Good morning, ladies and gentlemen, and very much welcome to this second presentation of the second quarter for Terranet. My name is Isa Hood, and with me on the line, I also have Magnus Andersson, CEO, and Pierre Ekwall, CTO. We will start off by a video of the highlights from the quarter, and then go on to an interview. Lastly, we will have a Q&A section, and if you want to start asking questions, then you will just use the box down below. Very welcome. Hi, and welcome back. We're now starting with the interview section of this presentation, and with me on the line, I have here CEO Magnus Andersson and CTO Pierre Ekwall. Very much welcome you two guys on the line as well. Thank you. Thank you. I think we'll just start right away with you, Magnus. Yes. Congratulations on the being selected for the MobilityXlab thing. That sounds really interesting. This was announced in June, and it's, I understood you were chosen for a program then where you can collaborate with leading automotive companies and check out some proof of concept projects. This sounds really interesting. Could you elaborate some more, Magnus? Yes, thank you very much, and, first of all, welcome to you all, and I hope you have had a great summer. We have had a very good summer and nice vacation, and we are full of energy to now continue all exciting activities during autumn. Yes, back to MobilityXlab. Yeah, that's fantastic news. It's really good for us, and this accelerator program actually had over 100 companies applying from 14 countries, and we were selected out of a few to join this program. This program will now start in August. Okay. In this program, there is some automotive companies and Tier 1 suppliers connected as partners, such as AB Volvo Trucks and Buses, but also Ericsson and also Polestar and Tier 1 suppliers like Magna, Zenseact, and also ZEEKR Technology Europe. Okay. So we get very good connection, interaction with them, so that's fantastic. So we get a kickstart to really integrate our solutions into car, do a proof of concept project or other projects. Of course, these companies I mentioned, we already had ongoing dialogues with, but now to get into this program, it get to really formalize in a structured way, we will kickstart this project. So very exciting. Some big names there. Big names and collaboration names. It sounds really interesting. What are the main goals for this, thinking, I mean, 6-12 months ahead? Yeah, as I said, it is to do a proof of concept project. Yeah. So we do a project where we integrate our solution in the car, together with them. So, and also by, We have this sort of fixed program, the resources are allocated, so there should not be any delay. We should really be able to kickstart what we want. Yeah. But, yeah, Pierre, please comment as well. What do you think about this from a product development perspective? Yeah, s ure. We've been working on developing this product for quite some time and done a lot of important research and testing. Now, to finally adapt our system for full integration in a production vehicle, and thereby taking it closer to market launch is, of course, really, really exciting. The OEMs and Tier 1 suppliers, of course, have valuable experience in launching and integrating products like BlincVision, so working with their technical teams and utilizing their competency will be a great addition for us to speed up the finalization of the product development. This is kind of taking it one step further to the market? Absolutely. Absolutely. Yeah. Sounds interesting. Pierre, during this second quarter, you also conducted a system integration in vehicles and performed prototypes, testing outdoors. Could you elaborate on that a bit more, please, also? Yeah, absolutely. Yeah, during the first half of 2024, we have made significant progress. BlincVision has evolved from an early conceptual prototype to being successfully demonstrated, first in a laboratory setting, and now integrated in a moving vehicle and tested outdoors. These prototype demonstrations represent a key step forward. We have progressed from using prototype software running on simple laptops to having a fully integrated solution running on an in-vehicle certified automotive core computing platform. We have made important progress in adapting the system to handle motion compensation, ensuring reliable operation, even in the most dynamic driving conditions, an area that has historically been challenging for the use of event cameras in automotive applications. Other important achievements include evaluation of optimized sensor placements, placing our sensors in, for example, behind the windshield to verify system performance when packaged in a more serious production-like environment. Additionally, we have adapted the system communication to be compatible with information exchange via the most common vehicle interfaces, as well as being able to trigger a direct emergency brake request in a vehicle. Okay, a lot of technical stuff there, but if I understood you correctly, it's like, it's—you're now able to do it, this, take this testing outdoors. I mean- Yeah. Yeah. Absolutely. It's important progress to be able to integrate in production, like vehicle environments. Yeah. So that's really the next step there. Oh, interesting. Magnus, this one is for you. You, in May, taking it a little bit step backwards, you also announced that you're a part of this new strategic vehicle research innovation project, several key partners there, like Trafikverket and AstaZero. This is, the aim is to improve traffic safety, and sounds interesting, for automated vehicles. The founder here is Vinnova. Could you open up a bit more about this one? Yes, for sure. Yeah, it's an interesting project. As you said, it's driven by AstaZero, which we work very close to, their certified test track, right? And for us, again, to be able to show our BlincVision product, what value it can add, is very important. In this project, there are also leading automotive manufacturers, Tier 1 suppliers, and also insurance companies, actually. Okay. What they will do is look at the current solutions on the cars today, and how good are they? How good do they actually save lives and avoid collisions? Another part is Euro NCAP. Euro NCAP is a rating methods, right, or rating standards, and they are also very interested to see what can actually the car achieve today, and what can be achieved with new solutions like BlincVision? How many more lives can possibly be saved? So, t hey are working on new revisions for their rating standard protocol, and there will be one new one coming out 2026, and another one 2029. So it's a perfect timing on working on showing what can existing system do, what can new solutions like BlincVision do? Mm. Very, very interesting. So this is a real good timeframe for you to come in and kind of show what you are able to do. And also to do it on a certified test track, but also to do it with, together with automotive manufacturers and Tier 1 suppliers, and authorities like Trafikverket, right? Mm-hmm. Yeah, Pierre, I mean, from development, what do you think about this? Yeah, much as you said there, Magnus, I mean, for us to prove and assure our solution on certified test track, like AstaZero, and deliver towards the most advanced Euro NCAP safety scenarios is really important, as this enables us to clearly identify the limits of existing solutions on the market today, and thereby also see the unique value of BlincVision and what BlincVision can add in the next gen ADAS system. So, very important. Yeah. For you both, or Magnus, perhaps, you have onboarded new people as well, or the management team has been expanded with Jonas Renander, as a strategic business developer. Yeah. What, what are your expectations for this role and the person itself? Could you bring us, shed some more light on it? Yeah, thank you for that question. I mean, I think it, first of all, it's the perfect timing of Jonas joining us, and, and that to strengthen the business development, part of the company. Over the last few years, we've been interacting a lot with automotive manufacturers and Tier 1 suppliers, and they all want to come and see our product, okay? And now, in the Q2, where we actually demonstrate the solution on a moving vehicle, then they want to come and visit, okay? Yeah. So having an additional resourcing, taking care of all this interest, and ensuring that we can follow up and deliver on those, is very important. So, and also, not to the least, Jonas, of course, comes with great experience from the automotive industry. Also been able to expanding our network even further, globally. So very good timing, and very excited by that recruitment. Sounds good. Financial stuff. You recently issued a new share, the new shares in relation to the TO7 warrant series, which resulted in, Was it SEK 12.6 million? Yeah, correct. Yeah. Could you open up on this a bit? What does it mean for you as a company, and what does it make possible? Y eah, absolutely. Of course, financing is a very important topic in a company, product development company like ourselves, right? And yes, we had the TO7 warrant program in second quarter. And actually, that was part of a rights issue that we did 2023. Okay? And on this TO7 warrant program, we got a 95% subscription, so that's very good. It shows that our shareholders really believe in what we're doing and are committed. And in terms of who subscribed, also the management and board subscribed, so that's also a good sign. By doing- Skin in the game there. Sorry? Skin in the game there. Yeah. Yeah, absolutely. It's important, right? Yes. And then with this TO7 warrant program, in addition of this funding, we now have finances up to the next warrant program, TO8, who comes in end of this year. Okay? And so that's also very good. And then moving on and financing the company forward, the board, of course, and the management is continuously working on financing. So I feel very confident that we have this topic under control, and I feel comfortable about the financing moving forward. Mm-hmm. Yeah. So let's move on to some more technical stuff. It sounds kind of, It sounds really interesting, but hard to understand. I think, Pierre, this is more for you. What does the product development plan look for the upcoming—I mean, what can we expect during this fall and the upcoming quarter? Mm-hmm. Yeah, the third quarter will be very significant for us. Our collaboration with MobilityXlab is about to begin, and will offer our company a unique chance to carry out the proof of concept with automotive manufacturers and Tier 1 suppliers, conducting tests in real-life world settings. These are also planned; there are also planned visits to authorized test tracks to better understand the system's strengths and weaknesses in different traffic scenarios, giving us a more realistic picture of the exact performance. During the third and fourth quarter, key development efforts will focus on verifying the system in more complex environments, as well as working on miniaturization, enhancing the optomechanics of the system, and advancing our AI-based object perception technology. In this phase, we also aim to not only issue a brake request to a vehicle, but also make sure that the target vehicle can receive and thereby brake on the signal that we have generated, and thereby be able to do a full end-to-end vehicle system testing from our side in complex environment scenarios. So what excites you the most? I mean, it sounds like a full program coming up here during the next quarter. Yeah, what's the most exciting part about this? The most exciting part, I would say, is getting our system to run in a full production vehicle. That's what excites me the most, the final proof of concept, you know? Yeah. Sounds nice. Mm-hmm. One final question from me. Yep. Magnus, this is for you. Mm-hmm. According to your roadmap, your plan is to establish a partnership with the OEM and Tier 1 suppliers in Q4. Which will be the following steps in Q3 to ensure that this goal is achieved? Yes. Now, this is another important milestone for us, for sure. And as you heard now with MobilityXlab, the readiness of a product in terms of demonstrating it out on a vehicle, gives it, gives it good timing for actually formalize our partnerships with automotive manufacturers and Tier 1 suppliers. And I mean, MobilityXlab is one, but there can also be other types of partnerships outside that, right? And now in Q3, since this, OEMs and Tier 1 suppliers can come and see the demonstration and see the solution, it's easier then also to, of course, formalize that partnership. So very much look forward to that. Thank you so much. Is there something more you, Pierre, would like to add before we move over to Q&A? I'm just to finalize, I think we are in a very exciting phase, not only with the product BlincVision, but with the company as a whole. We've done a lot of hard work, and we have now followed our plan. We've proven the prototype in the lab, now out on vehicle, engaging with customers. So we are very, very exciting phase. Yeah, really. Sounds really interesting, and you have a lot of stuff coming up. Thank you so much for all these comments from you. I think if you're all ready, we will move over to the questions from the audience. I'll start with the first one. This is a hard one. Is TÜV certificate something you're working towards? Yeah, I can start, and maybe, Pierre, you can add on this. And I think, of course, when you're working automotive and you work with safety solutions, certificates is very important, right? So yes, we are looking at what certificates are needed, and we are preparing for that, but it's also something we will look at more in detail now that we're getting closer to integration in vehicles. But yeah, please, please add, Pierre. No, I fully agree, and, as many of you might be aware already, we are working a lot on prototype hardware level at the current stage, which means it's not exactly the best timing to do it now, but the planning for it, as Magnus mentioned, is very important. And o f course, that's one of the certificates that we're looking at at gaining at a later stage, yes. Yep, next question starts like this: "First of all, I want to congratulate you, congratulate you for your recent success. Do we have a new update regarding the price per vehicle for BlincVision and what that could be?" Okay. Yeah, let me start by that, right? Of course, when you are in a prototype phase, the end volume price is very hard to estimate, right? But of course, it's something that we work on continuously, looking at our BOM, the Bill of Material, okay? And in terms of the what we need to look at is, of course, the added value, and that's what we will price, but also what is competitive other solutions out there, I mean, who do similar things. What is the price of that? And in terms of that, we are aligned, so we feel that we have a competitive product. So of course, it's something that we look into all the time, but yes, yeah, do you want to add a few words? Yeah, sure. Yeah, of course, we always do comparisons to other systems, and we know that we need to be cost, have good, let's say, cost relation, in terms of, well, the cost compared to the features we are delivering, of course. But I would say also a lot of the tuning will be done now together with the partners that we are working with to finalize the exact technical needs of the system. And while we're doing that, that will also, let's say, affect cost. And, overall, the phase we're going into now with miniaturization, et cetera, is aiming to both enable better packaging in the vehicle to make it easier to integrate the system, but also reducing costs. So we are in, we're starting the kind of cost reduction phase, going from a full feature focus to now, getting closer to production. But of course, there is a target price, but that's a bit too early to discuss that more in depth at this moment, I think. A bit too early at this moment. Another question, I'm not sure if I'm pronouncing this right: "Could NCAP make BlincVision mandatory in cars?" Yeah, I mean, I think they will not get say that you have to use a product, but what they will say is that you need to achieve certain safety standards, and yeah, maybe then you need a product like BlincVision to achieve these standards. That's how it would work, yeah? Mm. So for example, you know, in different scenarios with vulnerable road users, which is the focus areas for them, you know, when a child jumping out between two parked vehicles, you know, in what distance, speed, should the vehicle be able to stop, you know, or, There are many technical terms, right? But they will dictate what scenarios, a car should, you know, stop and, and not have a collision. And we believe that in the future, when they put in the scenarios, you need a solution like BlincVision to achieve that. Mm-hmm. Another question. We are running out of time shortly, but I think we have time for two more questions. This is from Alexander. "Will you investigate other user areas than automotive?" Yeah. Now, that's a very good question, so thank you for that. Our main focus is automotive, for sure. And when I talk automotive, I mean both personal driven cars, but also autonomous vehicles, right? And then you, of course, you can expand it to trucks and buses as well. But of course, So that's our main focus. But then there are other sectors, like, where you have vehicles, like mining, like farming, like defense, maybe even forklifts and things indoor. So all these use cases is of interest for us, and we are looking at that, but we also need to maintain our focus on automotive. And but end of the day, if we create the world fastest sensor solution, there are endless of opportunities, right, in endless of sectors, I would say. Here's a financial question. "Apart from the TO8, what plans do we have to start getting more funded or getting income?" Yes. Thank you. A relevant question, of course. As I said before, the board and the management is continuously working on different finance alternatives, right? So there are many different options on how you finance Terranet and the company. But we will come back to you with more details, of course, when we decided what kind of financing options we are using moving forward. But the only thing I can say is that we continuously work on it, and I feel confident that we will be able to finance the company moving forward. Yeah. Then there was a question about, "Could you elaborate on the MobilityXlab collaboration? How come that you were chosen among hundreds of applicants?" Yeah, yeah. No, it's good, good, and I like to talk about the MobilityXlab, so thank you, and maybe Pierre as well can add. But to start with, why we were chosen, I think there are different parts, right? One, it proves the area that we work with, saving more lives, you know, avoiding collisions, is important, and it is of interest for car manufacturers and Tier 1 suppliers. So that's one part. The other part is also saying that the existing solutions out there are not delivering 100% towards this. Accidents still happen, people still die, too many people die in traffic. And also the traffic getting more and more complex. So yeah, they see that we need different solutions. And also with BlincVision and our product, and Pierre, you can add on that, right? Is that it's very different because it's one thing of just you trying to improve LiDAR, radar, cameras. That's one option, right? Improving existing solutions. But really looking at something new, delivering much faster solutions. You know, that's what we are doing, right? Mm. Yeah, yeah, I think it's as Magnus said. I mean, many of our customers have been struggling and really, really working hard on getting their ADAS systems to work, and without too many bugs, and also implementing, looking at Level 2, Level 3 solutions for, let's say, getting closer to autonomous driving. Mm. Now they're starting to reach some of their, let's say, the right technical levels with the current systems. But yeah, it's still obvious for our customers that now when they reach that stepping stone, they, to be able to go further, need to look at alternative sensor technology, new technology. Mm. Because you're starting to reach the limits, let's say, of the current systems. Mm. That's why I think one of the reasons why BlincVision is so important and so, so interesting for members of MobilityXlab, because it can enable that next step in reaching higher, autonomous levels and, improved ADAS performance. Yeah, interesting. We are running out of time. I think we'll take one final question. And this is, in the recent update on August 8th, Terranet stated that vehicle integration completed. Was the vehicle manufacturer collaborating on the software and hardware integration? Yeah, we've had continuous sort of dialogue, of course, with a lot of OEMs and Tier 1s. And so yes, their input have impacted the work we've done in the vehicles, of course, and we also need to adapt everything, like I mentioned before. For example, the communication interface needs to be exactly adapted to the requirements of the OEMs, the Tier 1s, for the system to actually work. So, a lot of input have been taken from Tier 1s and OEMs, even during Q1 and Q2. I would say, let's wrap this up. Thank you so much for all these great answers. Thank you for sending in questions. Thank you also from my behalf. Is there anything more you would like to add? No, I think just to wrap it up, thank you for all you who are listening to this webcast, and thank you for keeping in touch with us. We appreciate that. And stay up to date with us. You can, of course, subscribe to press releases, and look at news updates on our website. We also publish a lot on social media, especially LinkedIn, so please follow us there. And of course, if you have any questions, email us to investorrelations@terranet.se. But please continue and keep in touch, and we look forward to update you soon on our exciting journey.