Slides
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Webcast Q4 2025 A positive end to the year and one million Gapwaves antennas produced
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Well positioned for profitable growth I N V E S T M E N T C A S E ▪ 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 >1 000 000 antennas produced Generating revenue at each step
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Q4 Highlights 2025
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Industrialisation continues ▪ >1 000 000 Gapwaves antennas since inception (>840 000 in 2025 alone) ▪ Valeo volumes increasing strongly since start of production in the summer (8x contract volume for the period) ▪ Scaling up in phases as we build capacity in line with customers’ ramp-up needs ▪ Transferring to high-volume production starting in China in 2026 H I G H L I G H T S Q 4
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▪ Growth momentum sustained, driven by sales of production equipment and products ▪ Q4 adj EBITDA impacted by costs related to production and an unfavourable revenue mix. YTD adj. EBITDA impacted by change of revenue mix ▪ Cash flow of MSEK 59,4 vs -14,4 Q4 last year, due to successful rights issue of MSEK 71,6 ▪ Cost program initiated – to reduce cost base from H2 2026 ▪ Challenging market climate, may affect revenues in the short term, but important underlying market trends remain unchanged H I G H L I G H T S Q 4 Q4 Net Sales MSEK 23,3 (MSEK 17,6) Q4 Adj. EBITDA MSEK –19,7 (MSEK -11,4) Record sales, EBITDA impacted by revenue mix FY25 Net Sales MSEK 90,6 (MSEK 66,1) FY25 Adj. EBITDA MSEK -33,9 (MSEK -32,0) FY Cash Flow MSEK 47,7 (MSEK -49,3) Q4 Cash Flow MSEK 59,4 (MSEK -14,4)
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▪ Positive year with several new customers and sales of serial products ▪ Delayed development and market penetration ▪ Impairment adjustments due to market delays ▪ Well positioned for continued growth going forward H I G H L I G H T S Q 4
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Vinnova funding for research projects Civil-military application and for next-generation high-performance imaging radar in autonomous vehicles H I G H L I G H T S Q 4
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2026 - a transitional year ▪ Transitioning from research to a strategic, high-volume supplier ▪ Scaling up high-volume automotive production to meet growing demand ▪ Lower unit margins in high volume, but building scalability and long-term growth ▪ Production-equipment sales with the 2026 production set- up in China for Valeo Focus areas: ▪ Scaling up production and strong volume growth ▪ Exploration of new growth segments with initial deals and projects ▪ Continued efficiency improvements H I G H L I G H T S Q 4
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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 B U S I N E S S M O D E L A N D S T R A T E G Y 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 B U S I N E S S M O D E L A N D S T R A T E G Y 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 M A R K E T P O T E N T I A L 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 New segment for WG antennas
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Well positioned for profitable growth I N V E S T M E N T C A S E ▪ 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 >1 000 000 antennas produced Generating revenue at each step
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Going forward New customers New segments New contracts Volume production Produced antennas: 2011-2023: 60 000 2024: >100 000 2025: >840 000 2026: >4 500 000 (forecast) Gapwaves products in new cars on the roads >1 000 000 antennas produced to date
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Q&A
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For more information CONTACT Jonas Ehinger CEO jonas.ehinger@gapwaves.com Nils Mösko CFO nils.mosko@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