operations during the quarter.The order intake of 121 million is more than twice as high as the previous year, which also results in the order book at the end of the year reaching new record levels and landing at 201 million kroner. Furthermore, during December, the company received an order of SEK 88 million from SBB, which is the company's latest framework agreement, it is satisfactory that we have now started with this framework agreement after a dispute about the outcome of the procurement where the court ruled everything in our favor.The lack of IC components and increased raw material and fuel prices have continued to drive up our production costs during the year. This results in a gross margin of 31% during the year, which is 3 percentage points lower than the previous year (34%).During December, we carried out an ownership spread through Avanza which was oversubscribed and with this spread the company gained 2,300 new owners, the total number of shareholders as of the balance sheet date was 3,653. As announced during the process, parts of the spread were made with new shares as the company is not in need of working capital.Furthermore, at the end of the quarter, the company signed an extension of our framework agreement with Telenor. In this extension, we have been able to adjust our sales prices to compensate for cost increases in the production line. The new agreement is valid until December 31, 2024.The company's expansion continues within existing regions where, in addition to existing framework agreements, we win new customers and projects in more countries. Business development continues in the US market together with a network of sales consultants. We have active quotations out with customers and several projects under evaluation with Maven Wireless products. We continue to take home orders for high-capacity DAS for tunnels in Turkey. Sales of the company's repeater for coverage on trains also continue in Switzerland. In the Nordics, we have received breakthrough orders both for solutions in hospitals and in prisons. We also have partners in both Sweden and Norway who use our products to establish coverage at power plants.The company's expansion continues at a high pace, primarily because competing companies show poorer delivery capabilities and are also unable to offer modern products and solutions that are fully digital with support for 5G.Sustainability remains important to property owners, among other things, and is further supported by skyrocketing energy prices. We are proud to be able to offer energy-efficient and sustainable solutions for indoor covering that help reduce emissions on our planet and thus achieve the European Commission's goal of a 40% reduction in emissions by 2030.It is also interesting to note the new EU directive NIS-2 from November 10, 2022, which clarifies management and board responsibilities for cyber security in public environments such as airports, offices, malls, etc. This means that insecure networks such as public WiFi will be displaced by more secure solutions such as our DAS products.Our global expansion continues at a high pace as we continue to digitize society with our climate-smart and secure high-bandwidth products for both 5G and other critical communications.

Fredrik Ekström – CEO