Release Date: August 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Terranet AB (FRA:TE5, Financial) was selected for the prestigious MobilityXLab program, allowing collaboration with leading automotive companies and Tier 1 suppliers.
- Significant progress was made with BlincVision, evolving from a conceptual prototype to being successfully integrated and tested in moving vehicles.
- The company is involved in a strategic vehicle research innovation project aimed at improving traffic safety, with key partners like Trafikverket and AstaZero.
- Terranet AB (FRA:TE5) successfully issued new shares, raising SEK12.6 million, demonstrating strong shareholder confidence and commitment.
- The company is actively working on product development, including miniaturization and AI-based object perception technology, to enhance system performance.
Negative Points
- The company is still in the prototype phase, making it difficult to estimate the end volume price for BlincVision.
- There is uncertainty regarding the mandatory adoption of BlincVision by regulatory bodies like Euro NCAP.
- Terranet AB (FRA:TE5) is heavily reliant on securing partnerships with OEMs and Tier 1 suppliers, which are yet to be formalized.
- The company faces challenges in adapting its system to meet the specific communication interface requirements of OEMs and Tier 1 suppliers.
- Despite progress, the company is still working on securing additional funding beyond the TO8 warrant program.
Q & A Highlights
Q: Could you elaborate on Terranet's selection for the MobilityXLab program and its significance?
A: Magnus Andersson, CEO, explained that being selected for MobilityXLab is a significant achievement, as it allows Terranet to collaborate with leading automotive companies and Tier 1 suppliers like AB Volvo Trucks and Buses, Ericsson, and Polestar. This program will enable Terranet to integrate their solutions into vehicles and conduct proof-of-concept projects, accelerating their product development and market readiness.
Q: What progress has been made with the BlincVision system integration and testing?
A: Pierre Ekwall, CTO, highlighted that BlincVision has advanced from a conceptual prototype to being integrated and tested in moving vehicles outdoors. The system has been adapted for motion compensation and optimized sensor placements, ensuring reliable operation in dynamic driving conditions. This progress is crucial for moving towards full production vehicle integration.
Q: Can you provide details on the strategic vehicle research innovation project with partners like Trafikverket and AstaZero?
A: Magnus Andersson, CEO, discussed the project's aim to improve traffic safety by evaluating current automotive solutions and exploring new technologies like BlincVision. The project aligns with Euro NCAP's upcoming safety standards revisions, providing an opportunity to demonstrate BlincVision's potential in saving lives and avoiding collisions.
Q: What are the expectations for the new strategic business developer, Jonas Renander?
A: Magnus Andersson, CEO, expressed that Jonas Renander's addition to the team is timely, as he will strengthen business development efforts. With extensive experience in the automotive industry, Jonas will help manage increased interest from automotive manufacturers and Tier 1 suppliers, expanding Terranet's global network.
Q: How does the recent SEK12.6 million funding from the TO7 warrant program impact Terranet?
A: Magnus Andersson, CEO, stated that the successful 95% subscription of the TO7 warrant program reflects strong shareholder confidence. This funding secures finances until the next warrant program, TO8, and supports ongoing product development and strategic initiatives.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
