Terranet AB – Year End Report 2021
Highlights of the fourth quarter
• Terranet moves into a new office in Stuttgart
• Cooperation agreement with NEVS signed with the partner of the company holoride
• Thomas Falkenberg took over as new CFO
• A well-attended Capital Markets Day was held in Stockholm
• An extraordinary general meeting was held at Terranet AB, where four new board members were elected and three members resigned. The replacement brings a skill that improves the contribution to the current stage of the company
Significant events after the end of the fourth quarter
• Terranet provided the market with an update of BlincVision, based on VoxelFlow™, and announced that the technical objectives set for 2021 have been met and exceeded
• Pär-Olof Johannesson, CEO, left the company
• Michaela Berglund, CMO, left the company
Fourth quarter, October 1 – December 31, 2021
• Turnover amounted to SEK 161,000 (132)
• The operating result amounted to -16,710 thousand SEK (-9,426)
• Diluted and undiluted earnings per share amount to -0.06 SEK (-0.05)
Full year, January 1 – December 31, 2021
• Turnover amounted to 1,369 (847) thousand SEK
• The operating result amounted to -41,708 thousand SEK (-31,662)
• The result for the year amounts to -44,732 thousand (-34,893)
• Diluted and undiluted earnings per share amount to -0.17 SEK (-0.27)
• Group cash and cash equivalents amounted to SEK 62,788 thousand (44,495) at the end of the year
• The Board proposes that no dividend be paid for the 2021 financial year
Well prepared for the growth journey ahead
We are very happy with the state of our technology and our position in the industry, so after achieving several key goals for 2021, we are excited about the road ahead. We believe we can do even better, setting new standards in road safety and ADAS capabilities. Terranet’s unique product technology, compared to that of our competitors, is a fundamental strength on which we will continue to capitalize.
To accomplish our vision, the company has recently gone through significant structural changes. Following the leadership changes announced by the Board of Directors on February 4, 2022, I write this text as interim CEO. I expect my time as interim CEO to be limited until a permanent solution is in place. During this time, I will devote all my energy to leading Terranet on this exciting journey of growth.
A strengthened team
As we enter this next stage of the company’s journey, we welcome contributions from our newest board members, all of whom have specific expertise in line with Terranet’s current priorities. The expertise of our board members will facilitate the transition from a development company to a commercial company. Board members include:
• Magnus Edman has extensive experience in the development and production of complex technical solutions, including solutions for the automotive industry. Today, he leads an organization with more than 40 technical experts.
• Nils Wollny, CEO of holoride. With a background at Audi and now as CEO of holoride, Nils has extensive experience in selling technical solutions to car manufacturers, but also has an extensive network within the industry.
• Tarek Shoeb. Tarek has experience as an international private equity and growth capital investor. Tarek brings to Terranet his deep experience in successfully supporting and supporting businesses across different industries.
• Anders Blom represents the main shareholder of Terranet. He has more than 20 years of experience in international finance, mergers and acquisitions, as well as venture capital in several sectors.
Combined with the recruitment of Thomas Falkenberg as new CFO during the fourth quarter, the company is well equipped for the growth journey ahead.
The new board of directors concluded that Terranet needed new leadership to lead the company into the future and therefore elected to replace the CEO. The recruitment process to find a new permanent CEO has already begun. Our next CEO will be our primary representative to existing and potential new customers, as well as within the capital markets.
Results show great advances in technology development
During the fourth quarter, Terranet had the opportunity to demonstrate our products in front of potential customers. Additionally, Terranet and its partner Summer Robotics have made significant improvements to its VoxelFlow™ vision technology which now has the ability to react ten times faster than today’s leading ADAS (Advanced Driver Assist Systems) vehicles.
At the company’s Capital Market Day on December 6 in Stockholm, Terranet announced BlincVision, powered by VoxelFlow, as a new product brand of the company’s sensor technology for the automotive market.
Summer Robotics, a longtime Terranet partner, has worked diligently to improve the technology behind Terranet’s BlincVision product. In addition to applying advanced noise filters, the team successfully demonstrated a multi-beam VoxelFlow setup emitting and processing twelve simultaneous laser beams. Overall, the achievements of both companies will improve BlincVision’s ability to integrate into vehicles.
Autonomous vehicle regulations pave the way for the ADAS sector
The automotive market continues to grow, and ADAS in particular is growing as technological cars are rapidly deployed across the world. The ADAS industry is poised to grow by 150% from 2020 to 2025, with a projected market size of $84 billion by 2025 (Deloitte, 2021 Global Automotive Supplier Study). Reports have indicated a strong willingness to pay for an automated driving experience among those confident in the safety of self-driving vehicles. Additionally, the governments of the United States, European Union, and China have increasingly begun to push for regulation and standardization of autonomous vehicles over the past year, easing integration. of our products in the ADAS and automotive sectors (PWC, The 2021 Digital Auto Report) .
Partnership with NEVS
While the ADAS market shows great potential, Terranet has signed a new collaboration agreement with NEVS. The purpose of the collaboration is to evaluate a possible integration of VoxelFlow™ image analysis technology and object identification software into the NEVS Sango self-driving vehicle pod. As part of the agreement with NEVS, Terranet will also continue to work with an in-car entertainment startup, holoride. This partnership is an example of VoxelFlow™ capabilities in the mobility sector, enabling multimedia and extended reality entertainment for passengers in autonomous vehicles. Through this collaboration, Terranet, NEVS and holoride can offer the market a complete system in which NEVS provides the vehicle, holoride the entertainment technology and Terranet the on-board object identification software.
Strong fourth quarter
Terranet has already started executing holoride’s SEK 1.6 million order in Q3 to develop a feature that reuses VoxelFlow™ data to create a better and more immersive extended reality experience for holoride users.
As part of the company’s Capital Market Day, which took place on December 6 in Stockholm, Terranet presented BlincBike – a road safety system with an object identification sensor for e-bikes. Although Terranet continues to prioritize its ADAS technology for the automotive market, the product has been positively received by the media and has been covered by Mashable, The Next Web and TechCrunch.
In summary, we had a solid fourth quarter and we are confident that we can do even more to accelerate our work even further. Not only in terms of the development of BlincVision, but also in terms of our existing and future customers. We greatly appreciate the feedback, interest and passion of our shareholders and industry partners and look forward to sharing more frequent updates on our business activities.
The full report can be found here https://terranet.se/en/reports/
For more information:
+ 46 703 360 346
Terranet AB (Nasdaq: TERRNT-B). With a vision to save lives, Terranet designs and develops a new class of vision-based sensor systems used for road safety. It markets and provides a software stack with features available across vehicle platforms and car models. The technology has been handpicked and showcased twice at Startup Autobahn in 2021. The company is located in Lund and Stuttgart. Terranet AB (publ) is listed on the Nasdaq First North Premier Growth Market. Learn more about Terranet: https://terranet.se/en/
This information is such that Terranet AB is required to make it public in accordance with the European Market Abuse Regulation (MAR). The information was made public by the Company contact person above on February 24, 2022 at 08:00 CET.
Certified advisor: Mangold Fondkommission AB, 08-503 015 50, [email protected]