Freemelt (FREEM) investor relations material

Strategic update and business expansion

• Strategy expanded to include manufacturing qualified parts for end customers, moving beyond 3D printer sales and addressing demand for serial production and resilient supply chains.

• Two business areas established: equipment/production system sales (e.g., MedTech) and qualified part manufacturing for sectors like fusion and defense.

• Leveraging E-PBF technology, expertise in extreme materials, and established customer relationships to support both in-house and outsourced manufacturing needs.

• New business area launched with a major order from Fusion for Energy, linked to the ITER project, highlighting demand for qualified manufacturing in advanced sectors.

• Company aims to emulate advanced manufacturing models seen in China, targeting critical applications and manufacturing resilience in Europe.

Market opportunity and financial ambitions

• Addressable market opportunity expanded to SEK 450–560 billion for manufacturing and assembly, compared to SEK 20–30 billion for equipment sales.

• Recent order involves producing 31,000 tungsten tiles and monoblocks over 22 months, valued at SEK 55–84 million.

• Approach is equity-light, leveraging partnerships, scalable external capacity, and asset financing tied to contracts to minimize capital investment.

• Financial targets reaffirmed: SEK 1 billion annual order intake by 2030 and EBITDA positive by 2028.

• Expecting more than half of revenues to come from recurring sources such as services, aftermarket, and long-term customer relationships.

Operational outlook and risk assessment

• Key KPIs include order intake, order book health, and business mix.

• Technology proven with 45 systems sold and over 40 qualification projects completed in two years.

• Main risk identified as geopolitical competition, with urgency for Europe to establish manufacturing resilience.

• Vision to become an industrial platform for extreme materials and critical applications in Europe, supporting customers from technology adoption to industrial deployment.

• Organic growth prioritized, with selective acquisitions considered to complement the industrial platform.