We now have 9:30, and I would like to welcome you to the conference call regarding the annual report 2022 for RoodMicrotec. Arvid, I hope you can hear well what I'm saying. Yes, perfectly, yeah, Martin. Welcome from our side. Presenting today will be myself, Martin Sallenhag, and Arvid Ladega, during the conference call today. We will go through a number of slides that we have prepared and we'll then open up for questions at the end of the presentation. The initial corporate and operational update. The top items here, revenue in 2022 came in at EUR 16.5 million, which is a healthy growth over last year with 14%. We also have a very good net profit of EUR 2.4 million, which of course, is also a big improvement over last year. Looking at the different units that we're operating in the company, we have three of them. We have Test Operations, we have Supply Chain Management, and we have Qualification & Failure Analysis. Test Operations make up about 60% of the, of the revenue. Supply Chain Management just over 20%, and Qualification & Failure Analysis just under 20%. This is a good distribution within the company as well of what we have here. More financial numbers will, of course, be presented by Arvid a little bit later in the, in the conference call here. Looking a little bit at the market, what is happening in the world when it comes to semiconductor. Short-term market focus 2023 is still showing negative, maybe around zero. It's changing a little bit from day to day. The good thing is that the long-term semiconductor industry is averaging roughly 6% to 8% growth up until 2030. Of course, there's still a certain uncertainty in the worldwide economy and general situation. We, as well as many of the market research companies, believe that this will hit semiconductor less than other areas. The trends that we're seeing in the semiconductor business is of course, in mobility with all the electrical cars, the autonomous driving, et cetera. Also in the industrial usage, connectivity, wireless, Industry 4.0. Of course, energy is a big item in the world right now, and also data storage with all the data that is now being generated with all the sensors around the world. Of course, that's a big, big chunk. RoodMicrotec is mainly focusing on two areas. One of them is automotive. Automotive industry for semiconductor perspective is estimated to be responsible for 20% of the chip demand in 2030. That's quite a big increase. As I said, electric vehicles and autonomous driving is of course a driving force behind this. There's also other things like safety, like assistance of driving, not in the full autonomous driving, but of course also with lane assist and blind spot detection, et cetera. Navigation, all different type of systems that you might have in the car, and also the 5G networking communication between different cars and the network. The second one that we're focusing on is industrial. There we have also a rapid growth. Of course, industrial is a little bit broader than automotive. Of course, we're not part of everything in an industrial, but also the parts where we are in are quite big and growing firmly there. A lot around sensor technology, safety. As you can see on the right side here, we have also agriculture, which you may not think is an area for a semiconductor, but it's coming more and more with drones, with water management, with precision farming, knowing exactly what to plant where, et cetera. Also in that area, there's quite an interesting market opportunity for semiconductors. Going into a little bit what happened in 2022 within RoodMicrotec. The total income, as I said, EUR 16.5 million, which is EUR 0.9 million above the outlook. We're very happy with this development that we've shown in 2022. We also have an order book that increased by 19% compared to the end of 2021, and also our cash position is very healthy for the future growth of the company. Within the three different departments, as I mentioned, we're running three different departments. Test Operations grew with 26%. A lot of our long-term customers increasing their demand, and we are adding capacity to be able to support that, and we are also fully able to do that. Supply Chain Management is also growing thanks to these long-term contracts. We had a 5% growth here year-over-year. It's also driving, of course, the turnover in other units, especially Test Operations, because Supply Chain isn't generating the parts and then being tested in our Test Operations department. In the Qualification & Failure Analysis, we have a big demand from the market on counterfeit analysis. This is due to the shortage of components in the world, and we have been now accredited to be able to go through a counterfeit analysis in a very structured and well-controlled way through this accreditation. We are the only one in Germany that can offer these services. We've had the publicly funded project APPLAUSE running the last three years. It was finalized in October 2022 with also significant results, both when it comes to technology development within the company as well as customer leads coming out of these publicly funded projects. When it comes to our SCM project, we are continuing to progress them towards production, and a few of them have now been moved into production. We've also shown or press released to the world that we're extending our cooperation with Rohde & Schwarz for their high precision ASICs that they use in their measurement equipments, with the new projects that will come in throughout the next years. Also with Novelda, a Norwegian company in the ultra-wideband market, where we've now started with the first project and more projects are to come here. We also have settled the legal proceedings in with Robus. One of them was settled in 2022 in February, which was a small one, the EUR 500K. In March 2023, we actually also settled the second one. That is now out of the way, and we're paying or buying these perpetual bonds back from Robus. Personnel situation in the company, we are now at the end of 2022 at 98, with the average number in 2022 of 94. An increase compared to 2021, also because 2021 had some short time work. The 89 was of course corrected for that. We're, of course, increasing also personnel to be able to handle the higher demand that we see from our customers. We're also continuing to move forward on our technology roadmap with high frequency tests. I mentioned Rohde & Schwarz. They are, of course, one of the beneficiaries from this technology development that we're doing. Also in the high power electronics, we're now starting to qualify parts according AQG 324, which is basically for high power devices in battery management. This is also taking off now in the company. COVID-19, I think this is the last time that we will actually mention this. We've been fully operational through the whole pan-pandemic. We've also had no major issues with our employees here, we now consider this as a normal illness around the world, and we are continuing operations as normal again. This was the commercial and operational updates from my side. I will now hand over to Arvid to go through the financials and the outlook. Thank you, Martin. 2022 was a very good year for us. The net sales Martin already mentioned increased by 14% compared to 2021 and landed at EUR 16.5 million. Our main market remains European market, and within European market, Germany is our main most important area. The operating result in 2022 was EUR 2.5 million and almost doubled compared to 2021. Increase in total income led only to a modest increase in raw materials and consumables. In 2021, there was a one-off, an exceptionally high cost for wafer purchase. Personal expenses increased compared to 2021. At the end of the year, we employed 98 persons and our efforts in 94 as a +6%. This increase tells what Martin mentioned, and that in last year, in 2021, we still make use of full-time work. Other expenses, we were able to keep on a stable level and we're well under control. Overall the margins in 2022 improved compared to 2021, and efficiencies went up. Bottom line, the net profit before tax was EUR 2.4 million for 2022. Can we go to the next slide? Thank you. Just some highlights about the cash flow for 2022. The cash position at the end of 2022 was a EUR 3.7 million, an increase of EUR 1.1 million compared to beginning of the year. This increase is largely caused by an improvement of cash generated from operating activities. Furthermore, the working capital was well under control. The cash we generated, we used for investing in in mainly in equipment. Furthermore, cash is was used for for repayment of non-controlling interest, shown here as a redemption of the perpetual bond of EUR 400,000. Which was part of the settlement agreement we reached last year. We can go to next slide. Just start with this year. We started 2023 very well. The first quarter, we reported EUR 4.6 million revenue compared to EUR 3.6 million in 2022. An increase of 28% compared to then the income of the first quarter of 2022. The order book remained very well. This order book contains long-term contracts and engagements and also short-term orders. The long-term contracts are mainly for the SCM department and for Test Operations. The short-term orders are for the operational units, the field analysis and qualification. With this good start, next slide, we are well on our way for this year. The outlook we gave to market for the whole year, we expect that the total income will be in range of EUR 17 million-EUR 17.5 million, with a profit before tax between a range of 5% and 10%. It's all in line with the financial targets we have set. Of course, we'll keep an eye on risk and the geopolitical situation worldwide. I think we can go to the last slide. The AGM we arranged at June 6th this year. This will be a physical meeting again. We hope to see you and to welcome you on the Amsterdam Stock Exchange on June 6th. Furthermore, I refer to our website, where you can see besides the documentation for the AGM, you can also find the full annual report. I think we can then open the lines for questions. Thanks, Arvid. If you want to ask a question, go on mute and then ask the question, and I ask you to then go mute again afterwards so that we give chance to others also to ask questions if there are any. If you have any questions, let us know. Yes, Martin. See if we can... Now we need to take him off. It's Martin. Can you hear me now? Yes, we can hear you. Okay. Good morning. It's Martin Verbeet of IEX. Good morning, Martin. A couple of questions from my end. In your annual report, you mentioned that last year in 2020, Q1 was at similar level as compared to Q4, and that is a good sign, because traditionally, the first quarter is somewhat weaker. This year, we more or less see exactly the same. Should we more or less expect a same pattern in revenue in 2023 compared to 2022? It will probably be a little bit more flat this year, because as you see with the outlook, it's... We had a very good start. The normal semiconductor industry is really that the first quarter starts a little bit slow, and then it goes up. We do expect an increase quarter on quarter. How big it is, we need to see, based a little bit on, of course, the general situation that I mentioned, looking at 2023 overall semiconductor market being more or less flat. It might be a little bit different year compared to a normal semiconductor year, but you're right in the way it's normally increasing quarter per quarter. Okay. Thank you. Automotive is your largest segment you do work for. Could you provide some guidance, how much of your sales within automotive is geared towards combustion engine and towards battery electrical vehicles? We don't have that information as such. We are providing test services for many different type of products. many of those products go into both combustion engine models as well as electrical models because, of course, the automotive manufacturers use the same platforms for example, navigation and interior lighting and so, such things, regardless whether it's electronic car, well, EV car or a combustion engine car. I cannot really say which amount we have. It can also, say, a suspension control circuit can, of course, go into both an electrical car as well as a combustion car. Let me otherwise put it differently. What you see most within vertical electrical vehicles compared to combustion engine is that they have a much higher content of GaN and silicon carbide semiconductors. Could you more or less guide how much of those two types of semiconductors is part of your total business? I cannot say that. We are working on both these type of high-power devices, as I said in the presentation here, that we're doing qualification of parts like that for the battery management. We also never forget that the rest of the car, which is basically, the rest of the electronics can be used in normal CMOS parts as well. Okay. In your annual report, you will come to focus on three future tech areas: high power electronics, high frequency, and, if you can read my writing well, photonics wafer. Could you indicate how much that represents of your total business today? It's not a huge amount because it's, of course, future generating items. We are doing RF testing on some devices. We are starting to do qualification and testing of high power. We have a couple of projects that are now ramping up also in the photonics wafer testing area. Of course, this is, since it's future generating business, it's less than the old standard product. Mm-hmm. We expect that to grow in the future. Could you guide how much of business that would be in five years' time? What would be your hope? What would be your guidance? I think it will be a significant part, but whether it's going to be 20% or 30% or 40%, I cannot say at this stage. Okay. Your SCM business projects, could you inform if you do see certain projects ending, and could you also share some lights on new projects, which will kick into your 2023 or maybe even 2024 results? There are a couple of projects that, of course, will end, but that's normal life cycle. Which have been maybe running five, seven, 10 years, but they are all well known that they will end, and that's normal business. We also have, as I said, a number of SCM projects that are now either just being moved into production or where we are doing the first, sampling and then going into qualification. The pipeline is filled with new projects that will, of course, replace the old that will, in a normal, life cycle of a product, be phased out. On balance for this year, you expect a plus? Yeah. Okay. Lastly, and I'll get back in the queue. Could you inform what kind of capital expenditure you expect for this year? The amount. Roughly the same as last year. Okay. Thank you very much. Around EUR 1.5 million-EUR 1.6 million is what we're expecting. That's also in our normal view, is that we do invest roughly the same amount that we have in depreciation. We're sticking to that. Thank you very much. You're welcome, Martin. Any other question? Okay. I don't see any raised hands or anyone going off mute here. I think we will end the meeting there. I appreciate you participating in this. As Arvid said, you're all very welcome to the annual general meeting. We're looking forward to meeting again in face-to-face, in-person, which hasn't really been possible over the last couple of years due to corona or COVID-19. The next date will then be the 6th of June in Amsterdam. Again, thanks for support to us, to the company, and I wish you all a further good day and stay healthy. Thank you, and take care.
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