Significant events during the fourth quarter
• Terranet moved into a new office in Stuttgart
• Cooperation agreement with NEVS signed together with the company’s partner holoride
• Thomas Falkenberg took over as new CFO
• A well-attended Capital Markets Day was held in Stockholm
• An Extraordinary General Meeting was held in Terranet AB, where four new Board members were elected, and three members resigned. The replacement brings in competence that improves the contribution to the current stage of the company
Significant events after the closing of the fourth quarter
• Terranet provided the market with an update of BlincVision, based on VoxelFlow™, and announced that the technical objectives established for 2021 have been achieved and exceeded
• Pär-Olof Johannesson, CEO, left the company
• Michaela Berglund, CMO, left the company
Fourth quarter, 1 October – 31 December 2021
• Revenue amounted to SEK 161 thousand (132)
• Operating profit/loss amounted to SEK -16,710 thousand (-9,426)
• Diluted and undiluted earnings per share amounted to SEK -0.06 (-0.05)
Full Year, 1 January – 31 December 2021
• Revenue amounted to SEK 1,369 (847) thousand
• Operating profit/loss amounted to SEK -41,708 thousand (-31,662)
• Profit/loss for the year amounted to -44,732 thousand (-34,893)
• Diluted and undiluted earnings per share amounted to SEK -0.17 (-0.27)
• The group’s cash and cash equivalents amounted to SEK 62,788 thousand (44,495) at the end of the year
• The Board proposes that no dividend is paid for the 2021 financial year
Comments from the CEO
Well prepared for the growth journey ahead
We are very pleased with the state of our technology and industry position, which is why after hitting several milestone objectives for 2021, we are excited for the road ahead. We are convinced that we can do even better, setting new standards for both roadway safety and ADAS capabilities. Terranet’s unique product technology, compared to that of our competitors’, is a core strength that we will continue to capitalize on.
To accomplish our vision, the company has recently gone through important structural changes. As a result of the management changes that were announced by the board on February 4, 2022, I write this text in the role as interim CEO. I expect my time as interim CEO to be limited until a permanent solution is in place. During this period, I will put my full force into leading Terranet during this exciting growth journey.
A strengthened team
As we move into this next stage of the company’s journey, we welcome the contributions from our new board members, who all possess 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 one. The board members include:
• Magnus Edman has extensive experience in developing and producing complex technical solutions, including solutions for the automotive industry. Today, he leads an organization with 40+ technical experts.
• Nils Wollny, CEO of holoride. With a background within Audi and now as the CEO of holoride, Nils has a wide experience in selling technical solutions to automotive companies, but also has an extensive network within the industry.
• Tarek Shoeb. Tarek has a background as an international private equity and growth equity investor. Tarek brings to Terranet his deep experience of successfully backing and supporting businesses across different industries.
• Anders Blom represents Terranet’s largest shareholder. He has a 20+ year background within international finance, mergers and acquisitions, as well as venture capital from several industries.
In combination with the recruitment of Thomas Falkenberg as new CFO during Q4, the company is well equipped for the growth journey ahead.
The new board of directors concluded that Terranet requires new leadership to take the Company into the future, and therefore chose to replace the CEO. The recruitment process to find a new permanent CEO has already begun. Our next CEO will serve as our chief representative to existing and potential new customers, as well as within the capital markets.
Results show big leaps in technology development
During the fourth quarter, Terranet has had the opportunity to demonstrate our products in front of potential customers. Additionally, Terranet and our partner Summer Robotics has made significant enhancements to its VoxelFlow™ vision technology which now has the ability to react ten times faster than today’s leading Advanced Driver Assist Systems (ADAS) vehicles.
At the company's capital market day on December 6 in Stockholm, Terranet announced BlincVision, powered by VoxelFlow, as the new product brand of the company’s sensor technology for the automotive market.
Terranet’s long-standing partner Summer Robotics has been diligently at work making further improvements to the technology behind Terranet’s product BlincVision. In addition to applying advanced noise filters, the team has successfully demonstrated a multibeam VoxelFlow setup emitting and processing twelve simultaneous laser beams. In all, both companies’ achievements will enhance the capability of integrating BlincVision into vehicles.
Autonomous vehicle regulation eases the way for ADAS sector
The automotive market continues to grow, and ADAS in particular surges as the tech enabled cars are rapidly being rolled out across the globe. The ADAS sector is poised for 150% growth from 2020 to 2025, with an anticipated market size of $84 billion by 2025 (Deloitte, 2021 Global Automotive Supplier Study). Reports have indicated a high willingness to pay for an automated driving experience among those who are confident in autonomous vehicle safety. Moreover, governments throughout the United States, European Union and China have increasingly started to push for autonomous vehicle regulation and standardization in the past year, easing the path for integrating our products across 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’s™ image analysis technology and object identification software into NEVS self-driving autonomous vehicle pod Sango. As part of the agreement with NEVS, Terranet will also continue to work with an in-vehicle entertainment startup, holoride. The partnership is an example of VoxelFlow’s™ capabilities across the mobility sector, enabling extended-reality multimedia and entertainment for passengers in autonomous vehicles. Through this collaboration, Terranet, NEVS and holoride can offer the market a complete system where NEVS are providing the vehicle, holoride the entertainment technology, and Terranet the embedded object identification software.
Strong fourth quarter
Terranet has already begun work to fulfill holoride’s Q3 order of SEK 1.6 million to develop a function that reuses VoxelFlow’s™ data to create a better and more immersive extended reality experience for the holoride users.
In connection with the company's capital market day that took place on December 6 in Stockholm, Terranet introduced BlincBike - a traffic safety system with an object identification sensor for electric bicycles. Although Terranet will continue to prioritize its ADAS technology for the automotive market, the product was received positively by the media and was covered in Mashable, The Next Web, and TechCrunch.
To summarize, we have had a strong fourth quarter, and we are convinced we can do even more to further accelerate our work. Not only with regards to development of BlincVision, but also in terms of our existing and future customers. We have a great appreciation for the feedback, interest and passion from our shareholders and industry partners and look forward to sharing more frequent updates about our business activities.
Göran Janson
Interim CEO
Full report is found here https://terranet.se/en/reports/
For more information:
Thomas Falkenberg
CFO
thomas.falkenberg@terranet.se
+ 46 703 360 346
About Terranet
Terranet AB (Nasdaq: TERRNT-B). With a vision to save lives Terranet designs and develops a new class for vision-based sensor systems, used for road safety. It markets and delivers a software stack with features available across vehicle platforms and car models. The technology was 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. Discover more about Terranet: https://terranet.se/en/
This information is such that Terranet AB is required to make public in accordance with the EU’s Market Abuse Regulation (MAR). The information was made public by the Company’s contact person above on February 24th, 2022 at 08.00 CET.
Certified Adviser: Mangold Fondkommission AB, 08-503 015 50, ca@mangold.se
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