Ovzon Aktie

Welcome all you investors out there to this live broadcasted Q1 report presentation with the SATCOM company, Ovzon. Presenting are CEO, Per Noren; and CFO, Andre Lofgren. A Q&A will follow in which investors can ask their questions via the live chat, and I will raise them during the Q&A. So welcome, Per and Andre.

Thank you, Mattias. Good to be here.

Nice to have you here, and congratulations to a very strong quarter. We are all eager to hear all about it. So please go ahead with your presentation.

Thank you. Yes, we're very pleased to be here for the first quarter of 2026, and talk a little bit about the company and the results that we've had in the first quarter. I will, before we jump in directly into the conversation here, maybe summarize the quarter, which is very strong, as I said. So number one is we had our best EBITDA and EBIT result ever in the company's history of SEK 120 million. It's the eighth consecutive quarter where we have improved EBITDA, which is very strong.

I'm also pleased to say that we got the U.S. Department of Defense or Department of War as they call themselves now, back as a customer in the quarter. It shows that we have a strong relationship. And when it matters, we get asked to provide our unique solutions. And last but not least, our ability to deliver with very high quality and high speed according to plans on the order backlog we have, I think it's the strength of a very healthy operation. And at the same time, we're scaling up all of the company as we go forward. So very, very pleased with the result, very pleased with the performance of the company and very pleased to see the U.S. back as a customer for us.

But let's take it from the highest level right now. Everyone obviously follows this on a daily basis, if not hourly basis, that we, in essence, have a new world order. It's a troublesome world we live in. It's very geopolitically fragmented, I would say. Sovereignty has become maybe the most popular word, and it also are followed by actions. Specifically, I would say, in the relationship between the United States and Europe, I think Europe has, in essence, is driven by driving essential European capabilities in all aspects of industry from energy to technology, including satellite communications, obviously, for us. But in essence, being self-sustained and autonomous is very critical.

Space is becoming one of the critical infrastructures for that. We'll go into that a little bit more. And when it comes to our core markets, you can see in the new world order that defense is being digitized. You can see it in Russia's full-scale invasion of Ukraine that Ukraine has actually been able to hold their ground, thanks to a lot of innovation, digitization and operational dependency on communication and unmanned vessels, et cetera. So it's fair to say that we live in a very, very new world order and era and connectivity is now a critical infrastructure and space is its backbone. If we take that down to where we stand as Ovzon, we have not changed our direction, our focus and so on. We believe in running a very healthy core business. We also believe that we're built for this critical infrastructure era. And our vision is the same. We see greater calling, connect and protect people, society and organizations for a safer world. And we believe that our integrated capability is absolutely essential with our SATCOM solutions for the markets we today serve, defense, national security and public safety.

I think it's fair to say that the results that we see of staying the course, being very focused and concentrated on our customers, on our technology and our solutions and deliver of those generates a strong performance for the company as we'll go deeper into. And we live very well in this quarter also on the fact that we have a very strong order book that we are delivering on. Our value proposition, as I alluded to somewhat here, continues to be the same. And I think in the new world order, in the situation we are in today in our core markets, specifically defense and total defense and civil defense to control each part of what we call the circle of life, meaning the terminal on the ground that ensures that people, vessels in the air, on the water and on ground actually functions perfectly with the resilient satellites and satellite networks that we build that is connected to Internet, to connectivity through secure gateways and that we can manage this service 24/7, controlling each part of this.

I would say that Ovzon is the only company that has both the terminal side, the satellite and network side and brings this into a managed integrated end-to-end service where we promise basically 100% connectivity to our customers 24/7, 7 days a week, 365 days a year. I think it's unique. It's our choice, and we continue to believe and show that I think that's essential in our unique value proposition that we have.

How does this work in today's world? Well, obviously, since we have chosen to serve the markets we have, defense, military defense and civil defense, national security and public safety, it's all about multi-domain operation, connect your assets, your people with the right information at the right time and basically on seconds and minutes to decide where to be to protect, connect and protect people and societies and countries and organizations. So all of these aspects, whether they're in the air, on the ground or on the water with people in the loop are essential for the current, not the future, for the current defense system or rescue missions that civil defense has. And we play in all of this. We'll come to the launch of our new mobile satellite terminal here in a while. But we believe that mobility plays a role, performance plays a role, meaning data throughput and real-time decision-making and resiliency, meaning uninterrupted signals for connectivity so that data, imaging, video and decisions can be made in real time to protect societies.

We also believe that there is a greater market for us out there. It's not only that space has become an essential infrastructure. The rest of the society's infrastructure also needs to be connected and protected. And more and more of the aspects of our society is being digitized as well as we can do most of our things on applications on our phones today. We believe that connectivity is the last mile delivery of an integrated protected and connected society. So any of those other aspects of society will eventually in the future, be a target for Ovzon. But we stay true to our course. We stay true to our customers, knowing the problems we're solving and delivering on those promises to those customers we have today foremost in the defense sector, but there's a big market in front of us as well.

Now I talked a little bit in the beginning about the new world order, and I'm not going to dwell too much on it because we can read it in the news daily and hear it on the news daily. However, I think geopolitics was a word that we didn't use that much just maybe 4 years ago. It's now maybe the geopolitical environment drives the geoeconomic environment, meaning how do you enable societies to function even though it is a harsher world out there, both from a civil and military perspective. But what it has led to is actually that defense spendings are up. So basically, all countries, not only the Western world, all countries are looking at higher defense spending. NATO is asking 5% of GDP from the alliance countries. That is -- it's a fact of life today. I think we play an essential role in that. If you go to the right here in this picture, what it means to us, I think that plays to our advantage as a company, delivering capabilities to that.

I think high North or Arctic is very strategically important, not only from protecting the societies and for -- obviously, for the Nordic countries, it's very important, but it's also for Canada, the U.S., which -- and U.K. and other countries, which means there's a lot of interest there. I'm pleased to say that we have recently had an expedition, our second expedition up there, and we can provide capabilities all the way up to 78 degrees north where our satellite actually functions really well. So I think stretching the imagination of what you can do with satellite connectivity to connect and protect societies is very, very important.

I think that we believe and we follow this, the explosion of unmanned vessels, vehicles in the air, on the ground and on the water is essential. Therefore, satellite connectivity to steer those unmanned and control the data and information flow from those becomes essential. It plays to our advantage with our ability. There are a few caveats to all of this defense super cycle and geopolitical situation. And it is that still in the Western world, procurement cycles are fairly long. They're not wartime decision processes. And they have to be. These are state money. Shareholders are basically those of us that pay tax in these countries. And it needs to be done in a very thorough way, so you know that you spend the dollars or the krona in the right possible way. But that means that sales cycles or decision cycles are fairly long. I think that's worth pointing out.

And the last component of this is really the interest and investments in space. So in the industry we're in, one company, in particular, SpaceX has announced they're going to do an initial public offering. And there's a lot of investments from them into low earth orbit satellites. There is a lot of investment in their rival, also in Amazon LEO. There is a lot of money going into that when it comes to a European player, Eutelsat that also has low earth orbit constellations. So it's fair to say that there's never been a higher inflow of investments. There's never been a higher inflow of innovation, and there's never been a higher interest in space as the next frontier for infrastructure. I think this kind of summarizes the strategic environment fairly well. And we are well positioned in that. I've touched upon that several times now, and we believe that we can reap benefits from all these aspects while still connecting and protecting our customers in what they do.

Now let's turn over to the first quarter. As I said initially in the executive summary, we had record earnings of SEK 120 million. Andre will go deeper into the numbers here. Eighth consecutive quarter with improved EBITDA. And at the same time, we're delivering on our order backlog, and we are essentially scaling the company as we go. I think that's a sign of a very healthy operation, a very healthy company. And I think the biggest aspect of what we do is to have the right people in the right roles, the appointment of one of our own that have been with the company for 18 years, Martin Eriksson to our CTO. It's a sign of strength, complemented by external key recruitment as well.

And I would say the progress in our sales pipeline and development of the sales pipeline is healthy. It's disciplined and we are on the targets 24/7 basically. As I said, procurement cycles are somewhat naturally floating, not inside the quarters at times and outside the quarters, but we are not seeing any degradation in the demands and needs for the remainder of the year. So it's more fluctuations. And again, the U.S. Department of Defense or Department of War, as they call it, back as a customer, even though a short-term contract, we have optimistic views on continuing to get back to the place where we were since 2014 with that as well.

And of course, last but not least, the launch of the Ovzon T8 terminal, which we'll talk to in a little bit here. And here it comes. And for the first time, we brought with us actually our portfolio of terminals that we have. So I'm going to show you that and speak for a few minutes about those. There are 2 sets of terminals. On-the-pause, which are more for control and command, not movable per se, but they can -- you can move with them as well. But -- and this is the Ovzon T6, it's our workhorse. And this is the Ovzon T7, the smallest in its class for on-the-pause terminals. You can fit them into a backpack or a brief case.

Secondly, on this side is our on-the-move terminals. This is the Ovzon P20, currently the smallest on-the-move terminal in the market. Today, you put it on vessels and they can move at very high speed and with very -- in very difficult conditions as well, also state-of-the-art. But our latest, of course, is the Ovzon T8, and you can see the difference in size here. This is the Ovzon T8 that we just officially launched. This is the radome on top of it, and this is the terminal. And you can imagine if you can continue to have high data throughput, mobility component, it's Ovzon's first developed on-the-move terminal. You put this on vessels, whether they're in the air, on the ground and on the water, and it can provide you with excellent performance, data throughput, mobility and resiliency. And we can see a whole array of new use cases for this. It's basically built with the customers in mind and their needs and discussions with us about where they are.

We have the first contract on this with one customer that is our development partner, meaning very fine that what we develop meets their needs. And we are going to deliver the first 10 prototype or the first prototypes this summer and then go into production, and we do all of this in our newly formed center of excellence for mobile satellite terminals. We're very excited. We think this opens up the market for unmanned, but also for other use cases that has previously not been there. So this is the birth of the Ovzon T8. Very pleased with that and very proud of our team that -- very proud of our team that actually have developed this. It's their design, it's their ambition. Phenomenal Swedish engineering technology in essence that only we can do. And it goes back to the circle of life, controlling what's on the ground in space and how you manage that integrated service sets us apart as an organization.

So with that, I'm going to hand it over to Andre for the numbers.

Thank you, Per. Yes, let's dive into the financials a bit, and we'll start with the revenue. You can see that looking at -- starting with the service revenues from SATCOM, you see that continues to increase. We're ramping up our delivery of services. And also, you can see on the top there, the orange part is the terminals. It's still at very good levels. It's not as good as in the previous quarter, but still at very good delivery volumes. So we are very pleased with this quarter as well. And as you can see, terminals are a bit more lumpy between quarters. But I think the main conclusion here is that our services are ramping up, and we continue to deliver terminals at a very good pace. And then if you look to the right here, you see what services means if we would analyze this number for the quarter for the -- as a full year number, then we're actually at record levels here as well, and that's about SEK 750 million on an annualized basis. So I think we're heading into something really strong here.

Moving over to the profitability portion. Here, what you see is the EBITDA and the EBIT, and they are both continuing to improve very solidly in both cases. The EBITDA is at SEK 120 million in this quarter, which is then representing a 46% margin. And that is thanks to, again, the delivery of terminals, the delivery of services, both via third party and from Ovzon 3, our own proprietary satellite, which is then helping us boost the margins in a really good way.

EBIT, the same reasons for this improvement. Here, margins are at around 30%. So that is also very strong. And in absolute numbers, that's SEK 80 million. So again, we are improving and increasing our profitability while we are ramping up our top line. So it is profitable growth that we are continuing to deliver. Then one more step into the profits. This is all the way down to the profit after tax. So then we have paid our interest rates and paid taxes if there were any. And as you can see, this is at very good levels as well, SEK 70 million in the quarter, and that is then an earnings per share by SEK 0.62. So again, very good levels.

The main reason for this ramp-up is, of course, the strong profits from EBITDA and EBIT, but also that we have been able to reduce our interest costs quite significantly. So that is helping us. And that started in Q4 last year, and you see the full effects of this also in this quarter and will continue as we go along here. One reason why the Q4 looks a bit better than this quarter is that we had a one-off impact -- positive impact in the previous quarter for tax reasons, which now actually have the reverse impact in this quarter. So underlying, it's a very strong development of the EPS and earnings here. So we're also very pleased with this development.

Let's move back into operational level and looking at the cash flow. It continues to be very strong. We are in positive territory and quite significantly into positive territory when it comes to operating cash. We have some investments into our beautiful Ovzon T8 and other developments, but it's not very big numbers. Our free cash flow is also very, very strong. To the right, you can see our financial position. It's -- the orange line here, it's our net debt, and you see that, that is decreasing. And that has to do that we -- with this good cash flow that's actually generated from really good negotiated contracts, which we now see the results of, we can use that cash and amortize down our debt. So we're not piling up a lot of cash that's not being used in the most efficient way, but we're actually reducing our debt position, which is more -- the net impact of that is much, much more beneficial. So we are below SEK 200 million in net debt as we speak. So I'm also very comfortable with that situation.

And here's a summary of the financials. I think Per, maybe you are most well-fitted to take those numbers.

I'm not sure I am, but we know them both of you fairly much inside and out by now. I think Andre points to the most important things here, profitable growth. We continue to grow top line, as you can see. Secondly, the cash. So we continue to be in a healthy situation with cash, and we're using them in a very intelligent way, I think. I also feel comfortable with how we do that, and we continue to operate positive cash from operations. And EBITDA, as we said, again, worth repeating, I think, the record quarter when it comes to EBITDA and -- but also the eighth consecutive quarter of continuing that. And it's part of our focus is basically profitable growth, and running a healthy core business and doing it while we also scale up is quite an achievement by the team, I would say.

So we feel we have a good business model. We have a good focused way of running the business. We can launch new products in the middle of actually delivering on that. And we have a strong order book that we deliver on as well. So very strong numbers all over, I would say. But if we're going to try to summarize then the situation and the quarter, I think there are probably a few things to repeat, but very strong execution, and we have a very clear path forward for where we're heading. You could tell on the numbers that we have improvement in profitable growth. We have a strong financial position. We have U.S. customer reestablished. Yes, the timing variability in order intake is actually noted by us, obviously. We work very hard on bringing things into the quarter. But if they fall into the next quarter and the full year and beyond that looks good, we are not nervous about that. We see that as a positive sign that we have good and deep dialogue in developing the sales pipeline.

And we're also in parallel building out. We're investing in building out our sales organization. We bring good people on board, and we reallocate some of our very, very good engineers to also do sales engineering and support in helping customers understand the use cases. How do we actively scale up? Well, I think the strong execution helps that we have solid financials and strong execution. There are -- there was a contract. We noted that in my notes to the report. We've had a contract that we've had for -- that we signed in December 2024 that started in 1st of March '25, that was for 12 months. It has not been renewed, but we are in dialogue with that customer around how they want to actually utilize the system going forward. So we think that's a healthy conversation to have, and we believe that there is an outcome there in one shape and size and form that will have a positive outcome in the future.

Organization is strong, as you can see on the strong execution. And of course, when your CFO says beautiful about one of your products, you know that you've done something right. We can innovate and scale up during a period of time of a very strong ramp-up of the business. So strong quarter, clear path forward, a strong team that actually continues to work around the clock to deliver to customers and deliver financial results and enable commercial success. So with that, I think we are done with our formal part of the presentation and look forward to questions and answers.

Thank you so much, Pat. And Andre, very, very, very satisfying quarter for you, of course. And thank you for showcasing the terminals. Very interesting to see them as well. I'm not sure if we have the equity analyst now, he's not on board.

So we'll start with some questions from some viewers. And with Ovzon's profitability and U.S. presence, is the Board considering a U.S. dual listing to better align with global defense peers and access deeper capital markets for future projects?

I can answer that question. This is nothing that as management team, we have talked to the Board about. I think our listing on NASDAQ Stockholm is quite adequate. It's a very strong capital market to be on. So I -- that's my answer to that question. I think we have adequate availability of capital if needed, where we're listed today.

And also may just add, a dual listing comes with a lot of reporting requirements and costs, et cetera. So I'm not, I don't think it would be actually such a wise decision.

Okay. And if you -- if it's possible to get some more details on orders when it comes to Department of War order for evaluation is for Ovzon 3 premium services, or if it's a renewal of SATCOM as a Service?

Yes. Very good question. Thank you for that. No, this -- so first of all, we have to kind of come back again and say we have had this customer since 2014. That's a long period of time. They have a fairly large inventory of Ovzon's mobile satellite terminals that they -- that are in perfect shape and can be -- start to be used immediately. So basically, this is our old, old customer that needed to turn the network on to utilize it for their needs. So we normally don't sign that short term of contracts of 3 months.

But since this is a long-term customer, this was a reignition of that relationship and use. And it's not on Ovzon 3. It is on third-party capacity. They have Ovzon T7 terminals that are equipped with our onboard processor modem that can be used on Ovzon 3 for the onboard processor. They also have terminals that can be used on the Ovzon Pegasus Services, which is the non-onboard processor network on Ovzon 3. But we believe that you have to crawl before you walk, before you run here. So the reentry with the U.S. DoD and U.S. Department of War and the utilization of our SATCOM as a Service now will initiate more discussions on what's in hold for the future.

Yes. And a comment to that order, it's relatively limited in size and duration. How do you see your opportunities going forward here with this client?

I think this client is a huge client. The U.S. Department of War, U.S. Department of Defense, huge client. This is our core customer that knows us very well and knows the system very well. So I think that's a good sign of coming back in. And my view is that we should do everything we can to work with them on extending what they do today and expanding that. There are also other groups within the U.S. Department of War that I believe are clear targets for the kind of SATCOM Solutions that we have. So we're working intensely on those as well. But it starts with the reference point and then you expand from there.

Thank you. And here's another question from an investor, and it starts congrats for the new Ovzon T8 terminal. Being in GEO, do you think your OTM solution provides sufficient latency compared with LEO solutions? Or is this a limitation?

Very good question from a very insightful person that asked the question. Number one is, yes, we believe our GEO satellite services, GEO-based services are absolutely adequate given how we design networks, given how we have the terminals fitting those networks. So we see that as a strength. It complements any LEO. We also believe that latency is not a problem, specifically not if you use the onboard processor. So the connection of the Ovzon T8 terminal on-the-move terminal with the Ovzon 3 integrated SATCOM system that we have in space will not be an issue when it comes to latency.

There are differences in latency. Yes, LEO obviously is closer to earth and therefore, not as much latency. But we don't see that. There's a picture actually here on one of our slides that -- and that was the test we did with FMV, the Swedish Materiel Defense Administration up in north of Sweden with an unmanned vessel on the ground with going through Ovzon 3 and the onboard processor with very, very strong performance and very, very low latency. So we see that as an opportunity for us to continue to be specialized and GEO is actually a strong area to be in.

Very common question when it comes to Ovzon. What are the plans for more of your own satellites? And how do you intend to finance them if you do that?

Yes. That's a very good question as well. We have previously said all the way from our Capital Markets Day in September 2025 throughout the quarters that we have reported here that our goal is to have a fleet of owned satellites. We believe that is based on one thing, first of all, the success of Ovzon 3, the ability of the satellite to perform to the standards that we and our customers have set for it and the onboard processing capability, the regenerative signal ability.

So based on that, we believe we should have a fleet of satellites. We actually have a request for information out in the market where we look at what kind of satellite designs are there out there that meets the needs that we have and what we have learned from Ovzon 3 and the onboard processing, what's the cost of producing, what's the cost of launch and how are the lead times for this. So both technology, economics and solutions for customers. The RFP work is going very well. So we have a very good view on the market and what it can offer us. We believe that during 2026, can make a decision on more satellites. And the financing will come from the most adequate way of doing it, our own cash, regular bank financing, maybe a share issue, but it -- and customer financing. It depends on what fits the needs of the customer and us and our shareholders best. If you have any?

We're not bound to any of these solutions. We have the full [indiscernible] support of various ways of funding it, which is a really good thing, I think. So we can -- we will take the most optimal solution to our financing.

Great. You are now launching Ovzon T8. How does that differ from T7 and T6? And what do you expect existing customers to upgrade?

Yes. So that's another good question. So as I tried to explain in a very short period of time when I showed the terminals, this is the first development of a terminal that Ovzon has done in the on-the-move space. So Ovzon T6 and Ovzon T7 are on-the-pause terminals that we design and develop, and produce ourselves basically. This is the first on-the-move terminal. So it's somewhat different. It needs to have -- needs to track the satellite, point to the satellite at very high speeds and so on. So it's not going to replace the Ovzon T6 and Ovzon T7. It's going to complement that as you build an integrated SATCOM system between the satellites and the terminals. So you will actually need both. It might replace other on-the-move terminals that we have in our portfolio you are looking at. But that seems to be seen when we have developed the prototypes and how well they perform. But it looks to be something very unique that we have in development right now that we think complements our on the pause terminals and revolutionizes the on-the-move terminal market.

Okay. And could you point out what you think is the most important takeaway from the first quarter?

Yes, of course. I think the first takeaway is this company has a very strong ability to perform, to execute. We deliver on our promise of delivering a plan to our customers. We utilize the order book we have to do that. That's a key takeaway. Very strong financial results. We grew with 189% top line, and we have a record SEK 120 million in the quarter in EBITDA. Very strong financials, very strong execution, running a very healthy core business. Secondly, the reestablishment of the U.S. as a customer is very important in a time era where I think many companies have a hard time finding its path with the U.S. DoD and the U.S. Department of War. I think it's a very strong signal.

And lastly, I think you could trust that we have a core focus on driving profitable growth. We have healthy financials. We're spending them in the right way or utilizing them in the right way. And we're not less resting on our laurels because we can actually innovate and launch a new terminal while we scale up. So I think those are the takeaways. This is a very strong company operating at a very good high rate.

Thank you, Per. One last question. Can you please elaborate a little bit on the order backlog versus the order intake?

Do you want to talk about that?

Yes, sure. Yes, order backlog, that's what we have already booked and order intake, of course, what we are looking at or what we have in the pipeline and what will turn then into orders. I think we have a very solid backlog where we stand now with visibility into 2027. And I think, as Per mentioned, we see really good potential in the dialogues that we have. So it might fluctuate between quarters. Q1 is a seasonally slow quarter in bookings. So I'm comfortable with what we have ahead of us.

I think it's all about timing, as Andre said, we are not very nervous about the year. It's where does it fall in the quarter 1 or quarter 2 or quarter 3. I think we have a solid pipeline, and I think the order intake, you always have to be concerned with order intake when you run a growth business. We want to increase the order backlog to be at that level we had when 2025 ended. So that's our target, our goal, but it's also essential to win the right customers with the right solutions as quickly as you can, but not force it because then you might give up on your pricing premium. So I think stay the course, focus, work around the clock and good things will happen.

Okay. Great. So let me first point to the investors and viewers and say thank you for the huge interest in this broadcast. And of course, Per and Andre, thank you so much for the presentation, and we are already looking forward to the next quarter presentation.

Thank you so much, Mattias, for a well-run webcast.

Thank you.

Welcome, SATCOM company, Ovzon have published their year-end report for 2025 this morning. We will now be giving a presentation about results and activities. And this is done by CEO, Per Noren; and CFO, Andre Lofgren. After the presentation, there will be a Q&A by equity analysts and investors. And by that, welcome, Per and Andre.

Thank you, Mattias.

So arrows and graphs are pointing in the right direction. How would you, in brief, describe 2025 for Ovzon?

Thank you, and good morning, everyone. The year has been a systemic shift, I would say, a breakthrough for Ovzon when it comes to our financial performance, but also when it comes to scaling up the company. We saw 120% increase in revenue and a quite considerable increase in EBITDA improvement from basically plus/minus 0 in 2024 to SEK 291 million in 2025.

So it's been a phenomenal year and numbers are numbers, and they don't lie. However, I think the upscaling of both delivering on the big order we took in May in 2025 as both on the SATCOM services side, building networks and delivering services to our customers as well as scaling up the terminal side is the most prominent thing that stands out to me, and that's delivered good results this year.

Okay. Then please go ahead with your presentation.

Thank you, Mattias. Well, we're, of course, quite excited and delighted to be here today to talk about our fourth quarter and our full year 2025. But let's go back to the basics first and talk about who we are. Most of you are very familiar with this, of course, but we do see ourselves having a greater calling than, I would say, most other companies. We have a vision of connecting and protecting people, societies and organizations for a safer world. And one can easily say that with the geopolitical tensions that are in the world, this is a necessity today.

We operate in space. Space is our infrastructure to deliver a unique service. And we bring resilient, mobile and high-performing satellite communications to our customers that can be found in defense, national security and public safety sector. We have had a period of many years of heavy investments in our own satellite capacity and mobile satellite terminals that we are now turning into a strong growth -- profitable growth case with an order book of over SEK 1 billion, and you can see that on the graph in front of you here.

A little bit of the reminder of our uniqueness. Ovzon's value proposition is the one of an integrated communication solutions with very, very high performance, and ability to use it for both manned and unmanned people and vessels. We integrate the phone, the mobile satellite terminal with building very dynamic and strong networks. And we do that also by having partnership with secure gateways and then a dedicated customer support 24/7. So in essence, we monitor every signal, every terminal and every movement with our steerable beams on our networks to ensure that our customers get basically 100% connectivity wherever they are in the world.

Very few, I would say no one has this integrated capability. Satellite operators operate satellites and deliver bandwidth. Mobile terminal providers deliver mobile terminals. Gateway providers deliver gateway services and connection to fiber and Internet. We integrate all of that. And plus we have our own capability, both in space and on the ground to ensure that, that's guaranteed.

Where we do it, as I said in the beginning, is foremost in defense, but also for national security and public safety. When it comes to defense, the big trend right now and what we have learned from the areas that are in most attention today is that digitization is the driver of defense today. And when you digitize something, you need connectivity to transport information, data, video footage, et cetera, et cetera. And it needs to be multi-domain operations between in the air, on the ground, on the water, people and vessels and assets need that information in real time to make fast decisions to protect and connect what their missions are.

So we do this in all those domains with our unique technology and unique capabilities. That's on the defense side where we're the strongest today and where we've had our focus the last 4 to 5 years. However, it needs to be put in perspective that Ovzon's mission-critical connectivity is beyond defense, national security and public safety. So our growth prospect as a company is much greater than that. And our impact on connecting and protecting a society is much greater than that.

So we see opportunities in being very deliberate about being strong in the domains and in the areas we choose to serve, but also have an openness because we know our technology is so strong, so it can actually feed other types of domains in the society today. And this picture represents some of that as well. It's important to understand that the market is quite enormous for us.

Obviously, we all wake up every morning and follow every day what's happening in the world. But I want to put Ovzon in the context of the strategic environment that we operate within. If you think about geopolitics, which becomes geoeconomics as well, we are in what's called a super cycle for defense spendings. NATO sets a demand of 5% of GDP going into NATO and defense spendings. But also each country needs to build and they are building and investing in sovereignty and resilient capabilities and solutions. Alliances, could be between countries or within NATO, et cetera, et cetera, are looking at the same.

Obviously, Arctic and the high North is a very, very important area. We can follow that in media as well and between our political leaders. We have abilities in that area, but it will take some time to build a solution for that, obviously. And the conflicts that we see in the world are also driving an increased demand.

So we are in a troublesome situation for the world, but an opportunity for us to connect and protect for our customers. When it comes to policy and procurement, more money is spent, but procurement cycles are maybe not as fast as the money -- the availability of money today. And I think that's an important aspect to understand when you're in a business-to-government business as we are, that you have to have endurance, you have to think and act long term and you have to stay true to your core capability and solution to do that.

When it comes to the industry, there is a space race. You can see the likes of Elon Musk, Jeff Bezos, owning SpaceX, Tesla and others and owning Amazon investing in low earth orbit constellations. They have different business model for them, but that's about connectivity to make sure that societies are connected. We don't compete with that. We complement that with mission criticality. So we see that investment wave in the industry as a positive and a strong aspect of actually investment in capabilities and our position is very strong for that.

So you can see that there is also a growing interest in the space domain. And space is a big word. There's a lot of things in space. What Ovzon does and we do it very well, is that we use space as infrastructure for delivering a highly unique performance-driven, mobile-driven and resilient solution for connectivity for the customers we choose to serve.

Turning from that more macro perspective, we're going to turn our focus more into the Q4 accomplishments. And it has been a focus on execution. And that execution has then led to, of course, an increased momentum for us in accelerating our profitable growth and our profitability. In the quarter, we had a complementary order of more mobile satellite terminals from the Swedish Defence Materiel Administration. This is a strong and good sign that when you have networks up and you have terminals in use, you start to see broader and deeper use cases for those and the need for more terminals which makes us more sticky also with the customers.

And then at the end of the year, we got a relatively large order from a European NATO customer on Ovzon 3-based SATCOM solutions, including mobile satellite terminals of SEK 240 million. We've also invested in our leadership team. My colleague, Andre Lofgren, joined us in 2025 as our CFO. Jeanette Irekvist joined us in the fall of '25 as our Chief Commercial Officer, both with external -- long and deep external experiences.

And we have the pleasure of appointing Martin Eriksson, who's been with Ovzon for 18 years and is one of our -- has been one of our lead technical leaders and engineers as our Chief Technology Officer as we cease to continue to strengthen our technology leadership. So we have a very, very strong, I would say, leadership bench and for future growth and capabilities.

Going back to 2 things that I want to mention here. I think there are 2 things you can look at. You can look, as you said, Mattias, graphs and arrows pointing in the right direction financially. That comes from an order book that is strong. It comes from an order intake that is strong in the year and also in the quarter. But it also comes from the ability of scaling up and delivering, having operational excellence and having an ability to execute and deliver on those contracts you get. And I think in the defense market, this is very, very important. There are sensitivities to when you work with government money, which is really tax money that I think as a company in that sector, we have an obligation to actually deliver on that and be cost effective and deliver on time.

So I think we have a very strong operational excellence. We've had a very strong utilization in the quarter of Ovzon 3, but also ensure that we have third-party satellite capacity that complements that because we see that the demand going forward for the specificity of Ovzon 3 is there.

So we want to keep enough capability ready for those customers that we are hopefully bringing on in the future. And as you can see, we have delivered mobile satellite terminals to a pretty large value in 2025 over SEK 208 million. And I think the core of what we do is to renew current customers and win new. And you only do that by delivering, by living up to your value proposition, as I embarked on earlier and that you build customer trust when you consistently deliver high quality, you have an organization that is integrated with clear accountability and you have strong execution, reinforcing customer confidence and building future growth opportunities with that.

Before I hand over to Andre, I'll just talk a little bit about the journey that we've been on. And I'm not going to do it in numbers per se. But to understand, we were in a very heavy investment period for a number of years. We managed to keep revenue at bay at fairly high levels, and we added some new customers and so on. But the investments were larger than the ability to create the margins needed to carry those. That has changed with the growth we've had, but growth doesn't come by itself. It comes with being smart about business models, being smart about commercial success and being smart about operational execution.

So with that, I'll hand it over to Andre to take us through the numbers for the quarter and for the year.

Perfect. Thank you, Per. Yes, let's start with the revenue. And as Per said, with these investments into our own satellite and also then securing third-party capacity, we can have had this growth in revenue, thanks to that because you see here is both service revenue that is increasing quarter-by-quarter and then also especially in this quarter, and you see a big chunk of terminal being sold in this quarter. So yet again, a very strong quarter for growth in revenue.

And if you look at the slide to the right here, you see we have zoomed in on the service revenue. So this is the run rate for, say that you have what you have in the fourth quarter and take that times 4, then you are at this above SEK 700 million annually in services revenue, which, as you can see, is a record high level. So it's very satisfying to see.

I'll move over to profitability. It's actually the same headline as we had in the previous quarter, but it's still the truth. We have profitability that continues to improve. And that has to do with the growth that we have in the operations in general, but also that we have really good cost control. So we can really expand margins, as you can see. We're now into the seventh consecutive quarter of EBITDA growth. And to the right, you see the 5 quarters in a row of EBIT growth.

Some might note that Q3 versus Q4, there is a bit of a moderation of the EBITDA margin, but that has to do with the sales mix of a lot of terminals being sold in this quarter, and they are at slightly lower margins than our services. So it's a mix effect here. I'll actually deep dive a bit deeper into profitability. This is a new slide from us. I think it's time to go all the way down to profit after tax and EPS for us as a company because it's the first year that we have black numbers for the full year when it comes to EPS and profit for the period.

You see a very strong Q4 here this quarter, SEK 90 million in net profit, representing SEK 0.81 in earnings per share. And in these numbers, it's -- what you see here is actually the first time you see the impact of the refinancing and the lower interest rate cost that we now have, thanks to that refinancing. And that is something that starts in this quarter and are continuing as we go ahead here. Another impact, which is more of a one-off impact is the tax impact from a recognition of deferred taxes which we now recognize as an asset because we have used the tax loss carryforwards in this year. So we're deducting that from the potential tax.

And then as we look ahead, we see that there's a very clear potential for additional recognition of these tax loss carryforwards. So that's why we are recognizing this in this quarter. And if you sum these quarters up to a full year, you see that we are delivering SEK 137 million in profit for the year after tax, really strong numbers. In these numbers, though, you have, first of all, the one-off effect, but also then you have a tailwind from currencies, which is then unrealized. It's translational in the balance sheet.

I'll move -- take the elevator back up to operational level and look at the cash flow, which is -- really glad to be able to present those today here as well as the previous quarter. You see that we continue the trend of -- well, first of all, very strong operations and the performance of operations, but also really interesting and good payment terms that we have with our customers.

They are really progressive and cooperating with us well on these terms, so we can continue the growth that we have and then invest in the company. That has also then helped us to reduce our net debt quite substantially. We have amortized a lot of the debt, but we have also then been increasing our cash position in the company. So it's -- we're ending the year on a very strong note when it comes to our financial position.

And if we are then summarizing this, when it comes to financials, it's a strong growth, and that is coupled with then a very strong growth in profitability. So it's a profitable growth that we are on to. And we are securing a strong balance sheet and also a very healthy backlog going into the years ahead here. So I'm very pleased with presenting these numbers for this year.

And Per, with that, I hand it back to you.

Thank you, Andre. Thank you for that. And I'm sure there will be some more questions coming your and our way in a little bit. But just staying on this for a little while. So for those that have invested in our company and follow us closely, I will say that these numbers don't come by itself. It requires long-term investment. It requires operational execution. It requires commercial sturdiness to understand that your value is strong.

You have to have a long-term view on what you do. And then you have to really work with your customers to ensure that the value that we promise to give is actually recognized. And that then turns into these contracts. So I think 3 things stand out to me. We're living up to the promise. We have a business model that is strong. We have strong commercial sharpness, and we have a very, very strong execution model that can scale for us.

Now before we go to a conclusion, I think it's worthwhile maybe -- and maybe this is too pedagogical, but to understand our business model somewhat. We divide it into 2 parts, basically, SATCOM services, Andre talked about that. Our run rate is up now over SEK 700 million. That's monthly service revenue from customer networks that we set up. They have high service margins and the cash flow that becomes predictable. And the more long-term contracts we create and sign and the longer-term relationships we have, the more predictable that becomes. And that's an important key performance indicator, I would say.

The second part is mobile satellite terminals. We have reasonably -- we have good margins on mobile satellite terminals. The model is that they are -- revenue is recognized upon delivery. So when the customer takes delivery of the terminal. And then the more terminals that are deployed, it drives the need for more networks and bandwidth. So it drives services growth, which you can then translate into the SATCOM services part. And then, of course, that then, in turn, drives follow-on and supplementary orders of more and more terminals. And maybe a comment on terminals. The smaller, the more use cases. The smaller, the more difficult to develop and have performance mobility resiliency. We can come back to that a little bit later.

And last but not least, it starts with the customer and ends with the customer. So deep customer relationships comes from delivering value, mission-critical performance, renew and have long-term partnership and support expansion of that. So I wanted to actually address that again so that everyone understands where the numbers actually come from.

And last but not least, what can be expected from Ovzon going forward with such a strong performance, as I would say we had in 2025. Well, we're embarked on a journey to continue to deliver financial performance, meaning profitable growth. That comes from number two, ensuring commercial success straight through to our value proposition, win -- renew customers, win new customers and expand into new application areas with our capabilities and solutions. And number three, we are operating on a higher level of scale as a company today, which means that we are also actively looking at scaling. And that scaling will not eat the profitable growth journey, but it will require smartness in investments in scaling the company up to that.

But we believe we have the model for it. I believe that 2025 shows that we do. And I believe that we have the possibility to continue to do so as we go forward and embark on the profitable growth journey. So I think with that, Andre and I thank you for listening to the presentation and are now ready to go to questions and answers.

Thank you so much, Per and Andre, for that presentation. And we will start off with equity analyst, Mikael Laseen at DNB Carnegie.

Okay. Hope you can hear me. I'll start off with a question on the gross margin. It was a good uplift year-on-year and better than I expected. Can you talk to us about the margin dynamics, which is primarily mix effects. So on the leased side and on your terminals, how we should think about that when we go into '26?

Yes, it's kind of the same situation as in this year, 2025. So as you said, Mikael, it's a mix of terminals, which have slightly lower margins and then you have third-party capacity of services, which is a little bit higher or higher than what you have on terminals. And then you have what's been delivered in gross margin when -- from our own satellite, which is a very, very healthy level. So that's kind of the indication we can give you. On exact numbers, it's hard to do. But it will always be the balance of these mix effects, and that's something that we're working also thoroughly with of mixing both third-party and our own proprietary satellite services.

Yes. But since the margin effects and the differences are so big, can you help us understand what type of mix you had approximately in Q4 between Ovzon 3 leased capacity on the service side. I guess it changed quite a lot compared to Q3.

Well, the biggest shift versus Q3 is actually the proportion of terminals versus services in general. But then there's also always a slight mix between quarters also on how much is from Ovzon 3 and what comes from third-party capacity. I can't go much into more details on that, actually.

I think just -- I'll make an overlay comment on it, Mikael. I think it's hard to predict, of course, for someone on the outside. We are working constantly with trying to maximize the utilization of Ovzon 3 where we can. But we also don't want to hold back on ensuring that we have third-party capacity so that we can fulfill contractual obligations and continue to work on actually the new contracts that we are working on as well. So I think the mix there has been strong and balanced between Ovzon 3 and third-party capacity. But on the terminal side, especially, I think that's where the biggest mix is in Q4. We've had a very, very strong quarter in delivering. And we do have healthy margins on the terminals as well. I think that's what you see in the uptick as well.

Yes, exactly. Yes. And another more technical question maybe before I have another one actually on the market situation, if I may. It's on the phasing of the current order book going into '26 and primarily the first half. And maybe if you can help us out with how much of the order backlog that will be delivered in 2027, so we can understand sort of that the mathematics.

Yes. And I think actually, you can view one of our summarizing slides on the financials where you see the mix of what is expected to come in the -- sorry yes -- what's in '26 and what's in '27. So it's a fairly big chunk here now in 2026.

You can see that on the lower right here. So 76% of the order book is in '26 as we have it now and 22% in -- 78% and 22% in 2027. And if you add more contracts going forward, you'll have that shifting over time, '26, '27 as well.

Okay. And then my final one, how would you describe the current customer funnel and the customer discussions compared to maybe 6 months ago?

Yes. I think I would say the following. We are in -- we continue to be in deeper discussions with a number of customers. I've made -- I've talked a lot about the timing of things, right? It takes time to both educate and demonstrate and deliver value in the phase of sales, but the sales pipeline is solid and increasing and with now a new Chief Commercial Officer, who is also ramping up the number of salespeople we have so we can cover more ground. I would say that it's solid what we have, and it will over the year -- it should, over the year, increase as well. So I feel comfortable with the sales pipeline, but cannot predict exactly when things happen.

And we move over to Simon Granath at ABG Sundal Collier. [Operator Instructions]

Congratulations on the strong earnings in 2025. As usual, we tend to ask questions about something you might not be able to give full insight into. But could you try to give us some more color on both the recent progress in terms of adding more satellites to roster. Also, we have spoken about different scenarios historically, whereas you could both do this through a partner or with proprietary funds. Is there anything that changes here that means that you lean towards either of these?

No. I think it's a very good question and very relevant for us to try to answer. And of course, before a decision is made, a decision is not made. However, we have -- we wanted to ensure that Ovzon 3 was operating, that we made the right technical choices, that we made the right operational choices that they deliver the value and the promise that we had set for it. And we believe, yes, that, that is done with 2025. We also believe that the commercial model for it, the business model for it and the prospect of growth and margins on it is also there. So we're starting to see that the return on investment horizon is there as well, number two. And so before -- and then number three, our own financial -- our ability to finance such a capability is also important.

I think the refinancing we did in 2025 shows that there is adequate financing available whatever mean we choose to go -- where we choose to go. So all of these things are there, plus, of course, the customer verifying that the onboard processor and the satellite is delivering beyond what other capabilities does. So all of that, I think, is '25 gives us an indication that we should go for more satellite capability and capacity. We know it takes time. So we have somewhat of a sense of urgency. And what we do is that we have -- we are out talking to satellite manufacturers about what's available. There are actually quite a few new ones in the market, which is interesting. And then there are the traditional ones that are trustworthy in developing something.

So we're in the midst of that process doing a technical evaluation. Then we'll go to the -- and we know that the demand in the market is there. And then we go to the financial part of the equation and see if we can get it to work as a business case. So we believe that we have an ambition to expand with more than one, but I think the business case needs to be developed further and closed, and we believe that we will have to do that during this year.

Yes. And maybe just to add to that, it's not only prioritized satellites, it's also that we will still continue with third-party capacity correct. I mean it's -- that is needed as well to fulfill demand going forward. So it's going to be a mix of both.

We see that we operate on a level now where it's time to have the guts to actually go further.

And building on Andre's comment there, during the past 12 months, we have both seen you sign SATCOM orders on Ovzon 3 as well as third-party capacity. Is the aim -- main aim going forward to prioritize orders on Ovzon 3? Or could future orders here in the relatively near term also relate to third-party capacity?

It could relate to third-party capacity as well. It actually depends on where the customer is in the world, right? So Ovzon 3 is situated in an orbital position at 59.7 East, which is over the Horn of Africa. So it covers a good chunk of 1/3 of earth and can actually go also up towards the Arctic in coverage, which we have tested. So we have -- if customers are in that area and they want the specificity of Ovzon 3 and the uniqueness, we will go for Ovzon 3 there. If they are in other areas, we will have to rely upon third-party capacity. So I think you will continue to see a mix of all of that in it. But there is quite some interest in the uniqueness of Ovzon 3 with the onboard processor due to latency, speed, performance and mobility.

Perfect. And the recent NATO order that you signed or at least with a NATO customer, had this previously been a pilot customer? I'm trying to grasp the relatively short time frame of 6 months here. And if -- to understand if this is a first step with this customer, also taking, of course, the large share of terminal orders or part of this specific order in consideration.

Yes, excellent question. I think you should see it in the -- I would portray it in the following way. The more customers collaborate and do exercises together or mission-critical things together, the more reference points matters. So while it might not have been a pilot customer, it might be that a customer -- one customer has seen what another one has and in order for them to have combined connectivity, that drives -- that has driven this decision basically.

Very interesting. And just a final question, if I may. In Sweden, we have recently seen some positive news about more funds being allocated from the Swedish government to satellites. My impression is that the recent news are not specifically linked to your niche, but could you talk about some of the recent views from different governments and states on SATCOM?

Yes. I think it's become very clear that it's a critical aspect of a digitized defense, as I alluded to in the introduction here in the presentation. And I think the need then for guaranteed connectivity, SATCOM, becomes more imminent and the need is there, imminent and there right now. So I think that's the first trend that I see -- that we see.

And then you have to decide what you want to use it for. There are several use cases. One could be surveillance. One is pure video footage, et cetera. There are capabilities, so-called SAR satellites that can do that. They might actually need a mother ship, if we call it that, like an Ovzon 3 in order to reduce the latency and get faster performance on that. So I think in combination, these things are important. That's an architecture of utilizing the most advanced capabilities in space for a communication, surveillance and data and information architecture for a digitized defense today.

And let's welcome in Finn Kemper at Cantor Fitzgerald. [Operator Instructions]

Congrats on this very successful quarter. So I mean, lots of the things I wanted to ask were already covered. But one follow-up to Simon also is, I mean, if we assume that demand remains strong now and Ovzon 3 approaches full capacity utilization, how should we think about growth beyond that point, let's say, 2028, I mean, assuming that building a satellite takes 2 to 3 years. I mean, incremental top line growth should then primarily come from third-party capacity. But how should we think about the margin profile and top line growth rates in such a scenario compared to today?

Yes. Very good question, Finn. Thank you, and good to see you as well. I think you should think about it in the way you described it. I think we are after maximizing the utilization of Ovzon 3 and we complement that and have always done so with third-party capacity. So we will use third-party capacity for that. I think there's a third dimension that are still in its early stages, but that is also how you combine the usage of low Earth orbit capabilities and geo capabilities, meaning that where we operate in space. And I think we have -- there is more to explore and exploit there in order to build a full communication solution.

So I think with those customers that we have where we are in deeper discussions that might already operate in with us and they're looking at a broader generic communication solution with LEO, that is something -- it will take a little time. But I think that there is -- the solution will include multi-orbit capabilities, our specific Ovzon 3 and also third party in combination with both of those. So I think that helps us also to have a growth prospect quite beyond just Ovzon 3 or just third-party capacity. I think there will be a combination of things that are going to happen as also the customers and the market matures in the usage of SATCOM capabilities for specific use cases.

And also, I think one should not forget that we are also selling terminals. So I mean, that's a revenue stream as well that we see have momentum as well as you need more capabilities.

Okay. Great. One more question maybe on cash generation. So you said that there were some working capital headwinds. Maybe you can help us understand what specifically drove these headwinds. Was it primarily timing of customer payments, inventory build for the terminal deliveries or maybe something else. And as volumes then further scale in 2026, how should we maybe think of structural working capital intensity for this year?

Sure. The headwinds I talked about that was on currency impacts, translation impacts that are unrecognized in the EPS. So for -- it's definitely not connected to the working capital where we see tailwinds rather of -- first of all, the strong performance from the operations and then we have progressive payment terms, and we see that looking -- glancing into the future, we see that, that is likely to continue for quite some time.

Thank you so much, Finn. And let's sum up and read up some of the questions from investors. And let me start off by how does the current change in geopolitical alliances affect your overall business strategy?

Good question. Number one, I would say we've always been -- we are a Swedish company. Therefore, our home market is Sweden. Therefore, also Sweden's entry into NATO meant that the collaboration in the near area is important and the collaboration and the trend we see with America First and maybe European sovereignty also drives our focus to Sweden, the near area, Europe and the U.S. And I would say North America maybe in that sense.

So I think it doesn't change at all really what we have done, but it might change our focus on penetrating certain markets and areas where we see collaboration is more natural and flowing faster than trying to go after everything at the same time. So we remain focused, Sweden, the near area, Europe, North America, including the U.S.

Which measures do or can you do to take to minimize the risk of having customers at odds with each other?

At odds with each other, quite interesting. Well, first of all, we follow the Swedish state department rules of which countries we do business with. That should minimize the friction without question, I would say. We also follow the U.S. Department of State for that matter as well. They might be somewhat different at times.

So I think we're staying very true to those that are more allies if we go -- if you take the basis that we're a Swedish company and operating in Sweden. So I don't see that as a -- I don't see that as a big risk and issue. The friends and the allies and the work that's been done in 2025 between those, specifically in Europe are very, very clear. Some of them are our customers, some of them are not our customers. And therefore, they are on our list of presented customers.

And a question to Andre. You make around SEK 160 million in free cash flow during Q4, excluding changes in working capital. What do you expect the run rate to be in 2026. And by how many million Swedish kronas is Q4 boosted compared to other quarters?

Yes, it's a good question. And it's a bit difficult to answer actually because it all depends on -- I mean, the free cash flow is operating cash flow and then you deduct for investments. And as we have investment plans that are not really decided yet, but we're looking into that. So it could be that the free cash flow is extremely strong or we start then investing into additional satellites and then it will be still pretty decent, but it -- I mean more investment in satellites for future growth will eat some of that free cash flow.

And you touched upon this during the analyst call. But when can you outline the path towards Ovzon 4 or other new satellites?

I think we'll sum it up in the following way. We are actively working and evaluating all those aspects, as I said, when it comes to technology, capability, financing and so on of it. We do see that demand is there. So we're trying to do that as quickly as we possibly can. I think this year is an important year in determining the business plan for that going forward.

Okay. And one last question that I have here now. How -- what's your view on competition and also competition within our area geographically?

Yes. I think competition is good. It drives innovation and it drives sharpness in what you do. I think there are more complementary capabilities in general in the domain or the unique position we are in rather than anything else. I would say the following.

We do not really have a direct competition, but there are complementary things that is required for digital defense, cybersecurity, encryption, resilient communication, more data, so higher data feeds, but more security, more mobility, smaller terminals that can be used in unmanned areas. So I think it's more coopetition than competition that is the name of the game. And I do believe that there is an opportunity for us also to work more with the larger original equipment manufacturers, OEMs in ensuring that there is connectivity on vessels and on those type of solutions that are actually mobile for a digitized defense.

So I would -- and I will end with. I did mention low Earth orbit capabilities. We do not see it as a competition. We see it as a complementary. And I think most countries and defense organizations are looking at it the same way. So you use low Earth orbit capabilities for a certain aspect of your operation, and you then need Ovzon to drive your mission-critical operations.

Okay. Per Noren, Andre Lofgren, thank you so much for today's presentation and all the answers in the Q&A. It will be very exciting and interesting to follow and see how you will perform 2026 from this new position that you might say that Ovzon have elevated to. And thank you all participating investors and analysts. And by that, Per and Andre, thank you so much for today and good luck going forward.

Thank you, Mattias for a good session. Thank you.

SATCOM company Ovzon released their report for the third quarter 2025 this morning. We will now be giving a presentation of the results and activities in the quarter by CEO, Per Noren; and CFO, Andre Lofgren.

This is followed by a Q&A. Investors can ask their questions in the live chat. By that, let me welcome Per Noren and Andre Lofgren. Nice to have you here.

Thank you, Mattias. Great to be here.

Per, strong growth with profitability. How satisfied are you with this report?

A quarter is a quarter, but very satisfied, obviously, with where we are at and the projections we have for the future and how well we have delivered on the contracts and services we have and the black figures everywhere basically. So very, very happy and very satisfied with the results today.

Okay. So please go ahead with your presentation, and I will be back for the Q&A.

Thank you. Thank you. Good afternoon, good morning, and welcome to our third quarter report. I'm here with our Chief Financial Officer, Andre Lofgren.

And we're going to take you through the numbers and what's led to the numbers here today. So without further ado, I think we'll start.

First of all, let us talk a little bit about the company. So we see ourselves having a greater calling than the actual nuts and bolts that we do every day. And of course, the details are -- the devils are in the details of what we do, how we do it and how we deliver our specialized services.

But we also see a world where -- that is in turmoil, whether it's hurricanes over Jamaica, other natural disasters or geopolitical tensions and wars around the world. We see ourselves having a greater calling with connecting and protecting people, society and organizations for a safer world.

I think we all from management to employees, to customers, to shareholders see that as a greater calling and you have to play the long game if you're going to be in that business.

What we do is essential. It's very, very essential. So we deliver fully integrated high-performance satellite communication solutions with bringing resilient secure connectivity to the world's most demanding environments.

And it's true that we are focused on defense, national security and public safety. Our main focus is defense right now, but there is more and more drive and market demand from national security and public safety.

So we see growth prospect of that as well. And of course, it's all about playing the long game, driving profitable growth, ensuring that the company is healthy at the core and that we can continue to grow and deliver to our customers.

I'm going to take you through all those numbers today, but you can see on the curve here to the right that we are on a good trajectory and we had a good quarter here numbers-wise.

Yes. So is it relevant what we do? Or is it just us saying so? I believe or we believe that it's very important to understand that satellite communications today is basically the unbreakable link in a very fragile world.

So if we think about what the world looks like, over 60% of earth lacks reliable terrestrial connectivity. The market is large and growing, over SEK 100 billion by 2030 with a CAGR growing from 7% to 9% actually just in a few years.

And it's critical to anything that has to do with a country's sovereignty, alliances such as NATO, EU and of course, U.S. and other parts of the world for national security strategies.

So most countries today look at this and say, what do we do to secure our ability to have a functioning society despite the facts of those natural disasters as well as geopolitical tension.

One thing that I think is an important fact to understand is that it's a very fragile infrastructure we have today. 95% of our global data flows through undersea cables. And for those that follow media and happenings in the world, you know that they are under attack basically.

So the only resiliency you can get is actually from space if something would happen of nature of disaster recovery and so on.

So SATCOM operates independent of all of that and is up until this point, immune against certain disruptions, et cetera, et cetera. So it plays a more and more important role in the central architecture of communication. It's a piece of infrastructure that cannot be neglected anymore.

Security and sovereignty, our society that is more and more digitized cannot function without making sure that you have a secure and sovereign infrastructure for communication. Already this week has been a lot of news about GPS jamming and cyber disruptions, both targeted to companies, targeted to institutions, targeted to governments and targeted overall.

So we provide a capability that actually can operate in a GPS-denied environment and in a contested environment. So the importance of that cannot be understated, I believe. And last but not least, this is the continuity layer of a digital world.

It enables operations when all other things are disrupted and all other networks are out of service. So we play a very important role. We are a specialized provider of very high-performance satellite communications and we believe that that has a very high value, higher and higher value in a world where you also have low earth orbit satellites such as Starlink, Eutelsat's OneWeb and so on.

And that's good for connecting consumers and people in the world in remote areas. But if you want real resiliency and real solutions for real-time mission-critical operations, Ovzon is the answer.

Next, please. It's me. Our value proposition is very, very clear. We are the only provider that controls what we call the circle of life, the integrated satellite communications capability from the mobile terminal, think of it as a phone on ground that connects to a satellite or a satellite network rather, that sends a signal, I want to have internet connectivity or connectivity, goes down to a secure gateway.

And the gateway then connects to fiber. The signal goes up to the satellite again and down to the mobile satellite terminal and you have connectivity. Wherever you are, we will guarantee that that happens.

And we do this on a 24/7 basis, 365 days a year because we have a setup operations and service center that manages all of our networks, all of our terminals for all of our customers without missing a heartbeat. So very, very unique specialized integrated services that we have.

How does this work? Well, this is a defense and military picture. It could be society at large as well, obviously. But you can see that if you really want to have a network-centric operations and you really want to make sure that you connect both assets, people, decision-making with video, content, voice, communication for integrated operations, you have to have connectivity.

So this is part what we are talking about in terms of how can you ensure that. It cannot be nice to have. It has to work all the time and between all these assets.

So it's a systems of systems architecture that is needed and Ovzon's technology and solutions are at the core of that. And we believe that the growth and demand coming in the future will be even greater.

Now let's turn to quarter 3 and the accomplishments. So during the quarter, one of the most significant events we had was that we completed a refinancing.

We have a new loan facility with Danske Bank and it reduces our debt quite considerably. And Andre will go through that a little bit later, but it's significant for us to strengthen our financial platform for how we can continue to drive a healthy core business and grow for the future, huge step forward for Ovzon.

We're also strengthening the organization. We are in a scale-up phase. We need to strengthen both in terms of how we structure our scale-up, how we focus on execution and performance and deliver financial results, ensures commercial success and also scale the company up.

We are fortunate to be able to appoint Jeanette Irekvist as our Chief Commercial Officer. She brings many years of broad and deep experience from the technology -- international experience from the technology and telecom sector.

And we're not going to put too much pressure on that, but we are going to organize everything we do in how we touch the customers under one organization here and bring that forward to have a more predictable sales and growth prospect going forward.

We had 1 new order during the quarter. We had an additional order from the Swedish Defence Material Administration for additional mobile satellite terminals, which is a very good sign that the use cases are continued to be developed.

And we see that that is actually helping us also scale that part of the business with satellite terminals. I'll get back on that later.

In conjunction with bringing Jeanette Irekvist onboard, we have also established a number of strategic -- external strategic advisers that are helping us working through our go-to-market abilities in key markets such as Sweden, Nordic, Europe and the U.S.

So we're very pleased with that. They are treeing into the commercial organization to mobilize everything under one umbrella.

Let's turn to the order book. Order intake in the quarter was, as you can see, SEK 72 million attributable to the order from the Swedish Defence Material Administration of additional mobile satellite terminals.

The order intake for the rolling 12 months is -- corresponds to -- from U.S. dollars to Swedish almost SEK 1.4 billion. And the order book amounts to SEK 1 billion plus today.

So this is obviously very strong. You can see how the order book has developed here from Q3 a year ago to where we are in Q3 in 2025. Maybe something to mention here so we don't forget it.

Being in business to government takes a long time to sell and work with the customers to get contracts done. So we will likely see -- not see such a big order as we had with -- in May every quarter now.

But as we scale up, we believe that that is the possibility. We will likely see a number of string of pearls of orders coming in starting to build up a more predictable stream of orders, but we have a very strong order book that we are now delivering on.

I think it would be wrong of us and me not to mention why the financial results are as strong as Andre will show us in just a minute here. But it's all about delivering on our commitments.

It's all about operational execution. It's all about having an integrated model for how you actually deliver. So one way of growing, of course, is to sell a lot. But then as the business model works, you actually have to deliver on that.

So part of why we see the results we do today is that we have a superb model where we have third-party satellite capacity, the services layer, but we can mix and match that, of course, with our own satellite, Ovzon 3.

And we have done that during the period in this quarter as we ramped up the third-party capacity. And that can be -- you can see that in the margins that we are delivering now. And it also gives us a chance to actually utilize the asset of satellite capacity in as optimal of a way as possible.

And then, of course, it's about delivering the mobile satellite terminals that connect to the networks and uses the satellite capability that we have available for our customers. And we've had a very, very strong scale-up and delivery during Q2 and now Q3 with those terminals.

It's according to plan with all the contracts and commitments we have and we continue to then deliver according to that plan. So that's a little bit different. That's about resilience in the supply chain. That's about ordering components, assembly at the right time, quality assure and deliver to the customer at the right time.

So you -- I would say that I am very, very pleased with how our organization have a very predictable and reliable performance in terms of delivery. It's shown in the numbers. It's shown in how we operate.

And it also builds confidence with the customers. So we have the opportunity to continue to both deliver today, expand with current customers, renew contracts and also sell to new customers as this becomes a reference point.

And the defense industry suppliers -- as a defense industry supplier, I think it's incredibly important for us to deliver on time to meet the requirements for those mission-critical customers that we have. And we're very proud to do so in this quarter and we aim at continuing that journey going forward.

With that, I'll hand it over to you, Andre.

Thank you very much, Per. Okay. Let's look at the financials a bit more into details here then. I'll start with the revenue.

And as you can see, it has been increasing for a couple of quarters and it has definitely increased also in this quarter and then especially driven by our service revenue. As you can see, it really bumps up quite a lot in this quarter.

But also, we have solid delivery of terminals also in this quarter. We had a really strong Q2, but also now in Q3, it's at really good levels.

So it's very pleasing to see that we see an increase in the top line. But I think what's most important is to look at the services, which is kind of the foundation of our recurring revenues.

And to the right, you see here the graph of our run rate of service revenue. So it's basically the last quarter times 4, you see what is it on an annualized basis. And as you can see, it has really popped up quite a lot here in this quarter.

So that was the top line. Let's look at the profitability, which is way more important, I would say. And here, it's also very pleasing to see that it's improving and not only this quarter, it's actually improving for 6 quarters in a row now when it comes to EBITDA.

And that has to do that with, of course, that volumes are up, but it also has to do that we have a really healthy mix of income streams when it comes to that gross margin that they are producing. So both from our own satellite, but also from the lease capacity and then from the terminals as well.

So when you mix that together, you are at these kind of levels in EBITDA margins, which is 45% -- 47%. So it's very strong and you see it has been built up over a few quarters now.

If you look to the right here then you see the EBIT. So then when we have absorbed the depreciation on our satellite with the volumes we have now and the profitability we're generating, we are profitable also on EBIT level and has now been for 2 quarters in a row and has been improving for 4 quarters.

So also here, you see that it's consistent improvement that we're delivering. And you cannot see it here on the graph, but if you look into the report and look at the bottom line, the net profit and earnings per share, it's also improving and it has been now profitable for 2 quarters in a row. So we are delivering good here as well, I would say.

Okay. I'm moving over to cash and net debt. Starting with the cash flow from operations. I recall in the Q2 call that I was looking forward to show this Q3 number because we know that there will be prepayments coming in from customers and that you can see now in the Q3 that that has been delivered.

So really strong cash flow from operations. And since we are not investing heavily into a satellite, it's up there. It's been there for a year. All of that cash flow is almost running all the way down to the bank account, which then supports, as you can see, the net debt on the right-hand side here.

We have a strong cash position in the company. We have also amortized some of the debt while we did the refinancing, which I'll get into a bit more on the benefits of that. But that leads to a net debt that is significantly lower than what you have seen in the past. So it feels good to be CFO for this company for the time being.

Speaking about the refinancing, we signed and we completed this deal with Danske Bank then in -- during this quarter or during September. And it's not only lower cost what I will get into, but it's also a good solid foundation for us with some flexibility in this setup with the term loan and the revolving credit facility.

We have not drawn everything on the revolving credit facilities. We actually done some amortization in this quarter. But most important of all is that we now have an interest rate that is way much lower than what it has been in the past.

So it will from starting Q4. So we haven't actually seen it in the numbers yet. We have done it, but the impacts of it, you will see going forward.

And we're estimating it to be almost around SEK 70 million per year in reduced interest costs, which means that goes all the way down to the bottom line. So this is a profit booster, I would say.

And with that, I would like to hand it back to you, Per, for some summary and closing remarks.

Thank you, Andre. Excellent work, obviously. Well, Andre took us through the numbers. And as I alluded to when we started the presentation, of course, if we start on the lower right quadrant, the order book is very, very important.

But to point out here is that the order book actually now looks into 2027. So we have started to have this predictability of an order book to deliver upon. And I'll talk a little bit about it before we close for Q&A here as well.

But the order book is very, very strong. Of course, a company like ours, our ability to deliver, as I also talked about, is second to none. So you can win business and you can try to boost your sales, et cetera.

But if you cannot deliver your numbers, your revenue will not go up, your EBITDA will not go up and your operating cash flow, if you don't deliver, will actually not go up either. So if you look on these other 3 quadrants, we have this saying that you have to run a healthy core business, meaning deliver on your commitments.

You have to do it in a timely manner and high-quality manner to those customers we have that are dependent on that. So you can now see that we drive profitable growth in all aspects of profitability and revenue.

So it's not only about gathering revenue, it's also about driving profitability so we can both reinvest in the business and do other things with the profit that we generate. And of course, you can never run out of cash.

So it's all about finding those progressive business models, work with customers that you partner with that then you have smarter solutions with that you can actually deliver faster and better and then increase your cash position.

And of course, Andre and his team drove this project with refinancing. And as he noted, that hits on bottom line, but it also improves our ability to plan the business going forward.

So on all fronts there, very strong growth and continued improved profitability and an order book that looks into 2027.

Now before we close, I think we wanted to talk a little bit about the business model. Andre talked about this as well. But if you look on the picture to the right, there are 3 components to the integrated SATCOM solutions we deliver to our customers.

It's the terminals. That is a very discrete business. It requires a resilient supply chain. You have to do final assembly, you have to design and quality assure and then you have to deliver its logistics.

So it's a very physical value chain that is a necessity in our integrated service. The other part, of course, is to have enough satellite capacity, both third party and your own that you can mix and match for the best performance for the customer, but also for the best performance of the business, meaning growth and profitability.

And thirdly, it's about managing this on a 24/7 basis and not leave any customer behind. So our model for doing that is our center of excellence for global service delivery that we have. That in itself then drives the services revenue.

Andre talked about that as basically the platform for everything we do, the run rate we have. So every customer network we have generates monthly service revenue. Invoiced monthly, we deliver the service.

Profit goes through service margins. We can see that with utilization of Ovzon 3, the margins go up. But we have a mix of that and we can continue to have that going forward. And then positive cash flow and progressive payment terms, if you sign orders where they want faster delivery as customers, we can then invest earlier in our inventory and in our supply chain.

Very strong aspect of our business, important. And for every new customer we get, that lays on top and on top and on top. And the longer contracts we get, the more predictability we get on the services and margin side.

The terminals, as I said, the revenues and profits are generated when we deliver. So you have to be both just in time, but you have to be actually a little bit earlier. So you have to have good control over your financials in order to invest in a resilient supply chain.

And larger orders allows for more cost-effective supply chain and inventory, being ready to invest earlier to deliver earlier. And last but not least, it's all about the value to the customer and the customer satisfaction.

So longer-term contracts and ensuring that we deliver on our promises then helps us renew and it helps us to upsell and cross-sell. And then it helps us be more predictable in our planning, investment and scale up of the business.

So I don't think we've ever actually shown this as an understanding of how actually the revenues, the profits, the cost and the cash flow functions in that business model.

Going forward, we'll continue to do what this quarterly report has shown. It's all about delivering financial performance. And we do that by ensuring commercial success and the commercial success includes delivery on our promises as is the fundamental of this report.

And then we also work actively in scaling up, strengthening the structure, leadership, expanding, but also adding brilliant people to the mix and mixing people, processes and tools in order to scale up and to take -- to play the long game and to take longer and bigger contracts with customers that are in need of our solutions and capabilities.

And with that, if we go to the last slide, I think we want to thank our employees and our partners and our customers for working so closely together. That's why the results are what they are. We don't leave any stone unturned in order to deliver on the promises we make and that's going to help this company run a very healthy core business for years to come. So thank you very much.

Thank you, Per and Andre. And let's start -- move over to the Q&A. And first off is Simon Granath at ABG Sundal Collier.

And big congratulation on the strong numbers. I'd like to start on from a broader market perspective, could you share your thoughts on the current status in terms of satellite capacity? Is it fair to say that it's currently a scarce supply?

And if so given recent geopolitical tension, demand for SATCOM is certainly increasing. Does it mean that this dynamic help the pricing in the industry?

And that is a broad and deep question. So let's see if I can put my laser pointer maybe on a few answers to that question. So one, we don't see a scarce supply of satellite capacity.

However, the market changes somewhat. So there are mergers now. We have seen the big geostationary satellite providers such as Viasat and Inmarsat merge and also now SES and Intelsat now called SES as one company.

They have the majority of the geo satellites in space. Most of that has actually been used for media, broadcast, et cetera, et cetera. That's tilting more and more over to government as we have laid out here.

So I don't know that they necessarily will need all their capacity, which helps a buyer of third-party capacity to get access to capabilities and capacity at fair market prices.

So somewhat of a buyer's market there. I think we've been very fortunate and smart and good in how we have acquired that and how we have tied that satellite capacity to our customer contracts.

So we don't have a big inventory of that, that kind of burdens our results. So I think it's a mixed bag. A lot of things also move over to the low earth orbit satellite constellations, such as Starlink and OneWeb and Lightspeed by Telesat and others.

So more and more of the more generic connectivity capabilities are moving over to that and more and more of the geo is moving to more specialized, where we believe we have the leading position. And therefore, we also can get access both price-wise and capacity-wise to third-party capacity. I hope that answered the question somewhat.

It certainly did. As always, I appreciate the color for answer. Moving on, can you share your view on the FMV order going forward in terms of the mix and match between Ovzon 3 and the leased capacity?

Is it reasonable to expect some more leased capacity than what was the case in Q3 and perhaps slightly lower margins as such is reasonable, not taking any future orders in consideration, of course?

Yes, it's a very good question. And we both talked a little bit about the use of Ovzon 3 in any delivery really because if it's not sold and under contract with someone, we would like to utilize it when it adds a lot of value, both to our company economically, but also to the customer.

From September -- basically from end of September, we have all third-party capacity signed up for that delivery. So we will see that being used in that delivery. We also have a number of contracts that uses Ovzon 3 as well.

But we also are in continuous dialogue with a number of customers where we believe Ovzon 3 would fit well. So hopefully, the coming months here, we'll be able to utilize our own satellite in advanced customer contracts with others because we have enough third-party capacity to now deliver on that order that we got. I don't know if you want to add something.

But maybe just on your point there on the margin impact. I mean, since we now have those networks all up and running end of this quarter, we have that full cost base as well then. So it's make it easy for you to estimate where margins are heading.

Very clear. And on the U.S., about 1 year ago, the U.S. DoD bought some T7 terminals, a relatively large order. And now for some time, that entity has not been utilizing these given that there are no active SATCOM services.

So if we see a rebound in activity with that customer, I'm wondering, is it fair to assess that they lack of better words, have the platform, i.e., the terminals in place? Or should we expect the future order to comprise both more terminals and SATCOM?

It's a very good question. So let me answer it very sincerely and honestly. Absolutely, it's a strength for us that there is an inventory of highly capable Ovzon mobile satellite terminals.

They will most likely be used by the U.S. DoD and the U.S. in any future orders. But it depends a little bit on which part of the U.S. DoD. We are in dialogue with a number of parties.

Of course, the U.S. government shutdown slows down processes here a little bit. We're in discussion with a number of units where some will probably utilize what's already in inventory, but some will also add additional.

It is hard to predict exactly the volumes of that. That's part of our supply chain inventory work here. But there will be some terminal contracts, I think, in when we rewin the U.S. DoD, but it depends a little bit on which units within the U.S. DoD that are using it.

Makes perfect sense. And a follow-up on the terminal sales. The SATCOM backlog is certainly very strong. Could you share any details on the dynamics of the terminal backlog as well?

Yes. I think this is where scale-up is happening as we stand here and as we speak today, right? So you have followed the company quite a long time and many of our shareholders have as well.

We've been really good in doing just-in-time delivery. And now we're scaling it to very different volumes and levels. So we are actually working on how would we increase that ability, both in the supply chain of parts and how early we order.

We have a good backlog. We have delivered, as you have seen in Q2 and Q3 on the larger order we got from the Swedish Defence Material Administration. We still have a backlog of that that goes into next year in Q1, I believe, is the end point of that delivery.

And then for any additional orders, we have to build a little inventory, so we're not just empty, so to speak. So we're building an inventory because we believe we have some opportunities ahead of us that we don't want to be without terminals.

So we're both building inventory for delivery from now until end of Q1 and we're adding on for the opportunity we see going forward, not the full batch as it might be, but a portion of that and we continuously build that and track that on at least monthly basis for ourselves.

And I think if I do the math correctly, we had the FMV order of SEK 220 million in terminals and then we had this additional order of SEK 72 million. So almost SEK 300 million in terminals to be delivered.

And as you see -- saw in the presentation, we have delivered shy of SEK 194 million. So there's more to come. And it's actually then extended into '26 a bit longer than the first quarter since that add-on order had a little bit longer duration.

And maybe add to that also, that also gives us the ability to order and negotiate terms and so on for the subcomponents, et cetera, that we're using. So this is a pure scale-up game for us with a supply chain and production ability that might not be easy, but we're on it quite well, actually, and we have the experience on the team to do it.

Very encouraging stuff. A final question for me would be on the highlight in the report that you have engaged a number of strategic advisers in key markets. Is that usually how you gain footprint in new regions? Or should we not read too much into that?

I think it's a very, very good question. It's a delicate question actually. I think our model of going to market is basically to have people on our own team responsible for a geographical market or a specific customer group, right?

And we're building up that team now with new leadership and structure and focus on those geographical markets. However, when you win in a market like the one we are in, you have to touch a lot of stakeholders from the end users that want to know exactly how things work, you train them, you test and you trial and you show how it works both on unmanned and manned vehicles and with people and how you can build this integrated communication model for your unit or your organization.

But on top of that, you have to work both with the procurement agencies. You have to work with the -- in our case, mostly the defense leadership, the branches of defense and even the budgets that comes from the governments, et cetera. And in order to do so, you cannot expect one single person to cover all of those layers and aspects of business.

So the strategic advisers are there to support in specific markets and regions the approach to that market and helping us understand how they are different, how they're similar and how we should approach them to improve the speed of execution for our go-to-market.

And we move on. Many investors have order intake on their radar. Could you put some color to that?

Yes. I think this report talks about our ability to deliver. So that's very strong. We've repeated that now and we can see it in the numbers that Andre presented.

And of course, order intake is, you're not better than the last month or the last quarter of winning a contract and so on. Our market is -- takes time. Business to government is complex. As I laid out for Simon on his question, it's complex. It takes time.

You have to build trust. Trust is built and you have to educate in many cases. So it doesn't suit well for a quarterly snapshot of a mandate and so on. But the long game we're playing is to win all the essential countries and customers for our specialized integrated services.

So they take time. We have to roll with it. We have to have a strong financial engine in the company in order to win those longer-term, larger-term contracts. So we are not particularly worried about the order intake.

But it doesn't mean that we're not -- we're resting on our laurels. We're actually working our -- everything around the clock actually to -- in order to actually win more contracts in each of the quarters to come.

So that's part of why we strengthen also the go-to-market sales and commercial organization and business development organization with more people that can help us do that.

Okay. And there are some more questions from investors. How do you experience negotiation with the U.S. DoD under the current administration? When they are not locked down?

Yes. No, I think it's fair to say that we don't necessarily knock on the big door to get in. We are specialized. We know the organizations that have -- we think we know most of the organizations that have the greatest need.

So we go directly to them. And then we support them in building their internal business cases in going up the ladder to get budget allocations. So I think we don't necessarily see -- it's complex, right?

It's the government shutdown. There's no budgets floating, the administration is not working. The bureaucratic system is not working. So it's hard for our end customers to operate as well.

But we stay very close to them. We build partnership, we build dialogue, we build business cases. We use this time also to expand how we're going to use our capability -- how they're going to use our capability.

So I think we're probably avoiding a little bit of the noise and concentrated more on sniper approach to working with the real customer that has the real use cases. And I think that's going to take us to a better place eventually, but it's very unpredictable. You do not know when that is going to happen. But that's how we work it.

That's how it works. And when it comes to building an ecosystem, are Ovzon terminals locked to the Ovzon satellite services?

The Ovzon terminals are locked to the Ovzon satellite services and networks, yes. We don't sell terminals as stand-alone. There are other companies that do that. We don't sell them as stand-alone. We sell them only as part of our integrated circle of life solution. Yes.

And when it comes to the margins you were talking about using third-party capacity versus Ovzon 3, can you say anything on how much that difference is?

Well, there is a difference. I cannot get into the details of the actual difference. But of course, we don't have the leasing cost on our own satellites since we own it.

So that makes, of course, big difference. So there's a stronger margin in our own satellite, of course. But it also has required investments. So we need to have that covered, yes.

Of course. In September, you held your first ever Capital Markets Day and it was very interesting. I watched the whole thing. What was the key takeaways for the market during that day?

Thank you for listening in. And the whole -- we felt very good about doing this for the first time. We will continue to do it. We believe that the investor market wants it, needs it and we should provide more clarity on our direction.

The key takeaways, I would say, is what we've said here today. First, deliver on your promises. Second, really drive sales, more predictable sales and predictable order intake, larger contracts. So we have a good financial engine so we can reinvest in the business.

And the third component, I would say, is that how do we scale, how do we grow going forward? What's the prospect of that? So we laid out how we intend to proactively secure satellite capacity so we're not constrained by that, which include also plans for our own proprietary satellite capacity, meaning more satellites and also a little bit how we think about the financing of those because I think there is a way to do customer financing of those because of our specialized capability that is needed.

But we also believe that we can do that through a combination of our own cash and financial ability.

Okay. Speaking about...

Would you add something to that?

Well, I mean, it's -- the growth that we see ahead of us is both securing even more third-party capacity and then also looking into new satellites of our own. But to make that happen, of course, we've got to make sure that we have filled the first satellite that we have and then also have pre-capacity on a new agreement so don't go out with full market risk on those.

And again, come back to financing, I think it's -- as Per alluded to, there are probably customer interest that could be part of funding or funding the whole of it. But if not, I mean, given how the cash flow looks like and what we are projecting, I think we can cover a lot of it with our own cash and some loans as well, additional loans. So I mean, if we're going to do this, it's going to be in a controlled way.

On our own [indiscernible].

Okay. And Andre, while we're at it, you did the [ refinanciation ] that was very successful. What was the key reasons that you were able to come down that much on interest?

It's so many parts in this. I think, first of all, that just the trends in society when it comes to acknowledging that defense is actually part of being sustainable nowadays, realizing that makes society sustainable.

So that has opened up new doors. And then also planning this contract with FMV, of course, helped with visibility for us, but also for potential creditors. So going into those negotiations with numerous banks and then ending up with ones were very forward-leaning, I think that made the trick. It's not only about the cost. I mean, there are things that's got to match as well. So I think we're suited well now with this cooperation.

And new hire, you appointed a new Chief Commercial Officer, Jeanette Irekvist. What will she bring to the company?

First of all, this is a team sport. So we brought Andre on board a few months ago. We also have a strong team that has been with us for a very long time.

What we're trying to do is to build a very strong team with a dynamic experience, both broad and deep in technology, business to government, sales and delivery as well as different perspectives.

So I think we can be -- we're very specialized in a lot of things we do. But I think the broader sense of building a company and scaling a company requires experiences that are not only satellite industry or not only defense or not only -- it requires us to be very open.

So I'm trying to lead through leaders that bring that perspective, both those that we have had for a long time that are really, really good and bring new blood in with experience from international markets and business. And I think that's going to help us in the short, mid and long run to be very successful.

And one final question. What should investors look out for in the near future?

I think investors should continue to look upon us and demand from us that we continue to deliver on our commitments so that the financial results continue to be what they've been the last 2 quarters and especially this one. So that's our promise.

Secondly, I think the investors should look at us building up the order book so we have a more longer-term predictable ability to deliver. And thirdly, I think they should look upon us as being -- with the ambition to being the leader in advanced satellite communications globally.

Okay. That will end the interview for today, and I want to address the audience and thank you so much for joining us today. And most of all, Per and Andre, thank you so much for all your answers and your time.

Thank you, Mattias. It's been a pleasure. Thank you.

Thanks.

Hi, everyone, and welcome to Ovzon's Capital Markets Day 2025. This is a special occasion, not only is it Ovzon's very first Capital Markets Day but it's also taking place here in the same studio where many of us gathered 1.5 years ago to watch the successful launch of Ovzon's first satellite, Ovzon 3. And we just saw some highlights of that in the videos. Very nice seeing so many familiar faces here.

My name is [ Katarina Kaiser Eardfast ], and I will do my very best to guide you through this busy schedule that we have today. Welcome, again, all of you here in the Stockholm studio. We have a full studio audience, so that's amazing. And also welcome to all of you joining online.

Like I said, a very busy program, and we will do our best to stay on time. We will facilitate one Q&A session at the end of the day, so please save any questions until then. We have arranged with some pens and notebooks for you if you need.

And for all of you joining online, you can send in your questions already now in the webcast. Later, we will also have a coffee break, where you can mingle with the Ovzon team and also have a closer look at the terminals on display here in the studio.

But with that said, I think it's about time to get started with our first speaker, and that is, of course Ovzon's CEO, Per Noren. Per will give an introduction to the satellite communications field and a brief overview of the company to really set the stage for the rest of the day. Please join me in welcoming Per Noren.

Thank you so much, Katarina. And Welcome, everyone, to our first Capital Markets Day, as you heard. We'll take you through from the top of the broader picture of where the world is heading and how we fit into that down to some details around our technology, our solutions, our customers, our markets and our strategic direction for the company going forward. As you can see on the agenda, I'll start with an introduction. We'll look at the financial journey we've been on, connected, of course, to our operations, customers market solutions, technology and then moving into what the future holds for us.

How to do an introduction of Ovzon? Well, it starts and ends with people, I would say. This was founded by an idea by humans. We happen to utilize space as our means of delivering a service, but it starts with people in a way.

So you will see many of the group management team up here today. Our CFO, Andre Lofgren; our CMO, Kristofer Alm; our Space and systems leader, Martin Eriksson; and our COO, Tom Hopkins, obviously. We also have other members of the group management here. Lars-Ola Klockervold, who is our Chief Engineer, is in the room today; Kennet Lejnell, our CTO, could unfortunately not be here due to a family situation. He would have been here of course.

And of course, many of you might have seen that we just hired a very esteemed Chief Commercial Officer Jeanette Irekvist, who starts on October 1. I'll come back a little bit to what her task will be going forward.

We also have a very, very dedicated and strong Board of Directors that have been with us, many of them for a very long period of time. So I would like to introduce our chairperson, Regina Donato Dahlström, who is also in the room today; and also our now biggest shareholder and investor [Technical Difficulty] from Öresund and Nicklas Paulson. Thank you. They will also be here to answer questions that we might not be able to answer.

Let's start to dive into the company. If we look on Ovzon on the page, I would say that we have a vision that is a greater calling than the specifics that you're going to hear from me and my colleagues around customers, markets, et cetera. We believe that we play a very central role in connecting and protecting people, society and organizations for a safer world. And we'll give you some examples of that when we go through customer cases, use cases.

So we believe and I think our employees and our shareholder base, many of you here, I think it's important to put things in context where the world is heading today. More on that in just a minute.

We have an approach to how we do things. And as I said, people, of course, are very important to us. We have some phenomenal employees that have both been users of our systems to get -- actually it has protected them out in the field. So we also have highly educated engineers and PhDs and so on. They are developing the technologies and then many of us are out in front and working with customers and partners in the world.

So we have what we call the Ovzon way. We have really not done anything without it either verified by a customer or in partnership with the customer. I think that's very important to understand. We're very specialized. We're a sniper company. We're not everything for everyone. We are specific, we're detailed and we're targeted. People, of course, will come back to that. You'll see some of the team on display and you can judge for yourself.

And then I think we have an approach to business. Business is to us, not just business. We don't leave any customer behind. So if it starts with the customer, it also comes down to how we service, support, develop and expand the business. And it has to be a 24/7 job that we have. That's how a specialist company actually works with what we do.

And then, of course, we are in its foundation, a technology company. Everything was founded on the technology idea that was there. However, I think we are nerds in terms of that the technology needs to provide a value. So we don't just produce technology or innovate technology. We do it in the context of that it needs to have a value creation over a period of time.

You can see in our performance in the history of the company, you can see that we've really been on a journey. We were in a phase of heavy investments after our IPO in 2018 and heavy investments with one major customer that serves -- that used our technology and solutions. But you can see now that for those that follow us closely, we have now four consecutive quarters with positive EBITDA.

We have -- and that's from Q3 2024 into Q2 2025. And we are -- have a growth trajectory that looks very different to where we have been historically. And we're very proud to say that we believe that the technology investments we've done are proving to be equal or better than requirements and it's proven in that the customers actually buy and expand the usage of our capabilities and technology, which will then turn into financial performance. We have a strong order book of SEK 1.2 billion. And we have visibility of revenue and cash 24 months out, which normally would have been at a maximum 12 months.

So we are in a very different platform and stage as a company. So the Capital Market Days come at a perfect time for us to tell the story about the future. Now let's start on a very, very high level. Where are we in the world today and where is Ovzon filling the void, so to speak? I think these are global forces that are shaping the strategic landscape that we play in.

And these are just examples of that. But in essence, if you look on communication and digitization, we've talked about this for a long time, but it's actually true that 65% of GDP in the world will be spent on digitization and communication, whether it's storing of data, digital infrastructure, connectivity, infrastructure,et ceter et cetera. It is mind blowing that it will go from 15% today to 65%, just to give you a chance. Connectivity is a very important aspect of that.

Satellites and space. Satellites and space is a new market. It is not just the technology or exploration of space, which is in itself very important, but it's become a strategic asset to any country. And you have to have a strategy as a country for how you're going to utilize that capability. That also builds a market. It builds an economy and I think countries that are foresighted -- that have foresight will actually invest in this space upon intended.

There are over 10,000 active satellites in orbit today. 90% of them are close to so-called low earth orbit. They're the next generation of Internet where you use space as the component for connectivity. 80% of those 90% are actually Starlink. We'll come back to the competitive landscape in a minute. But Starlink and Amazon Kuiper projects are driving a lot of investments in this industry, which also contributes to both innovation, but also an economy of scale. We think that's good for what we do for sure.

Security and Defense. So if you look at -- it's of course, on any country's agenda given the situation in the world today. But however, if you look on where cyber attacks are targeted, which is also a fundamental part of our society today with comps and digitization. You can see that it's targeted at energy and utilities, communications and IT telecom and government and defense. Those are the three biggest sectors for cyber attacks. Of course, the other parts of society, banks and other pieces are obviously also part of that.

But these are targeted attacks. They are not random. They are targeted, and they will continue in time with how we evolve as a society. And of course, the geopolitical and resiliency situation that we have in the world with Russia's full-scale invasion of Ukraine or the situation between -- in Gaza, I would say, and other parts of the world. And you can see that in the investments in defense today. This is just one number, based on that all NATO members are going to put 5% of their GDP into defense. It's SEK 150 billion just that increase alone.

So all of these aspects is where of some place. We play in the intersection of connectivity, security and resiliency. And we have a very specific solution for those that really have critical missions. So while this is frightening and threatening to us as humans, it has a meaning for us to connect and protect our customers and their stakeholders.

I don't think -- maybe I need to go into this, but I think it's worth mentioning that we believe that even though we might be focused in specifically defense and government sector, the entire society require satellite communication as part of their infrastructure. And if countries are not taking that seriously, they might not have a fallback solution when it comes to connectivity. So space provides that opportunity.

It is low-- very high barriers of entry because it's difficult. It's taken a long time for Ovzon to get to the point to where we are today. But we are there, we have the most capable solution for those specific customers that we serve. And I think we have something extraordinary unique, which will take you through what that means and how that's displayed. But we think that we're in the beginning of a growth into other markets and segments potentially in the future at full scale.

Now our value proposition. Many questions that I get has to do with how is the satellite is doing, et cetera, et cetera. It's doing great. But however, I think it's important to understand that the satellite is an asset that we own and manage in space. We use that asset to deliver a service. We are a service provider. Many of our competitors, and Kristofer will talk about this in just a minute, many of our competitors provide satellite capacity, they provide bits and pieces to an integrated solution, but none have what I call the circle of life here, the integrated value proposition which we deliver end-to-end turnkey solution.

It starts with what we put in the hands of the users or what's put on a vehicle or a vessel or -- which could be manned or unmanned, the mobile satellite terminal. You'll see more of them in display, but we invented and set the industry standard for the smallest terminal with the highest throughput. And we're not done yet. We'll come back to that. So the terminal plays a very important role just as the mobile phone plays an important role for making calls or actually consuming and sending and receiving data today.

The satellites are there so that we can design networks, meaning providing bandwidth or broadband to connect to the terminal. We have one asset in space. We then utilize others, and then we build networks that are redundant, they are resilient and are in most cases today, sovereign for nations or for specific customers.

We're very good at that. We do not own any secure gateways. We have strategic partners we work with. That's where the signal comes down from the user to the satellite down to earth and connects to fiber and you get the signal back. We don't do that, but we select a few partners. These are very important assets. They're often viewed -- you can view them from air, from space.

They are often have been -- they are often been there for many, many years. When Russia invaded Ukraine, they took out a lot of this infrastructure, by the way. But without it, unless you have specific technology, you cannot have a signal. So they are very important and they're an infrastructure that we are dependent on, but not as dependent maybe as some of our competitors is as well.

And then in the end, it's about not leaving any customer behind, having a global and local model for service delivery. We do that by having a dedicated service and support model that make sure that each customer, each user are connected and are the highest performance and resiliency at any given moment in time. That's our circle of life. No one in the market has this integrated piece -- with controlling all of the pieces of it.

So where do we play? And we'll go into this much deeper. But if you just think on the communications market, telecommunications and communications connectivity market, on the -- at the base of this triangle is kind of the fixed telecom operators which most of us, at my age at least, we're used to having from the get-go. But the fixed telecom operators are big. They provide networks and access to connectivity and it's part of the infrastructure of any country.

Then mobile telecom operators, of course, have taken over a lot -- a big portion of that, they'd say a very central role. Then you have satellite system operators that actually ensures that the satellite industry can connect to this. So you have three layers of redundancy basically. And then you have what's called low earth orbit providers that -- called Starlink, OneWeb or Project Kuiper that is driven by Amazon. All three have fairly different objectives.

But one thing I think is in common, and they are consumer-driven from the beginning. They are being utilized for connectivity that is complementing or taking over some of the lower level on this slide -- lower level pieces. So as you can see, they require many more satellites. The satellites are smaller. They're closer to earth and you need many of them in order to ensure that you have connectivity all the time. If a satellite is not above where the terminal is already, you do not have connectivity with LEO. So you need volumes of satellites, you never miss a connection basically.

And then in the upper part of this is where we play. So in general, we don't see actually Starlink, Kuiper, OneWeb as main competitors, we see them as main complementary solution providers. Now will they make attempts to get into the more specialized mission-critical communication? Yes. Can they do it? Yes, but can they fulfill the standard that needs to be there for no failure environment? We believe that, that is far away from where they are today, and we believe we feel that voids in the marketplace. That's how we play.

Now I've already mentioned that we've been on a journey. Some would say that you haven't achieved more since 2006. I would say it takes a long time to build a world-class company, and it needs to start somewhere. So I think at the foundation in 2006, I'd like to introduce also Per Wahlberg, who founded the company. Per if you would just come up and say high. Yes. There he is. You need two pairs of Per to build a successful business as we say. The pairs idea from the end with the team from the beginning was actually focused as the video said on the smallest terminal with the highest throughput. And that task in itself is very difficult, and we'll come in to why that is very difficult.

But it started there. That, in turn, drives mobility. And mobility is where you can connect anywhere even in remote areas where there is no connectivity, et cetera. And then that, in turn, then means that you have to have a very resilient system. You have to be able to not lose connectivity when you're out there.

So the foundation was that. Our first customer was actually the U.S. Department of Defense. As the first customer for the terminals that then turned into say, "Hey, Ovzon, you should really help us with a turnkey solution because why would we buy all these pieces and put them together ourselves", which is the foundation for who we are today as well. So the combination of the foundation and the customer.

And then we started to develop terminals, the Ovzon T5. We got the first customer for our integrated services. And in 2018, we did an initial public offering on NASDAQ Stockholm and borrowed money to invest in our own first proprietary satellite, Ovzon 3 in our onboard processor and in the next generation of the smallest terminal in the industry, the Ovzon T7. Huge undertaking for a fairly small company.

And we can today say very successful with the launch of Ovzon 3 with the launch of new terminals and with the launch of commercial service on those customers and ending up in the end of May this year with a large contract with the Swedish material defense administration for a 24-month contract. So it's taken us some time. But if you're going to be in space, you have to be there for the long run and you have to have endurance and the best is yet to come, I would say.

Now as I said, we are in a commercial scale-up moment for the moment. The order that we got, of course, is over 24 months, it's over SEK 1 billion. We have started to deliver large amounts of mobile satellite terminals, and we continue to do so. We have stood up 10x the number of networks that we previously had about 10x of what we previously had before to serve this customer and to broaden the usage of the Ovzon SATCOM solutions that we have. And it's a mix of our own satellite, Ovzon 3 and also satellite capacity from third parties.

Globally, this is where companies can actually go wrong, I believe. When you try to take on the world in one go. We're -- as I said, we're a niche provider. You need to build relationships with customers. You need to know that you're delivering what they expected and you need to do that day in and day out. So we're very strong in the U.S. We're very strong in Sweden today, and we are starting to expand more discipline in Europe and within NATO as well. So that's -- we have a global opportunity, but we're concentrating us on a step-by-step approach.

And I think to wrap things up in the introduction, that's kind of the background of the company. So we are now at a stage where we also, as most of you have seen, refinanced earlier this week, we announced that we have a new loan facility with Danske Bank that actually is going to help us reduce our financial costs now, but it also sets us up to look at how we scale up the company and how we finance the company going forward because we do have plans to expand on that global opportunity, obviously.

And it's not a one trick pony here in how you do that. You have to understand how you approach the market, who you target, when you target them. The model is that it's not just the end users, even if we're very, very strong with the end users, the ones using the system. But these decisions are made by politicians. They're made by defense leadership, procurement leadership and other stakeholders that are influencers in society. So in business to government, it takes time. You have to have endurance and you have to build up the trust and then you can speed up both the development and the delivery of the solution.

So the go-to-market is one piece. And then we have three sort of really separate pieces to our integrated solution. The terminals is -- and its design, development and production has to do with supply chain resiliency, how many suppliers, sub-suppliers you have, how you assemble the terminals, how you quality assure them and how you deliver them and how much inventory you take. It requires capital investments in order to do so. We have a very lean and agile model for it today that we are very proud of, and we've been able to scale with that.

But if we see a tenfold scale in that, this will require some fundamental shifts in how we scale that up. When it comes to networks and space, more satellites, which we are looking at, more satellites requires investments as well. We all know basically considering our numbers that it costed us about SEK 2.3 billion, SEK 2.4 billion to design, develop, launch and now have the satellite Ovzon 3, the onboard processors and so on in service.

So here, and it takes about three years before we get if we would order a new satellite or two today, it would take us three years before we get them in space. So meanwhile, we have to have strategic partnerships with others that provide similar capabilities that we then utilize to build networks and solutions.

And finally, the global service delivery, that landscape is changing somewhat. It's a global function we have. But it also requires local implementation. Many countries want signals to go down in their countries of all the security aspects that I talked about earlier. And they also want local support, clearance of their staff,et cetera et cetera. So that model requires some automation, some process changes and some delivery as we evolve with where the world is going.

But none of these are new things to us. All of this we've done in the scale we've done it. But if we're going to scale faster, it will require smart choices and smart investments as we go forward without taking away what the core function is of what we do, driving profitable growth with our business and never run out of cash.

And with that, I think -- and we'll go deeper into this in a minute. But, with that, I think I'll hand it back over to you, Katarina to progress in the program.

Yes. Thank you, Per for that great introduction and presentation. And before you go and have a seat again, you've been with the company now for -- is it 4.5 years?

Yes.

What would you say -- and it's been a very eventful period, the least to say. What would you say is the greatest accomplishment you're the most proud of?

I think the greatest accomplishment, from a personal perspective, standing at Cape Canaveral and seeing the launch of Ovzon 3 and the onboard processor live and not being nervous about that it would fail and that it's been a great success, and it's in service is probably the #1 thing. But I would say also the really the endurance of the team and that we're now in profitability with cash in the bank and that we can now start to look at scaling and so on is probably the most -- makes me sleep well at night. I think I feel very proud of that journey as well.

Thank you so much, Per. We will hear more and see more of you during the day. And yes, next, we will turn to Ovzon's -- Yes, please give him a hand.

Thank you.

Next, we will turn to Ovzon's financial performance and priorities. Ovzon's CFO, Andre Lofgren joined the company in May this year, bringing extensive experience in financial leadership. Today, he will outline the recent results. He will talk about the new refinancing that was communicated earlier this week and also, of course, how Ovzon is positioned going forward. Welcome, Andre.

Hi, everyone. I joined in May, this company. And it's been a very interesting journey so far, and I really read up and dig into the numbers. And I'm really looking forward to meet all of you and tell a little bit about myself to begin with. I'm not new to the labor markets. I've been actually working before I got this job. I spent more than 20 years at Skanska, that do construction and specifically for me, then product development, and that's where I've had my roles, CFO for various business units. I have been in multiple countries. But especially, I think the portion of product development, I think comes in very in handy. When I talk about heavy investments as Per were talked about into satellites, it's -- that has the same kind of similarities.

So I think it actually brings something to the table here. So with four months into job, I'm going to go -- do a recap for five years. As I said, I have read up. I'll actually -- I'll start with something that never lies, which is the cash flow. Per was entracing the story in his segment here, and it's basically, I'm just putting numbers to what he just said.

So I'll start with the investments that you see here over the past five years. It's the darker bars and it's mainly the Ovzon 3 investments into that satellite. What we're trying to do then is to find some kind of operating net that would support some of these investments, but it's been hard to keep the nose over water in the beginning, '21 to '23. But as you see in '24, it's actually turning the corner.

We're turning profitable. We're starting to have our own satellite, bringing some profits and actual volumes coming up a bit. And then as you see now per July, it's a pretty heavy cash inflow. And this is then due to growth, but also some customer payments that we received then in the beginning of July. If you listen to our earnings call on Q2, that bar was negative. So it's completely shift now in our situation.

And then if you look to the right, you see the net debt and has the same kind of development as investments. It has been piling up and then peaking in 2024 and now it's been reduced quite a lot, and that has also to do with that, we have now received the cash. So it's a net position. So cash is taking down the net debt. So again, it's a completely different situation that we have been in the past.

Then moving on to the order situation. I mentioned that we have some record orders coming in, and you can see that from these bars. And it's quite a difference versus the previous years from '21 up until now. It's not just only one. We have one very big orders, but there's also others coming in. And actually, we had an additional order also after this one connected with the same client.

And with orders, as you don't burn them all at once, we now have a backlog that's pretty significant. And that backlog, as Per mentioned as well, it's -- we have good visibility now. It's also something that that's new. Usually, 12 months at a time. Now this is 24 months. We actually have visibility now into 2027. So that's something completely new for us, and that makes things a little bit easier to forecast and plan.

You see the pie chart there, you have like 20% in 2025, and then you have 40% of orders that is connected to 2026. So pretty good visibility. Then move over to the P&L. You can see we've been hovering around the SEK 300 mark in revenues annually. And now it's quite a step up to SEK 460. If you look at the rolling 12 months up until Q2 2025.

And what's more interesting, I think, is, of course, the profits. So EBITDA has been negative but improving, and now you see we got breakeven in 2024. Volumes coming up. We have our own satellite with -- where we have better margins. We're also get rid of some idle costs in terms of third-party capacity that was lying idle. So we have really trimmed the company as well. And now we're then going to more growth mode now when we have a big order, and now we are also then can increase top line and then that brings this EBITDA.

And profit is interesting. So I would like to dig a little bit deeper into the profits here. Now it's per quarter and short into three years. Here, you see the EBITDA again quarter-by-quarter. And then you see the improvement that has been done now five quarters in a row, it's been improving. And actually, the four past quarters has been profitable.

And again, a step up in this quarter, Q2. Margins also improving for the same reason. Once we have these volumes that are going up, we have our own satellites where margins are higher, having OpEx costs under control, this is what happens. We can grow the top line by not having to take on a lot of costs more than necessary.

And also when it comes to EBIT, it is profitable in this quarter, and that was a long time ago before that happened. And it's not only the EBIT, actually, the EPS is also profitable this quarter. And that means that when you have reduced everything or taken all the cost all the way down to interest costs, it's actually positive now in this quarter.

And that interest cost, that has been a real burden for us for a long period of time. So that have been, I would say, my main focus when I joined that, okay, let's see what we can do to make this change. And luckily, we are in a completely different situation in the world now when we got the loan for this investments to do the satellite, there was actually no one out there really.

So this loan that we got, it was expensive, but I mean it has served its purpose really. So we wouldn't be standing here without that loan and have our own satellite and bringing in the revenues that we have now. So we're really grateful for that it was able to come into reality. So that's good.

But again, a bit too costly. So with a situation where the world is different, we are in a different situation. We see -- have noticed a lot more interest. So as we communicated just the other day, we have now been able to refinance, and we're doing that with Danske Bank. We are then going to set up a revolving credit facility and then a term loan, meaning that we have a solid foundation, and we'll also have some flexibility in our financings.

We can pull that lever a bit up and down. And it's for two years plus a one-year extension. And one very important thing that was, of course, to get a competitive price on the margin. So we have -- versus our own loan -- old loan and where we stand now, we're actually reducing cost by some SEK 70 million annually. And that is not -- cost means higher EBIT.

So it's super good, I think, that we have done this transition and have this solid foundation instead. And to get to the SEK 70 million in EBIT, it takes quite a lot of revenue to get there. So -- and this is then on an annual basis. So it's a really good thing, I must say. So we're really happy about that.

I'm really happy to have them, Danske Bank with us on this journey. So looking forward to that cooperation and we also have a lot of good help from our friends, legal advisers, team and partners and also a good cooperation with Cederqvist in this transaction. So we're eager to get this over the finish line. We're getting it done by the end of this month. That's the plan.

Yes. So that's setting the scene for where we are today and where we're coming from. So Katarina where do we go next?

Thank you so much. And you answered many questions already. But I actually received one already from the online audience. So one question for you is you talk about profitable growth. How will you achieve that? And why is it critical?

Well, critical. I mean, profits always comes first. So that's why we're here to bring profits to the table. And how we're going to make that happen. I mean it's with the solid foundation that we have now and then being able to plan a bit more and stay focused on what we do and then having cost control, I think, is going to be very important. So really try to control this growth and not go too eager and stay focused on what we do with that and really do that. So I think that will definitely bring us forward.

Thank you for that clarification. And to sum up then, what's the one financial message, only one, that you want all of us to take with us today.

That would be that we are on a completely new level, have a much more solid foundation and much more visibility going forward. So that's -- yes, we're a completely new company, I would say, with good potential going forward.

Sounds good. Thank you so much, Andre, and looking forward to hearing you more from you later today.

Understanding customers and markets is key to Ovzon's success. Kristofer Alm, who is Chief Marketing Officer, will present an overview of the customers that Ovzon serve, the competition and the opportunities that lies ahead. Welcome, Kristofer.

Thank you. It's great to be here. I think Katarina already mentioned it a bit. I don't know if you heard me say it on the rehearsal. But one of the things that is very fun to me. It's last time I was on this stage, and a few of you are here with me, I was holding a glass for champagne. And I think when we saw that clip of the satellite going up, I was kind of getting the pulse back up. It was a little bit like I was watching my watch here.

And I could see my nervousness coming back, but it was truly a great moment. And I've been with Ovzon for 2.5 years, and I would say the first year was that. When I came in, we just announced the delay of the launch. We had to do some refinancing. Everything was a bit nervous, I would say. So the first six months was nervousness. And then I think we kind of got into a groove, and we felt that we're now launching a satellite. It's actually happening. Some of you were even with us in Florida, not all of us got to see the launch live, Per. Some of us were there. We've got to see a launch, but it was a great experience, and I think it's something that brings very found memories to me.

And I think just to give you a little bit of an introduction to who I am for those of you who don't know me, I spent more than 20 years in the communication industry, 18 years with Ericsson, 10 of those in Latin America, Caribbean, Japan. After that, I was in Telia for a couple of years, heading up their procurement for all their mobile and IT systems.

So I've been in the communication industry for over 20 years. And I think that when we talk a little bit about the market, I'll try to reflect a bit on that because a lot of what's happening in the satellite industry today is a bit of a de ja vu from what I've seen when the mobile industry was evolving with both the Chinese competitors and the introduction of the iPhone, which really shook up the market. And I think Starlink and also Project Kuiper, to some degree, is shaking that up together with the geopolitic tensions that we're seeing in the world today.

So to kind of move over into the broader industry, and we -- Per has been talking about Ovzon, a little bit what we do and Andre has talked about our financials. So I thought I'd sort of take a step back a little bit and look from the outside in and then sort of take us back into the company. But I mean if you look at the geopolitics today, it's quite interesting. It's -- there's a lot of talk about fragmentation. There's a lot of talk about competition.

There's a lot of talk about diversity. But if you look at this picture here, which is actually from the Hague, the NATO forum that was there before summer, and if one thing that happened in NATO is the unity and the common understanding of where they need to be and what the European and NATO countries need to do has never been greater.

So in a sense, this has created a force that's driven Europe together. And all the NATO countries, except Spain, have pledged to invest 5% of their GDP into defense or defense infrastructure, it's 3.5% for defense and 1.5% into defense infrastructure as it's called, you can discuss what that means, but it can be anything from bridges and tunnels and to anything that supports us. So I think the unity is there, and it's, of course, driving Europe.

So we see a lot of focus in Europe, and that has given us a lot of boost because this obviously is one of our home markets. We usually talk about U.S. and Sweden being our two home markets. Also autonomous become extremely important because one thing that we've seen and learned from what's going on in the world is that you have to be able -- even if there's unity and Europe is coming together, there needs to be autonomy.

Europe has to be able to defend itself. It has to be able to have resiliency. It needs to be able to build communication. So there's a lot of discussions about autonomy and also resiliency. I'll come back to that a bit.

And obviously, at the end of the day, the defense budgets are going up. And Per talked about $150 billion extra per year needed to reach those levels. And that's per year on top of actually already an increase. So a lot of countries like Sweden, as you know, have been increasing their defense spend already before this. So I think they're looking at somewhere around USD 250 million to USD 300 billion a year in spend in defense in the NATO sphere.

If we move a little bit over to the industry side then, and I think Per already mentioned it and I did as well. I mean the big topic has obviously been Starlink. But one thing to note now is Amazon Kuiper coming up. And this picture is quite funny. I don't know.

This is the suit guy versus the Polo guy. I don't know if that's kind of the rebel versus the business guy. But Amazon is really pushing hard now and they've launched 100 satellites. So I think -- this is kind of four Starlink to have a real competitor on their home terms, which is the mass market, the consumer industry. And I think that's going to push them a lot. What's that going to mean for the industry? I don't know. But it's truly a challenge that we'll see coming.

The other thing that's happening is that, and Per also talked about the congestion in space. And there's a lot of discussion about how many satellites can -- is there room for in space. There's new EU regulation on that coming out. We are actively participating in giving our input to that. I think the -- it's actually another benefit for us and Martin will come back and talk about the different orbital that we have. But in the LEO orbit we are working in, it's very controlled, it's very regulated. LEO orbits are not at all that way. It's very crowded today.

And on top of the Amazon and the Starlink, the Chinese are launching quite a few satellites on their own. So it's getting more and more congested by the day. I talked a little bit about the shift and focus from resilient to resiliency and sovereignty. This is something we see. So almost every discussion we have today in Europe, centers around how can we build resiliency, how can you provide sovereignty and sovereignty, meaning, how can I control the service?

Because another shift we're seeing is that governments are relying more on commercial companies to help them but they still want to retain control. So it's kind of like eating the cookie, but still keeping it. But I think this is another one where we come in and have a lot of uniqueness. But if you look back then, of course, the Starlink expansion and from my own experience, I mean 2007 is a year that's very interesting if you follow what happened in 2007.

Anybody remember what happens in 2007? Exactly, the iPhone. And I think if you look back at technology evolution, I remember it so well, I was sitting in Ericsson I had this little -- probably a lot of the finance guys had as well. The Ericsson was at 380 or something and you had a little pen and you had the touch buttons. And everybody is like, "iPhone is not really going to work". And it wasn't that good in the beginning. It didn't have very good connectivity. It wasn't very fast. But they introduced something, and they believed in it and they drove it forward. And today, the market is completely different. Did it kill the market? No. But it changed the market and it created a new type of market.

And I think the similar trend is what we're seeing today. So we don't really, as Per said, see Starlink as a competitor, we actually see them driving a lot of interest into our industry. And I think that's very positive because the satellite industry has been a bit of a boom and bust industry. There's been a lot of investment and then it's gone down and new investments have gone down. And I think what we've lacked is companies driving scale. And that's what we see now. We are starting to see true scale. And I think that's something that's going to benefit us all.

Then there's competition. Of course, when we talk about competition, we usually don't talk that much about Kuiper because they're not really there yet. We talk a bit about Starlink, but it's more the traditional players, which we actually partner with as well when it comes to capacity. But if you look at that market, there's been six big companies, and they've all merged now. And again, this is very similar to what happened in the mobile industry.

I don't know how many remember Motorola, Nortel, Lucent, Alcatel, Siemens, they're gone, right? And they were giants. They all merged, and now there's Nokia and Ericsson and a few Chinese companies. So we're seeing a similar trend here where companies are starting to merge. Problem is these big mergers are not easy. If you look at the SES/Intelsat merger, it's the latest one, the GEO Constellation. It's going to be very complicated. Technically and especially SES, a very successful company. But big mergers of equals tend to create a lot of inward focus. So we think that this is going to be another opportunity for us to continue, and these companies are going to focus on consolidation and integration rather than really building the solutions they need to compete with us.

Eutelsat OneWeb, you guys follow the financial markets. You probably saw the OneWeb and the stock price went up like crazy. I don't know what it was when Starlink was discussed not being an option in Ukraine and OneWeb was going to be the solution. I think OneWeb has a few hundred satellites, and they're actually quite old. So the service quality they can provide is nowhere close to what Starlink can provide on a commercial LEO service and not even close to what we can provide for resiliency service. So I think this, again, the French government has gone in. They have injected money. They changed the CEO. So there's a lot of doubt if they can actually provide what they need.

And then we have Viasat and Inmarsat also integrating. So it's a market where you can see a lot of nervousness on the traditional players. So this is kind of the geopolitical industry and competition. And now I'll move a little bit more into where we are as Ovzon in our market segments.

If you look at the satellite market today, there are different ways to divide it, but we usually divide it in three main areas. We talk about satellite infrastructure. This is the traditional launch capabilities, rockets, hardware. Then you have application, the orange part here, which is a bit smaller, but growing. And then you have the communication area where we do most of our business. We're actually a little bit into the blue as well because we build our own terminals.

Good news is this is a $1.4 trillion market, and it's growing. It's growing quite a lot. We're looking at somewhere 6% to 9% CAGR up until 2032. And then if you look on the communication area, we are focusing on the Government and Defense, which is about 15% of this. So it's 15% of a very large piece. And the good news is that 15% is growing faster and the sort of growth pace is picking up.

And of course, the requirements are moving from mass market coverage solution to specialized sovereign guaranteed solution. The problems are getting harder to solve. And I think Tom is going to come back and talk about that, but that's really good news for us.

If we then drill into the Government and Defense, remember that 15% a bit. If you look at the orange line, you can see, and we've talked about this in our annual report as well, it's somewhere around USD 8 billion this year. We think it's going to almost double up until 2032. If anything, we've been talking about 7% CAGR. Now in the last couple of months, starting to think it's going to hit almost 10%. So we're probably definitely seeing a doubling. So if anything, next time we do these updates with our analysts and others, we'll probably -- this forecast will go up.

And Europe is driving this. The investments in Europe, like we talked about are massive. Also, the requirements, we're seeing a lot of drive from unmanned systems. We'll come back and talk a little bit on that when we talk about technology and why we're building our terminals. But the requirements are shifting again. They're becoming more specialized, more demanding, and they talk about more resiliency. So it's not just buying bulk capacity as it was maybe 5 to 10 years ago, where the government will go and buy bulk capacity and then put together a service.

So looking at our segments then, we talked about Government and Defense. We divide that into 3 distinctive areas. We talk about Defense, National Security and Public Safety. If you looked at the previous graph, you could see that Defense is the overwhelming part of the spend. It's about 85%. National security, though, is actually growing fastest, but it's still quite -- the requirements there aren't as stringent. It's more bulk capacity. So we see really that the Defense spend is spilling over into the national security area. The area investment-wise, which is still relatively low or very low, maybe just 1% to 2% is public safety.

So like we said, what is driving Defense? Well, I already talked about it. I think it's quite obvious. The geopolitical situation is driving Defense spending, the NATO, the Trump effect, everything is pushing the market. But we also see in Asia, there's a lot of tension around the Chinese expansion in the South China Sea. That's also pushing a lot of investment. The U.S. focus is shifting there. So it's not just in Europe.

For the National Security, it's somewhat different. We've been working a bit with our Italian customers, and we know that for them, maybe the war in Ukraine is not what keeps them up at night. But it's the immigration flows, it's what's happening on the Mediterranean and Eastern closer to Israel and the other Gaza strip, that's a bigger concern.

Public safety, we continue to work with that segment. We're very proud of the work we do there. We think it really ties into our motto that Per mentioned about Connect and Protect, but it is a small market. But what we're seeing is that countries like Sweden and the Nordic countries where we talk about [ Total Fishpar ] or Total Defense. MSP, which is the organization driving public safety in Sweden is actually starting to get their own funding now. And that means that they're going to have money to support public safety and build solutions that can connect into the Defense sector. So I think we're seeing a lot of upswing here as well, and this will be a sector we keep our eye closely on.

Okay. So why then an Ovzon solution and why is it good? And how does it connect all of this? We're going to come back to this several times, but I just wanted to give you an illustration of how we view it. One of the things that's being talked about when we meet our defense customers is multi-domain capabilities. And what does that mean? Well, it basically means that you want to connect different domains within your defense sector, whether it's a small drone team, whether it's a helicopter or it's your headquarters. The problem today is that they all rely on different communication means. Some have radio, some have fiber, some have satellite, and they're all vulnerable and they're not well interconnected. This is where we come in, and we provide a satellite connectivity where everything can be interconnected without the dependency on the ground segment.

So you create the resiliency and you can also provide sovereignty, meaning the customer can control their own network. Because one of the things that's been seen, and you probably read about it is that, early in the war in Ukraine when the Ukrainians wanted to knock out the Kursk bridge and they used these drone bot with Starlink's antennas, Elon Musk turned off Starlink because he didn't think that was a good way to use the service. So it very early showed European countries and globally as well that you need to be able to control your service. It doesn't mean you have to own all the technology, but you need to be able to control it and rely on it.

And I think this has been a real game changer for us and really opened our customers' eyes to what we can offer. But it doesn't actually stop there. I mean you also can look at it from a public safety perspective. And I think Sweden and Finland are -- even though our [indiscernible] concept might not be as well developed now as it was 20, 30 years ago, we have the concept on paper, it means that you interconnect everything and nothing is stronger than its weakest link. Therefore, we see that our service -- and actually, what I -- what we're going to do is take this slide and the previous slide and build them together, because we think that's really where the strength comes. But a lot of these institutions rely on ground-based terrestrial networks.

And if you look at a picture of Ukraine today and you look at means of communication, there is pretty much a line straight through Ukraine. And everything east of that is only SATCOM. Everything west of that has a mix, because basically, everything is closer to the front line has been knocked out by the Russians. The only thing that works is SATCOM. So -- and that means that you need a resilient communication and to be able to plan for this and the European countries are learning quickly.

So I think moving forward and trying to summarize a little bit what I've gone through here. The market is growing. Obviously, that's good news for us. It's due to some tragic reasons. Some of it is bad. Some of it is needed. And I think a lot of the kick that we and others and the Europeans have gotten our -- but was good for us. I mean we needed to get off our high horse and realize that we need to invest in this. And I think the message has been heard and we've spent a lot of time with some of our politicians here in Sweden, and they are super. If you look at the journey they made from two years ago to where they are today, it's astonishing. And we are on a first name basis with all of these politicians now, because they're so interested and want to learn more about our technology. And I think that's really rewarding. And as a Sweden, I'm really proud of that and being a Swedish company.

But the customer needs have changed. We used to talk about coverage and global and people used to ask us, can you cover the globe? Nobody talks about that today. They ask us how resilient is your solution? How much sovereignty can I get? Can you build me smaller terminals? How much throughput can I get? How quick can you adapt to my requirements? So the requirements have become much more targeted than they were maybe just 18 to 24 months ago.

And this is good for us. I mean, we realized we -- our focus was the right one. When per started the company, the idea was to build a solution for our end users. And we're still there. We're building solutions for our end users and applications for them. And we're going to come back and talk more about that later.

We're delivering on these sovereign capabilities. So the deal with FME in Sweden is a fantastic example of that. We have other deals as well. One of our challenges is we can't talk about everything we do because our customer wants to stay. Part of being resilient is about staying invisible to a sense. So that's one of our challenges as well. And we continue to focus on the Defense, National Security and Public Safety because we see that those markets are very much in tune with what we're doing and the geographical focus we have is very good.

So I think with that, Katarina, I'll leave it back to you.

Yes. Thank you so much, Kristofer. And -- okay. So you talk a bit about the competition. Okay. So what is Ovzon's greatest unique selling point compared to your peers?

Yes. Usually, Katarina says keep it short, but you didn't say that now. So -- no, I think it's actually -- we talk about performance, mobility and resiliency. And I think those three together is really our -- but if you just want to mention one, it's become really resiliency, because we used to have -- we used to focus on performance and mobility. And when you have that, we've turned that into the most resilient solution. And that and the way we've adapted and really pushed that forward and our customers are seeing that, that's something I'm super proud of and I think stands us apart from the competition.

Okay. So talking about standing apart. What gives a company of your size the edge when facing competition from much bigger players?

Well, I think it's -- firstly, it's because we focus on a smaller segment. Remember, I showed this big picture. And all these big companies are focusing on the whole pie. But we're focusing on a very specific niche of that segment, and we are adapting to their needs, and we're actually almost ahead of the market in terms of what we can provide. And that means that we are very focused on a specific segment that's growing. And most of our competitors are not. They're building for the mass market. So I think that really allows us to stand apart.

Okay. Thank you so much. Thank you, Kristofer.

And with that said, we will now turn to the technology that underpins Ovzon services. Per, welcome up on stage, and you will also be joined by Tom Hopkins and Martin Eriksson shortly to discuss the technical capabilities and the Coefficient that sets Ovzon apart in the market. Welcome.

I'm not going to be up here for too long because I'm going to allow those that have much deeper understanding of the technology and how we deploy it with the customers, some room to talk about it. But I think it's very important to understand what I said in the beginning that the underlying company here is a technology company that has never developed really anything without having it verified or in partnership with the customer, meaning a solution.

Now what do companies do that becomes unique and stand out in value. They set industry standards. You can write industry standards in regulated markets or you can create an industry standard. For Ovzon, it's been obvious from the beginning that, I think, if you dive very deep into the development here that what we call the Ovzon Coefficient, which I happen to believe is now the standard. These three things that we talk about performance, that's translated into highest throughput, how much data can you send and receive; mobility, the smallest terminal that can send and receive that; and then resiliency, meaning how can you guarantee that it's up all the time and not be disturbed or so.

Those three in pure physics actually pulls apart at times. You can optimize for performance. You can optimize for size, weight and so on for mobility or you can optimize for resiliency. But we have to optimize for the totality, those three together. And I think those choices are very difficult. They're very specialized. They require deep understanding of technology. They require deep understanding of customers, and they require deep understanding of how the totality is going to work all the time. And we know that we are the standard because kilo per kilo or cubic centimeter per cubic centimeter or megabit for megabit, no one else can deliver and deliver today what we do. And that needs to be verified not only by a claim of the CEO of the company, but by the verification from the customers that, that's the case.

So I'm going to hand over now to Martin Eriksson, who leads a lot of the charge for the technology development around this. He can explain this a little bit more. And then we're going to evolve into our COO, Tom Hopkins, that really talks about how the customers are deploying and utilizing the Ovzon Coefficient for their benefit.

So with that, I'll hand it over to Martin.

Thank you very much, Per. So it's great to be here and get a chance to talk a bit about the technology behind Ovzon. I've been with the company since 2008. And the last few years, my main focus has been on the Ovzon 3 satellite and the Ovzon onboard processor. And as we've heard, it's been a long journey. And so it's very exciting to be able to offer these capabilities that we now have on orbit to our customers. So I'll talk a little bit about that. But first, I'm going to flesh out a bit more about the Ovzon Coefficient and pick up where Per left off.

So at Ovzon, from the beginning, we have had a laser sharp focus on mobility. And so whether the end user is actually on the move or not, being mobile, mobility is an essential part of the mission. And so for us, mobility really translates to miniaturization. So the end-user equipment, the ground terminals, they have to be compact, lightweight. And if it's an on-the-pause application, meaning if the end users carry the terminals with them, they also have to be very portable. But this posts a challenge when it comes to meeting performance requirements because the most straightforward performance parameter for a communication system is throughput. So how much data can I push over the satellite link.

And that is a direct function of antenna size. So the larger the effective area of the antenna is, the more throughput you can have. Same goes for the amplifier. The higher power density you have in an amplifier in the terminal, the higher the data rate. So that then becomes problematic because both antenna size and amplifier power drives overall terminal size. So for us, it's not performance on its own that is the best metric, as Per said, these axis -- performance and the mobility that kinda work against each other. So as performance per unit mass, performance per volume that is what matters to us.

Now resiliency is much harder to quantify, because it means everything from being able to operate in all type of climates, all kinds of weathers and to being able to cope with unintentional interference or even directed targeted attacks on the communications infrastructure. And this also has to be implemented in a way that doesn't drive complexity, that doesn't bogged down the network, makes it impossible to use. Doesn't sacrifice ease of use and doesn't sacrifice overall performance.

So it's finding that balance between these three performance parameters, performance and resiliency or compromise, if you will, indeed optimizing for all three at the same time. That is the Ovzon Coefficient. And as this chart shows and as Per said, we argue that we are the industry leaders in this respect.

Okay. So before we dive into the Ovzon 3 ecosystem, I want to talk a bit about satellite orbit. So take a step back and see what kind of key aspects of satellite communications are directly derived from the type of orbit that is being used. So here we're going to look at three different broad classes of orbits. We have the Geostationary Earth Orbit, GEO; Medium Earth Orbit, MEO; and Low Earth Orbit, LEO.

And I'm going to focus here on GEO, because that's the orbit that Ovzon is using; and LEO, because that is what is drawing the most attention now. We've heard how we see SpaceX Starlink, Amazon Kuiper, Iridium, OneWeb and several other actors are operating in LEO.

In MEO, much smaller, but that we find like the SAS and Power constellation. And of course, also all of the positioning and navigation satellites like GPS, Galileo, et cetera.

So -- and as Per said, it's very crowded in LEO now. 90% of all satellites in orbit are in LEO, and that is growing almost exponentially. When we add more mega constellations like Kuiper and the Chinese ones, it's going to get really crowded.

Whereas in GEO, there's around 500 or so satellites.

So starting with GEO. The orbital period of a satellite, meaning the time it takes to make one lap around the world, depends on the distance to earth. So as you move further away from earth, the orbital period increases. And at a specific altitude of 35,786 kilometers, the orbital period equals 24 hours, meaning it's the same as the orbital period of the earth.

So if you align the orbit of a satellite at that altitude with the equatorial plane, it will remain fixed with any point on the earth. And that is very different compared to any lower orbit where the satellite is always moving with respect to the end user. And that has a number of implications.

So first, let's talk about access. In GEO, you have 24-hour access to the satellite. It sits there in the same position in the sky, you can access it any time you want. In LEO or in any lower earth orbit for that matter, the satellite will appear over the horizon. You have to lock on to it, track it as it moves across the sky. And then before it disappears, immediately switch to the next satellite that is coming. If you want to maintain continuous connectivity, that's what you have to do, switching all the time between these satellites that come and go. And depending on the altitude of the satellite, that can be a very short duration of time. So in LEO, it's only a few minutes.

And what that also means then is that in order to be able to track all these satellites, you need a full 100-degree plus cone of unobstructed free sky to be able to connect to these continuously. It also means that you're transmitting in all these directions at the same time, which is not good for someone who doesn't want to be seen. Contrast that with GEO, where all you need is really a line of free sight between yourself and the satellite.

Okay. Let's move to the space perspective. The very high altitude of GEO means that you see a full 1/3 of the earth from a single satellite. So that means that you'll only need three satellites to have global coverage. In lower orbits, because of the relative motion of everything, if you want to have continuous coverage of any portion of land, you need to cover everything. And that's why you need several hundreds and many examples here than several thousands of satellites to be able to provide a continuous global connectivity.

And if you have many satellites, you also need many gateway ground stations. So a gateway ground station, Per mentioned it, is the destination -- the ground destination node for the signal coming from the end user. So the end user will transmit up to the satellite. It will come down to a gateway ground station and then take a terrestrial path off towards its end destination.

And whereas in GEO, a single gateway ground station is sufficient to support a full GEO satellite and whereas a user anywhere in that coverage, and remember, it's 1/3 of the earth, can reach that gateway ground station located at a secure facility with just a single hop over the satellite without touching any other network. In LEO, it's very different. If you have thousands of satellites, you need hundreds of gateway stations distributed across the globe. And the end user does not get to decide which one to use. And also does not get to decide which terrestrial path to use from that gateway ground station to his final destination.

So that is, one, a security concern. And two, it's a latency contributor, because low latency is the one obvious advantage of low earth orbit. It is true that it takes a short amount of time for the signal to propagate from ground to the satellite because of the shorter distance. But the relevant metric for latency is really the total latency. So from a starting point to the endpoint, and that is not only dependent on satellite altitude.

Okay. So let's look at the Ovzon 3 ecosystem. Ovzon 3 is a critical mission communications platform. It's a GEO satellite with an all steerable antenna architecture, that is really tailor-made, purpose-built to meet our customers' requirements for performance, mobility and resiliency. So it is equipped with 5 high-power user beams that can be pointed anywhere over the visible earth. Again, it's 1/3 of the earth on customer request. And then via the gateway station, we can provide our customers access to Internet or whatever private network services they want to have. So the gateway station acts as a central hub for this communication. The user terminal, the end user using the user terminal would transmit up to the satellite down to the gateway station and then on to the terrestrial piece. And we call that the Ovzon Pegasus service. And that is how almost all satellite connectivity works today.

But the Ovzon 3 satellite also has the Ovzon onboard processor integrated aboard. And that is a software-defined regenerative capability. And regenerative here is important. What that means is that it allows for direct communications between these 2 ultracompact user terminals. So whether they are located in the same beam, the same steerable user beam or in different steerable user beams, they can now connect and communicate directly with one another without passing the gateway station. So we call this the Ovzon Orion service.

Now the onboard processor also provides a number of other features, adding layers of -- new layers of resiliency in particular, and we'll talk a bit more about that later on.

Okay. So the Ovzon Gateway station infrastructure, as Per said, we don't own that. That is provided by partners that we have long-standing relationships with. But all of the equipment, which is network-centric, so that touches the network, that is located in Ovzon data centers that are under direct control by our network operations team.

And then we have what is called the TT&C system. That is used for actual satellite control. TT&C stands for telemetry tracking and command. And that is what is used to keep the satellite in orbit, in its orbital position. It is used to configure the payload and is used to monitor the overall health of the satellite. This is a separate system on the satellite. It's completely separate from the communication system and it is protected by many layers of redundancy and strongly encrypted.

And so again, via a system that we call the Ovzon payload control system, our network operations team and our missions engineering team can reach into the TT&C system and do all of the customer-specific stuff like change the pointing direction of the steerable beams, configure the onboard processor, et cetera. So that's kind of the -- what the architecture looks like.

Now if we take a closer look at the mobile satellite terminals. So we've heard that the founders of Ovzon had a long background in the satellite terminal industry. And they brought a foundational insight into this company, which is that the end user doesn't really care about what technology is being used for the communication function as long as it works. So whatever goes on beyond the terminal is really not important, but the terminal itself is -- it is indeed the ultimate customer interface. So therefore, we take terminals very seriously at Ovzon, and that is why we have developed and manufactured our own line of terminals as well.

So on the left here or on this slide, I should say, we see the core of our current terminal lineup. We have on the left on the pause terminals, meaning they are designed to be used while stationary. So we see the Ovzon T7 and the Ovzon T6. Ovzon T6 is the larger sibling. They are both fully featured, self-contained units that can be put on the air in less than a minute by nonspecialist users. And the Ovzon T7 here is a good example of what we were able to do in terms of improving the Ovzon Coefficient and taking a step in mobility by controlling not only the ground segment, but also the space segment with Ovzon 3. The Ovzon T7 is the first terminal that was designed with Ovzon 3 in mind. And it shows the direction that we are taking with future development as well.

On the right here, we see on the move terminals, again, two types, the Ovzon P20 and the Ovzon P30, two different sizes. They can be integrated on the moving platform, and they will then automatically acquire the satellite signal and track the signal as the platform moves. They can be integrated on any type of moving platform. We have a very long experience of doing this. We put them on cars and trucks and boats and ships and fixed wing and rotary wing aircraft. And we have a very skilled and experienced integrations team that can help our customers with these types of applications.

Okay. So my last slide. This is a capability summary slide of Ovzon 3. And most of what you see here is really common to all of our services. It lays the foundation for performance mobility and resiliency. So we have -- starting with the smallest terminals and the highest data rates, really the quintessential part of performance and mobility. Then we have a system design, which allows for all weather availability, integration on any type of platform and also operations in a GPS-denied environment. And that is crucial to our success. And our COO, Tom Hopkins, will talk more about that later on.

But then we have the Ovzon onboard processor, which allows for a host of other features, as I said, the software-defined onboard single processing, critically the single hop feature, being able to communicate directly between two disadvantaged terminals and also being able to operate below the noise floor, which provides a new level of operational confidentiality. And lastly, what we call autonomous operation, the ability to operate without any teleport in the picture at all.

So with that, I will hand off to Tom. Thank you.

Good afternoon. My name is Tom Hopkins. I'm the Chief Operating Officer from Ovzon. I've been with the company now for just over 5 years. Prior to my experience at Ovzon, I was fortunate enough to run a business unit, a P&L for Raytheon company in the U.S. that focused on the U.S. Defense and intelligence markets. And prior to that, I had a career as an officer in the American Army, focused on, again, special operations, intelligence and technology and communications.

So we are over an hour into our session here. There is a noted lack of circulation of fresh air in the room. And I want to be respectful for that. I do have two things to talk about this afternoon. The first is to walk you through some operational environments that are most importantly, becoming critically important to NATO over the last three years, most of them. But coincidentally, and fortunately, for us, they're all environments where we offer unique capabilities and particularly well suited to be successful in these environments. And then the second thing I'll talk about much more briefly is our global service delivery model and how we think that's such a big part of our success.

So we'll start with just a quick overview. I'll talk a little bit more about each one of these operational environments. One is really a public safety issue that came about with the Summer Olympic Games last summer in Paris. The other is our unique ability to command and control unmanned systems, which again are becoming critically important to the West and to NATO countries. The third is our ability to be successful well into the Arctic. We've done some testing. I'll share those test results with you. I'll talk a little bit more how we're going to continue to challenge ourselves in the Arctic environment. And finally, we talk quite a bit about the contested environment. And we'll -- I'll give you all a little bit of a summary of how we define that contested environment, what it means to us as a satellite operator and a service provider and how we're uniquely suited to operate in that environment.

Okay. So let's start in Paris last summer in July. The Ovzon 3 satellite went into commercial service last summer on the 5th of July. That very week, we had a team in Paris, working with the French Elite Security and counterterrorist Force, the GIGN. The risk assessment, the threat assessment identified two primary risks as it relates to the GIGN's ability to secure the Summer Olympic Games. One was very simply that masses of crowds that would come to participate or observe or enjoy the Olympic Games would overwhelm the public infrastructure. The second risk is that public infrastructure is also vulnerable as it always is, to terrorist attacks that could have a significant impact -- negative impact on the Olympic Games.

So the solution, the GIGN came to us and told us they needed to be able to operate mobile networks, completely private mobile networks that were off the public infrastructure and tie them together via satellite. And that satellite had to be independent of the public infrastructure. And when I mean public infrastructure, not just the mobile networks, but the commercial power infrastructure as well because that can be very easily targeted and overwhelmed.

So what you see here is a picture of the Ovzon T7, beautifully poised against the Eiffel Tower in Paris, but it was a real symbol of how we were able to provide the French security forces, the command and control on a completely private, completely independent network to provide security to a very successful Olympic Games. And we're -- so this was literally the first week. They were the first users on the Ovzon 3 satellite and the first week that the Ovzon 3 satellite was in commercial service. We did not anticipate such a quick start to testing that satellite in a real-world environment, but it went tremendously well for us.

Okay. Next, I'm going to talk a little bit about unmanned systems and why? And a lot of what I'm going to say is refer back to what Martin just covered, I think, fortunately for us. But as Martin kind of said, traditional satellites all rely on an earth-based terrestrial teleport that connects outstations. So it does routing and switching between outstations. The Ovzon 3 satellite and the Ovzon 3 onboard processor, which we call the Orion service, takes that switching capability and function that's usually on earth in a teleport and puts it in orbit. It puts it on the spacecraft, very unique for a GEO stationary orbit. As Martin said, this makes us completely independent of a teleport. We think teleports -- ground-based teleports are very vulnerable. They're all very big, very visible, very stationary targets. And we think in a hostile environment. In a war time scenario, those teleports are going to be targeted just like they were in the early days of the conflict in Ukraine.

So we now take that switching capability. We put that in space. And what that allows, as Martin kind of alluded to, is if we use a naval scenario where a big focus now in NATO navies is for a capital ship -- a Navy capital ship to be able to command and control multiple unmanned platforms. So you think of the capital ship, the manned ship as the command and control center and then controlling large numbers of unmanned platforms to conduct the fight at sea. And what we -- in a traditional satellite environment, you'll see that the command and control ship has got to go to the satellite back to earth, back to the satellite and back to the unmanned vessel. And what that does is create latency and latency is always a problem when you're controlling moving unmanned platforms.

The Ovzon 3 Orion service that we show on the right directly connects the command and control system directly to the unmanned platform, essentially cutting the latency in half, making you completely independent of what we think is a vulnerable teleport and makes for a much more efficient command and control unmanned platforms.

So the picture is actual UGV an Unmanned Ground Vehicle. This was a collaboration that we did in December of last year with FNB with the Swedish Armed Forces. This was in Kiruna, Sweden. You can see the street cones there. And not only -- and the antenna you see on there is not in the room here, but that's an Ovzon F50 antenna. That antenna is talking on the Orion service to the onboard processor and directly down to a Swedish Armed Forces command and control center over 900 kilometers away. And we effectively -- we allow -- we enable the Swedish Armed Forces to effectively remotely control that unmanned ground vehicle through an obstacle course. So we just weren't moving across a flat service. We're actually steering it through an obstacle course, and that's what those cones represent.

Okay. So that's us with unmanned ground vehicles. Another -- and I mentioned that, that test was done in Kiruna. And in Kiruna as most of you know, is inside the Arctic Circle, about 140, 150 kilometers inside the Arctic circle. All of NATO all of Europe, all of the U.S., all of Russia and China are focused on the poles. On the north pole, they're focused on the Arctic. It's a part of the great power competition now to gain access and secure access to the high north to the Arctic.

And we realized that 145 kilometers inside the Arctic circle, we were very effective with the Ovzon 3 satellite. And one of the limitations of a geostationary satellite because they are parked over the equator is they have to deal with the curvature of the earth as you get closer and closer to the poles, both north and south. So our proposition was that the strength of our -- the power of our steerable spot beams could overcome some of the weaknesses, traditional weaknesses that geostationary satellite providers face when they approach the pole. So in general terms, you don't think about geostationary satellites to work above 70 degrees north and 70 degrees south. And we have realized we were at 68 degrees already, and we did very well. So we created -- we decided we were going to continue to challenge ourselves and see how far north we could go and could we outperform what is traditionally expected for geostationary satellite providers as we approach the poll.

So we built an overland expedition. We had 4 all-wheel drive vehicles. We had partners from 4 NATO member countries participate with us. And we started driving north from Kiruna where we had a known good reference point. And we stopped at every degree of latitude going north. And you can see a marked on the map there until we reached the highest point in Europe, which is the North Cape or NordCap of Norway. And at each stop, we tested, we ran voice, video and data. We used both the Ovzon T6 and the Ovzon T7. And again, we're trying to validate our proposition that we would be able to overcome some of the inherent weaknesses of GEO providers as we approach the poll.

So the good news is this is the North Cape. This is at 71.2 degrees north, so just above 71 degrees. This is the Ovzon T7 that is -- you can see has a very low elevation angle. So we're probably between 4 and 6 degrees of elevation, that high north, that far north. But the terminal and the network, both the T6 and the Ovzon T7 operated flawlessly as if it were sitting under the equator. We were very impressed with the performance, not just that far north, put in some pretty extreme arctic conditions. This was in March of this year.

So that's our experience in the high north. We realize that there's more north between North Cape and the North Pole. We will continue to challenge ourselves. We have plans for a second expedition. It obviously won't be overland because we run out of land, but we're going to continue to challenge ourselves and push ourselves and move farther and farther north. And I'm sure you'll be reading about that in the coming months.

Okay. So one of the most important environments, again, in the last three years since the Russians invaded Ukraine is this idea of operating in a contested environment. And for many years, for decades after 9/11 after the United States was attacked on the 11th of September, over a couple of decades ago, the West and NATO was really focused on the global war and terror. And we had a lethal enemy and we worried about a lot of things in the war and terror, but we didn't worry about electronic warfare. We didn't worry about direction finding equipment. We didn't worry about GPS jamming and GPS spoofing. It was a lethal enemy, but not a very technically sophisticated enemy as it relates to fighting in the spectrum.

All that changed 3 years ago. We talked about the focus on performance and mobility and resiliency. Our traditional customer base have always been give me as much data in the smallest device as you can because I'm fighting a very -- a 24-hour cycle against a mobile and agile enemy, and I need massive amounts of intelligence data to prosecute that fight. And overnight, they came back to us and said, "Hey, love the idea of small terminals, love the idea of big data rates. We really want to survive on the battlefield." So we got to manage our electronic signature. We have to manage our physical signature, and we have to operate -- be able to operate against a very sophisticated adversary, a near peer in a contested environment.

And what is still surprising for me to think about, but we started the OBP, the Orion service design, how many years ago? 7 years ago, long before when we were right in the middle of the war and terror when we didn't really worry about the contested environment. But we built -- we started the design of an onboard processor that brings near-peer capabilities that came into commercial service last July that could not have come to the market at a more relevant time. And how that all happened, whether it was brilliant planning 7 years ago before I got to the company, I will have to give Per the credit for getting that right. But we absolutely brought the right capability to the right markets at exactly the right point of time.

So what is the contested environment? These are all the things that we worry about. Detection of the terminals on the ground through enemy or adversary electronic warfare equipment, GEO location and interdiction. So if you can be seen electronically or physically, then you can be interdicted. And if you can be interdicted, then generally you have a bad day in that environment.

We have to worry about protecting the users' information. They trust us with their mission-critical data, and they trust us that we're going to pass that in a secure environment. We have to deal now with GPS jamming and GPS spoofing, had never worried about that before. We have to worry about actual jamming of the satellite, and we have to worry about jamming of the terminals on the ground. It's a whole new ball game that became a reality 3 years ago.

The last bullet is anti-satellite operations. I will tell you that over the last 3 years, and I'll kind of explain a bit how we got this experience, but we've dealt with almost every one of these environments very successfully over the last 3 years, with the exception of the last one, but a world of experience, hard learned lessons learned over the last 3 years. So we can talk a minute about GPS jamming. This map is from a commercial source. It's drawn. The red and the yellow are where the instances of GPS jamming are greatest. This data is collected from commercial aircraft, which are obviously very reliant on commercial GPS signals. You'll notice in the Black Sea and in Ukraine and Belarus and Western Russia, there's a big white gap. And that's not because there's no GPS jamming, that's actually where it's most intense, but there's no commercial aircraft flying there to collect the data.

So that's really where it's most intense, and this picture doesn't really represent that well. But one of the key takeaways from the picture is this is not limited to the battlefield. It's not limited to the Black Sea and Ukraine. You can see it extends well into Southern Europe, well into the Baltics, well into the Baltic Sea, well into Scandinavia. And we feel that this is the new reality. We think that this is part of the Russian focus on hybrid warfare.

We don't expect this to end when the war in Ukraine ends, if and when it ends. We think that this is very similar to the idea of cutting undersea cables or all the other hybrid warfare things that the Russians are undertaking around the world. So we kind of feel like this is the new reality. And if you're going to be serious about resilient communications, you have to be able to operate in this environment. And we are uniquely suited to operate in this environment, both in large and small networks, we are completely independent. We operate completely independent of a GPS signal.

And the important caveat here is we operate independent of a GPS signal and any other external signal. So you'll hear a lot of satellite operators say they don't need GPS to operate, which may be a true statement, but they're talking about GPS in the narrow sense of a specific constellation. They still rely on other low earth orbit signals to understand their location in the world and get the timing to enter our network.

Our terminals are smart. They make an assessment of the value of the GPS signal that they have. If they have confidence that works, they use it and they enter the network. If they don't believe that the terminal is -- or the location information is accurate, they'll ignore it, and they'll take a little bit of time, about a minute or so to do the math on the terminal itself and enter the network without the assistance of GPS. And our understanding is we're unique in our ability to do this certainly at scale.

So this is all a part -- a big part of our ability to operate in a contested environment and also our ability to operate or offer resiliency to our customers. And we talk a lot about the technology that enables us to do this and our techniques, but a lot of this is also our corporate culture. We have a very specific customer base.

Those customers have an expectation of discretion and privacy. They don't want to read in the newspapers about how we support them or where we support them, and we honor that. We understand why that's important. So we don't talk a lot about that. But our corporate culture is a big part of the resiliency that we have. We always tend to focus on technology and techniques. Those are important, but the company culture is also very important.

Okay. I'll switch now to the global service delivery model. And I will say this. So part of my obligations as the Chief Operating Officer is on service delivery, is customer support. We run the 24/7 network operations center. We have a tiered support model. So Tier 1 support for the things that you're familiar with if you forget your password or something doesn't work or the light doesn't go on. And then we have a tiered support that goes up to engineering levels and very complex engineering levels after that.

When -- as Martin mentioned, when we think about our company and when our customers think about our company, we focus on the tangible. We focus on the terminals, the things that we can put on our hands that we can measure and weigh. And many times, almost always, that's the first impression for a user, for a customer of our company. And that's a very important first impression. But the lasting impression, the enduring impression is the relationship we build with those users and the support that we provide them. And I would argue that, that is a much more important relationship than their first impression with the terminals.

So the terminals and the equipment, the tangibles are a really important start. But over time, the most important function for us is to have a relationship to support those customers well to make sure we're answering their calls that they are there -- we are there when they need us. And I think with that, Katarina I'll turn it back over to you.

Yes. Thank you so much, Tom. And you gave us some great examples here, but what stands out with Ovzon solutions from a customer's perspective?

I guess I would -- somewhere in this briefing, I can't quite remember, we must have talked about our mission statement. So the Ovzon mission statement is to connect the world's critical missions via satellites.

Yes, we did.

And we chose critical missions very thoughtfully and deliberately. And we talk a lot about defense-related support because that is, as you've heard, the majority of our revenue base. But just in the last few years, we supported voter registration in Colombia in very remote areas of the jungle in Colombia, essential to a thriving democracy. We supported avalanche, life-saving efforts to rescue people from an avalanche in the Alps in the last few years. We supported a catastrophic flooding in Belgium and Germany. We supported the earthquakes in Turkey. We supported the flooding in Libya. When our users, when our customers have critical missions, they come to us. When it's literally a life and death matter, they come to us and they've -- I think we've earned their trust for those critical missions. And that's very rewarding for us. I think every Ovzonian comes to work. My hope is every Ovzonian comes to work every day, knowing how important what their job is because of the kinds of missions that we support.

Thank you so much, Tom. Thank you also, Per and Martin. I will also say that the full presentation will be uploaded to the Ovzon website after this event is closed. We will now move into a well-deserved coffee break, and we will be back with more discussions in about 25 minutes. Please use this time to meet Ovzon representatives and mingle a bit and also have a look and feel at the Ovzon mobile satellite terminals. We'll resume promptly at 3:15. Thank you.

[Break]

Welcome back to Ovzon's Capital Markets Day 2025. And a reminder to all of you watching online to keep sending in your questions to the Q&A session later. Before the break, we learned about satellite communications in general, but more specifically about Ovzon's financial journey, their position in the market and the unique technology that sets them apart from the competition. We will shortly turn to the horizon and focus on the future. I know that you're eager to hear more about that. But before that, as you can see, I have all today's speakers with me here on stage, ready for some panel discussions, right?

Right. Good. And I think I will just start with one question, and you can divide among yourself who's best to answer one question. All right. So first question, as many countries, especially NATO members are planning to double or significantly increase their defense budgets, do you think this will also translate into increased investment in space capabilities?

I think you should go.

Yes. Okay. Yes, definitely, I think it's actually -- and what we're forecasting is that it will probably more than double for 2 reasons. Firstly, because a lot of the European countries, if you compare them to both China and the U.S. are lagging behind in space capabilities. So there is a race to sort of bridge that gap in Europe today, and this will definitely translate into our sector. That's one reason. The other reason is the need for connectivity and communication. If there's something we learn from Ukraine is that you need to be connected all the time during any conditions, as Tom talked about. So this is going to trigger a lot of investment, both into space, but also into resilient communication. And as you heard before the break, space and SATCOM is one of the few ways to provide this to resiliency. So I think we're going to see more than a doubling of our sector.

Good. Everyone agrees.

Yes, agree with that.

And this next question is more on technology. So what can we expect as the next step in terms of the Ovzon technology?

Yes. So I think the simple answer is probably that -- our focus is on the Ovzon coefficient. It's performance mobility and resiliency and all of our technological development aims at improving that coefficient. And we saw already when I was talking about the terminals, how leveraging Ovzon 3 has been able to enable for us to be able to take a big step in that direction. And I think that's just going to continue.

And do you think that we will see in the near future handheld size terminals?

I think many people consider the direct-to-device as it's often called communications or connectivity as kind of the holy grail. And what I think that clearly shows is that everyone realizes the need for more mobility. And we are certainly there as well. But so far, the initiatives that are ongoing right now, that's more about extending cellular coverage. So when that fails you, you can step over and do this instead via satellite. And our customers have different requirements than that as we've heard today. But in terms of size, yes, we are definitely moving in that direction.

Good. Thank you. Next one, in which areas do you see that the market requires your services and products to expand?

I think what we've said right in the beginning of -- or the first phase of this presentation is where we will continue to have our core of offerings with performance mobility resiliency as our mantra. I think the big expansion will come from unmanned systems. We have been touching it, but making sure that there are antennas and terminals that can fit on both large, medium-sized and very small in the air, on the water and on the ground, remotely steered unmanned vehicles, I think, is a big, big market drive as well as the NATO drive for standardization and interoperability, meaning everything needs to be connected. I think Christopher had a slide on that, and we've talked about that. So I think the resilient communication for unmanned is absolutely necessary. And I think the drive in investments from those USD 150 billion more in spending on NATO will be a key driver.

Any add-ons to that?

Yes. I would just say that I think we, this company, are really good at solving hard customer problems. And admittedly, unmanned platforms is absolutely a hard problem to solve. And it gets harder. Ground is fairly easy. Maritime is a little more complex and the air is even more complex than that. But if you simply have a need to move data from point A to point B, we have a lot of industry partners that do that very well and very efficiently. And that's not the demand that we see or we expect to see. But if you have a real difficult problem to solve in terms of size, weight and power, in terms of performance, if you need very high data rates and unreasonably small terminals, if you are operating in a very challenging environment, whether it's intentional or unintentional interference, that's where we're strongest and best. So I think we're always -- I think we've been doing very well in filling that market need. And I think we're seeing that expand that need -- that demand signal expand over time.

Yes. Thank you. And then the last question for this session, and then we have the Q&A later. But 2025 has really been a year marked by growth. How prepared is Ovzon to handle a rapid scale-up in demand? I'm thinking production, service delivery, customer support, et cetera.

I can start. I think maybe Andre adds a little bit of a flavor from a financial perspective if we're prepared. And we're going to go into this in the next phase of the presentation here. But I think we have a very solid platform today financially, technically, operationally, competence skills, customer base that we can operate from and expand from.

And I see 3 horizons: deliver current solutions to current customers. So that doesn't mean a lot of new stuff, which is really solid. Horizon 2 means we have to take the advantage of that there is a huge demand signal coming in when we need to scale, both in terms of volumes and size of terminals, meaning how many and the smaller size, in terms of satellites and networks and in terms of be able to deliver on a 24/7 scale everywhere. But I think we have the solid foundation for it. The rest is planning, execution and staying true to our core. And then I think we can take advantage of the big market that is out there for us.

Yes. And if I should add anything on the financials. I mean, I think it's really now to deliver on what we have promised to our customers and make sure we have a really good example to show other potential customers that we can deliver and never lose eyes on the ball. I mean that it's back to cash flow in a bit I mean it's super important. When you grow, it's easy that you grasp over too much and you think everything is just nice and then because you have a nice order backlog, but it's actually being able to make sure that you invoice on time, collect payments on time and not run out and overinvest, but still, of course, plan for the future and make sure that we forecast correctly and then set plans based on that.

Sounds good. Thank you all for those great discussions, and you can go and have a seat again. Per, please stay with me. You can take that table.

It's my pleasure to stay with you.

Because now we are finally switching focus to the future. In this next session, you will learn more about Ovzon's strategic direction going forward. And with that, I hand it over to you, Per.

Well, that's all well said. And I hope we've given you a very, very as thorough as we can and as broad and detail as we can, background to the company, where we've been, where we're at, the period of investment that we've been in and that we're now starting to see the return on investments of those choices we made. And that is basically the foundation for how we can scale and how we can grow this further. And I think what you can see from myself and the team that is here that we are kind of no nonsense people. We try to stay very true. We have a very dynamic dialogue around the choices we're making. We're trying to be very disciplined about them because it's easy to get carried away.

We should get carried away and inspired by the opportunity, and we should be extremely disciplined on the execution we're taking. But we will now take you through what our intentions are. So this will be very, very exciting, I think, at least it is from our perspective. And you've seen our strategic framework, and we're going to divide this into each of these pieces and give you more -- a little bit more detail around what we're thinking in terms of scaling.

What comes first, though, is if we're going to be able to drive profitable growth, we have to win -- we have to be more predictable than we are today in terms of how we win and how we generate revenue and that we do it in a profitable way. So it starts at the top with how we go to market. And you -- as I mentioned previously, we have a new Chief Commercial Officer coming in. I'm not going to put all the pressure on Jeanette before she has arrived. However, I think we've been very successful the last couple of years in making sure that we are concentrated on the core markets that have the greatest needs and that we have the ability to deliver.

However, it's a target-rich environment, and we have to stay very true to how we go to market and understand how we sell and how we win. So I'll take us through that go-to-market section. Then we're going to walk in -- walk through what we do in terms of terminals, then what we do in terms of satellites and then what we do in terms of scaling the global service delivery model, while maintaining a healthy core business and not adding too much cost as our CFO has pointed out, right.

All of these different elements of the framework have different characteristics. If you think about -- so the go-to-market has a characteristics of having the right people focusing on the right customers in the right markets and understanding who to partner with to win. It's very important. It's about building enduring relationships, trust and using the installed base of references. But it's more having the right people, the right structure, the right sales support.

Mobile satellite terminals has a very different characteristic. That has more of a manufacturing side to it than what the others have. They are more -- this is very tangible. You have to have a resilient supply chain. You have to make sure that you have the right sub-suppliers. You have to make sure that you can actually meet the demand quickly. That ties capital because you have to then invest ahead of time to build inventory. And then we have choices to make whether or not we should produce everything ourselves, we become a production unit or if we do the third-party final assembly as we do today and we quality control it and have a center of excellence for design.

So this is -- and it's a supply chain management aspect. So that is a very, very different characteristics and how you think about it than networks and space. We have proven today that we can build networks based on other suppliers' satellites that are similar in architecture as Ovzon 3. It's good for us because that gives us a rubber band, so to speak. We are flexible, we tie those contracts that we buy from to the contracts we have to deliver on. So we don't have to build up an inventory of capacity that is unsold, for example.

However, if we want to secure global reach or our own capabilities based on the Ovzon 3 success, we must look into building -- designing and building and launching more own satellites. We will touch upon that, which obviously is a big investment in itself as well. But I believe we can prove that with Ovzon 3, we have a return on investment already -- kind of proven already today, and we will see more of that in the future.

And the last portion of global service delivery has a lot to do, I believe, with copying what we've done from a centralized perspective and ensuring we can deliver in the local domains with sovereign demands for us. That means a centralized automated and more digitized way of running it.

So it's becomes efficient without losing the touch that Tom Hopkins talked about in the customer intimacy and making -- meeting the needs of security and sovereignty in that. So they are all different. They all -- if you have leaders for each of them, they will all ask for money to invest in order to achieve their objectives. The whole thing has to do with integration and making choices that are smart, that are timed and that are cost effective and that meets the needs of the market. And then if the market goes faster, you can accelerate. If the market adoption is slower, you can hold back a little bit, but yet scale up.

So we're going to take you through what that means. The good thing is if we start with go-to-market is we are not changing our focus on where the money is, where the needs are and where the customers are. We are focused on defense. We're good at it. We have reference points. We know how to sell. We know how to deliver, and we know that the technology meets the needs and requirements of today and tomorrow. That's really good. So we're not going to change customer segments. However, because defense is so strong and you can hear from our competence and skills levels that -- it feels like we're in an aquarium here soon -- but the defense budgets are there. It's a main priority.

However, if you scale up to other market segments, as Kristofer alluded to in his market analysis part, you have to understand if the same business model applies. There is no doubt the same technology solutions apply but you have to really understand how the business models apply.

So if you look at, for example, public safety market that we've shown a few examples of, I --we believe, I would say, that there's a huge market for us there. It might not be the same business model. It might be so that, that market requires a lower cost subscription of our services. And then you turn the meter on when they're actually in use, avalanches, migration screens, wildfires, et cetera.

And by that, you have a very profitable growth in that market. And we're currently looking into how we would go to market there and what the business development aspects of that market is because we believe it actually has a large -- big promise and the core of our -- what we do is there. But the good thing is we're not changing markets. We know where to focus. We're not changing our solution set. We've taken you through it in ourselves. We know that it's all about the terminal, the network, the signal, the contested environment and 24/7 support and service to make sure that we are not becoming a on-a-need basis as Starlink actually is today, you have to have a satellite over you to have connectivity. We guarantee connectivity.

We're staying true to that. So we're not changing our core model and our core service model. It's good. Same customer markets, same service model, same technology. The global opportunity is there now. And I think the installed base is very important, as a matter of a fact, we believe that the installed bases Sweden, U.S., U.K. and Italy. We have had a few other customers that have come and gone in other geographies, but that's really the installed base that represents the majority of our revenues and so on. This, we have to put an iron ring around and make sure that we continue to serve, expand with and innovate with. It's very important.

However, we also have some countries that are unnamed as customers. What Tom did not mention that I can mention now is through the High North Expedition and with those NATO countries that participated, we got a new customer. If you read our press releases, that customer, as Tom said, would not want us to say who they are, but it's an unnamed European country. We also have other unnamed European countries as customers. So it's a very good installed base, and it's concentrated in a geography which we can reach from here, which is also good.

And Sweden's entry and Finland, but Sweden's entry into NATO opens up doors for other types of collaboration and interoperability discussions. So we think we have a very strong platform to grow from. The U.S. market, obviously, with the situation that I think President Trump actually woked Europe up to do what Europe is doing right now. It was a good thing for Europe, as Kristofer said. I think we are going to double down in the U.S. -- on the U.S. market as well because it is the largest defense economy in the world, the largest defense spender. It's somewhat chaotic for those that are trying to procure and utilize our capabilities and solutions because there are orders and counterproductive orders coming on what the priorities are. But the market is there, the size is there. We are there, and we're going to win that market back to be bigger than what it has been for us.

And then I think the near environment here, Nordics and Baltics and Northern Europe are actually there. Now we already have opportunities in Asia Pacific. We already have opportunities in the Middle East, and we already have opportunities in North America. But you cannot be everything for everyone all the time until you have built a core organization that can actually deliver on that or else you're going to dilute yourself and you're not going to win anything. So our concentration will be installed base and the next targets. That's where we're going right now, building up an organization and select partners for that.

Now how do we win? We often get this question. And I think most of what we have discussed before is actually that. We are a turnkey solution. We're end-to-end. The customer does not have to do a lot of things. Of course, they need to train, they need to understand how they use it, and they need to trust that we have an integrated model working with them. But we are integrated in end-to-end. We have a unique portfolio of terminals. It needs to be developed further. The big drive is towards on the move, huge drive towards on the move. And it cannot be for smaller unmanned systems cannot be the Ovzon P30. It maybe cannot even be the Ovzon P20. It might actually have to be even smaller than that.

And as Martin said, in the coefficient, performance mobility resiliency is hard. So we are going to double down on innovating in this space, but that's how we have won so far. We have advanced satellite networks, and we have dedicated support and service. So we think we know what it takes to win and what we sell.

Now selling. We are not selling widgets in this company. Even if we sometimes lead with the physical product, the terminal, and it's important, as we said in the value chain, it's not the end game. The end game is resilient connectivity and resilient communication. That is really the end game for our customers and for us. So it is solution selling. And I can say that in those countries where we've been successful, we've touched every level from government, all the way down to the end user that actually is going to use this to protect and connect on their missions. So we have to actually sell solution sell and not try to come with this is the answer, what's the question. It's all about thought leadership. It's all about education of decision-makers with money all the way to decision makers that has the need.

You have to cover all those bases. It's very difficult to do in one person. Maybe there are a few in the world that could do it in one person, but it requires a team of presales and so on. It's about relationships. Tom talked about it and not leaving any customer behind. That's important. But it's also about continuing to build trust with decision-makers and those that set the norms for how you buy and what you buy. And that's not done overnight. So if we would replicate the model that has made us so successful in Sweden in each country, you would need a lot of people. So that's not really a fully scalable model. So we have to find select partners combined with ourselves. We have found that it's difficult to sell through large resellers, system integrators because they are not specialized, they're generic. We have to be part of that. And sometimes that conflicts the channel, right?

Someone is going to resell for you and put a margin on top of you because they are the one that holds the relationship. But if we cannot be there and go into the details that we did with you here in the first section, it is not going to be well understood what sets us apart from competition really and demonstrate that ability. So we have to build those relationships. We talked about the customer intimacy, expand geographically.

And then I think the biggest opportunity we have in how we sell is to partner with OEMs, so-called OEMs, original equipment manufacturers and platform providers. Imagine that there was an option to click in when you order a CV90 or CB90, or the boat or the vehicle that says, I want connectivity and that connectivity Ovzon and in the factory when that is produced, a terminal is implemented, it goes off the production line, is delivered and you turn on the service. That is where you can scale dramatically if you do that.

And OEM manufacturers don't like anomalies. That would be an anomaly to put something on. But if the end customer says, we want this, they would do it. So that gives you a little perspective on how we're working with that. I think that's how you scale and that's how we sell.

And finally, I think we win. We probably hammered ourselves to sleep with these messages around the Ovzon coefficient performance mobility resiliency. But I think also the market actually talks about that. I want the industry standard, I cannot live without it, and I think that's how you position yourselves as a niche provider in the market. That's how we win all the time. We can prove it through demonstrations. They are often very costly. They often take as much time as implementing a solution for a customer. So we have to be selective when we do them. But when we do them, we go all in.

And we recently had some with all the players in the industry in a country in Europe, where we did not know that, that country or that those units were jamming and disturbing the signals. No one knew it, but we now know that we were the only one that could keep the resilient connectivity up. So I think we prove through those kind of investments we're doing, that, that actually works. We talked about the contested environment that's an example of that. So I think we have a very good understanding of what it takes.

To scale here requires investment and build out of an organization of people where the salespeople are more ambassadors and mini CEOs of the company and can have discussions both with government officials and down to end users. That's how we win in a very niche market.

So that's the go-to-market side of it. Now as I said, different characteristics of this. So we're going to take you through the terminal side, the network and space side and the global service delivery side as well and what our intentions are. And first up is actually the mobile satellite terminals, and I'll hand it over to Kristofer Alm to take us through that.

So good to be back. Do we have some energy? I got that waterfall thing. I don't know if that was sort of aquatic tank or something. It felt like a floating tank. I brought this little thing with me. And I think it actually represents a lot of what we're doing today. And Per talked about this, that unmanned platform is really where we see the drive and the demand going today.

And this, we call the Ovzon T8. It's the newest sibling in our little family. It's a prototype we've developed. And we call -- I don't know if it's our little baby, we called it this morning, and we haven't agreed yet, but it's going to weigh about 1.5 kilos. It -- the antenna design is ready. We know the performance. We know how it works. And now we're working on packaging into working prototype, which we'll have ready next year. And I think the beauty with this product is that we've taken the antenna design from the Ovzon T7, and we've made it round. So it's -- we use our existing technology and we scale it to fit the customer use case. And because it's very compact and high performance, we can build an antenna of this size. And this will also be an on the move, so it can actually track.

So then we are all of a sudden providing a satellite terminal that can go on flying drones, for instance, because it's going to be so small. It would also be able to go on boats and other type of vehicles. So it's really an example of how we take our existing technology, reiterate it and then we can quickly go to market with new platforms. So I think this represents a lot of what we do today. So with that as a sort of an opener, I'd like to take you through the mobile satellite terminal. I'll also talk about networks and space. And then I'll invite my colleague, Tom here to take us through the global service delivery.

When it comes to our mobile satellite terminals, if you look at what we have 6 to 12 months, it's pretty clear. It's about scaling and meeting demand. We have a huge task in front of us of delivering to meet the customers' requirements and the demand. I'm very happy to say that when we closed the FMV order in June, within a week probably, we delivered the first batch of terminals out, and we've continued to deliver the terminals according to schedule. So, so far, we are more than delivering according to demand.

The problem and the challenge we have is we got another order during the summer, as some of you saw probably in the press release, and we see the demand is continuing to pick up. So we can't rest just because we met the first wave of demand. So I think that's one of the things that we are super focused now and Lars-Ola and his team are working to both scale up our production capabilities. We are looking at how we can strengthen our supply chain because we need to work very closely with our sub-suppliers because putting the terminal together is just one piece, having all the equipment and the components is the challenging part.

At the same time, we need to be able to meet the customers' requirement on these terminals because they are going straight out to customers in the field, and we want them to work. So we have built out our capability in our office in Solna to really test and verify that whatever we deliver out and whatever we do meets the quality requirements we have. And I think this has been a steep learning curve, but really, the volumes and the demand from our customers have pushed us in a direction that we probably would have gotten this otherwise, but the speed we're doing it now is tremendous. And every day I come to the office, something new is happening, and it's really amazing to see.

And I think, another feeling I had and remember I talked about, I've been here for 2.5 years and the amount of new people that are starting to come into the office, young engineers to help us with this journey has been tremendous. Customer adaptation, this is a good example. We've been requested by the customer to build smaller platforms. We're doing this now. And then we have our On-the-Pause and On-the-Move portfolio, which you can see at the back of the room and Martin talked about them.

We also take this mission design, and this is the example of that. And then we're looking at new generation capabilities, how can we integrate AI, how can we automate the testing, how can we do new use cases. All of this is going on at the same time now. And it's a tremendous amount of activity, and we're trying to scale up to meet this demand.

Moving on then to satellite networks. I think Per mentioned it in a few of you, we have done an RFI before the summer. We're sitting now with our technology team evaluating the responses and looking at a few different suppliers to see how are we going to build the next generation Ovzon 3. The good news is we have some really cool designs in front of us. So the hard question now is how much are we going to innovate and how much are we going to do the same? Because obviously, we want to build on the success. Our customers love what the satellite can do for them, but they obviously want more. And at the same time, we want to enhance the Ovzon onboard processor.

The good news is it's a field -- it's a programmable hardware in space. So we'll continue to develop that and enhance it. So by launching new satellites, we're in no way going to make it obsolete. Rather the opposite, we're going to get more scale, and we're going to be able to develop the software platform. We have strategic partnerships. We can't do everything by ourselves, both for capacity, but also for technology. And we have a patent portfolio. The patent portfolio stretches both into our terminals and it also stretches into space. And we'll continue to develop that because, obviously, we know that it's an area where security and building our technology is very key.

So this is something we'll continue to focus on. But beyond that, we also are involved in research projects. I think there were some questions about direct-to-device, which is obviously a new area. We also have the 6G area. We are today participating in a KTH, which is the Royal Institute of Technology here in Stockholm, and we're participating in a project around 6G development. And obviously, we're looking at that, maybe not for the next-generation Ovzon satellite, but there is also a life beyond that. So we need to continuously develop.

We're participating in project called Celtic-Next. You don't need to know exactly what it is. I had no clue when they told me, to be honest. But it's a European research project where we get access to funding, we can get access to testing environment. So it's about being part of the European ecosystem.

And this is very important for us because it gives us that noncompetitive environment where we meet other companies and iterate and test things. So this was a super fast run through. I can see my time is already red. I'm wondering who set that time, but it feels like I had to -- I could have talked for this a long time. But hopefully, this gave you a little bit of an insight into what we're doing on the terminals and what we're doing into space.

And to take us further on the resiliency and service, I'd like to welcome my colleague, Tom, to the stage.

So thank you once again. If you recall from our last chat, I showed you a map of Eastern Europe, and it had a lot of red and a lot of yellow. And that is the physical depiction of the contested environment. And we've lived in that environment in Scandinavia, in the Baltics, in Poland, in the South and Romania with NATO partners, we've lived and existed and tested in that environment for the last 3 years. And over that time, all the lessons learned that we had were directly fed back to the engineers that we have in Solna, the brilliant engineers that are making our products better every day.

The product that we put in the hands of our users today is remarkably different than it was 3 years ago. It's hardened, it's secured. It's now optimized for a very contested environment, and it simply wasn't that way 3 years ago. It was a good product, but it's a much better product today. And it's a much better product because we really focus on closing the loop between the customer environment and customer needs and technical development. And fortunately, the operations team has got a wonderful Martin Eriksson, Kennet, our CTO that's not here, Lars-Ola and his team of engineers. It's a wonderful relationship to be able to match those 2 capabilities together. And if you do that well, we're going to succeed as a company, and I think we're doing it particularly well. And that's really what we're trying to get to in the second lower half of the bullet here.

Okay. And then we'll move on here to where we think we're going to go. This is, again, I talked about global service delivery last time I was up here. I told you what I thought made us successful. And really, this is our vision of the future and how we're going to continue to succeed. And we've frankly done a pretty careful and thoughtful analysis of why we're successful.

You heard Per used the phrase customer intimacy. And I think that's probably the right starting point. But it's also a commitment to their mission that we are as bought in to their success and their environment as they are. And that when they call us, they know that we are as committed to their mission success as they are. And part of that, if we look back to the U.S. market, our historical primary customer has been U.S. forces. Most of the customer support function were folks that came out of that environment.

So when I say they spoke the same language, not only do they speak English, but they understood the jargon and they understood the nuance of the communications. We can't replicate that intimacy with U.S.-based workforce, in Italy, or in Sweden for that matter or in anywhere else in Europe. So our model has been to replicate that intimacy and provide Tier 1 local support literally in the local language, in the local time zone with an intimate understanding of the cultural and the jargon and the nuance of that customer base. So we don't anticipate any major changes to that. We do have a number of technical concepts under development to consolidate and make more efficient some of our infrastructure. We feel that if it's in -- we've learned a lot once again from the attacks on undersea cables.

So if you have users in one side of a body of water and infrastructure in the other, that's now vulnerable. It never was before, but it is now. So we've learned a lot from paying attention to what's going on in the world, and we are continuously evaluating our ability to withstand the -- everything that the adversary can throw at us, and we will continue to involve. So no -- the quick summary here is no great changes in our model for customer support and global service delivery.

But as we've said with our technology development, we really are doubling down on the resiliency aspect of that, and we will continue to do so because we think this is the new reality. We don't think this is going to change when the fighting in Ukraine comes to a halt. So that may not be a terribly optimistic outlook. I apologize for that. But we do believe it's the new reality, and we have a responsibility to be prepared to meet it, and that's what we're doing. So I think Per this brings us back to you to conclude.

Well, I think there is not a lot to say more, but I will be brave enough to say we are going to have to scale up the mobile satellite terminals to a level where we've never been. We have alluded to it, but that will require a bit of an investment. I think we have the foundation for that investment already, and we will be able to generate some of that with the profitability we see in the growth we have as well. But that's number one.

Number two, we -- the RFI of satellites. Yes, there is an intention for us to analyze to design and order 2 more satellites. But that also requires, as Christopher well laid out, how much new do you want to do and how much copy of what you already have. And I think it's going to be much more. This is a direction internally as well, much more of the core is the same and then we'll add what we've learned from the field into onboarding capabilities and so on.

So I'll put that out there, scaling up mobile satellite terminals and doing that. And then, of course, the go-to-market. However, it always starts with running a healthy core business. For those that have been investors in Ovzon for a long period of time, you've probably lived through the investment phase of the company. We are not going to go back to the phase of where we had -- it was really hard to lead and manage the business with such heavy investments and delays and COVID and so on.

We're going to stay above the surface. We're going to have positive cash flow. We're going to have profitability and it comes from knowing what you're good at and knowing what you need to do when by running a healthy core business. We will accelerate the market expansion, number one. It's a #1 for us actually to win more customers in the core regions that we talked about, terminals and satellites and delivery. The good thing is there's not a lot of new for us. We know this. What we need to do is to be smart about how you scale and when we make the decisions and secure financing if we do major investments like 2 more satellites. That's basically it. Yes?

Can you elaborate a little bit on how typical contract is? What is the...

Can you elaborate a little bit on a typical contract? What is the price of the hardware and gross margin on that maybe? And is it a subscription for the satellite service or...

We will come to this in questions and answer, but I will answer your question since you got the microphone from Johan. I will answer the question. So in the early years of Ovzon, everything was bundled into one solution. It was subscription-based. It was a monthly fee. Contracts could be 3 months, 6 months or even up to 12 months. And we needed a lot of volume in order to -- volume of subscription contracts to actually get the growth and profitability going. So we, in 2023, changed model because we also calculated that return on investment for Ovzon 3 and onboard processing capabilities that we did would not reach return on investment as fast as 2025 as it's done now.

If we didn't go out and outright sell sovereign capabilities, a full antenna for at least 12 months to a customer with an integrated service. So we did that, and we started a new solution selling methodology to get that done. I think we've been quite successful with that. So customers signed at least 12-month contract, hopefully, 24- to 72-month contract, longer-term services contracts with us today. So the FMV contract, the recent one is for 24 months, and they pay for the services monthly, but also they also do cash flow-wise, they pay early because of the need for us to deliver fast to them.

What has changed is that we don't bundle the terminals in anymore. We sell the terminals outright because most of our customers are defense and they go out in the field, and we have no chance of controlling what shape, form and the terminals are in if they come back and in what shape they come back.

It's actually started a new venue for us to build out more of a consultative maintenance and repair services for customers closer to the field users instead. So we sell them. We sell them at good margins today. The ones we produce are fully ourselves, has a higher margin than the ones that we take from third party and do some modifications too. So we sell them out, right? That's about -- I'll let the CFO answer is, but that's probably around 20% of our revenue today. 80% or more is actually service revenue, where the margins are much higher on Ovzon 3 than they are on acquired capacity.

So the business model has shifted, but we don't sell terminals by itself. We only sell terminals when we get a service -- integrated service contract. It's just that we can't control in the leased model of terminals, what they look like when they come back from a rescue mission with the Italian fire brigade or the Swedish Armed Forces and so on.

So that's the conclusion. Same market, run a healthy core business, accelerate and driving profitable growth and advance ourselves in terminals, satellites and services.

Now with that, I'm going to actually let Catharina come up.

Yes. Thank you so much, Per. And I'm so sorry about the sound in the beginning. That's forgotten now with this very interesting presentation. So Per, just a quick question for you trying to be very on point. What will be your top 3 priorities in, let's say, 6 to 12 months from now?

Top priorities are to make a decision on, one, are we going to do more satellites? Is the RFI request for information answers is good enough for us to go to request for proposal? And how do we secure financing from that? That's number one. Number two is how we scale up the mobile satellite terminals and start to produce more like this that brings ourselves into the -- on the move on smaller unmanned. That's number two priority. But the number one is actually to scale up our go-to-market. So we have predictable, long-term revenue and sales going on. So we can do all of the other things in the background.

Good. Thank you. And now we will welcome Andre Lofgren, CFO.

Thank you, Catharina. Financial Dynamics. With what was just presented by the team now, that strategic direction that we have ahead of us, we thought it would be good to do like a small, very high-level kind of modeling of the financials. So what could happen when we pull and push different levers? How would our financials then develop? And just to be very, very clear, first of all, we don't have any decisions on anything. And secondly, this is not a forecast at all. This is just very high-level assumptions that we have. But I think it's good food for thought and get a better feel for how this company is actually working.

So I'll start with the assumptions that we have. I think you can -- when reading them, you understand that it is not an aggressive scenario. It's a pretty moderate scenario. We -- the first bullet here, that's a fact. We are refinancing. So that's taken into the model. We are then expecting that we will have an incremental increase in the utilization of our current satellites. And if that's not happening, we will not launch more satellites, of course. And we will have a majority of the customers that have on contract today, that will be renewed, but not everything will be renewed. We will also continue to use some third-party capacity as we do today.

And as Per said, what if we were launching 2 more satellites. In that case, we need to have some pre-capacity on board, we think, and of course, funding secured. And to put also some another level of pressure on us that we go back to completely normal industry standard payment terms. We are in a good position for the time being, but say, long term that this is just back to normal, again, to put some pressure on us. And surprisingly, I will start with cash flow once again. I think that's very important. And Per touched upon that as well. It's very important that we keep our cash flow up on a positive side of things and also be able to fund some of these investments that we think about.

Well, I'll start at the bottom of this graph. You see here investments into 2 more satellites, one at a time. And that then, of course, means cash outflow. But you can also see our operating cash flow on the top left side of this bar. It's -- well, sloping downwards in the beginning, that's the assumption of that we're going back to more industry term -- industry normal terms. But it's actually profitable all the way. And then with time, it doesn't really matter because in the end, the cash will be collected. So it then ramps up as we ramp up with new customers on new satellites.

And basically, you can say that our cash flow in this scenario would basically finance roughly half of 2 satellites. And as you see, well, probably not likely that all investments end at one point in time. But for these 2 satellites, that's it. And then, of course, we will continue generating cash on that assets. So then we were piling up quite a lot of cash in that case. And from a balance sheet perspective, what drives the asset side of things will be, of course, new satellites. And in the end, cash will also then be increasing as we don't have that much new investments coming in.

And as we did not have enough of operating cash completely to finance this, we need some external sourcing as well. And in the model, we have just taken a bunch of different ways of funding it. So not just one preferred route here, but a mix. And with time, we're actually then piling up the cash, as I said, and with that cash, there's hopefully some profits connected to it, meaning that also equity will be increasing, and that could, as we see it, be a good recipe for potential dividends further out.

Now it's about to then more of collecting and investing into what we think is what we'd like to invest in, but with time, that could come. And then actually, when doing this scenario, it was pretty interesting to look at the return on capital employed. We've not had or have any measurements or targets on that. But I think with time, as we might have a heavier balance sheet, that could be something that could be to look at. But we have -- it looks pretty decent actually, especially by the end of this scenario. But I think that's something we should keep an eye on as well going forward.

And also, we're maintaining a pretty good equity assets ratio also throughout this whole journey. So I think we -- it could be done in a pretty controlled way or in a controlled way, but with healthy finances all along and cash flow. And then in the end, the P&L. You see the 3 snakes here. Starting with revenue. Of course, with more satellites, there will be more revenue coming if we can combine that with new customers or expanding customers.

EBITDA will, of course, also be growing with top line comes more profits if we keep margins as they are today and also keeping our OpEx under control. And then I think maybe the most interesting snake here is the bottom one, which is the EBIT, which moves a bit more than others, and that has to do with the transition into new satellites. You take the depreciation cost much faster than you are ramping up on these new satellites when it comes to income. So that has a pressure for a short period of time. And then as it ramps up, we recoup that. But all in all, it's actually a growth and the growth in EBIT or profitability is outpacing the growth in top line. So I think that's a very good sign for us.

Okay. Summary. I think this is the first time I've done slides with actually no numbers. So this is -- for CFO, this is like personal development to be able to talk to something not cling on to a number with a couple of decimals behind it as well. But all in all, we've done our refinancing. We can see that we probably will be able to generate operating cash to fund some of the investments that we plan for, probably need some additional -- we will have a solid balance sheet with time that could lead to something good like dividends, and we will see revenue and profits then increasing with time as well.

So with that, Catharina, I'll hand it back to you.

Thank you so much, Andre, and you will be back shortly for the Q&A session. So thank you.

Thank you.

And we will shortly round off this fantastic day. But first, we will try to give you a summary of everything that we've learned today. So that's a challenge for you, Per. And for all of you watching at home, again, this is a final reminder to send in your questions via the webcast. Welcome again, Per Noren.

I will now conduct a summary of the summary. No, there has never been -- you can read the bullets for yourself, but I would say the following. We are very excited about where we have ended up right now as a company after many years of investments. We have never seen such a demand in the market. We know we have some challenges, but they are in our hands. They are under control. We are going to be very disciplined in how we approach them. We don't really see anomalies or surprises thrown at us in terms of what the world looks like and what we can control ourselves now what we can control.

But it's never been a better time, I believe, to be in the business we are in with unfortunate trends, but I think we serve and connect and protect people, societies and organizations for a safer world, and that's not going to go away. And I will open the door to another opportunity. If you have resilient connectivity, can you also support unmanned vehicles on the road for consumers in the future? I believe so. So I believe that there are actually much more than what we talked about today. But we have chosen not to talk about that because if we start to do that, we are opening a box of things -- a box of chocolate that we don't want to eat yet. We'll save it for a better day.

So I think it's never been a better time. I think we have a fantastic team. We have phenomenal customers. We have got good financial platform. We know what we need to focus on what we're going to do, and we will be happy to come back with more of that in the future, which will also include some more guidance on financial targets. But until now, we have actually not been able to do so because of the unpredictability of some of the components that we've had, but we will for the future as well.

So I view this day as the starting day of the next generation of Ovzon and becoming a world-class industrial company that we all can be very proud of as shareholders and as employees. So with that, I thank you all for being here. Of course, we're going to go to Q&A, but I think that's the summary. It's a bright future ahead. Thank you.

Good. So to conclude, we will welcome all today's speakers back up on stage one last time for the long awaited Q&A session.

Good. Okay. So now we are opening up the floor for questions also here in the studio. So if you have one, just raise your hand. We will have someone bring a microphone to you. And if you're watching online, you know what to do at this point. And we already have many questions, so please rapid speed and short answers. Okay.

Thank you, Catharina, yes, ready.

Good. Okay. So the first question over there.

Thank you so much for all the presentations during the afternoon. My name is [ Ramil Kuli ]. I'm an equity research analyst at Danske Bank. Maybe just since we already sort of just now touched upon it, Andre, if the sort of the decision time from decision until satellite delivery is roughly 3 years, Per, you said you're going to decide on this in the coming 6 to 9 months. Should we read that as if like you will generate operating cash flows to the equivalent of SEK 2 billion to SEK 2.5 billion in the coming 3 years? Is that sort of an implicit guidance roundabout?

You said it yourself, guidance. We'll not give that. I'm sorry, I can't really go into that.

Okay. I'll take that first as a yes. All right. And then maybe I went things in advance, but like typically, I mean you mentioned that there is a development process and a sort of a design process embedded into the decision to order a satellite. But if you were to replicate some of the work you did on Ovzon 3, should we expect some economies of scale in the next satellite in the sense that it will be cheaper, et cetera?

Yes, I think I can take that and maybe connect it to what you said before, no guidance, obviously. But yes, we want to replicate as much as we possibly can, but we also want to leave room for implementing the lessons learned from the usage use cases and become even more an industry standard, the next level of industry standard. So I would say that I said that before, at least 80% of what we've already developed should be used.

There is economy of scale. There are a lot of satellite manufacturers. There are new satellite manufacturers that come out in the market. They're -- so there is a competitive space in space of satellite manufacturing, which we should take advantage of because it can pressure prices. It can, if there are more architecture in manufacturing that is more modular, shorter lead times as well.

So I think we have a great opportunity right now for that. The biggest cost unknown cost is actually what the price level of a launch will be that needs to be also modeled in. Today, SpaceX has really a monopoly because we'll have to give them all credit. They've created a shuttle service to space. with Falcon 9 and so on and so forth. Will Aryan's pass and will the team in India and with ULA and others, Blue Origin and others get there? Yes, eventually, but they are long, slow processes to get there.

So I think SpaceX actually set some sort of monopoly price for launch. I think that's a big cost for us or for a -- and not for us only, but for a launch. But I think there's good price pressure on manufacturing, and there is low price pressure on launch.

And just a brief follow-up on that. How large share of total was the launch cost with Ovzon 3?

About 20%. 20% to 25%.

Can I just make an addition?

Absolutely.

Yes. So it's also noteworthy to point out that a satellite architecture like the one on Ovzon 3 is scalable. You can do it on many different sizes of basic platforms. And basically, that determines the number of steerable antennas, for example. So it's not -- there's not only one way of doing it. You can do a smaller platform or a larger, but just scaling the whole concept.

Super clear. And then just a final question for me. I think everyone in this room can sort of agree that there's big upside if you get F&B-like orders with new countries as well. Clearly, there's a stochastic sort of variable to that. No one can predict when such order comes. But the feeling listening to you today is that you sound very sort of bullish on that opportunity. But how far out -- when should we regather in this room and evaluate if you were successful in delivering on this venture? How long do you need to actually deliver...

I understand your question. And you are...

Really good question.

Yes, yes, yes. So here's what you can expect from us. We are targeting to do what you described, finding another one of those golden targets that this was, right? In business to government, it's LSD, it's long, slow distance. You cannot fully predict when that's going to happen. When you have an installed base, you have a higher likelihood of achieving something similar. When you enter a new country and trying to copy what we just did, it's going to take a longer period of time.

So my answer would be, our target is to do that normal sales cycles for smaller deals than what we just signed in May is around 12 to -- let's say, it's average 12 months depending on the size of deal.

We've had some this year that is actually much, much shorter than that, which is an entry point. But for deals like that, I would expect up to 18 months before you can get anything. But we are not shying away from it. We have gotten the taste for it, and we have gotten the experience in how to do it, and we're going to try to mimic that in the coming years.

Thank you. Any other questions from the audience here in the studio?

Thank you for a fantastic day here. Very interesting. I have a question around Ovzon 3 and the used capacity, sold capacity today, how much is sold of the capacity? And you're also mentioning that you're only building or constructing the new satellite if you sell out the full capacity of Ovzon 3? And why has it taken a long time to fill up Ovzon 3?

I'll start and I'll let others -- I'll start a little bit, and you can chime in the rest of you. So we do not guide on how much we -- Ovzon 3 is utilized because really, at this time, both for competitive reasons, but also from a lot of you in the room can then calculate price per megabit and et cetera, et cetera. So we're not fully there yet. I can say that it's utilized much more than you think it is. That's what I would say. And we -- because we have a chance in the contracts that we have today with our customers to mix and match capacity that we buy from third party with Ovzon 3.

And what we do as a team is we optimize that for financial performance, customer performance, operational performance and leaving room for ourselves in believing that there are other larger deals in front of us. So we actually have a very -- we've gone from carrying inventory of third-party capacity that was unsold to not having anything unsold with the exception maybe of some of it for Ovzon 3. But some of it from Ovzon 3 is also used for demonstrations to win the larger contracts. So you have to have a little bit of a buffer because else you're going to be outsold all the time, and then you can't capture the new opportunities.

So the answer is that I think we have a very good model for how we optimize and balance the use of third-party capacity and Ovzon 3. And the third-party capacity contracts we have today are timed with contracts we have with customers. So that means not unsold. And trust me, I've been in this business for a while at a company where we did not have this model. So part of why I brought with me was kind of an optimization engine that we have combinedly developed for how to do this smartly.

Just a follow-up question regarding the financing, you're talking about healthy financing. In the stock market, we are, of course, very scared for new rights issue to lower share prices than you are listed to. So can you avoid that in the future and do the financing only with loans and other kind of financing options?

Well, yes, that remains to be seen, of course. But the prerequisites for it is so much better than it ever has been before, given where we are now and what we can show in profits and cash flow and also how the traditional or just bank financing showing interest. So I mean it all depends on how we behave and how markets are behaving as well going forward. So we'll have to come back to that when the time is right.

Yes, please.

It's been a pleasure listening to you this afternoon. Thank you very much. I have a question regarding the F&B order. And if you could -- if you have any expectations for that order to be expanded further or not or if it's like you reached the end as much as the...

Yes, I understand the question. It's a very good question. I think it always starts with that you have to deliver on your promises and create a reference point. But our view is that with such a large order, it's almost also like a Trojan horse. So what we're working on now is to expand it with use cases, with expanded applications, et cetera, et cetera. So if you think about it, I would like to see it as the start of the beginning of a long-term partnership with that customer and other customers and how we continue to renew and expand and advance use cases.

So that's probably the answer I was going to give. But that means that I have confidence in our technology and in our teams and in the dialogue with the customer to actually not just buy something off the shelf and then use it and then we're done, but really expand it into a central nervous system for connected operations.

And I think we can take one question from the online audience, too here. So what would the cost be to launch 2 more satellites? Maybe you can take that one, Andre.

At the half of launching, okay. Two more satellites. We, of course, have to get back to that. And we are in the RFI process, so we don't have the full answer yet on that. But when there's a decision, there will be communication about that.

Good. Thank you.

I would probably say this. The cost of a launch of one satellite that we did in 3rd of January 2024. We were a single launch. If we would order 2, we could launch them at the same time on the same rocket likely, depending on -- then you could get a much lower launch cost per satellite. So it has an advantage to order 2, but you also have to have secure funding to launch to build and launch 2, but there would be an advantage to do it that way.

Yes.

Question. You have a unique offering. And I wonder you also said you have good margins on the Ovzon 3 compared to the other satellites. I wonder is pricing a big issue when you talk to your customers?

You can go.

I think it always is in reality, it always is, but I think quite a bit of that has changed in the last 3 years. So I'll go back to the fact that we've never sought to be a commodity provider. We're not seen as a commodity provider. People understand they can save money and buy satellite communication systems that work in a training environment but aren't going to work when they really need it. And they understand that there's a premium to pay for that service.

So I think in a lot of ways, the world has changed quite a bit in the last 3 years. And I think every satellite service provider would answer the question the same way is that price is always a topic of discussion and a concern. I would be disappointed in our respective governments if it wasn't. But I do think that the world has changed around us and the unique value that we offer our markets is very much in demand and very much more appreciated than it has been previously.

Yes. It should be on.

Yes, a question to probably the chairwoman here. Could you -- and the main owners? Could you elaborate a bit upon your view of an offering of the entire company coming from overseas, as you call it, in the U.S., outside Europe? And in talks about NATO and sovereign, et cetera. And how do you see that If Elon call you?

Do we have a microphone?

Okay. So the question is to elaborate whether Elon calls us. I think on the behalf of the main owners on the Board, we will politely take the call from Elon and listen to him. But as Per and the team has pointed out, we are very aware of the sovereignty demands in our business and our unique position. So out of pointing out the person you're pointing out, that would probably add to the discussion. But we will bring in any proposal to the Board and to the owners to discuss that particular one comes with some doubts.

I can take one online question here. So I think this one is for you, Per. As you evaluate potential investments in additional satellites, how do you assess the need to adopt Ovzon's organization? And what role could strategic or financial partners play in enabling that expansion? Maybe you can start at least?

That was a large question. Well, we haven't spoken a lot about organization more than that we're strengthening up, obviously, I think Tom alluded a little bit to the engineering function. We have more volume of work. So we have more demand on producing in the short term. But with new satellites, I would say that the role that Martin Eriksson and his team and our CTO, Kennet Lejnell played has been a small team doing phenomenal work. That likely needs to expand to a little bit more of a programmatic approach, if we would take on to do more.

So I would say that the space and program management function with space would actually have to expand somewhat I think strategic partnership, if the person that asked the question means how you would reach out and work maybe with other satellite operators and so on. I think that's a very interesting area, which we're looking into. We have a very strong organization for how we procure third-party capacity.

We have relationships with everyone that has what we need at any given moment in time. I think the business model there in strategic partnership would change. Would we co-invest in someone else's satellite to bring our onboard processor, maybe our payload on that, that's an alternative.

Would we do revenue share with someone that has capacity, so we don't pay for it until we have a common customer? There are various ways of doing this. So I think the question is very, very good. I think strategic partnerships, and I think space and satellite systems needs a little beef up should we go that route in order now.

And maybe I can add to that, also connected to how to fund satellites. I think one way of partnership is also if there is a customer that's very interested in owning their own satellites. And if they have plenty of money and are willing to invest. I mean, they could own and help us fund and then we'll do everything else for them. So that's also a way of funding new satellites.

Yes, because that was actually another question here. Do you see the possibility that a country or NATO would be interested to co-invest in an Ovzon satellite for the long term?

We do see that, and please call 1-800 for that.

Any other questions from the studio audience? No, we have some more here from the online viewers. So what customer commitments is necessary for Ovzon and its shareholders to have in place before you start investing in satellite? And what approximate time frame do you use when modeling cash flow, equity sales and results?

Too many questions. So I think several of us will answer this question. So I think first of all, we did when we started Ovzon 3, we had a customer commitment. We had a pre-capacity agreement, a fairly large one, which secured our financing solution and so on and so forth. We foresee that we could get that again. And we would likely go and seek that. I think that's what Andre was alluding to, that we would seek that out.

We believe that there is a great demand for many countries. So I'll say this. Not many countries have what we represent, knowledge, technology, something in space, the experience of launching it, the experience of managing it. Not many countries have this. So we believe that there is a great need for that. We also believe then that there would be an interest to invest in such capability either directly or through a pre-capacity agreement. So I think we have a pretty good opportunity there. I don't know if there were...

Yes. Let's take one more. I think we have time for. So would it be possible to control a fighter yet using Ovzon 3 and your terminals? Would a new satellite have better capacity? So 2 questions in one. Maybe Christopher, Tom or Martin?

Well, ahead No, I was going to say on the fighter jet question, yes, I mean, that would be -- that is a very challenging application. But we are working on providing support for high velocity communications. So that is certainly within the realm of possible.

And the other part, do you need that one again, maybe?

Yes, please.

Okay. So I think -- it was deleted from my screen. We can have another one as compensation. So on competition, so maybe this one is for you, Christopher. Given the increased competition for satellite spectrum, particularly in many new LEO constellations that are being deployed. How does Ovzon ensure long-term access to reliable and interference-free spectrum for its services, especially for defense and government customers who depend on mission-critical connectivity given a more crowded space?

That's a very insightful question it is.

Do you want to start to So the big challenge in the industry here is -- comes from our colleagues in the mobile industry that are constantly trying to absorb as much spectrum as they can get. And there are some parts of the band that are really optimized for mobile communications for cellular communications, 5G, 6G, and there are others that are not. But the mobile providers don't really care. They just want to lay claim to all the spectrum that they can get. And that is adjudicated at a global level as within the International Telecommunications Union, which is an operating agency of the UN.

And we are very actively engaged and we've been very successful over the last few years of protecting our spectrum at a global level. So this is something that gets readdressed every 3 years at the World Radio Conference. We know we have another round of that coming up. We've gotten great support from the Swedish PTS. They understand the value that we bring in our spectrum to Swedish National Defense. And we're confident that the World Radio Conference and the IT are going to continue to support us.

Maybe just to add that to sorry, we actually have our own team as well of regulatory time.

Yes. Yes. Overseeing this old sign. Yes. And they're a very busy group, a very small but very busy group constantly researching the market and the industry and the demands we've been successful with the ITU and not. And the radio regulations Board leading up to the launch of Ovzon 3, they really have been very supportive, and we expect that, that support will continue.

And I think that we're much closer to more governments today than we were maybe a few years ago and our. PTS is a good example where we are, like Andre said, we have a team, and we have expanded that team, and we've hired some really new a great competence into that team together with some seniority, and we've been educating PTS together with our customer because the end user, F&D in this case, comes to us and talks about this, and we work as a team to secure this. And we're initiating those dialogues in other countries as well.

So I think with the increased focus on defense in Europe, they realize the spectrum is an asset they need to secure, not just give out a global industry. But that said, we are participating in 60 satellite concepts as well and looking at maybe not for the next generation, but for the future. So we also see that it could be something that could be advantageous to us for sort of a future generation, but maybe not for the next generation of as on satellite. So we want to kind of take advantage of that volume game. But still protect our industry.

And I think we're in a much better position today than we were only 2 years ago because of our customer base is in this both together with us. So it's in their interest, and they control the spectrum in their respective countries. So in that sense, I think we have a good position now.

Yes. There's always a pull between the satellite industry and the mobile industry. And Sweden is actually an interesting case study because a large part of the industry here. has been in the mobile sector. And -- but now there's a very fastly -- fast-growing, fastly emerging space sector in Sweden as well. And PTS has adjusted to that. They now understand that there's -- they've got to find the right balance between the 2 industries. And we're really pleased to see the position they're taking the support they're providing.

And I think Sweden is a small country. But when it comes to spectrum and spectrum obviously, the Nordics is very strong here because of the Ericsson background and everything. So it is a good region to work on this topic from because it has a lot of credibility globally and people listen to what the countries in the Nordics say. So I think we have a good partner here to help us drive this globally.

Thank you. Big question, big answer. And yes, I think we take one more and then we round off. So you need 3 satellites to cover the world, right? But how many do you need to cover the needs of your customers?

Well, interestingly enough, we have -- the team here is very foresightful and made sure that we had over 10 orbital slots. Those are difficult. There's a heavy process to apply for them. So we have the chance to add more satellites to our fleet. Hence, we are not nervous about getting approval to put satellites in space. However, we -- if we -- let's say, we ordered 2 more satellites and put them in space and we cover the globe. That might not be the answer the customer base want. We might actually want to have satellites fairly close to ourselves.

Tom talked about the Arctic. There are other regions. So there might be strategic reasons not to do a global reach. There might be complement with third-party capacity instead, there might be a reason to have networks that support one another for an even stronger business case based on the customers' input.

I think we have one more question from the audience.

Your calculation on the lifespan on Ovzon 3 currently?

18 years is what it's -- according to accounting rules, then it might live longer or likely live longer. Yes.

Thank you. So I think that was all for questions and answers. I'm afraid we don't have more time today. If you had a question that wasn't answered in this session, please send it to [email protected], and we will get back to you shortly. And that also brings Ovzon's first Capital Markets Day to an end.

Thank you to all of our speakers. Thank you to the team behind the scenes and to all of you who attended here in Stockholm and online. We appreciate your interest and engagement, and we really look forward to staying in touch as Ovzon continues it's journey.

Thank you.

And thank you.

Thank you.

Welcome. In an increasingly geopolitical uncertain time where many are seeking resilience in the more complex world, secure satellite communication services are becoming a more important piece of the puzzle.

Today, we will meet the company experiencing strong growth in just that field. Ovzon is the company, and I welcome CEO, Per Noren; and CFO, Andre Lofgren. Please welcome.

Good morning. Thank you.

Thank you.

I am sure you are very eager to get started with the presentation. I'll leave you to it and I will be back for the Q&A.

Thank you, Mattias. Yes. Thank you so much for having us here, and good morning, everyone. We're very excited to start the presentation of the second quarter 2025. There are several things that are exciting today, one being that we have our new CFO, Andre Lofgren, with us today. This is his first quarter as the CFO of Ovzon and I'm very pleased to have you here.

Thank you. Looking forward to this moment.

Secondly, I think our numbers are -- which we'll go through are very positive from our perspective. And also, of course, that the quarter included a major milestone, historic milestone in terms of business. So without further ado, let's get into the presentation.

First of all, I would like to do an introduction to Ovzon as we normally do. I think it's important to put us in context of what Mattias talked about in the beginning. This is a company that's been in going business since 2006. We are very deep in technology and we're very broad in services and solutions. We are listed on NASDAQ Stockholm, obviously. Our main operations is in Sweden. We're a Swedish technology company, but also with a strong foothold in the United States and a few other European countries.

We offer integrated satellite communication solutions for mission-critical customers. And our core markets are Defense, National Security and Public Safety. We have most of our revenue coming from the Defense market today. As you can see, we have our fourth consecutive quarter with positive EBITDA. It started in Q3 2004 -- Q2 2004 and are now in this quarter as well. We are on a SEK 458 million in rolling 12 months. And we have an order book of SEK 1.5 billion, indicating a very solid revenue base going forward.

Let's put things in context, as was mentioned in the introduction, there is an accelerating urgency in demand for satellite communications. Obviously, we follow and track the geopolitical tensions there are. Today is a big day. Later this evening, European time in the morning, U.S. time. There is a meeting between President Trump and President Putin given Russia's invasion of Ukraine and trying to negotiate something there. But there are tensions, not only there, but in other parts of the world. That's one of the aspects of where we play. I'll come back to why.

Cybersecurity is something that is also both in space and in our daily lives that is very, very driven by the adversaries. So that's another aspect of secure communications. Digitization, we -- the world is exploring in data, content, AI analytics, another aspect of communication as an infrastructure. And then obviously, the devastating news we have daily now of the wildfires currently going on in Spain and in British Columbia and Canada and in many other places with heat waves that are beyond what we've seen historically.

All of these things drive one thing. You cannot rely on the traditional infrastructure. You have to have something that is mission-critical that you can rely upon. And the only way to do communications in those kinds of environments where you can't rely on the normally infrastructure is actually through satellites. That's exactly what Ovzon is about. So this drives the need for what we do.

Market trends, though, 4 years ago, we started to pivot much more towards Defense, National Security and Public Safety customers. Going away somewhat from the commercial markets that we were looking at then. The overall trend with that has been very positive for us, obviously, maybe not good for the world, but positive for Ovzon in that regard, where we can protect and connect people, societies and organizations with what we do. There is a strong increase in defense investments, specifically in Europe.

There is an expansion of the NATO budgets. I was personally recently at the NATO top meeting in The Hague in June and was able to participate in the industrial discussions there, where the NATO countries are actually unified around an increase in budgets and commitments to that. The U.S. administration, when it comes to decision-making executive orders, budgets, priorities and procurements are very, very much internal. It shifts and changes every day, and it creates a lot of uncertainty as well. So it's a difficult environment to navigate within.

That has had an effect for Ovzon actually. We have -- one of our contracts that we've had there was current has not currently been renewed, but we are in deep conversations with our core customers, with new customers, both within the U.S. DoD and other customers. So we think the long-term aspects of this market is very important to us, and we will continue to penetrate that market. But it's a reality of what we have to live in.

In Europe, sovereignty is an important thing. And specifically in satellite communication systems, to ensure independent and secure connectivity. And it also drives standardization and interoperability as things. So you can collaborate, you can use it on manned and unmanned vehicles, et cetera, et cetera. So those are also trends that play quite well into what we do as a company. And of course, governments are looking into hybrid, bringing commercial capabilities and technology into military-grade capabilities.

And last but not least, I think what we've seen from specifically in Ukraine, the electronic warfare aspects of that, that also has cybersecurity components to it, are capabilities that our NATO and others are investing heavily in, in order to make sure that they stay ahead of the curve of technology and evolution for that. So all those trends are actually somewhat in the favor of what we do.

So what do we do then? Well, our value proposition is unique versus other competitive solutions. We'll come to that in a few minutes here. But we deliver an integrated satellite communication solutions. We build satellite networks based on our own proprietary satellite Ovzon 3 and third-party satellites that have similar attributes to our satellite, meaning steerable antennas. We can design networks that are geared for those specific missions that drives performance, mobility and resiliency, very important aspect for our customers, always or ubiquitously connected.

We deliver mobile satellite terminals that are both for On-The-Pause and On-The-Move, as we call it. On-The-Move is for vessels in the air, on the ground and on the water. And then, of course, for headquarters and other functions as base stations basically. And then we partner with secure gateway providers to get the signal. Those are the parabolic signals that is connected to fiber. And last but not least, we have a very dedicated team that delivers this integrated service 24/7 and 365 days a year with a very, very high uptime, almost up to 100%, but at least at 95% uptime to guarantee the connectivity without disruption for our customers. So very unique for Ovzon. No one is close to this integrated system.

Now just to put it in context, what you want to have in a secure national -- Defense, National Security and Public Safety environment, this is military applications, but it could be emergency services and could be police, et cetera, et cetera, is you want to have your system connected. All your assets, whether they are flying, walking, driving or on water or land. And you want it all connected, so you can have the data for decision-making at your fingertips and information at your fingertips.

So it's an integrated system. And it's only really possible through the advanced satellite communication capabilities that we can provide today. So this is where you see the defense investments in NATO, U.S., Sweden and Europe going today. That positions us very high in the value chain. So this is supposed to talk about the base of this triangle is the mass market. Of course, that's their traditional communication systems and infrastructure. They are very important. They are provided often by government-owned entities and so on and so forth. And as you walk up the value chain, you can become to mission-critical.

So in essence, on the layer below where you can see also at the top of this triangle, are the so-called low earth orbit providers that provide connectivity to consumers and organizations in any remote place or in any part of the world. We believe that's very, very important. We believe we complement this whether they are Starlinks or OneWeb or Project Kuiper by Amazon. It's complementary to what we do, but we put our capability on top of that and drive ubiquitous connectivity for those missions that are very critical that cannot have any latency.

So in essence, that's the first part of our presentation. It's to put Ovzon in context. We have done this for many years, and we are very strong at it. And I think now when we walk into the second quarter here, we can start to see that the commercial success has started to grow for the company. And it takes a long time to invest in the right technology, the right solution, right people to get to a point where you can satisfy the customers day in and day out.

So over to the second quarter then and accomplishments. Now obviously, during the quarter, the base for everything we do is to have customers that become repetitive customers, meaning the evidence of that is that they renew the contracts they have. So the first thing that happened in the quarter was, we've renewed a larger European customer that we've had for a few years, again, given that they are extraordinarily satisfied with what we've done. And of course, at the end of May, we signed an historic milestone order with the Swedish Defence Materiel Administration, over SEK 1 billion. The contract is for 24 months, and we'll come into a little bit more details on that and the mix of terminals and services and networks that we have. So historic for us sets us up for the future, but we're also very humbled by it because now it's about delivery. We'll come back to that as well.

And after the end of the quarter, we also got a follow-on order from the Swedish Defence Materiel Administration of more mobile satellite terminals and the order value was SEK 72 million. And as you will see when you read the report properly and Andre will talk about, we received the payment from FMV of SEK 264 million on July 1 and not June 30, which means that it actually came into the next quarter, but the money is in the bank and the cash is at hand for Ovzon. So it was more of an administrative thing that made it arrive on the 1st of July.

So very strong accomplishments in the quarter, historic milestone. The historic milestone order, as we noted, SEK 1.04 billion, but SEK 1 billion in -- from the Swedish Defence Materiel Administration. It's the largest order to date and a significant milestone for the company, obviously. It includes, obviously, the whole value chain that I talked about our Ovzon network services, we call it Hero and mobile satellite terminals, and we have a broad portfolio of those, both On-The-Pause and On-The-Move terminals that we deliver, and we have delivered 1/3 of those terminals in this quarter. And of course, also our dedicated customer support that we -- that takes on a massive role of making sure that the uptime is close to 100% for the customer.

The duration is longer than what we traditionally have had. It's 24 months. And as I said, the delivery started in June, 1/3 of the terminals and the networks was gradually started in June as well. It's based on mostly third-party satellite capacity, but we have the chance and we've taken the chance to also mix in some of the capabilities and networks from Ovzon 3 into that as well, which we have the right to do. We have done it because it serves the customer well, and it helps us also to utilize the satellite in an optimal way, I would say. And of course, we see this as a real significant proof point of our direction that we've had for a few years, our solutions, our technology and our way of working and delivering as a trusted partner to countries and to Defense, National Security and Public Safety units. Historic milestone, very proud on behalf of all employees and all stakeholders that have made this possible.

Over to the numbers. And before I hand over to Andre, I'll talk a little bit about the order intake and the order book. Obviously, as you can see on this slide, it is a significant order book now, which gives us predictability in our numbers going forward, which we can see then in the revenue, et cetera, et cetera. But you can see we have a large order book now, and it increasingly have grown from other quarters, as you can see on this picture as well. So that sets us up well for a continued scaling up and industrialization of the company and to go to market and find more customers, added on customers and an expansion, which we are on a path to do.

So with that, we'll dive a little bit deeper into the numbers, and I'll hand it over to Andre.

Great. Thank you, Per. I'll dive into then the revenue. As you can see on the bar to the left here or the graph to the left and the Q2 '25 bar, it's a strong increase in revenues this quarter. And as you can see, we split it up here between services and terminals, and it's actually a record sale of terminals in this quarter. As Per said, we delivered all 1/3 of the terminals that we're supposed to deliver. But then if you look into the price mix of those terminals, it's a slightly lower price in total. So there's more to come from this terminal delivery as we go, but it will not be as a big chunk. It will be more a successive delivery going forward.

And then what's also pleasing to see in this graph is that the service revenues has been now increasing for 5 quarters in a row. So it's a really strong, stable foundation that we have here and also a big step-up then in this quarter. And then to the right, you see run rate revenue, which is our revenue from services for the last quarter or this quarter and then multiplied by 4. So that's kind of an annualized version of our revenue, telling you where we're heading. And that's actually also at record levels.

Now moving on then to profitability, which is very important. Here, we are very pleased to announce that we have positive numbers on EBITDA, also on EBIT level and on profit after tax. So when all costs have been included, we have a positive result, which has been a long time since we deliver that, as you can see from the graph to the right as well. And it's quite a big step-up as well in that profitability. And that comes from -- well, first of all, we have higher volumes. But in those volumes, we have higher volumes of sales. And in that volume, we have a bigger portion of Ovzon 3 being utilized. So that drives the profitability. And then we are good at keeping operational costs at bay. So that drives this profitability upwards in a strong way.

Then I move over to the operating cash flow. And here, to the left, you see 2 strong quarters then in this quarter followed by an outflow of cash. And as Per mentioned, we have had a big payment coming in the 1st of July. So this bar is actually the opposite just the day after. So it's -- if you -- where we stand today, this is actually very strong cash flow. It's just where quarters are cut and when payments get into our bank account.

Then moving to the middle graph, you see our investments. And from the history, you can see that we have invested significantly into Ovzon 3. It's now 4 years been in operation. So what's left now of investments is more of terminal development and then on our On-Board-Processor, which is a unique feature of our satellite.

And then to the right, you see the net debt increasing slightly, but it's actually not the debt that's increasing. It's the cash that has been decreased. And again, that's connected to this payment that we received in July. So if you take that into account, it's a completely different picture, and it's a much brighter picture as well.

So that's basically the financials. And if we summarize it, we -- I would say that what we're delivering in this quarter is strong growth, and it's done together with improved profitability. So we have strong bookings, which gives us a solid backlog and that has increased our revenues. And with a solid backlog, we can assume that, that growth will continue for a while. And then EBIT-wise, as Per said, very satisfying to see that we have actually 4 quarters in a row now with improving profitability and a pretty significant step-up in this quarter. And finally, cash again, it's much better than it looks like in this graph. And I'm really looking forward to present this graph in Q3.

So with that, I hand it over to you, Per.

Thank you. And before we wrap up, rest on this slide a little bit here as the company has been in, obviously, for years in an investment phase of building the satellites, the On-Board-Processor and new terminals in the integrated system we have. And we've had a mantra of driving profitable growth. I would say that we can call this profitable growth, and we've turned the corner, right?

At the same time, you have to be smart. You have to run a healthy core business. You have to manage your cost, you have to manage your cash and you have to be out in the market, educate and drive value to customers. And we have basically 4 things that we base that on. We say customers first, we say people always. We say business ubiquitously, meaning 24/7, both in terms of service, but also in terms of understanding and being creative with customers how to utilize our technology. And then lastly, delivering value with technology. So this sets us up to continue that path that we've been on.

Going forward, the 3 main targets or goals for us is to deliver financial performance. I think we have shown that with this quarter. Actually, on the EBITDA side, we started that journey -- this is the fourth quarter in a row. So we started that journey, and we continue it. I think maybe the most satisfying thing is that we are -- we have profit on the last row as well. And then Andre talked about the cash flow. We never run out of cash. So that's a very important measure for us to continue to drive.

And then obviously, continue to ensure commercial success. You cannot rest on your laurels. Yes, we had a very, very significant historic milestone with the win we have. We have to deliver on that, and we have to continue to deliver value to customers and then find new customers, renew and regain customers that we have in our purview. And then lastly, industrialization and scale-up of the company. Obviously, we've been operating on a fairly small team and driving kind of the value with that. We are not going to go crazy. We're going to do a step-by-step upgrade as we see that the business is continuing to perform at the levels or better than that where we are today.

So with that, we'll thank you. Maybe you want to say something about our Capital Markets Day before we hand over to Mattias again.

Yes, sure. I mean I hope that -- this quarter announcement will give you some interest and maybe learn more about our company. And we have a Capital Markets Day on September 4 in Stockholm. So please check that out and sign up. It's going to be an inspiring day, I hope. That's the plan at least.

Thank you. Back to you, Mattias.

We will start the Q&A by inviting -- we're joined by 2 equity analysts, and we will start off by inviting Simon Granath of ABG Sundal Collier.

And congrats on the strong numbers and a particular kudos to the recent contract signings. Initially, I have a question on the latest development in the U.S. I know we tend to come back to this during earnings calls, but it is a bit surprising to me that the DoD has not renewed the contract from last year. Have you received any feedback to why this is the case? Or is your assessment that this is only about budget and procurement uncertainty?

Thank you. Very good question. I think, first of all, you can see that we also mentioned it in the CEO comments. So it's an important aspect for us, obviously. It's the biggest defense market -- defense spender, and it's an important customer base. Yes, we have received feedback. We have very strong feedback from the users. Remember, they have a lot of terminals out in the field, and they stay out in the field. So the need from them is there.

They want to continue with the service. I think they have gotten stuck in the budget bureaucracy and prioritization changes that are happening. So we continue to work with the end users. We continue to work with the procurement people, both on that current customer base, but also with other customers within U.S. DoD and other customers in the U.S. So I think that's all I can say at this point. We know that the value is there. We know that we protect and connect those organizations that have used it, and we continue to have a positive view on the U.S. market.

Appreciate that. And the terminal sales, as Andre highlighted, were indeed strong and reached highest quarterly level ever reported. Is this the level in terms of capacity that you are able to manage? And I ask this partly in light of the current strong order backlog. So I'm trying to understand the linearity in terms of deliveries of the terminal backlog over the coming quarters.

Yes, very good question. Part of our scaling up, obviously, is if you look at our value cycle networks, so we have our own satellite and we buy capacity from others. We are very good at that. And you have followed us for a while, so you know that we used to have inventory of satellite capacity that were unsold. We don't have any inventory of satellite capacity unsold. That drives our profitability up. So we're very good in mixing and matching and building that up and have good relationships with other providers, and can utilize Ovzon 3. So that's one part of that.

On the terminals -- so we don't see a restrain on our business in that regard. On the terminal side, I feel very comfortable that we can deliver on this historic milestone deal that we had. I don't see -- it's strained. Well, it's tougher for the supply chain because there are more volume, obviously. But we are also placing orders and continuing to develop, so we will build up an inventory for coming business as well.

So I think we're not at peak levels, but we -- obviously, with these volumes that we have never been, we're testing the waters on how to expand that supply chain and how we can actually deliver and build up a little bit more inventory ourselves. We've been quite a lot of just in time. So that's part of our industrialization going forward. So I wouldn't say that it's holding us back, but we have to continue to invest in kind of making sure that we can build up inventory and deliver on new business that is coming in. I hope that answers your question.

Yes. Yes, indeed, it does. And I'm going to ask a follow-up question on capacity in general terms. And that is given that the recent FMV SATCOM order involves lease capacity, how are the discussions progressing on finding increased lease capacity? And also, will additional lease capacity fully match the FMV contract? Or could you add some extra capacity for other customers or orders from the same customers to fill?

Yes. Yes. Very good question, obviously. First of all, we have relationships with many of the satellite operators, satellite providers, capacity providers. We keep that going even though we buy at different volumes at different times during the history of the company.

But we don't see that we have constraints on that building up for this delivery, and we don't see that we will have constraints in actually taking on more customers either as well. And we are looking into ways of partnering revenue share models, et cetera, with some of the providers that we are closer to. So we don't see that is holding us back from delivering and growing further.

I maybe add to that, that what we have secured is at good levels. We are satisfied with the pricing that we have.

Yes.

Very happy to hear that. And the final question for me. I think the page you showed during the presentation on market drivers relating to geopolitical tension or military, cybersecurity, climate change, et cetera, is an interesting page. And my understanding is that most of your current operations is mainly relating to military. So do you expect that to remain as a key driver for operations over the coming quarters and years? Or could call it, climate-related use cases grow in share of sales over the coming years? Is simply a broadening use case, a strategic priority is my question.

Yes. Thank you for the question. We'll dive deeper into that on September 4 at the Capital Markets Day. But the general question is we see in the coming quarters that Defense will be the main driver of that. However, with what's going on kind of on the emergency side and the need for more capabilities, as you could hear on the news or -- I mean this -- as of the date of this morning with what's going on in Spain, it is a strategic initiative for us to look into how we capture that market. It has some different market consent than what the Defense market has.

So we might have to be smart about how we develop the type of services for that market. But it's the same core. It's just that we might have to deliver it in a different way with a different business model, but it is a part of our Horizon 2 and Horizon 3 growth plan, yes.

And we are happy to be joined also by equity analyst, Mikael Laséen at Investment Bank, Carnegie.

I hope you can hear me. Yes, I have a few questions. First of all, I'm curious about the SEK 1 billion contract from FMV. How did the service part start in Q2?

Yes. I'll hand it over to Andre.

Well, it started out well. We delivered terminals, as we said, for -- and with that, you can then apply the services and the network. So they have been established and are up and running. And we have in dialogue with the customers and what their need is, we have ramped that up during June since we got the order in late May. So it's rolling in the plan that we have set up for establishing this.

Just an addition to it. So we delivered the 1/3 of the total terminals at the end of June, right? So it's somewhat of a gradual increase in the service because you don't need to have overcapacity on the networks when you don't have all the terminals out. So I think that's what I would add to what you said.

Okay. So it was less than a month fully utilized then, I guess. And then it will be up and running in Q3. I mean on the right level, I mean, the service part, right?

That's a fair way of looking at it. Yes.

Yes.

I'm trying to understand the mix between Ovzon 3, which has very high margins, of course, and the leased side. Can you provide any sort of indications of the mix in this quarter, roughly how the service part is split?

Well, usually, we don't disclose how much of our own satellite is being utilized. But it's -- I mean, as you can see from our margins, margins are increasing and a part of that is more utilization of Ovzon 3. That's also the plan going forward to maximize that, of course.

I would say it's -- in this quarter, it's mostly third party. But we have started -- as Andre says, we have added in a part of Ovzon 3 in that mix as well. I think this is great for us actually because it's -- we have an asset and we see what we have in terms of kind of in our pipeline, and we don't want to sit on unutilized capacity. So we throw that in temporary if we can and if we want to or we keep it for something that is maybe brewing, et cetera. So it's -- we have a good, good situation today with mixing and matching own assets with procured assets.

Okay. Got it. So how flexible is the leased capacity side? So if you got an order for Ovzon 3 and you want to utilize more lease capacity? Can you -- how quickly can you turn that on?

It's fairly flexible now. When you go into a 24-month contract, though, you have to actually sign up for some period of time. So we cannot fully have on a -- let's think of it as a monthly basis. So we have to actually sign up on some contracts that are let's say, on 12 months, right? So we do it with options and firsthand right of first refusal.

But in the beginning here, since the terminals were delivered late, we had the opportunity to actually do it more hand-in-hand, so to speak, from that. And as we go, we have to sign up for more. But right now, we're utilizing Ovzon 3 partly in that, which means we have a very, very good mix now. If something else is taking Ovzon 3's attention, we have the chance to bring in the other third-party capacity. So I think that's how deep I can go in that answer.

I think we've done our homework and have now like optimized -- trying to optimize the portfolio of leased versus owned capacity.

Okay. And in terms of margins and costs, how should we think about gross margins on terminals when you have these high volumes, I guess that you have scale effects in production. But if you also can comment on how we should think about the operating costs below gross results going forward?

If I start with your last question, the OpEx, I mean, we are a small organization, have been lean for quite some time. There are competence that we will add, but it's not a massive increase at all. I think we're going to stay, well, not flat line, but gradually increasing and do that in a disciplined and controlled way. So slight increase there.

And then on cost for terminals, and we are ramping up production. And of course, there will be probably some pricing or cost increases somewhere along the line, but I think nothing that is difficult for us to handle, and we're making sure that we're securing resources and plan for larger volumes as we go ahead.

And with larger volumes also comes that you can order and you get better terms.

Yes, exactly.

So we're working this, as you can imagine, on a very strategic for us, but also securing production lines and inventory.

Okay. Got it. Just a clarification here on the follow-up from the first question about the U.S. situation. Should we expect that, I mean, new contracts or renewal could be delayed given the current situation? Is that what you're suggesting and maybe they can come back in late this year or early next year or -- yes, it would be great to get some clarity on this.

Yes. You tell me what you think about the clarity and the certainty of what's going on in the U.S. administration, first of all. But I'm not really laughing at it. So trying to answer your question, it's really hard to predict. I think, as I said a little bit earlier, we are -- have always been very close to the end users. We have very positive demand signals from them. They stay with their -- the terminals On-The-Move and On-The-Pause terminals. They need it. Could that lead to something early? Potentially. Could it be delayed to '26? Potentially.

But we're also working on other tracks with other customers within U.S. DoD that shows promise. But new customers take longer than current customers. So it's very hard for me to say whether or not it happens now, tomorrow or later. But the U.S. market and the U.S. DoD will remain an Ovzon target and will be Ovzon customers for the long term. I know it's not the answer you want, but I can't give you a better answer than that, actually.

I appreciate it.

So we will continue with some more questions then. If I start with you, Andre, given that the Ovzon's loan facility has been extended to September 30, 2026, can you elaborate a bit on your plan for refinancing or repaying this debt?

Yes, sure. I mean looking into our loan facilities, that's something that we always do, of course, try to optimize. And we are, for the time being, very actively working on finding ways of optimizing this. So we are -- yes, really looking forward to see if we can find a good way forward here.

This breakthrough in the second quarter with your improved financial status, will this give you possibilities in cheaper loan financing solutions?

Well, we'll see. I mean it's -- we are, as we said, actively looking into this. And it's -- the impression we get is that it's a much -- it's a different world now than it was when we were sourcing financing for the satellite and a totally different situation for the company as well. So it's a new world and Ovzon in a new situation as well. So I think we just have to wait and see. And when we know, we will communicate.

And Per, do you say that you have a unique package of services? How will you stay ahead of competition?

That's a good question. Well, I think the way to stay ahead of competition is what we've always done. So staying very close to the customer, seeing what -- how they use it, what works, where we need to improve, et cetera, et cetera. And the services, I would say, is an integrated service. So that includes both the terminal side. So we can see a great need for smaller antennas, so smaller terminals because there is a drive towards unmanned solutions, a lot of unmanned solutions. So that's something we're exploring.

We're looking into -- we know that the requirements we had on our own satellite, Ovzon 3 with its On-Board-Processor really works, exceeds expectations with those customers that use it. So we are also investigating to see whether or not how we could, in the future, have more of that in our portfolio as well. And then thirdly, then, as I mentioned, unmanned and other things, new applications. And I think the resiliency component, that's a popular world in society today, but resiliency for us means that you have an uninterrupted signal even in an environment which is contested. And I think we are very good at that.

Our On-Board-Processor can actually do what's called single hop communication between terminals instead of going down to a ground station and getting the signal from the Fibernet. So that creates a closed-loop communication system. That's an innovation that I think has yet to fully be deployed in the market. And if you put things on unmanned vehicles, you cannot have any latency and the On-Board-Processor ensures that you don't. So this is how we're going to stay ahead of the game with our mission-critical capabilities.

We had a question from the side lobe. You partly answered this already. It's about that U.S. customer that has not yet prolonged the deal. But he also asked how much revenue is in play here?

So the contract that we had was for USD 6.2 million over 12 months. That was the current contract that then expired on July 31. So for this year, maybe it's not that much financially that we get hit with, but it's a $6.2 million on a 12-month basis. But we have always had the goal to expand that as well and get back to new customers and other customers, but that's what's in play.

How are your plans to launch a next satellite and its financing? How is that coming along?

A very good question. That's something that is in work. We'll talk more about that at the Capital Markets Day. This is not a commercial for that, but we will lay out a little bit more context around that. We are absolutely looking into that given the feedback and the performance of Ovzon 3 and the On-Board-Processor. So we're looking into what technologies are there, new technologies on the satellite side that are available. The On-Board-Processor, obviously, is critical. So we need that on as payload on the satellite. So we have a team that is concentrated and looking into it during the autumn here.

Of course, if you want to do this, you also have to have financing as the question alluded to. So I think that's a 2-step approach. One is the question you asked Andre about refinancing. So I think working on that actively, as Andre answered, is what we do. And then the second phase of that is to look how we secure smart and effective financing for new satellite capabilities. So we can probably say today, we want to build more satellites. But we also have to have financing and capital in order to do it that is not draining the company. So we are in the process of actually evaluating this.

Okay. On your Capital Markets Day on the 4th of September, fairly soon, what else can investors look forward to in getting in that day?

Well, it will be a deeper dive into Ovzon as a company, our history and where we stand today and our offers and how we view the world and competition and possibilities, opportunities. And then forward-looking as well, what's our strategy going forward. So it's going to be a bit of everything.

I would add to that. Think of it as a day in the life of Ovzon with what we came from, where we are today, as Andre says, and where we're heading, which includes a view on profitable growth, technology, customers and scale up of the company.

Great. There's a late question coming in here. Do you see Ovzon's satellite solution can create synergies with the Rakel Gen 2 network? And have you had discussions with MSB?

Yes. Rakel Generation 2 is -- yes, is the kind of total defense communications. Absolutely. Absolutely, it can. It should be a component of Rakel 2 or Rachel 2, honestly. We have had discussions through the years with -- Rakel has been in play for a long time. We've had discussions through the years. But I also think if you look at what's happening in the world, the question were around emergency services, national security, public safety and defense.

If you look at the situation in the world today, countries need sovereign capabilities and solutions. Rakel could be one of them. Ovzon is not integrated in it yet. It should be. So I think, obviously, we have to be on our toes, and we have to have open discussions. But we've started those conversations, early stage, we've started those conversations.

All right. That was the last question from me today. Thank you so much, Per and Andre for joining us today.

Thank you, Mattias, for hosting us.

And I want to address the audience, and thank you, everyone, that has been watching. See us again.