Then and we're doing it in English this time. Welcome, everyone, to this presentation with LumenRadio.

As usual, except we do it in English now, but as usual, we will start with a presentation and then have a Q&A. I think with the setup we have now, it means that you might not be able to ask questions verbally.

Let's see if you can, maybe, later, but otherwise, you should be able to write in the chat if you have any questions. With that said, I'll leave the floor over to you.

Thank you, Erik. On behalf of the company, I also want to wish everybody very welcome to this investor call.

My name is Sanna Svensson, and with me, I have our CEO, Hans Larsson. Let's see how we click onwards here.

Do you know how we click onwards? Sorry about the technicalities here.

Today's agenda: introduction to LumenRadio. We start with a short introduction, those of you who have not followed us so much gets also at least a basic knowledge about what value we deliver.

Then we continue with Q1 update and a short-term outlook, and then we finalize with some Q&As. I hand over to Hans so he can start the introduction.

Thank you very much, Sanna. Let's start with what we actually do.

We LumenRadio, we deliver ultra-reliable wireless connectivity with superior range for applications where communication failure is not an option. As you might have seen recently, we have launched new financial goals.

Our long-term financial goals for the company is now to reach more than 500 million Swedish kronor by 2030. Our profitability goal is actually unchanged from earlier, this is to deliver more than 20% EBITDA on average over a business cycle.

Sanna, how are we doing?

Yes. On this slide, we have tried to gather information that in short tells quite much of the company.

All figures are last 12-month figures, they give you a feeling how our annual figures look like. We have the last 12 months delivered almost 0.25 billion SEK net sales.

We also have 70% of our business is recurring-like business. We call it design wins.

A design win is when a customer decides to use LumenRadio's tech in its own products. Moving on, if they are successful, it require a continuous purchase of radio modules or software from us.

We also have the last 12 months over 60% gross margin and around 18% EBITDA margin. We are actually growing adult this year.

We are becoming 18 years old, and we are located with sales offices in 5 different countries.

Thank you, Sanna. How are we organized, then?

We are split in 2 business areas. The first one we call Lighting Control.

Here, we cover our important entertainment lighting business, and we're working with architecture lighting and indoor and outdoor lighting for commercial buildings and such. The other business area is Building Automation.

Here, we have the biggest shank of business within smart metering, but we're also working with building control and industrial automation, where building control is where we have launched a lot of new products last couple of years within Modbus, BACnet, etc. We typically in all quarters try to show a customer case, just to get a little bit of flavor.

What we see on this picture here is a multi-family residential building in New Jersey. They have a fantastic view over Manhattan, but that's not the most interesting part.

The interesting part here is that our customer in this case is a company delivering energy savings. This is the company Parity, Parity HVAC.

Their business concept is to connect and automate the ventilation system in the building and actually cash in on the energy saving. Here, they use our wireless BACnet products to connect rooftop units to the building automation system and generate a saving of 30%, and that's how they also charge their customer, by parts of the savings.

We talk a lot about energy savings being a driver for our business, and this is maybe one of the more tangible examples where that is really true. Let's move into quarter 1.

Yes.

I start with a slide here where we do a few highlights. Quarter 1 is a period where we have a lot of exhibitions, and a highlight is always the ISE exhibition in Barcelona.

This is professional lighting or entertainment lighting highlight for us. It's the biggest event in Europe every year, and all our large OEM customers are there.

That's where we meet them. We can talk about plans for the year and confirming the, let's say, state of affairs in the entertainment lighting business.

Very exciting. Next highlight I would like to mention is an actuator from Gruner.

Gruner is a large producer of actuators, a German company. In connection to light and building, they launched a new product which has integrated wireless Modbus.

For those of you who have followed us for a while, you know that about a year ago, we talked about this wireless Modbus ecosystem. We launched the concept of the ecosystem.

To create an ecosystem, we need a certain amount of products. We need room controllers, sensors, but we also need actuators, which is actually what then actuates a valve in the ventilation system.

This has been a missing piece, and we are super happy that there is now an actuator with wireless Modbus in this ecosystem. That's good for our system integrators.

At the same exhibition, S+S Regeltechnik, a large customer of ours who has previously built in wireless Modbus in their sensors and room controllers, they also added now wireless BACnet. BACnet is especially important for the North American market, but is also increasingly important in Europe, we're quite happy that our existing customers add new technology from LumenRadio into their product range.

Moving on to that and more on the BACnet theme, one of the big exhibitions we do in Q1 is AHR in Las Vegas. This is really an HVAC exhibition.

HVAC: heating, ventilation, air conditioning, also refrigeration is in there. This is the largest event in North America, we typically promote our BACnet solutions.

We also promote some submetering solutions at that exhibition. There, we also had a new in-design.

The company Metaltech showed a room controller with integrated wireless BACnet. Why is that important?

It's important because our integrators, they can actually commission projects at a lower cost when they have products with integrated wireless BACnet instead of buying our end-user products for everything needed to be integrated. This is a good step forward, and we had a very positive response at the exhibition.

Then if we move from more of exhibitions and these events, at the end of March, we updated our financial targets. As we already mentioned, our new targets are to reach more than 500 million Swedish kronor revenue by 2030, and we should do that with more than 20% EBITDA in average.

Following the announcement or the press release of the new targets, we also hosted a Capital Markets Day on March 20. This was the first Capital Markets Day, the first time we really did a thorough update of LumenRadio today since our IPO 3 years ago.

For those of you who might have missed it, it's also available as a recording on our Investor Relations webpage. Then we move a little bit more into Lighting Control, some key takeaways.

In Lighting Control, the quarter, we generated 39.1 million Swedish kronor. It's a little bit shy of last year, but there are reasons for that.

The decrease is 10.1%, but we still have this headwind on the currencies, the organic decrease is 6%. This is anyway a good quarter.

We had some deviations last year where if you recall, the tariffs were implemented 1st of April, we had quite a lot of early deliveries in end of March to the US market, which boosted the revenues. You will see that a little bit later when Sanna goes through the figures.

We are actually quite happy, and this is according to plan, or we are actually a little bit above our own budget, even if we always want to show a positive number on the growth, but this is not bad. It's actually quite good.

What we also note in the quarter is this increased interest from Chinese OEM customers in the entertainment lighting segment. It was very clear at ISE in Barcelona that there are a lot of Chinese producers who want to export, and if you want to export your lighting fixtures, you basically need to have our CRMX technology built in.

There is a big interest, and we have also, as established ourselves in China with our own sales team 1.5 year ago, we have a good way of working with local designers, local OEMs, and that really starts to pay off. Finally, I want to touch our DALI, that's our newest product range on the market.

It's been out now for almost 2 years. Here, for those of you who follow us on social media, you see we publish a lot of new impressive installations where we use wireless DALI.

This is very important that we keep on doing new projects. We learn a lot about the markets.

The market learn about wireless DALI, and this also creates interest from potential OEM customers. As we always want to have a mix in our business where some part is end-user products going through distribution, but the biggest shank is usually the OEM business.

That's not where we start. We always start with the end-user products, but this interest from OEMs on the wireless DALI side is promising for the future.

Still from small numbers, we don't expect this to bounce the figures away in a positive way day 1, but it's good for the future. Then we move to Building Automation, and here, we had a fantastic start of the year.

We did 19.1 million SEK compared to 12.4 last year, and this is an increase of 54%, and organically, it's actually 76%. It's a very strong number.

This is strong even despite we lose a little bit on the top line. We addressed in the Q4 presentation that we have a product mix change.

We have a long-standing customer, still a customer, but they changed from a custom product with higher selling price than the standard product they use now. This affects the quarter negatively about 2.5 million on the top line, even though our gross profit remains more or less the same.

We are very happy for this. The driver here is really the smart metering, Radiocrafts, for those who have followed us a long time, that's the acquisition where we got smart metering business.

We had a very weak spring with smart metering last year, and now we are not only back to normal, but we actually have a very strong quarter for smart metering. That puts us back on track here, and that adds up so we have a nice growth in the quarter in total.

Finally, and we talk a lot about OEM customers, we attended MCE Mostra in Milano, also an HVAC exhibition, ventilation, air conditioning, in Europe this time. This was really an exhibition where a lot of our potential OEM customer exhibit, we had a good interest.

We need to close design wins. We know that a design win does not mean revenue directly.

We're always depending on these customers launching their products, and then if they're successful in the market, it generates good revenues for us. Closing that, I think, on Building Automation.

Now we will dive in a bit more to the figures. Sanna?

Yes,

thank you. On the right side, we have 2 diagrams.

The upper diagram shows the net sales in value the last 2 years per quarter, and we have colored all first quarters to increase the comp- comparability between the years. We see that the first quarter has developed from 46 to 56 and and now 58 million krona.

The lower diagram shows our EBITDA in value and percentage the same period. Here, we can see now that we have also developed from the past 4.7, last year 5.8, and now we have 10.5 million krona.

The table on left side gives from the profit and loss the most important parts compared with last year. We see that our profitability has grown quite good compared with 1 year ago.

Also, our cash balance has improved. Not visible here is that our balance sheet is in good shape in general and with healthy stock levels and receivables and payables paid on time.

We are quite content with the quarter first first quarter's figures. Let's move on and dig a little bit deeper.

In this picture, we can see how Lighting Control has developed in sales and gross margin the last 3 years. Also here, we have colored in different color the first quarter to ease the comparison.

The business area has recovered after the dip 2 years ago, though, as Hans mentioned, this year's quarter is compared with an unusually strong first quarter last year as we had extra deliveries in front of the trap tariff turbulence. Historically, actually, the second quarter has always been stronger than the first quarter, but last year, they switched places.

Gross margin is really strong throughout the period, and we believe this shows that our customer is willing to pay for our product. Moving on to building control building automation, and also here, we see that first quarter is colored in different color to ease the comparison.

We all know that the big difference towards last year is that smart metering is back in business, to say. As Hans mentioned, the 19 is even better than it looks likes when we take into account that last year in the 12, there were still this long-term customer that now takes the comparison down with 2.5 million as we change the the product mix.

Strong momentum, and gross margin is trending upwards, and this is also partly due to the change in product mix we are experiencing with one of the biggest customers. Here, we pull all the figures together, we can see both net sales in total and divided by Lighting Control in light green and Building Automation in dark green.

Top of all that, we have the group gross margin. The volatility in the margin mirrors the share of wallet and has always been stronger when Lighting Control has dominated the share of wallet, but moving onwards, we believe that the volatility will actually shrink as the difference in the margin between the business areas is diminishing.

Finally, and this is my last slide, it's about operating expenses. Over time, actually, they are quite stable, but slightly growing.

We continue to invest in organizational development to secure future business opportunities, but of course, we aim to keep the pace on the level that we can also deliver on our profitability target over time. I hand over to Hans so he can give a short-term outlook before we move on to questions and answers.

Thank you, Sanna. Let's move directly into the next slide.

A lot of text, sorry for that, but I will talk about it a bit. In general, there is a lot of turbulence in the world around us.

What is happening right now in the Middle East has not affected us very much so far. We have very limited direct exposure to the region.

The risk we see is, of course, that we could get higher cost of components due to energy prices, but we have not seen it materialize. For us, there is more stability this year than last year when the tariffs were really playing havoc with our business.

Let's see how that develops. We keep our fingers crossed for not too much commotion there.

In Lighting Control, we believe we have good traction in the market in our important entertainment lighting segment. Despite the first quarter coming in a bit lower than last year, we believe we're well positioned.

The market is not as strong as it was a couple of years ago, but when we talk to our customers about the market, our perception is that there is a bit more optimistic views than it was a year ago. We stay quite optimistic.

We see also that let's say our efforts in China in the local market is starting to pay off, we have more and more design wins there, and we start to create a name more also with the local OEMs and working with the local market. That should pay off as well.

We are, I would say, optimistic about the year. There is also this strong interest in wireless DALI at the trade shows, and here, of course, we work from small numbers, but we start to get traction, and of course, the next step would be to try to add OEM customers into wireless DALI as well.

On the Building Automation side, for those of you who follow us, you know that we got a record order of $5.7 million in Q4, and that order is for delivery from Q2 to this year to Q1 next year. We haven't started eating from it yet, but we are doing that now, and that gives us a good stability.

Last year when we had this quite challenging spring in the smart metering business, now we can see more stability during this year. Here, as mentioned before, we keep working on expanding our customer base and also finding new customers within the submetering space.

Lastly, a few words on the building control segment. Here, we keep expanding our wireless Modbus ecosystem.

We have new design wins, as was mentioned, and we have also started to add OEM customers for wireless BACnet. This is not a quick process.

We add the OEMs, and they ramp up, but we think this area is moving, and we have some pivotal points getting actuators in, getting customers like S+S moving, adding BACnet. These are important indicators for us that the interest in the market is growing.

With that said, I think we should open up for some questions.

Yes, thank you. Then I close the presentation and maybe make us visible again.

Perfect.

Yes.

Thank you for that. Let's open up for Q&A.

I think you should be able to send questions in the chat. I'm not sure if you can raise your hand and ask it verbally, as I said.

We're trying a bit of a different format here, hopefully you can ask your questions somehow. Let's see.

I'll start nonetheless. I wanted to begin on lighting, and you mentioned that you were down 6% organically.

If I understood it, it still was in line or even above your own budget, right? How would you describe sort of the outcome versus the expectations?

No, but that's correct. We are actually slightly ahead of our own budget because we knew we had some events in Q1 last year which would not repeat this year and also this product mix effect.

Obviously, now we talk organically, but we also have this currency headwind still. We were a little bit cautious budgeting.

We're ahead of where we thought we would be. Of course, it would have been great if we were also ahead in actual numbers in the lighting side of things.

Still, we are where we are supposed to be or a little bit better, I think.

How do you think about Q2 for lighting? Because that's usually a seasonally strong quarter as well.

Are there any signs that tell otherwise or how should we think about it?

No, I think with all things said, you never know what happens, but it looks to be more back to normal this year. Last year, what happened in Q2 was, of course, partly we had early deliveries in Q1, but you might recall as well that tariffs were up to 145% between China and US, and basically the factories in China stopped for a couple of weeks.

We had a terrible Q2 last year, and hopefully, we will have a normal Q2 this year. That's our expectation at least, and then we have to see how it plays out.

Then I just wanted to ask how the film and TV industry is doing, or I guess maybe you could say entertainment, but we've previously discussed tax incentives coming in, going back a year or 2, maybe these studios were focusing more on costs. How is that sort of playing out now today, would you say?

It's hard to put hard data on it. You can see that there are investments in new studios in the US, and there are also investments in the LA region.

The incentives will play a role here, and we start to see these investments. Then, of course, we are a little bit later in the chain.

You build studios, you start productions, then you rent equipment from rental companies, and they need to restock and buy equipment for us. We think it's positive.

Of course, we had this fantastic period during COVID when the content production was all-time high, and we're not back to that yet. I think when we talk to our customers, our OEM customers, no one thinks we're coming back to that very fast.

I think compared to a year ago when many of our customers were cautiously negative, they are more cautiously positive now. We're on a new normal, and we need to grow from there.

I know it's a difficult question, but with inventory adjustments, etc., that's been a thing over the last few years, we're seeing generally some pre-buying or inventory buildup in some sectors at least so far this quarter, broadly speaking. Have you seen any suggestions that some of your customers or somewhere in the value chain, there would be some inventory buildup or?

I don't think so. We have not seen any or heard any specific inventory buildup among our customers.

All right. Then for China, I think it was interesting.

You sound positive, and I've asked about it before, but maybe if we can expand on how the development is in China. I know you've secured some design wins, you have local presence.

How are you tracking your progress? What key metrics are you looking at?

Cuz I guess only sales might be not showing the full picture.

No, you're right. The activities we do in China is to try to grasp the producers who produce for the local market, and there are large producers who produce for the international brands.

They are already our customers, but then they also produce local brands for the local market, where our wireless DMX, or CRMX, has not been commonly used. That's what we try to penetrate.

It starts, of course, with building trust, being local, having Chinese-speaking people. We started with sales, we added technical support, we have application engineering in place now.

When someone wants to design in our technology, you can get local language support on the technical matters as well. The KPIs we have internally here is, of course, the design wins.

When someone decides to design in our technology, we follow that closely, and that should, of course, generate revenues hopefully faster in China than in other parts of the world, as typically China moves faster. We measure design wins, and then we follow up these customers as well to see how the business is growing.

I think that's it, and it's a confidence-building thing that now it seems like it's spreading more and more that we are present in China, and we get, let's say, more and more attention. We also attended, talking about shows, the spring is very very hectic, in April now, directly after Easter, we attended the GET Show, which is the biggest show in China.

We have actually never attended ourselves. We have attended through our partners, through distributors, but this year, we attended ourselves with our OEM offering and got a very good response.

We have good hopes, and we know that if we do the right things there, it will also pay off.

I think the first design win was a few years ago. When do you think we could see volumes picking up?

Is there some type of inflection point approaching or is it still maybe a year out or so, or if you can share your thoughts at least, I understand it's difficult to answer, but.

I think I cannot share that. We're always depending on customers how they ramp up.

With some customers, we don't publicly share how much the revenues are with local Chinese and the export market there, I can probably not comment too much on that.

For these different trade shows, etc., not just in China, but the examples you give, it seems you're mostly meeting with potential OEM partners. Is that the objective, or is it more brand awareness in general, distributors, installation people, or?

I think we meet with both OEMs and we meet with system integrators and distributors. Maybe I highlighted the OEMs more than normal at this presentation, but we meet with them all.

Our objective is, of course, we're still a small player in the world, and this is a good way to create awareness about our solutions, who we are. That is, of course, different.

When we go to GET Show or we go to ISE in the entertainment world or the professional lighting world, as we sometimes call it, we are well known, and we are de facto standard. In all the other areas, we need to be there to make ourselves or make people aware that we exist.

Nowadays in all the building control and also in the, let's say, DALI space for indoor/outdoor lighting, we have more and more people coming back. They know us, they've done a few projects, and they want to grow with us.

Still, it's important for us for awareness to be visible at all these exhibitions.

I haven't seen any questions in the chat or any hands raised. I hope that's because everyone is shy and not because it's not possible.

I'm not sure about the settings, but hopefully people are just shy. I'll move on, and maybe we can talk a bit about building, because it looked strong.

Reading between the lines, it sounds like you are maybe a bit above your budget, too, Q1 numbers, or?

I think we are a little bit ahead of budget. Here, of course, we had higher expectations as this business is especially the smart metering business, we have more frame contracts, longer visibility.

Here, we are actually a bit above our own expectation as well, but here we had higher expectation. That's good.

What we would like to see, of course, more of is the growth in the building control side, where it's a lot about OEMs into the ecosystems and make sure we build a long-term strong position with our technologies.

These 2.5 million in mix effects, is that fair to assume in the coming quarters, because you've flagged this? Is that a good level or?

I think what we talked about in quarter 4 was an annual effect.

16 million or something.

I think we were somewhere between 15 and 20 million on an annual effect. We have, of course, higher and lower in the quarters, but we will try to guide during this year approximately that effect as it's important to guide.

We will come back quarter by quarter this year, and then after this year, we are back to normal comparison, hopefully.

It's still the fact that on the gross profit level, this is more or less the same level from this customer, right, or?

To simplify it, we have done a custom product with a high selling price but a low margin, and now we are standard product, which is completely according our strategy. We deliver a standard product with a normal margin, to say.

Yeah. Cuz the margin looked pretty good in building, 60%, right, I think.

I guess the question, which I understand is also difficult and depending on the mix, but I guess we could see more quarters where this gross margin is around 60% for building, right?

This is mathematically when we reduce the top line a bit, but with more or less unchanged gross profit, we will see stronger gross margins, for sure. This will be a permanent change.

Then, of course, there are other things happening as well, margins can go a little bit up and down. We should have lower volatility because we have had a big volatility depending on the customer mix, as this is a big business which has had a significantly lower margin earlier.

Yeah. Before this large order that we've talked a couple of times about from December in metering, it's still too early.

Q1 had no deliveries of that, right? It's still ahead of us.

It's still ahead of us, we start to deliver on that order in April. It's an existing customer.

It's existing business, it's not on top of the normal business. This is a continuation of the business.

With that said, we are working hard on securing more business in that area. I hope we will have a good trend of the year.

It's not, if anyone thinks you can put that on top of what we're doing now, then it's wrong. It's continuation of a long-term relation with an important customer.

Yeah. For the rest of building, what do you sort of see driving ahead?

I guess submetering sounds like it's still a bit in an early phase trying to diversify the metering business. What about the other parts of building?

Which ones are doing the best, you think? No, but

I think our industrial automation is trotting along. That's an area where we have long-term customers, and we continue to deliver on those.

Where we expect growth is in the building control side, and here, of course, we push for end-user products a lot. You saw the example today with this building in US where our BACnet products plays a role.

The bigger change will, of course, come when our OEMs start to scale the business. Here, it's a lot of work on pushing our W-Modbus, W-BACnet concepts, getting more products into the ecosystems, and making sure that integrators can feel familiar with this and can use it.

There is, of course, a good push from our OEM customers. As soon as we have something designed in, they are marketing their products, which gives then a push into the ecosystem thinking as well.

It's a cooperation. If you like us, we're a supplier, and we have an OEM customer, we are in a kind of symbiosis where we are depending on each other, and we try to help each other and push each other as good as we can.

There we hope to see good development. Here, I have to mention over the coming years.

This is not something which will explode from a quarter to another. This is a long-term building a strong position and in one way, revolutionizing a way of working in building automation, where we really want to move from cables to wireless setups.

If we take the use case of the New Jersey building, are there any I don't know if you say ripple effects, but if someone is using Lumen technology in that use case, whether it's an integrator or distributor, what have you, does that have effects on the rest of that customer's or partner's projects, or is it more dependent on the specific project? I'm thinking if one of these bigger projects could have some type of snowball effect for those trying the Lumen technology the first time.

I think the effect is that when you get a company in if it is an integrator or, in this case, a let's say, a supplier of energy savings, when they start working with our technology and provided that they see the benefits and they are happy with the solution, which is quite common, we see repeat buys. They scale within their own business, that we can go from being maybe we come in as a problem solver.

It's very difficult to pull a cable, and then you just try the wireless. Then you see it works, and then you start to scale it because you simplify the installations, you save on the installation costs, and you get other benefits.

I think the scalability is more like getting these installers on board, trust the technology, and start using it in more of their projects. That's what we see.

How do you think you're going forward? How forward-leaning will you be?

I noticed that headcount was down a bit from last quarter. I'm not sure if that was something temporary.

How are you thinking about the rest of the year? Will you be forward-leaning or are you a bit more cautiously optimistic or?

No, but we are cautiously optimistic. I hope that comes through here as well that we are optimistic.

If you look at the headcount, of course, last year, we were also optimistic, and then we had this very big impact from tariffs, and we had to pull handbrakes a bit. There, you can see that we have reduced the headcount, we have reduced our OPEX without doing big layoffs, but still kept good cost control.

Now we're optimistic. We hope we can invest a little bit more in the business without jeopardizing good profitability, which is also part of the new financial targets our board has decided.

I want to add that for our people, obviously, every company has some leaves and some comes, but sometimes we also adjust with consultants, and those we don't calculate in the average people number. There is always some volatility in the figures, and we are not decreasing people here, even if the figure was a little bit down from the year end.

We still have a lot of great ideas what we want to develop for the future, there's no lack of initiatives here. When we can, we will add people to make sure we build on the products we have, also develop new stuff, as well as investing in sales and marketing.

I have asked all my questions. I can't see any on the chat, but is it anything you think we should have talked about that we forgot, that you want to mention or any final remarks, maybe?

Probably not. I think we tried to say what we really wanted to say in the presentation side, but it's good questions, it's always great to have the questions because we don't think of everything.

I think we're happy, or what do you say, Sanna?

Yes, we are happy. Thank you very much for hosting this also.

Thanks for presenting, and everyone attending. I guess thank you and see you around.