Slides
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Webcast Q3 2025
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Well positioned for profitable growth INVESTMENT CASE Strong growth and growing TAM World-leading technology High-volume production has started Asset-light and flexible business model Driven by regulation and customer needs With extensive patent portfolio >500 000 antennas produced Generating revenue at each step
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Q3 Highlights 2025
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Focus on production ramp-up >500 000 antennas manufactured since inception Valeo volumes increasing steadily since start of production in the summer Strong increase in Hella’s Gen 6 radar antenna production Preparing for large-scale production start in China in 2026 Global, flexible production model ensures local delivery reliability HIGHLIGHTS Q3
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Growth momentum sustained, driven by sales of production equipment, products and development projects Q3 adj. EBITDA impacted by costs related to start of production and increased accruals. YTD adj. EBITDA improved year on year with MSEK 2,5 Improved cash flow of MSEK -6,2 vs -12,1 Q3 last year. Cash-flow impacted by positive working capital movements. Challenging market climate, but important underlying market trends remain unchanged HIGHLIGHTS Q3 Q3 Net Sales MSEK 20.4 (MSEK 18,4) Q3 Adj. EBITDA MSEK –15,3 (MSEK -6,6) Sales increased, EBITDA impacted by start up costs FY25 Net Sales MSEK 67.2 (MSEK 48,5) FY25 Adj. EBITDA MSEK -21,7 (MSEK -24,3) FY Cash Flow MSEK –11,8 (MSEK -34,9) Q3 Cash Flow MSEK –6,2 (MSEK -12,1)
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Deployed in cars on the roads Mercedes-Benz CLA with EQ Technology HIGHLIGHTS Q3
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Continued momentum for Sensrad Commercial and technological progress continue Strong market interest in autonomous military solutions HIGHLIGHTS Q3
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Financing to support industrial scale-up Accelerating commercial growth Scaling up production and supply chain capabilities Broadening the customer base across automotive, industrial, telecom, and transport sectors Investing in next-generation technologies to strengthen long-term competitiveness HIGHLIGHTS Q3
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Business model & strategy We grow together with our customers
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Attractive business model - generating revenue at every step BUSINESS MODEL AND STRATEGY Prototype project Contractual work Product development Volume productionPre-study 2024 Royalty 2024 Product sales 2026 Royalty 2028 Product salesNorth American Tier 1 2025 Product sales 2027 Product salesAsian Tier 1 2024 Product sales 2025 Product sales (Automotive) Start of production Phase 1 6-18 months Phase 2 9-36 months Phase 3 6-8 years Non-recurring engineering revenue (NRE) (often includes prototype sale) Product sales (and royalties) based on the antenna units produced and delivered by Gapwaves 2026 Product sales
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Scalable and flexible production setup - with minimal Capex BUSINESS MODEL AND STRATEGY Research & Development Prototype production Volume production Chuzhou, ChinaTianjin, ChinaGothenburg European supply chain – Work in progress Antenna design and development Prototypes Industrialization Lower volume production High-volume production CUSTOMERS Pilot-line production facility Certified partners
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Market potential Automation drives radar growth
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Regulation and consumer needs are strong drivers – Automation drives radar growth MARKET POTENTIAL Note: 1) European New Car Assessment Programme. Source: Yole Market Report 2022 0 50 100 150 200 250 300 350 2021 2022 2023 2024 2025 2026 2027 2028 Automotive radar forecast (million units) Standard radar High resolution radar CAGR 25% NCAP1) & Legislation & Consumer needs & requirements Market drivers Product impact Industry impact Higher resolution & performance & Shift to 77 GHz Increasing demand for Waveguide Antennas & Increasing numbers of radars per car > 3 radars per car Eyes-off Hands-off Major safety improvements
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Regulation and consumer needs are strong drivers – Automation drives radar growth MARKET POTENTIAL Note: 1) European New Car Assessment Programme. Source: Yole Market Report 2022 Corner radar High resolution radar Imaging radar Radar type 100–150 10–15 Indicative volumes Million antennas One Tier 1 customer 5–10 Indicative antenna pricing 20–30€ Indicative antenna pricing 5–15€ Indicative antenna pricing 1–2€
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Well positioned for profitable growth INVESTMENT CASE Strong growth and growing TAM World-leading technology High-volume production has started Asset-light and flexible business model Driven by regulation and customer needs With extensive patent portfolio >500 000 antennas produced Generating revenue at each step
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Q&A
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For more information CONTACT Jonas Ehinger CEO jonas.ehinger@gapwaves.com
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Thank you! Gapwaves AB (publ) Corp. Reg. No. 556840-2829 Headquarters: Nellickevägen 22 SE-412 63 Gothenburg, Sweden Tel: +46 31 762 60 40 E-mail: info@gapwaves.com www.gapwaves.com Follow us