Ovzon AB · OMXSTO:OVZON
Ovzon AB — Q3 2023 Earnings Presentation
15 slides from Ovzon AB's earnings presentation, Oct 20, 2023
Slide 1: Interim report Q3 2023
Interim report Q3 2023 Per Norén CEO, Ovzon Noora Jayasekara CFO, Ovzon
Slide 2: Ovzon at a glance
Ovzon at glance FACTS VISION REVENUE Connecting REVENUE, MSEK • Founded in Sweden 2006 120 • Listed on Nasdaq Mid Cap, the world’s 101 100 Stockholm, Sweden 80 78 73 critical missions 69 • Main operations in USA, 60 57 Sweden and Europe via satellite 40 20 • Ovzon offers world-class mobile satellite
Slide 3: Ovzon SATCOM-as-a-Service
Ovzon SATCOM-as-a-Service SPACE SEGMENT MOBILE SATELLITE SECURE TERRESTRIAL STATIONS TERMINALS CONNECTION TO THE TERRESTRIAL NETWORK GLOBAL SERVICE AND SUPPORT Ovzon / Interim report Q3 2023 10/20/23 3
Slide 4: Our unique SATCOM-as-a-Service solution
Our unique SATCOM-as-a-Service solution TX BANDWITH (TRANSMIT) FROM 2024 • Ovzon 3 +100 MBPS Offering • Ovzon On-Board-Processor with • Ovzon T6 and Ovzon T7 mobile Ovzon 3 satellite terminals FSS/Ka/Ku Solutions LEO Solutions Current offering OVZON’S SATCOM-AS-A- (Consumer and business) SERVICE ADV
Slide 5: Large growing market
Large growing market OVZON’S POSITION CUSTOMER SEGMENTS MARKET DEMANDS • Government & Defense • Guaranteed connectivity • Police, Emergency & Rescue Services • Integrated solutions • Surveillance & unmanned systems • Efficient bandwidth • NGOs • High mobility • Cyber security MARKET TRENDS ADDRESSAB
Slide 6: Approaching a historic milestone
Approaching a historic milestone New and renewed orders in core market segment • By country specific initiatives Launch of new mobile satellite terminal Ovzon T7 • Smallest and most capable in the market Improved finalization and launch plans for Ovzon 3 • Launch planned as soon as December 2023 Adj
Slide 7: Ovzon 3 – launch as soon as December 2023
Ovzon 3 – launch as soon as December 2023 • The final production, assembly and test of Ovzon 3 and the Ovzon On-Board-Processor have progressed according to plan during Q2 and Q3 • Current schedule shows that the spacecraft will reach the launch site in Cape Canaveral, Florida by late November • Man
Slide 8: Ovzon readying market introduction of Next Generation SATCOM-as-a-Service
Ovzon readying market introduction of Next Generation SATCOM-as-a- Service • First ever privately funded, built, and launched commercial GEO satellite from Sweden – Ovzon 3 • Includes the Ovzon On-Board-Processor – with revolutionary technology enabling a completely new guaranteed way of secure conn
Slide 9: Order intake – extended and long sales cycles
Order intake – extended and long sales cycles ORDER INTAKE (MUSD) ORDER BOOK (MUSD) 20,8 21 13 11 11 5,5 5 1,4 0,5 0,4 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 • Order intake in the quarter totaled 0.4 (1.4) MUSD, corresponding to 4 (18) MSEK • Order intake this year includes renewals with
Slide 10: Lower revenue from SATCOM-as-a-Service partially offset by terminal sales
Lower revenue from SATCOM-as-a-Service partially offset by terminal sales REVENUE (MSEK) RUN RATE REVENUE (MSEK) SATCOM-as-a-Service 99 101 312 322 330 307 100 78 78 41 20 280 252 73 1 69 247 57 73 233 75 6 230 216 217 47 19 11 3 182 2 180 50 149 37 133 33 77 78 81 130 58 63 62 25 54 54 80 45 37 33
Slide 11: Margins affected by the decrease in revenue and capacity utilization
Margins affected by the decrease in revenue and capacity utilization EBITDA AND EBITDA MARGIN (MSEK) EBIT AND EBIT MARGIN (MSEK) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 0 20% 0 -2 10% -3 -5 0% -10 -10 -10% -9
Slide 12: Investments in Ovzon 3 continues
Investments in Ovzon 3 continues CASH FLOW FROM OPERATIONS (MSEK) CASH FLOW FROM INVESTMENTS (MSEK) NET DEBT (MSEK) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 500 17 433 20 21 21 21 21 22 22 22 22 23 23 23 400 379 1 0 -20 300 -50 -29 -42 202 -5 -7 -51 -20 -62 -61 -62 200 161 -15 -12 126 -19 -100 -75 -76 79 -2
Slide 13: Rights issue of approximately 250 MSEK
Rights issue of approximately 250 MSEK • Initiating a new share issue with preferential rights for existing shareholders of up to approximately 250 MSEK, guaranteed to 80 percent by main shareholders • Use of proceeds; - Finance operations for 2024 and 2025, based on the adjusted outlook for 2023 -
Slide 14: Going forward
Going forward • Deliver on our historic milestone • Finalize and launch Ovzon 3 in December 2023 • Execute on plan towards profitable growth • Focus: Defense, National Security and Public Safety • Transform: Go-To-Market organization • Concentrate: Solution sales of NextGen Ovzon SATCOM-as-a- Servic
Slide 15: Thank you!
Thank you! Ovzon / Interim report Q3 2023 10/20/23 15