AVTECH Sweden AB (publ) Interim Report January – March 2021

 KEY FIGURES AND EVENTS

	2021	2020	2020
MSEK	Quarter 1	Quarter 4	Quarter 1
Net turnover	2.1	2.1	4.0
Operating profit before depreciation	-1.2	-1.1	+0.3
Net profit	-2.0	-1.6	+0.0
Net profit per share, SEK	-0.035	-0.029	+0.000
Cash flow	-4.3	+2.0	-1.0
Cash and cash equivalents	7.8	12.1	12.3
Equity	24.5	26.5	28.5
Equity per share, SEK	0.43	0.47	0.50
Equity ratio, %	91.6%	86.7%	93.1%

 

• The first quarter's net sales remain significantly reduced due to reductions in air traffic during the Covid-19 pandemic

• The negative net result is a direct effect of the decrease in revenues for the period.
• The cash flow, which is normally often negative in the first quarter, has this period been further affected by the reduced turnover. In addition, the cash flow has been burdened by delayed customer payments of SEK 1.5 million. These payments have now been received after the end of the period.
• The staff have mainly continued to work from home according to the recommendations of the Public Health Agency of Sweden. Working time reductions in the form of short-term work have continued, where possible, during the period, which has contributed to reduced personnel costs. Since October, staff covered by short-term work have been working at 60%. The strategy is to retain staff and skills for the turning point.
• During the period, AVTECH has changed office space from floors 24 to 23, at the same address. The new office is slightly smaller and very well adapted to our needs, while providing an important, about 30%, rental cost reduction over the next five years.
• AVTECH's Cruise Profile Optimiser service was named "ClearPath" in January, a product name that makes it possible to further develop the service with additional features such as hazard avoidance and horizontal optimization.

• On January 28, 2021, an Aircraft IT live webinar was held on AVTECH's ClearPath optimization service. The webinar generated great interest and was conducted in two separate and well-attended sessions with a total of 158 registered participants from 97 airlines. The aim was to give participants an overview of the challenges currently associated with flying an optimal flight profile as well as an understanding of ClearPath and how this service enables airlines to easily address these challenges and increase the efficiency of their operation. The presentation is available via the following  video link.

• The deployment of ClearPath continues and is expected to be completed soon in two airlines, prior to the start of test periods.
• A new data integration between AVTECH and the Lufthansa group has been completed during the period. This new link, from now on, enables the delivery of AVTECH's services easily and without communication costs to the airlines within the Lufthansa Group.
• In connection with the interim report on 12 February, AVTECH's new website was launched. The new page is built on a platform that in the future makes it easier to continuously update with new pages, content and news. One of the website's most important purposes is to give our customers a clear overview of our products and encourage further direct contact with our sales team. The product pages will therefore be developed and updated in line with this in the coming months.
• The marketing work during the period has been conducted with a strong focus on ClearPath, partly through the above-mentioned webinars, partly through Advertising in AircraftIT as well as via social media mailings and direct contacts. The focus is on more customer contacts and meetings to increase the number of airlines in line for tests. Airline decision-makers are made aware of the possibility of fuel and environmental savings through AVTECH's services, without the need for investment in new equipment. Performed operational analysis of the service in six months of operation at Norwegian has given us the opportunity to promise a 1.6% cost reduction. Watch video recording of Norwegian's experiences here. In addition to marketing and follow-up after the ClearPath webinar, the sales team has also held meetings with some twenty larger and smaller airlines.
• A number of campaigns have been launched on social media LinkedIn, Twitter, Facebook and Instagram.
  • Celebration of the one-year anniversary with TUI
  • ProFlight launch of 3 free premium flights per month
  • ClearPath Webinar
  • ProFlight updated with one month's free Premium for new users
  • Launch of new website
  • Celebration of crossing 10,000,000 uplinks
  • IATA webinar – Turbulence data in ProFlight
  • Article published in AircraftIT – ClearPath case study
  • ClearPath trial
     
• Karolina, AVTECHs marketing coordinator since a year and a half, has at the end of the period chosen to leave AVTECH for a new position a little closer to home in Uppsala. April 13^th was her last working day. In the near future, Niklaes Persson takes over most of her duties until a replacement can be hired.
• ProFlight, our professional weather briefing and optimization tool for pilots, has so far been tested by over 1760 pilots from more than 230 airlines. The service is appreciated by the pilots testing it and includes a unique high-resolution storm forecast from the Met Office as well as supplemental weather data from IATA and NOAA. ProFlight was commercially launched in the end of November and with this, the journey also starts to increase the number of premium users through direct marketing and "influencers". When many pilots do not currently fly, or fly very sparingly, this is likely to take a little longer.
• The dialogue with Southwest Airlines regarding the testing of Aventus full-flight winds has resumed during the period after being paused in 2020 due to the COVID-19 pandemic.
• The dialogue with a Scandinavian airline has deepened during the period around ClearPath.

EVENTS AFTER THE PERIOD

• Below are some of this year's planned information and marketing activities:

  • Continued follow-up on delivered ClearPath webinar
  • ClearPath campaigns towards selected customers/segments such as the Lufthansa group airlines
  • Update of AVTECH's graphical profile
  • proFLIGHT campaigns aimed at increasing the number of premium users (towards airlines, pilots, free premium plan tests)
  • proFLIGHT campaign around IATA Turbulence Aware real-time turbulence data
  • Electronic Flight Bag (EFB) Users Forum, Virtual Meeting, 8-10 June
  • A video production in collaboration with the Met Office focusing on the benefits of high-resolution weather applied to AVTECH's services. Scheduled for release by the end of May. This is done in combination with an internal and external Met Office webinar on May 25th where Norwegian also participates.
  • Campaign around real-time CB (thunderstorm) information in ProFlight in connection with the commercial launch of this feature. Marketing of the service for the summer storm season.
  • Webinar in September

For more information, please contact

David Rytter, CEO, +46 (0) 8 544 104 80

Christina Zetterlund, CFO, +46 (0) 8 544 104 80

This information is information that AVTECH Sweden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (MAR). The information was submitted, through the above contact person's provision, for publication on April 28th, 2021, 08.30 CET. www.avtech.aero/press-release-english

Financial reports and documents can be found at www.avtech.aero/report. AVTECH Sweden AB (publ), corporate identity number 556568-3108, has its registered office in Stockholm. Address: Färögatan 33, 164 51 KISTA, Sweden. www.avtech.aero. The company's B-share (short-term AVT B) is traded on the NASDAQ First North Growth Market since February 2012. The company's A-share is not traded on any marketplace. Certified Adviser is Redeye AB (www.redeye.se), Phone: 08-121 576 90, e-mail address certifiedadviser@redeye.se. 

About AVTECH Sweden AB (publ)

AVTECH develops products and services for digital air traffic management systems. Customers are players in the global aviation industry such as airlines, airports, air traffic management suppliers, technology companies and aircraft manufacturers. With the company's products and services, every single flight or entire flight operation can be optimized in terms of finances, noise and emissions, efficiency, capacity, punctuality and safety. The head office is located in Stockholm, Kista. For more information, see www.avtech.aero.