Ranplan Group AB - Interim Report July - Dec 2024

The period in summary

Second half of 2024 (second half of 2023)

• Total income amounted to SEK 7 million (15.4 million)¹
• Net sales amounted to SEK 6.2 million (4 million)
• Operating income amounted to SEK -6 million (-9.8 million)
• Net income amounted to SEK -5.9 million (-11.5 million)
• Earnings per share amounted to SEK -0.13 (-0.36)
• Cash at the end of the period amounted to SEK 2.8 million (5 million)

Full year of 2024 (Full year of 2023)

• Total income amounted to SEK 27 million (26.6 million)¹
• Net sales amounted to SEK 19 million (15.6 million)
• Operating income amounted to SEK -10.1 million (-24 million)
• Net income amounted to SEK -12.6 million (-24 million)
• Earnings per share amounted to SEK -0.27 (-0.88)
• Cash at the end of the period amounted to SEK 2.8 million (5 million)
• The Board proposes that no dividend be paid for 2024 (no dividend).
• At the end of 2024, SEK 24.7 million of the credit line was unutilised.

Notes:
1 Total income comprises the sum of net sales (related to commercial products and services), other income (associated with research projects) and other operating income (derived from R&D tax credits). Total revenues comprise the sum of net sales and other income.

Significant events in 2024 and after the end of the calendar year

• On 15th January 2024, Ranplan announced that Per Lindberg has, via a wholly owned company, made public a cash offer to shareholders in Ranplan Group AB.
• On 19th February 2024, Per Lindberg, via a wholly owned company, made public the Offer Document regarding the mandatory bid for Ranplan Group AB.
• On 4th March 2024, the Board of Directors of Ranplan Group AB published a statement regarding Per Lindberg BidCo’s Public Cash Offer.
• On 20th March 2024, Per Lindberg Bid Co AB published the outcome of the concluded mandatory bid for Ranplan Group AB.
• On 3rd May 2024, the Annual General Meeting for 2023 was held in Stockholm, Sweden.
• On 30^th July 2024, Ranplan officially launched a major software upgrade:
• On 11^th December 2024, Ranplan announced that the credit line issued by Per Lindberg, CEO, has been extended by one calendar year (365 days) to 28^th February 2026.

Words from the CEO

Following a second half that was largely on a par with the performance of the first six months, Ranplan Group AB last year generated the best results since its inception in 2018. Thanks to a near doubling in contributions from research projects and material gains from expense reductions, losses from operations – with all costs accounted for as actually cash-incurred – were considerably more contained. Net cash consumption in 2024 fell by nearly two-thirds, leaving around half the credit line untouched by year end.

Total revenues grew by 12% in calendar 2024, as a material decline in net sales attributable to design services (against a particularly high base of comparison in the second half of 2023) was more than offset by other income (fees from research activities). These developments allowed total income to advance by 8% in the past year, even though, in line with expectations, tax credits for qualified research shrank by 7%.

The improved performance was produced in a market environment still marked by lingering caution, financial constraints and protracted decision-makings. A number of deals previously anticipated to close before the end of 2024 were postponed until 2025 or possibly beyond. Even so, we detect early signs of a recovery in the external environment which could unleash a healthy rate of growth, plausibly compounded by pent-up demand after a prolonged period of frugality within the telecom sector at large.

Leveraging the strength of our offerings, we registered several key wins in 2024, increasing our base of active customers most discernibly and recording a handful of expansions of most meaningful significance. The latter development lends credence to our future prospects: it signifies a high degree of customer satisfaction and an emergent desire to use software of our calibre and precision to a much greater extent. We are increasingly convinced that our value proposition is robust and that our offerings are best in class.

Our latest release has been greeted with plaudits, by virtue of the exemplary enhancements it fosters with respect to functionality, productivity and useability. True to our character, we now support Dynamic Spectrum Sharing, Maximised MIMO and Wi-Fi 7; we champion open file formats in the spirit of BIM by demonstrating IFC imports as well as exports, allowing customers to reuse building models already made in popular CAD-tools like Revit and Navisworks; we present our customers with a much enhanced user interface and an enriched 3D viewer – easing the lives of engineers and boosting their returns on efforts.

We take great pride in enabling openness, in the best long-term interests of our customers and the industry at large. We anticipate a world where users break free from closed, proprietary systems and hence where best-of-breed competition, frictionless interoperability and seamless automation prevail. Recent industry events, including the introduction of programmable Open-RAN networks at scale using standardised APIs, underpin motivities that are perfectly aligned with our strategic direction and mission.

Private wireless use cases represent a field where our experience and expertise come well into play. We possess very deep knowledge of how physical impediments affect the natural propagation of radio waves. We cater to all frequency bands and all technologies (3GPP-cellular, Wi-Fi, Public Safety etc). We set ourselves apart by our unique ability to handle the inbuilding and the outdoor environments using a single set of logic and one unified tool. We discern growing interest from a variety of end-users including those involved in maritime communications such as offshore windfarms, oil platforms as well as ships/vessels.

Provision of Design Services as a means of demonstrating the unsurpassed capabilities of our software tools – a commercial initiative that we embarked upon in earnest in the middle of 2023 – has served and continues to serve us and our customers well. By sharing our know-how, we alleviate the need for special knowledge – of particular importance in the dedicated network space, assuring best practice from day one, shortening time to market and planting the seeds for replication of case studies through proof of commercial and practical viability. In tandem with the proliferation of wireless networks demand for our design services is building. We are now involved in major such projects in the USA, in the EU and Asia-Pac.

In 2025, we will intensify our marketing campaigns, capitalising on our product leadership where 5G and the like including the latest generations of Wi-Fi make a true difference. We will do so using both internal and external channels, recognising that the time now is right to elevate our presence and visibility in the marketplace. Extending our reach into adjacencies such as digital twins, measurement tools and network management systems, we will explore system development and design services partnerships which complement us, bolster our end-to-end offerings and catapult our capacity for larger undertakings. These remarks notwithstanding, we will remain selective with respect to new engagements that call for the consumption of development resources over and beyond what is already implied in our global roadmap.

Concentrating on communicating what is known, or solidly believed to be known, we abstain from providing financial guidance for this calendar year. It should be stressed, however, that it does not take much in the way of revenue expansion from current levels – a gain of a tiny fraction of a percent of the addressable market for our products and services would suffice – to allow us to not only break-even but also generate quite an attractive surplus on a free cash-flow basis. Our operating leverage is most tangible – the gross margin on software sales is above 95% and the balance sheet is free of any fixed assets and inventories. After the revival of income from research projects in 2024, our financial upside resides with commercial products and services in general and the conversion rate of opportunities in the pipeline in particular.

In light of the profound achievements made in the recent past, I want to end this communique by extending my gratitude to all members of staff. They have displayed and continue to display the ingenuity, quality and tenacity that have brought us the products and prowess we enjoy today. We are establishing leadership in the most interesting of use cases. We are enabling novel workflows that unleash significant productivity enhancements. We are capturing the attention of adjacent customer segments. We are truly pushing the frontiers of research in the lead up to 6G. We are expanding our offerings by complementing our state-of-the-art software products with the provision of design services that demonstrate what our tools can accomplish. These pillars present a solid foundation upon which we strive to build beyond 2024.

Per Lindberg, CEO

The complete report is attached to this press release and is available at www.ranplanwireless.com

This disclosure contains information that Ranplan Wireless is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on on 17-02-2025 08:00 CET.