BlincVision (TERRNTB) Earnings Call Transcript
May 7, 2024
Earnings Call Speaker Segments
Hi, and welcome to Terranet's Q1 presentation of 2024. With me today is Terranet's CEO, Magnus Anderssonas; and CTO, Pierre Ekwall. We're now going to show a highlight video from the quarter as well as a longer lab demonstration video. Then we will go over to some questions about the quarter. [Presentation] Welcome to the interview section of Terranet's Q1 webcast. As earlier mentioned, with me today is Terranet's CEO, Magnus Anderssonas; and CTO, Pierre Ekwall.
Pierre and Magnus, you just completed a successful lab demonstration. Can you tell us why this was an important milestone.
Yes, the lab demonstration was a great success. It was crucial as it validates BlincVision's end-to-end functionality and provide essential input data for our continued product development. Its success paves the way for the upcoming in car testing and real-world validation.
It's also, of course, strengthening our discussions with our potential partners and customers and also then accelerate our commercial process.
I understand. Pierre, what can we expect from the vehicle demonstration at the end of Q2?
The upcoming vehicle demo will mark a significant milestone for Terranet as we integrate BlincVision into vehicle for testing on the test track to validate in vehicle end-to-end latency as well as the system accuracy. So we will continue with this. And while we're doing that, we'll keep you continuously updated, of course, on the progress and look forward to sharing more details during the quarter.
Okay. And what role will Astra Zero play in the vehicle demonstration?
Yes. Astra Zero will be a very important indigo part of our testing and demonstration process. The test track supplies the infrastructure needed to be able to test our technology in a state-of-the-art environment.
And also, Astra Zero, as owned by the Swedish government entity rise, it's a very important partner to us to work with, okay? And also to see how good are other ADAS and AD solutions on a testing track to also see how can BlincVision add value, for example, in very complex traffic scenarios. Secondly to that, also, of course, our close discussions with Urancap. Urancap who's working on the revision for 2026 and '29. And looking at what current technologies can do today and what potentially solutions like BlincVision can add value. So Urancap is a very important part in this as well.
I understand. And then Magnus, will the results from the vehicle demonstration lead to a partnership?
Well, I mean, all the partners that we are talking to potential Tier 1 suppliers or OEM automotive manufacturers, we all want to see the product in live in the real environment, so to say. So having a demo prototype is, of course, very important. And also secondly, to put it on a vehicle, see it's moving, right? And I think that would accelerate and help us to then potentially sign an agreement with a potential partner customer during this year as planned.
Magnus, do you have plans for additional recruitments?
Yes. We always look for talented people. And yes, we have some ongoing recruitments, both on the technical side but also on the business development side. And we also actually signed a few people recently, and we are into viewing many more. So yes, a lot of focus on recruitment.
I understand. Magnus, you were recently in Singapore and later both of you in Italy with the business, Sweden. What did you learn there?
Yes. Singapore is a quite interesting place. Over the years, it's actually been some kind of center for testing autonomous vehicles. So a lot of work has been done there and a lot of experiences. So I was very interested to go over and see what we learned and also for us in the future when we need to do more risk projects where to go, okay? And of course, for the whole Asian market, Singapore is a very interesting place. Then also going on this kind of trips with business Sweden another and being out in the market is also look for new use cases. Even if our focus is automotive, there are many other areas where people are interested to use our product. So that was very interesting. And I mean, also another thing that we saw, especially when I was in Italy, also seeing the Tier 2 suppliers like software providers, taking a big and bigger part in the automotive space. So of course, we're also trying to partner up with them in different ways.
And I can, of course, only speak for the VM faring riddim, but definitely a good place to adapt and it resulted in very valuable discussions with both OEMs as well as 2 of our suppliers on the product requirements.
Interesting. So what other potential use cases look promising to you?
I mean, our focus, as I said before, is definitely automotive, right, and ADAS and AD, both for personal vehicles, but also for commercial vehicles, like trucks and other types. But what we see is there is potential outside that in, for example, mining, in agriculture, in logistics. If you think about ports or airports, a lot of potential for ADAS solution, but also for autonomous. So that's very interesting for us. But again, the focus is automotive. And now also the focus is to get the product out on the market.
Yes, I can only second one minus just said. So many interesting use cases exist, although we, of course, evaluate alternative use cases all the time, our current primary focus is on perfecting the system for AD&A specifications.
I understand. Magnus, what upcoming financial activities do shareholders need to be aware of, and why?
Yes. We're working on the financing all the time, and the Board has a big focus on that, right? And what we have at the moment is the warrant program T07, where the measuring period is now in the first half of May. And then the subscription period is from 20th of May up to 3rd of June. So that's, of course, a very interesting activity. Later on in the year, we also have a T08 coming up in December. And provided a favorable outcome of the T07 and T08, we see that we will have funding all the way into 2025.
I understand. That was the interview section. So we're now going over to the questions from the webcast. How are you going to sell BlincVision? You're talking about deals contracts, but how is the deals going to pay off?
Yes. If we take, for example, when talking about automotive, right? We're working closely with OEMs. But then, of course, Tier 1 suppliers have a big role to play, okay? Because the Tier 1 suppliers is usually the one who is integrating their product into their sort of final products into their volume car, okay? So we will work very closely with the Tier 1 suppliers to develop and to deliver into the automotive manufacturers. In terms of financing, it doesn't really affect our liquidity, meaning that our cash flow forecast is the same. Our going concern and how much money we have to do invasion and big vision to the market is still the same. So no impact on that side.
I understand. We got a question here about the AI-based model that you are developing. Could you tell us more about that?
Yes, sure, absolutely. So an important differentiating factor there is that the software itself will be AI trained, and we're using AI to train the software to develop the software. But the software itself, when it's running in a real-life environment in a vehicle will not be an AI software. So it means it will not evolve while you're running it in a product. And that's a very important differential factor for the automotive industry because it's very hard to verify as software as constantly changing. So we're using AI to train and develop the models. And then once it's developed, it's then pushed into a fixed state and run on the target hardware. So that's how we use the AI part of our software development.
Okay. What is the purpose of the Euro NCAP discussions? And how will it benefit Terranet?
Recap, as you may know, we have what we call Vision 2030, right? And of course, safety is what we work on, right? And saving lives and saving more lives is very interest and it's our interest. So it makes sense for us to discuss with them. Secondly, in terms of technology side, we are very interested. They know what you can do with existing ADAS technologies and what they can achieve. But we also see the potential with a low license system like BlincVision and what can potentially be achieved with that. So therefore, the rating methods, what traffic scenarios, they actually are evaluating will change. And we will upgrade that for the coming revisions, now first revision '26 and '29. So we have a very good discussion with Urancap and give them as much input as we can.
Cool. We got a question about the financial situation. So we briefly talked about it, but what's the current financial situation? And how do you plan on spending your money going forward?
As I mentioned before, right, our Board is continuously working on financing. And we have a T07 now in May. We have T08 in December. And with favorable outcome, as I said, then it will take us to 2025. And how will we spend our money? Of course, it's all on BlincVision. It's all on getting the BlincVision out on the market. So that's where we spend our money.
We've got a question here about your personal investments in Terranet. Will you increase those?
I would love to do that every day, right? But I also have my income and my expenses in my private situation. But of course, I will invest in Terranet as much as I can. And I believe in the company, otherwise I would not be sitting here and running it.
Yes. And as some of you might know, I recently invested, and I'm, of course, looking forward to do further investments along the line as well. But when that will be, that's something that I will need to come back.
I understand. I'm checking here if we get some more questions, but it looks like that was all the questions we had at the moment. So thank you, Magnus and Pierre and Magnus, I'll give the word back to you.
Yes. Thank you very much, and thank you for the very interesting questions. And thank you all for joining today. Thank you for following Terranet and your interests. You can follow us more, of course, looking at our website and our press releases and also follow us on LinkedIn, social media. And if you have any questions, please feel free to email us on investorrelations@terranet.se. So stay in touch. Thank you very much for today.
Thank you.
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