Half Year 2023 Mynaric AG Earnings Call

September 14, 2023

Okay.

Speaker 1: Good day and thank you for standing by and welcome to my NEREC 2023 half year results conference call.

Good day, and thank you for standing by and welcome to minor at 'twenty, two 'twenty three half year results conference call. After that after the speaker's presentation there'll be a question and answer session to ask a question. During this session you will need to press star one on your telephone you didn't hear it.

Speaker 1: After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised.

Automated message of buys in your hand is raised to withdraw your question. Please press star. One again, please be advised that today's conference is being recorded I would like to introduce your host for today's conference Tom <unk> EVP Investor Relations. Please go ahead.

Speaker 1: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would like to introduce your host for today's conference, Tom Dinkins, EP Investor Relations. Please go ahead.

Speaker 2: Thank you operator. Welcome everyone to my half year 2023 results webcast call. Prior to this call we released our half year 2023 results which are available for download on the investor relations section of Mineric.com.

Thank you operator, welcome everyone to <unk> half year 2023 results webcast call. Prior to this call. We released our half year 2023 results, which are available for download on the Investor Relations section of <unk> Dot com.

Speaker 2: Before we begin today's formal presentation and remarks, I must remind you that this presentation and oral statements regarding the subjects of this presentation include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. All statements other than statements of historical or current facts contained in this presentation are forward-looking statements.

Before we begin todays formal presentation and remarks, I must remind you that this presentation and oral statements regarding with subjects. In this presentation include forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095 as amended all statements other than statements of historical or current facts contained in this presentation are forward looking statements. These forward.

Speaker 2: These forward-looking statements involve known and unknown risks, uncertainties, and assumptions that are difficult to predict or are beyond our control, and actual results may differ materially from those expected or implied as forward-looking statements.

Looking statements involve known and unknown risks uncertainties and assumptions that are difficult to predict or are beyond our control and actual results may differ materially from those expected or implied as forward looking statements. The forward looking statements included in this presentation are made only as of the date hereof. Neither we nor any other person undertakes any obligation to update.

Speaker 2: The forward-looking statements included in this presentation are made only as of the date hereof. Neither we nor any other person undertakes any obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation or otherwise.

Any forward looking statement to reflect events or circumstances. After the date of this presentation or otherwise.

Speaker 2: This presentation may include certain financial measures not presented in accordance with IFRS. Such financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity, or performance under IFRS.

This presentation may include certain financial measures not presented in accordance with IRS such financial measures are not measures of financial performance in accordance with IRS Ifr and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures.

Profitability liquidity or performance under Ifr S.

Speaker 2: With that out of the way, we have a great agenda for you today. We will begin with opening remarks by Nozifon. Following that, Stifon will discuss our half year 2023 Refinery results and our outlook for 2023. Following the formal presentation, we will take questions from analysts. We anticipate this call will last no more than 1 hour.

With that out of the way, we havent great agenda for you today, we will begin with opening remarks by most differ following that Stefan will discuss our half year 2023 of our financial results and our outlook for 2023.

During the formal presentation, we will take questions from analysts we anticipate this call will last no more than one hour.

Speaker 2: On the call today are Minerix CEO , Mustafa Zarogu, and Minerix CFO , Stefan Berg-Van Bielow. With that, it's my pleasure to turn the call over to Mustafa for his opening remarks.

On the call today are <unk> CEO .

The Roku and minority CFO , Stefan Byrne bungalow with that it's my pleasure to turn the call over to most of us for his opening remarks.

Thank you Tom.

Speaker 2: Minority reported solid results for the first half of 2023, as we prepare for significantly higher production level.

Eric recorded solid results for the first half of 2023, as we prepared for significantly higher production level over the coming months, our order momentum and funnel of new opportunities remains strong.

Speaker 2: over the coming months. Our order of momentum and funnel of new opportunities remain strong.

Speaker 2: We reported another strong increase in order backlog in terms of optical communication terminals.

Part of it another strong increase in order backlog in terms of optical communication terminals.

Speaker 2: which has panned out of June through that 370. Additionally, our cash in from customer contacts in the first half of 2023 is larger than what we had reported for all of last year. We remain disciplined in our investment strategy to support the future growth of the business and our pipeline opportunities remain the highest in our history.

At the end of June stood at 370. Additionally, our cash in from customer contacts in the first half of 2023 is larger than what we had a good part of them for all of last year, we remain disciplined in our investment strategy to support the future growth of the business and our pipeline of opportunities remain the highest.

In our history.

Speaker 2: Across both the commercial and government sectors, we see operators moving past the design and development stage and are actively selecting suppliers to formally launch their constellation over the coming years.

Across both the commercial and government sectors, we see operators moving past the design and development stage and are actively selecting suppliers to formally launched our constellation or the coming years. Some like the space development agency are now well into their deployment phase on their initial trial Zero Awards.

Speaker 2: Some, like the Space Development Agency, are now well into their deployment phase on their initial Trunch Zero awards. FDA has completed all the announcements for Trunch One awards and are now starting to announce the satellite providers for their initial phases of Trunch Two.

SBA has completed all the announcements for tranche one awards and are now starting to announce the satellite would provide us for their initial phases of tranche. Two we expect to hear more tranche two awards to the satellite providers in the coming months.

Speaker 2: We expect to hear more transfer awards to the satellite providers in the coming months.

Speaker 2: Pulling the satellite build awards, the satellite vendors will select their key subsystem providers, such as those like Minerix, supplying the optical communication terminal.

Following the satellite build awards to satellite vendors with select key subsystem providers such as those like mine are supplying optical communication terminals.

Speaker 2: On the commercial side, there are a number of significant opportunities that are moving into RFP stage.

On the commercial side there are a number of significant opportunities that are moving into RFP stage. Some of those are very large mega constellations, while others are smaller more regionally focused and specific use case focused specifically <unk> seen two major developments within the Mega constellations as robot has selected R&R or at all.

Speaker 2: Some of those are very large mega-constellations, while others are smaller, more regionally focused and specific use case focused.

Speaker 2: Specifically, you've seen two major developments within the mega constellations as Robata selected Paranorbital and Telesat selected MDA as their satellite provider.

Operator: Good day, and thank you for standing by, and welcome to Mynaric 2023 half year results conference call. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message, advise, and your hand is raised. So, would draw your question, please press star 11 again.

<unk> select with MDA is the satellite provider following the selection of the satellite provider, we would expect for the satellite provider to select key subsystem providers over the coming months.

Speaker 2: Following the selection of the satellite provider, we would expect.

Speaker 2: for the satellite provider to select key subsystem providers over the coming months.

Speaker 2: We've also seen continued developments on the Iris-squared constellation for Europe as the bids for the technical specifications are starting to develop while major funding has been approved. The team has worked hard to ensure we are in position to meet the needs of these significant programs as they look to make their final selections over the coming months.

We've also seen continued developments on the Irish required constellation for Europe as the bids for the technical specifications are starting to develop while major funding has been approved the team has worked hard to ensure we are in position to meet the needs of these significant.

Operator: Please be advised that today's conference is being recorded.

Thomas Dinges: I would like to introduce your host for today's conference, Tom Dinges, EP Investor Relations. Please go ahead. Thank you, operator.

Thomas Dinges: Welcome, everyone, to Mynaric's half year 2023 results webcast call. Prior to this call, we released our half year 2023 results, which are available for download on the Investor Relations section of Mynaric.com.

<unk> as they look to make their final selections over the coming months.

Speaker 2: Taking a quick look back since the start of the year, we've announced a number of key awards that we believe position us well for the future awards. As we have said many times in the past, successful execution and incumbency are powerful predictors of future success in our industry. The awards announced this year include multiple awards in support of the SDA's proliferated warfighter space architecture with key customers, such as Loft Federal and most recently Raytheon.

Taking a quick look back since the start of the year, We've announced a number of key awards that we believe position us well for the future Awards.

Thomas Dinges: Before we begin today's formal presentation and remarks, I must remind you that this presentation and oral statements regarding the subjects of this presentation include forward-looking statements within the meaning of the Private Security's litigation reform act of 1995 as amended. All statements other than statements of historical or current facts contained in this presentation are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and assumptions that are difficult to predict or are beyond our control.

As we have said many times in the past successful execution and incumbency are powerful predictors of future success in our industry. The awards announced this year include multiple awards in support of the Fda's Proliferating Warfighter space architecture with key customers such as loss of federal.

Thomas Dinges: And actual results may differ materially from those expected or implied as forward-looking statements. The forward-looking statements included in this presentation are made only as of the date hereup. Neither we nor any other person undertakes any obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation or otherwise.

And most recently at Raytheon.

Speaker 2: which when added to the previously announced awards with Northrop Grumman, we believe gives us a high market share of this program. We're extremely proud to support this program. In addition, we secured our first award in the Japanese space market. We also signed a definitive agreement for a $24 million award with a new undisclosed U.S.-based customer for the delivery of Condor Mark III optical communication terminal.

Which when added to the previously announced awards with Northrop Grumman, We believe gives us a high market share program, where.

We're extremely proud to support this program.

In addition, we secured our first award in the Japanese based market.

Also signed a definitive agreement for 2000 $24 million award with a new undisclosed USPS customer for the delivery of Condor, Mark III optical communication terminals.

Thomas Dinges: This presentation may include certain financial measures not presented in accordance with IFRS. Such financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity or performance under IFRS.

Finally, we've received two separate awards for the development of ground based terminals one in support of Germany is Cunard initiatives related to quantum key distribution better award is a direct award from the U S. FDA to develop and test connections screening space based and space based on crowd based terminals.

Speaker 2: Finally, we've received two separate awards for the development of ground-based terminals. One in support of Germany's QNAT initiative related to quantum key distribution. The other award is a direct award from the U.S. SDA to develop and test connections between space-based and ground-based terminals.

Speaker 2: Also, in the first half of this year, we delivered multiple development units to multiple primes for the SDA interoperability testing. We're executing on our plan to begin the terminal deliveries in the coming months and throughout the next year. We anticipate we should have our first terminals in space in the second half of 2024 based on our customers' current launch schedule.

Thomas Dinges: With that out of the way, we have a great agenda for you today.

Also in the first half of this year, we delivered multiple development units to multiple times for the FDA interoperability testing we are executing on our plan to begin the terminal deliveries in the coming months and throughout next year.

Mustafa Veziroglu: We will begin with opening remarks by Mustafa.

<unk>, we should have our first terminals in space in the second half of 2024 based on our customers' current launch schedule.

Stefan Berndt: Following that, Stefan will discuss our half year 2023 for financial results and our outlook for 2023.

Speaker 2: As we stated on our full 2022 results call in April , we're focused on continuing to improve our operational excellence. The focus remains on three main areas, including production readiness, continuous process improvements, and streamlining the product development process.

As we stated on our full 2022 results call in April we're focused on continuing to improve our operational excellence focus remains on three main areas.

Thomas Dinges: Following the formal presentation, we will take questions from analysts. We anticipate this call will last no more than one hour.

Thomas Dinges: On the call today, our Mineric CEO, Mustafa, is a Rugu and Mineric CFO, Stefan Berkman-Bulo.

Mustafa Veziroglu: With that, my pleasure to turn the call over to Mustafa for his opening remarks. Thank you, Tom. Mineric reported solid results for the first half of 2023 as we prepare for a significantly higher production level over the coming months. Our order momentum and tunnel of new opportunities remain strong. We reported another strong increase in order backlog in terms of optical communication terminals. We just found out June through that 370. Additionally, our cash in from customer contacts in the first half of 2023 is larger than what we had reported all last year.

Including production readiness continuous process improvements and streamlining the product development process.

Speaker 2: As sole CEO , my focus continues to be in those areas while also keeping a keen eye on the long-term strategic needs of the company. This includes ensuring that we have all the resources we need to capitalize on the tremendous multi-year opportunities we see ahead of us.

As CEO my focus continues to be in those areas. While also keeping a keen on a keen eye on the long term strategic needs of the company. This includes ensuring that we have all the resources, we need to capitalize on the tremendous multiyear opportunities. We see ahead of us.

Mustafa Veziroglu: We remained disciplined in our investment strategy to support the future growth of the business and our pipeline opportunities remain the highest in our history. Across both the commercial and government sectors, we see operators moving past the design and development stage and are actively selecting suppliers to form and relaunch their constellation over the coming years. Some like this based development agency are now well into their deployment phase on their initial transfer awards.

Speaker 2: The team has continued to make great strides to ensure we're ready to handle zero production.

The team has continued to make great strides to ensure we are ready to handle zero production.

Speaker 2: This includes building pre-serial production units, verifying our assumptions about pack times involved in a different manufacturing and assembly steps, and ensuring that our data systems are ready for the demanding requirements of complex airspace systems production documentation. In addition, we've accelerated our hiring plans to ensure we have the necessary levels of operations personnel needed to support current and any additional near term orders.

This includes building pre serial production units verifying our assumptions about tack times involved in a different manufacturing and assembly steps and ensuring that our data systems are ready for demanding requirements of complex Aerospace systems protection documentation. In addition, we've accelerated our hiring plans to ensure we have the necessary levels.

The operational operations personnel needed to support current and any additional near term orders I can tell you.

Mustafa Veziroglu: FBA has completed all the announcements for Trunch 1 awards and are now starting to announce the satellite providers for their initial phases of Trunch 2. We expect to hear more Trunch 2 awards to the satellite providers in the coming months. Following the satellite build awards, the satellite vendors, the selector, key sub-system provider such as those, like Mynaric, supplying optical communication terminals. On the commercial side, there are a number of significant opportunities that are moving into RFP stage.

Speaker 2: I can tell you we're well prepared for the opportunity ahead, and I believe we have the right team with the right product.

Well prepared for the opportunity ahead, and I believe we have the right team with the right products and.

Speaker 2: and the right operational structure and capacity to capitalize on this opportunity. With that, let me turn it over to Stefan to walk you through our results in more detail. Stefan?

And the right operational structure and capacity to capitalize on this opportunity.

With that let me turn it over to Stephane to walk you through our results in more detail.

Thank you.

Speaker 3: Turn to our results for the half year 2020.

So onto our results for the half year 2010.

Speaker 3: First, thank you for two key test responses that we believe will continue to best demonstrate the momentum we have seen in the past.

For us.

Mustafa Veziroglu: Some of those are very large, mega-constellation, while others are smaller, more regionally focused, and specific use case focused, specifically you've seen two major developments within the mega-constellations as Nevada Selected Paranorbital, and Palace Outselected MDA as their satellite provider. Following the selection of the satellite provider, we would expect for the satellite provider to select key sub-system providers over the coming months. We've also seen continued developments on the IRF's IRISquired Constellation for Europe as the bid for the technical specifications are starting to develop while major funding has been approved. The team has worked hard to ensure we are in position to meet the needs of these significant programs as they look to make their final selections over the coming months.

Yes.

We believe we'll continue to demonstrate.

Yes.

But that's part of my question.

Speaker 3: This is a key forward-looking predictor of revenue.

This is a key forward looking predictor of revenue.

Speaker 3: as the cash is only received as we meet contractual milestones. There is typically a lag between when cash is received from customer contract and when shipments are made. This varies depending on contractor.

The cash is only received as we meet contractual milestone.

When cash is received from customer contract and when shipment.

This is Brian .

Pending contract term.

Michael is a contractor payments with eastern certain milestones are met.

Speaker 3: These are contractual payments received in certain milestones are met, but full delivery and acceptance has not been achieved.

Deliberately.

<unk> and <unk>.

Speaker 3: In essence, this is pre-revenue cash receipt and we believe a very significant indicator of the future revenue of the company.

This is Pete.

Great.

And we believe a very significant indicator of the future revenue of the company.

Speaker 3: As Mustafa said, cash-in from customer contracts for the first half of 2023 was €23.0 million, which is greater than the €18.3 million we reported for all of 2022 and up very nicely from the €7.9 million we reported in the first half of 2022.

Yes.

Mustafa Veziroglu: Taking a quick look back since the start of the year, we've announced a number of key awards that we believe position as well for the future awards. As we have said many times in the past, successful execution and inculency are powerful predictors of future success in our industry. The awards announced this year include multiple awards in support of the SDA's proliferated war-finder space architecture with key customers, such as Loft Federal and most recently Region, which when added to the previous announced awards with Northropremont, we will give us a fine market share of this program. We are extremely proud to support this program.

Hesitant from customer contracts for the first half of 2023 was 23 million, which is greater than the $18 3 million.

Reported for all of 2022.

Very very nicely from the $7 9 million euros, we reported in the first half of 2022.

Speaker 3: Second, optical communication terminal backlog in units at the half-year was 370 units compared to 256 units at year-end and up from 211 units at the half-year 2022. As a reminder, our current terminal backlog is heavily weighted towards government-funded contracts, including programs with the FDA.

Second a particular communication terminal backlog in units at the half year was 370 unit compared to 156 units.

The year end and up from 211 units at the half year 2022.

Mustafa Veziroglu: In addition, we secured our first award in the Japanese space market. We also signed a definitive agreement for a $24 million award with a new undisclosed US-based customer for the delivery of Condor Mark III optical communication terminals. Finally, we've received two separate awards for the developmental ground-based terminals. One in support of Germany's Q&A initiative, related to quantum key distribution, data award is a direct award from the US SDA to develop and test connections, screen space-based and space-based and ground-based terminals.

As a reminder, our current terminal backlog is heavily weighted towards government funded contracts.

Including programs with the FDA.

We continue to see strong and steady pipeline of opportunities for all terminal products across both government and commercial markets.

Speaker 3: We continue to see a strong and steady pipeline of opportunities for all terminal products across both government and commercial markets.

Speaker 3: Let's look at a few other figures before opening the call for questions.

Let's look at a few other figures before opening the call for questions.

Speaker 3: Revenue was 4.4 million euros for the half year 2023 compared to 4.4 million euros for all of 2022. The year ago period we reported a very small amount of service revenue.

Revenue was $4 4 million euros for the half year 2023, compared to $4 4 million euros.

Mustafa Veziroglu: Also, in the first half of this year, we delivered multiple development units to multiple primes for the SDA interoperability testing. We're executing on our plan to begin the terminal deliveries in the coming months throughout the next year. We anticipate we should have our first terminals in space in the second half of 2024, based on our customers' current launch schedule.

All of 2022.

The year ago period, we reported a very small amount of service revenue.

Speaker 3: Revenue in the first half of 2023 was driven by terminal shipment to multiple customers, as well as service revenue. Our current contractually committed optical communication terminal backlog, primarily consisting of Condor Mark III products, mostly for these scheduled shipments starting over the coming months.

Revenue in the first half of 2023 was driven by terminal shipments to multiple customers as well as service revenue our current contractually committed.

Optical communications terminal backlog.

Merrily, consisting of <unk> III products, mostly foresees capital shipments starting over the coming months.

Mustafa Veziroglu: As we stated on our full 2022 results, we're focused on continuing to improve our operational excellence. This focus remains on three main areas, including production readiness, continuous process improvements, and streamlining the product development process. As a philosophy, my focus continues to be in those areas while also keeping a keen eye on the long-term strategic needs of the company. This includes ensuring that we have all the resources we need to capitalize on the tremendous multi-year opportunities we've seen ahead of us.

Speaker 3: of 2023 throughout 2024 and into the first half of 2025.

Of 2023 throughout 2024 and into the first half of 2025.

Cost of materials decreased by more than 52% compared to the year ago period, driven by reduced costs for finalizing the development and testing of our product as well as production line testing.

Speaker 3: Cost of materials decreased by more than 52% compared to the year ago period, driven by reduced costs for finalizing the development and testing of our products, as well as production line testing.

Speaker 3: Raw materials and consumables used included a write-down of 671,000 euros for the half-year 2023. As our production rate increased substantially over the coming month and into next year, we expect our cost of material to increase.

Raw materials and consumables used included a write down of 671000 euros for the half year 2023.

Mustafa Veziroglu: Thomas. The team has continued to make great strides to ensure we are ready to handle zero protection. This includes building pre-serial production units, verifying our assumptions about pack times, involved in a different manufacturing and assembly steps, and ensuring that our data systems are ready for demanding requirements of complex air-space systems production documentation. In addition, we have accelerated our hiring clients to ensure we have the necessary levels of operation operations personnel needed to support current and any additional near-term orders. I can tell you, the level of parent with opportunity ahead, and I believe we have the right team with the right products and the right operational structure and capacity to capitalize on this opportunity.

Our production rates increased substantially over the coming months and into next year, we expect our cost of material to increase.

Personnel costs increased 8% compared to the year ago level as we continue to add talent and capabilities to our team, but at a much slower pace than we reported in the prior periods.

Speaker 3: Personal costs increased 8% compared to the year-ago level as we continue to add talent and capabilities to our team, but at a much slower pace than we reported in the prior period.

Speaker 3: This is in line with that we discussed this year in April during our full year 2022 results call.

This is in line with that we discussed this year in April during our full year 2022 results call.

Speaker 3: Currently, our total headcount is similar to the level we reported at end-year 2022 at around 300 employees.

Currently our total head count similar to the level, we reported it.

And year 2022 at around 300 employees.

Stefan Berndt: With that, let me turn it over to Stefan to walk you through our results in more detail. Stefan, thank you for your time.

Speaker 3: Looking ahead, we expect to continue to add to our operation headcount as we look to support high level of production, which we've discussed with you previously.

Looking ahead, we expect to continue to add to our operation head count as we look to support higher level of product.

Stefan Berndt: Turn to our results for the half year 2020. First, turn through key test systems that we believe will continue to best demonstrate momentum we have seen in the past. The questions on customer process. This is a key form we are looking for the contractual milestone. There is typically a lack between when test received from customer contract and when measurements are made. This is very depending on contract terms. As a reminder, these are contractual payments received in certain milestones are met, a full delivery and acceptance has not been reached. In essence, this is free revenue test received, and we believe a very significant indicator of the future revenue of the company.

Which we've discussed with you previously.

Speaker 3: We are taking a disciplined approach to adding other operating expenses. We feel comfortable with the overall investment in engineering. We believe the growth rate in personal expenses over the near term should remain near the first half level.

We are taking a disciplined approach to adding.

Other operating expenses.

We feel comfortable with the overall investment in engineering, we believe the growth rate in personnel expenses over the near term footprint in EMEA the first half level.

Speaker 3: Overall, the company reported an operating loss of 28.3 million euros for the half-year 2023 compared to an operating loss of 34.9 million euros for the half-year 2022.

Overall, the company reported an operating loss of 28.3 million euros for the half year 2023.

<unk> operating loss of $34 9 million for the half year 2022.

Speaker 3: The more than 6 million euros reduction in our half-year reporting loss

The more than 6 million reduction in our half year reporting loss.

Speaker 3: was the result of higher revenue, decreased costs for production development, set up and testing of production capacities and other cost reductions.

What's the risk side of higher revenue decreased costs for our production development set up and testing of protection capacities and other cost reductions compared.

Stefan Berndt: Cash in from customer contracts for the first half of 2023 was 23.0 million, which is greater than the 18.3 million euros we reported for all of 2022, and up very nicely from the 7.9 million euros we reported in the first half of 2022. Second, optical communication terminal backlog in units at the half year or 370 units compared to 256 units at year end and up from 211 units at the half year 2022.

Speaker 3: Compared to the first half of last year, we reported higher personal costs as we continue to add headcount to support our production ramp.

Compared to the first half of last year.

It's higher personnel costs as we continue to add head count to support our production ramp this.

Speaker 3: This increase was partially offset by lower other operating costs, specifically our insurance costs. Now, let's turn to a view.

This increase was partially offset by lower other operating costs.

Typically our insurance cost now.

Now, let's turn to our view.

Okay.

Key balance sheet figures.

Speaker 3: Our cash balance at the end of June 2023 was more than 47 million euros compared to 10.2 million euros at the end of 2022. This includes the debt and equity rate we concluded this year as well as the impact from the prepayments of our previous line of credit along with fees and expenses.

Our cash balance at the end of June 2023 was more than 47 million euros compared to $10 2 million at the end of 2022.

Stefan Berndt: As a reminder, our current terminal backlog is heavily rated towards government funded contracts including programs with the SDA. We continue to see a strong and steady pipeline of opportunities for all terminal products across both government and commercial markets.

This includes the debt and equity raise we concluded this year as well as the impact from the prepayment of our previous line of credit along with fees and expenses.

Speaker 3: We remain in a market-leading mode and as a pre-break-even company, we expect our cash balance to decrease from today's level through year-end before stabilizing in late 2024. With our debt and capital raise completed in April , we believe we have a strong balance sheet and are very well positioned to capitalize on the opportunities ahead of us.

We remain in a market leading mode and S&P breakeven company, we expect our cash balance to decrease from todays level through year end before stabilizing in late 2024.

Stefan Berndt: Let's look at a few other figures before opening the call for questions. Revenue was 4.4 million euros for the half year 2023 compared to 4.4 million euros for all of 2022. The year ago period we reported a very small amount of service revenue. Revenue in the first half of 2023 was driven by terminal shipment to multiple customers as well as service revenue. Our current contractually committed optical communication terminal backlog primarily consisting of condom max re-products, mostly for seas, cattle shipments starting over the coming months, of 2023 throughout 2024 and into the first half of 2025.

With our debt and capital raise completed in April we believe <unk> has a strong balance sheet and are very well positioned to capitalize on the opportunities ahead of us.

Speaker 3: Inventories were 17.9 million euros up from 13.3 million euros at the end of last year as we continue to invest in component inventory ahead of the expected rent in the terminal production over the reminder of this year.

Inventories were 17.

9 million euros up from $13 3 million euros at the end of last year as we continue to invest in component inventory ahead of the expected ramp in the terminal production all of us.

<unk> of this year.

Speaker 3: Property land and equipment were 24.0 million euros compared to 22.3 million euros at year-end 2022.

Robert the property plant and equipment.

94.0 million euros compared to $22 3 million at year end 2022.

Speaker 3: We invested 1.5 million euros in property, plant and equipment in the first half of 2023 as compared to 6.4 million in the first half of 2022.

We invested $1 5 million in property plant and equipment in the first half of 2023 as compared to $6 4 million in the first half of 2022.

Stefan Berndt: Cost of material decreased by more than 52 percent compared to the year ago period driven by reduced costs for finalizing the development and testing of our products as well as production line testing. Raw materials and consumables used included a rise down of 671,000 euros for the half year 2023. As our production rate increased substantially over the coming months and into next year we expect our cost of material to increase. Personal costs increased 8 percent compared to the year ago level as we continue to add talent and capabilities to our team but at a much slower pace than we reported in the prior period.

Speaker 3: We expect our investment in property, plant and equipment to increase from this level in the second half of 2023 and likely hold at that higher level next year, given the anticipated significant higher rates of production over the coming months and into 2024.

We expect our investment in property plant and equipment to increase from this level in the second half of 2023 and likelihood that that higher level next year, given the anticipated significant higher rates of production over the coming months and into 2024.

Speaker 3: Now let me walk you through our guidance for 2023.

Now, let me walk you through our guidance for 2023.

Speaker 3: For 2023, we continue to expect cash-in-from-customer contracts to increase significantly for the full year 2023. Our cash-in-from-customer in the first half of the year was driven by milestone payments and customer deposits.

For 2023, we continue to expect cash from customer contracts to increase significantly for the full year 'twenty three our cash in from customer in the first half of <unk> was driven by milestone payments and customer deposits.

Stefan Berndt: This is in line with that we discussed this year in April during our full year 2022 results call. Currently our total head count similar to the level we reported at end year 2022 at around 300 employees. Looking ahead we expect to continue to add to our operation head count as we look at the support high level of production which we discussed with you previously. We are taking a disciplined approach to adding other operating expenses. We feel comfortable with the overall investment in engineering. We believe the growth rate in personal expenses over the near term should remain near the first half level.

Speaker 3: Over the next 12 to 18 months, as our production levels increase, we expect cash-in-from-customer contracts to be a bit more balanced in terms of deposits and milestone payments relative to delivery related to receipts.

Over the next 12 to 18 months.

Production levels increase we expect cash flow from customer contracts to be a bit more balanced in terms of deposits and milestone payment relative to delivery related to receipts.

Speaker 3: So as we see our shipments start to ramp, cash-in from customer contracts will be much more closely correlated to shipments going forward.

So as we see our shipments start to ramp kitchen from customer contract will be much more closely correlated to shipments going forward.

Speaker 3: As noted earlier, we have had a great start to the year in terms of cash-in from customer contracts.

As noted earlier, we have had a great start to the year in terms of cash in from customer contracts, which today cash.

Speaker 3: which here today cashed in earlier, already above last year, 2011. And we see a strong pipeline of cash-in based on secured orders and potential opportunities through the year-end.

We are already above that.

Yes.

And we see a strong pipeline of cash in based on secured orders and potential opportunities through year end.

Stefan Berndt: Overall the company reported an operating loss of 28.3 million euros for the half year 2023 compared to an operating loss of 34.9 million euros for the half year 2022. The more than 6 million euros reduction in our half year reporting loss was the result of higher revenue, decreased costs for production development, set up and testing of production capacities and other cost reductions. Compared to the first half of last year we reported higher personal costs as we continue to add head count to support our production ramp. This increase was partially offset by lower other operating costs specifically our insurance costs.

Speaker 3: We expect continued growth in our optical communication terminal backlog by the end of this year, as we expect our year-end 2023 optical communication terminal backlog to decrease significantly compared to 2022-latest.

We expect continued growth in our optical communications terminal backlog by the end of <unk>.

This year.

We expect our year end 2000 jointly optical communications dominant effect.

Significantly compared to 2022.

Speaker 3: As a reminder, the backlog is net of shipments and we have a strong ramp in shipments projected for the coming months and into next year. Additions to the year-end backlog will be a function of our ability to capitalize on a number of opportunities that could close by year-end and our team remains well positioned to capture these.

As a reminder, the <unk>.

Net of shipments and we have a strong ramp in shipments protected for the coming months and into next year.

Additions.

With the year end backlog will be a function of our ability to capitalize on a number of opportunities that could close by year end and our terminal.

And our team remains well positioned to capture.

Speaker 3: These opportunities are across both the government and the commercial sectors as well as spanning all our product lines.

These opportunities across both the government and the commercial sectors.

Well, our spending all our product lines.

Stefan Berndt: Now let's turn to a few key balance sheet figures. Our cash balance at the end of June 2023 was more than 47 million euros compared to 10.2 million euros at the end of 2022. This includes the debt and equity raise. We concluded this year as well as the impact from the prepayments of our previous line of credit along with fees and expenses. We remain in a market leading mode and as a brief break even company we expect our cash balance to decrease from today's level through year end before stabilizing in late 2024.

Speaker 3: As a reminder, we define a significant increase as a year-over-year increase of 30% or more.

As a reminder, we define a significant increase year over year increase of 30% or more.

Speaker 3: With that, operator, would you please provide the introductions for the question and answer session, operator? Yes, thank you. As a reminder to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster. And one moment for our first question.

With that operator would you. Please provide the introductions for the question and answer session. Operator, yes. Thank you.

As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Please standby, while we compile the Q&A roster and one moment my first question.

Yeah.

Speaker 1: One moment. And our first question comes from.

One moment and our first question comes from.

Stefan Berndt: With our debt and capital raise completed in April we believe we have a strong balance sheet and a very well positioned to capitalize on the opportunities ahead of us. Inventories were 17.9 million euros, up from 13.3 million euros at the end of last year. As we continue to invest in component inventory ahead of the expected ramp in the terminal production of the reminder of this year. Property, property, land and equipment were 24.0 million euros compared to 22.3 million euros at year end 2022. We invested 1.5 million euros on property, plant and equipment in the first half of 2023 as compared to 6.4 million in the first half of 2022.

Greg Conrad from Jefferies. Your line is now open.

Speaker 4: Good morning. Maybe just to start, I mean, you mentioned pipelines the biggest in history. Any metric or thoughts in terms of maybe the number of terminals in the current pipeline or kind of submitted bids?

Yeah.

Good morning.

Maybe just to start I mean, you mentioned pipeline is the biggest in history any metric or your thoughts in terms of maybe the number of terminals in the current pipeline are kind of submitted bids.

Speaker 2: So, in terms of, you're talking about forward looking statements, right?

So in terms of.

You're talking about forward looking statements right.

Speaker 2: correct right so it's obviously

Correct right.

So it's.

Obviously.

Speaker 2: We have a lot of identified opportunities, and but I'm not sure it would be, you can really comment specifically on the aging or the opportunities or the probabilities at this point.

We have a lot of identified opportunities and.

But I'm not sure it would be.

You can't really comment specifically on the aging of the opportunities are the probabilities at this point.

Speaker 4: And then just on the 370 terminals and backlog, I mean, how are you thinking about the cadence of those shipments? You shipped three in H1 and talked about a substantial ramp in the second half, but maybe contractually, I mean, how are you thinking about shipments in H2?

And then just on the 370.

Terminals in backlog.

How are you thinking about the cadence of those shipments you shipped three an H, one and talk about a substantial ramp in the second half, but maybe contractually I mean, how are you thinking about shipments in <unk>.

Stefan Berndt: We expect our investment in property, land and equipment to increase from this level in the second half of 2023 and likely hold at the higher level next year, given the anticipated significant higher rates of production over the coming months and into 2024.

Speaker 2: Well, I think they're all driven at the end of the day by it's a good question, by the way, it's all driven by at the end of the day by the launch schedule for crunch two for crunch one for the primes.

Well I think they are all driven at the end of the day bye.

A good question, but it's all driven by at the end of the day by the launch scheduled for tranche two four.

Stefan Berndt: Now let me walk you through our guidance for 2023. For 2023 we continue to expect cash and from customer contracts to increase significantly for the full year in 2023. Our cash and from customer in the first half of the year was driven by milestone payments and customer deposits.

One for the primes and were working very well with all our prime customers on their scheduled Nissan each one has its own variance on time and delivery.

Speaker 2: And we are working very well with all our prime customers on their scheduled needs. And each one has its own variance on.

Speaker 2: time and delivery. So in terms of the ramp on that, obviously we plan to start shipping in volume this year and we anticipate the bulk of the shipments to continue on over the next 12 months or so.

So in terms of.

The ramp on that obviously, we plan to start shipping in volume this year.

Dissipate a bump up in shipments to continue on over the next 12 months or so.

Stefan Berndt: Our next 12 to 18 months as our production level increase we expect cash and from customer contracts to be a bit more balanced in terms of deposit and milestone payments relative to delivery related to receipts. So as we see our shipment start to ramp, cash and from customer contracts will be much more closely correlated to shipments going forward.

Speaker 4: And then maybe just one last one. I mean, you talked about the two ground terminals contracts, and we've seen that contract come for the SDA.

Okay, and then maybe just one last one.

Talked about the two ground terminals contracts and we've seen that contract come for the SBA.

Speaker 4: When you think about that opportunity, I mean, how does that compare, you know, relative to size, the actual, the terminals themselves versus kind of the ground infrastructure opportunity?

When you think about that opportunity I mean, how does that compare relative to size the actual the terminals themselves versus kind of the <unk>.

Round infrastructure opportunity.

Speaker 2: So, I mean, from the opportunity size, the biggest opportunity in front of us is in space. However, like any other market, it starts with one and two, and then it blossoms into larger opportunities. So, we think there's a potentially a significant opportunity. The quantities will not be as large since there isn't as many satellites that will be launched, but there will be a meaningful.

So I mean from the opportunity size the biggest opportunity in front of me losses in space. However, like any other market. It starts with one and two and then the bathrooms and for larger opportunities. So we think there is potentially.

Stefan Berndt: As noted earlier, we have had a great start to the year in terms of cash in from customer contracts which year today cash in earlier but already above last year in 2011 and we see a strong pipeline of cash in based on secured orders and potential opportunities through the year end. We expect continuous growth in our optical communication terminal backlog by the end of this year as we expect our year end 2023 optical communication terminal backlog to increase significantly compared to 2022.

Potentially a significant opportunity.

The quantities will not be as large since there is as many satellites that will be launched but there will be a meaningful.

Speaker 2: Demand for ground stations and this would be our first two forays into that market

Demand for ground stations and this would be our first two forays into that market.

Thank you.

And thank you.

Speaker 1: And if you would like to ask a question, that is star 11. Again, if you would like to ask a question, that is star 11. One moment while the Q&A.

And if you would like to ask a question that is star one one again, if you would like to ask a question that is star 111 moment longer Q&A.

Stefan Berndt: As a reminder the backlog is net of shipments and we have a strong ramp in shipments projected for the coming months and into next year. Additions to the year end backlog will be a function of our ability to capitalize on a number of opportunities that could close by year end and our team remains well positioned to capture these. These opportunities are across both the government and the commercial sectors as well as spanning all our product lines.

Compiled.

Okay.

Speaker 1: And I am showing no further questions. I would now like to turn the call back over to Tom Dingis for closing remarks.

And I am showing no further questions I would now like to turn the call back over to Tom Dinges for closing remarks.

Speaker 5: Thank you, operator. For further information about our upcoming engagement with the investment community, please visit the investor relations section of MNAREC.com. Thank you everyone who joined us today and we thank you for your interest in MNAREC. We will speak with you all again when we release full year 2023 financial results. Goodbye for now.

Thank you operator for further information about our upcoming engagement with the investment community. Please visit the Investor Relations section of <unk> Dot com.

Everyone, who joined US today and we thank you for your interest in <unk>, we will speak with you all again, when we release full year 2023 financial results.

Stefan Berndt: As a reminder we define a significant increase as a year over year in Greece of 30% or more.

Goodbye for now.

Speaker 1: This concludes today's conference call. Thank you for participating. You may now disconnect.

This concludes today's conference call. Thank you for participating you may now disconnect.

Operator: With that operator, would you please provide the insurrections for the question and answer session operator? Yes, thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. So, would you draw your question, please press star 11 again. Please stand by what we compile the Q&A roster. And one moment, our first question. One moment.

Gregory Konrad: And our first question comes from Greg Konrad from Jeffries, your line is now open.

Mustafa Veziroglu: Good morning. Maybe just to start, I mean, you mentioned pipelines, the biggest in history, any metric or thoughts in terms of maybe the number of term models in the current pipeline are kind of submitted fits? So, in terms of, you're talking about forward-looking statements, right? Correct. So, it's obviously, we have a lot of identified opportunities, and I'm not sure if you can really comment specifically on the aging or the opportunities or the probabilities at this point.

Okay.

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Mustafa Veziroglu: And then just on the 370 terminals and backlog, I mean, how are you thinking about the cadence of those shipments? You ship three in H1 and talk about a substantial ramp in the second half, but maybe contractually, I mean, how are you thinking about shipments in H2? Well, I think they're all driven at the end of the day by, it's a good question, by the way. It's all driven by, at the end of the day, by the launch schedule for Crunch 2 for, of Crunch 1 for the Primes.

Mustafa Veziroglu: And we are working where well with all our time customers on their schedule needs. And the ramp on that, obviously, we pawn to the stock shipping involved in this year, and we anticipate a lot of the shipments to continue on over the next 12 months or so.

Mustafa Veziroglu: And then maybe just one last one. I mean, you talked about the two ground terminals contracts, and we've seen that contract come for the SDA. When you think about that opportunity, I mean, how does that compare relative to size to actual terminals themselves versus kind of the ground infrastructure opportunity? So, I mean, from the opportunity size, the biggest opportunity in front of us is in space. However, like any other market, it starts with one and two, and then it blossoms with a larger opportunity.

Mustafa Veziroglu: So we think there's potentially a significant opportunity. The quantities would not be as large since there's as many satellites that will be launched, but there will be a meaningful demand for ground stations, and this would be our first two forays into the market.

Thank you.

[music].

Thomas Dinges: Thank you. And thank you, and if you would like to ask a question that is star 11, again, if you would like to ask a question that is star 11, one moment, a lot of Q&A, Compile, and I am showing no further questions, I would now like to turn the call back over to Tom Dinges for closing remarks.

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Okay.

Yes.

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Thomas Dinges: Thank you, operator. For further information about our upcoming engagement with the investment community, please visit the Investor Relations section of Mynaric.com. Thank you, everyone, who joined us today and we thank you for your interest in Mynaric.

Thomas Dinges: We will speak with you all again when we release full year 2023 financial results. Goodbye for now.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. .

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Thomas Dinges: Thomas Dinges, Gregory Konrad, Stefan Berndt Thomas Dinges, Gregory Konrad, Stefan Berndt, Mustafa Veziroglu, Mynaric Thomas Dinges, Gregory Konrad, Stefan Berndt Thomas Dinges, Gregory Konrad, Stefan Berndt, Thomas Dinges, Gregory Konrad, Stefan Berndt, Stefan Berndt,[inaudible] Stefan Berndt, Stefan Berndt Stefan Berndt, Stefan Berndt Stefan Berndt Stefan Berndt Before we begin today's formal presentation and remarks, I must remind you that this presentation and oral statements regarding the subjects of this presentation include forward-looking statements within the meaning of the Private Security's litigation reform act of 1995 as amended. All statements other than statements of historical or current facts contained in this presentation are forward-looking statements.

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Speaker 1: Good day, and thank you for standing by, and welcome to My NERC 2023 Half-Year Results Conference Call. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is ready.

Good day, and thank you for standing by and welcome to <unk> 2023 half year results Conference call.

After the Speakers' presentation there'll be a question and answer session to ask a question. During this session you will need to press star one on your telephone you will then hear an automated message of buys in your hand is raised to withdraw. Your question. Please press star. One again, please be advised that today's conference is being recorded.

Speaker 1: To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would like to introduce your host for today's conference. Tom Dinkins, EP Investor Relations. Please go ahead.

I'd like to introduce your host for today's conference Tom <unk> EVP Investor Relations. Please go ahead.

Speaker 5: Thank you, operator. Welcome everyone to Mineric's half-year 2023 results webcast call. Prior to this call, we released our half-year 2023 results, which are available for download on the Investor Relations section of Mineric.com.

Speaker 5: Before we begin today's formal presentation and remarks, I must remind you that this presentation and oral statements regarding the subjects of this presentation include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical or current facts contained in this presentation, are forward-looking statements. These forward-looking statements involve known and unknown facts.

Forward looking statements involve known and unknown risks uncertainties and assumptions that are difficult to predict or are beyond our control and actual results may differ materially from those expected or implied as forward looking statements. The forward looking statements included in this presentation are made only as of the date hereof. Neither we nor any other person undertakes any obligation to <unk>.

Speaker 5: uncertainties, and assumptions that are difficult to predict or are beyond our control, and actual results may differ materially from those expected or implied as forward-looking statements.

Speaker 5: The forward-looking statements included in this presentation are made only as of the date hereof. Neither we nor any other person undertakes any obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation or otherwise.

Any forward looking statement to reflect events or circumstances. After the date of this presentation or otherwise.

Speaker 5: This presentation may include certain financial measures not presented in accordance with IFRS. Such financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity, or performance under IFRS.

<unk> may include certain financial measures not presented in accordance with IRS such financial measures are not measures of financial performance in accordance with IRS FRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profit.

Ability liquidity or performance under Ifr Rs.

Speaker 5: With that out of the way, we have a great agenda for you today. We will begin with opening remarks by Mustafa. Following that, Stefan will discuss our half year 2023 for financial results and our outlook for 2023. Following the formal presentation, we will take questions from analysts. We anticipate this call to last no more than 1 hour.

With that out of the way, we havent right agenda for you today, we will begin with opening remarks by most differ following that Stefan will discuss our half year 2023 of our financial results and our outlook for 2023. Following the formal presentation. We will take questions from analysts. We anticipate this call will last no more than one hour.

Speaker 5: On the call today are Minerix CEO , Mustafa Zeroglu, and Minerix CFO , Stefan Berg-Van Bielow. With that, it's my pleasure to turn the call over to Mustafa for his opening remarks.

On the call today are <unk> CEO and looked at that as a real good and mine Eric CFO Stefan Berg Glenn below with that it's my pleasure to turn the call over to Melissa for his opening remarks.

Speaker 2: Binary reported solid results for the first half of 2023 as it prepared for significantly higher production level.

Thank you Tom.

<unk> recorded solid results for the first half of 2023, as we prepared for significantly higher production level over the coming months, our order momentum on funnel of new opportunities remains strong we reported another strong increase in order backlog in terms of optical communication terminals, which at the end of June stood at three <unk>.

Speaker 2: over the coming months. Our order, momentum, and funnel of new opportunities remain strong.

Speaker 2: We reported another strong increase in order backlog in terms of optical communication terminals.

Speaker 2: which I found out June through that $370. Additionally, our cash in from customer contacts in the first half of 2023 is larger than what we had reported for all of last year. We remain disciplined in our investment strategy to support the future growth of the business and our pipeline opportunities remain the highest in our history.

So many additionally, cassia and from customer contacts and the <unk>.

First half of 2023 is larger than what we had a good partner for all of last year.

And disciplined in our investment strategy to support the future growth of the business and our pipeline of opportunities remain the highest in our history.

Across both the commercial and government sectors, we see operators moving past the design and development stage and are actively selecting suppliers to formally launched our constellation or the coming years. Some like a space development agency are now well into their deployment phase on their initial term Cri awards.

Speaker 2: Some, like the Space Development Agency, are now well into their deployment phase on their initial Trunch Zero awards. SDA has completed all the announcements for Trunch One awards and are now starting to announce the satellite providers for their initial phases of Trunch Two.

<unk> has completed all the announcements for tranche one awards and are now starting to announce the satellite provide us for their initial phases of tranche. Two we expect to hear more tranche two awards to the satellite providers in the coming months.

Speaker 2: We expect to hear more transfer awards to the satellite providers in the coming months.

Speaker 2: Pulling the satellite build awards, the satellite vendors will select their key subsystem providers, such as those like Minerix, supplying the optical communication terminal.

The satellite build awards to satellite vendors with select key subsystem providers, such as those langbeinite supplying optical communication terminals.

Speaker 2: On the commercial side, there are a number of significant opportunities that are moving into RFP stage.

On the commercial side there are a number of significant opportunities that are moving into RFP stage. Some of those are very large mega constellations, while others are smaller more regionally focused and specific use case cost specifically you've seen two major developments within the Mega constellations as robotics selected paranoia of adult.

Speaker 2: Some of those are very large mega-constellations, while others are smaller, more regionally focused, and specific use case focused.

Speaker 2: Specifically, you've seen two major developments within the mega constellations as Robata selected Paranorbital and Palisade selected MDA as their satellite provider.

<unk> select with MDA is the satellite provider.

Speaker 2: Following the selection of the satellite provider, we would expect.

Following the selection of the satellite provider, we would expect for the satellite provider to select key subsystem providers over the coming months.

Speaker 2: for the satellite provider to select key subsystem providers over the coming months.

We've also seen continued developments on the Iris Iris acquired constellation for Europe as the bids for the technical specifications are starting to develop while major funding has been approved the team has worked hard to ensure we are in position to meet the needs of these significant program.

<unk> as they look to make their final selections over the coming months.

Taking a quick look back since the start of the year, We've announced a number of key awards that we believe position us well for the future Awards.

As we have said many times in the past successful execution and incumbent and see how powerful predictors of future success in our industry. The awards announced this year include multiple awards in support of the Fda's proliferate at Warfighter space architecture with key customers such as loss of federal and most recently at Raytheon.

Thomas Dinges: These forward-looking statements involve known and unknown risks, uncertainties and assumptions that are difficult to predict or are beyond our control. And actual results may differ from those expected or implied as forward-looking statements. The forward-looking statements included in this presentation are made only as of the date hereof. Neither we nor any other person undertakes any obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation or otherwise.

Speaker 2: which when added to the previously announced awards with Northrop Grumman, we believe gives us a high market share of this program. We are extremely proud to support this program. In addition, we secured our first award in the Japanese space market. We also signed a definitive agreement for a $24 million award with a new undisclosed U.S.-based customer for the delivery of Condor Mark III optical communication terminal.

Which when added to the previously announced awards with Northrop Grumman, We believe gives us a high market share program.

We are extremely proud to support this program.

In addition, we secured our first award in the Japanese based market.

Also signed a definitive agreement for a 20 $24 million award with a new undisclosed U S based customer.

Thomas Dinges: This presentation may include certain financial measures not presented in accordance with IFRS. Such financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures or profitability, liquidity or performance under IFRS.

Delivery of Condor, Mark III optical communication terminals.

Finally, we've received two separate awards for the developmental ground based terminals wanted in support of Germany is cunard initiatives related to quantum key distribution.

Award is a direct award from the U S FDA to develop and test connections screening space based and space based on Crown based terminals.

Speaker 2: Also, in the first half of this year, we delivered multiple development units to multiple times for the SDA interoperability testing. We're executing on our plan to begin the terminal deliveries in the coming months and throughout the next year. We anticipate we should have our 1st terminals in space in the 2nd half of 2024 based on our customers current launch schedule.

Thomas Dinges: With that out of the way, we have a great agenda for you today. We will begin with the opening remarks by Mustafa. Following that, Stefan will discuss our half-year 2023 financial results and our outlook for 2023. Following the formal presentation, we will take questions from analysts. We anticipate this call will last no more than one hour.

Also in the first half of this year, we delivered the multiple development units to multiple times for the FDA interoperability testing with <unk>.

Executing on our plan to begin to turn on those deliveries in the coming months I'll throw out for next year. We anticipate we should have our first terminals in space in the second half of 2024 based on our customers' current launch schedule.

Thomas Dinges: On the call today, our Mineric CEO, Mustafa, is a Ruboom. And Mineric CEO, Stefan Berk-Bunbilo.

Mustafa Veziroglu: With that, my pleasure to turn the call over to Mustafa for his opening remarks. Mustafa. Thank you, Tom. Mineric reported solid results for the first half of 2023 as we prepare for a significantly higher production level over the coming months. Our order of momentum and tunnel of new opportunities remain strong. We reported the mother's strong increase in order backlog in terms of optical communication terminals, which at the end of June through that 370.

As we stated on our full 2022 results call in April we are focused on continuing to improve our operational excellence focus remains on three main areas include.

Including production readiness continuous process improvements and streamlining the product development process.

Speaker 2: As sole CEO , my focus continues to be in those areas while also keeping a keen eye on the long term strategic needs of the company. This includes ensuring that we have all the resources we need to capitalize on the tremendous multi-year opportunities we see ahead of us.

As CEO my focus continues to be in those areas. While also keeping a keen on keen eye on the long term strategic needs of the company. This includes ensuring that we have all the resources, we need to capitalize on the tremendous multiyear opportunities. We see ahead of us.

Mustafa Veziroglu: Additionally, our cash in from customer contacts in the first half of 2023 is larger than what we had reported last year. We remain disciplined in our investment strategy to support the future growth of the business and our pipeline opportunities remain the highest in our history. Across both the commercial and government sectors, we see operators moving past the design and development stage and are actively selecting suppliers to formally launch their constellation over the coming years.

Speaker 2: The team has continued to make great strides to ensure we're ready to handle zero production.

The team has continued to make great strides to ensure we are ready to handle zero protection.

Speaker 2: This includes building pre-serial production units, verifying our assumptions about pack times involved in the different manufacturing and assembly steps, and ensuring that our data systems are ready for the demanding requirements of complex airspace systems production documentation. In addition, we've accelerated our hiring plans to ensure we have the necessary levels of operations personnel needed to support current and any additional near term orders.

This includes building pre serial production units verifying our assumptions about back times involved in a different manufacturing and assembly steps and ensuring that our data systems are ready for the demanding requirements of complex Aerospace systems protection documentation. In addition, we've accelerated our hiring plans to ensure we have the necessary levels.

Mustafa Veziroglu: Some like the state development agency are now well into their deployment phase on their initial trench zero awards. SBA has completed all the announcements for trench one awards. And are now starting to announce the satellite providers for their initial phases of trench two. We expect to hear more trench two awards to the satellite providers in the coming months. Following the satellite build awards, the satellite vendors, the selector key sub-system providers such as those like minor supply and optical communication terminals.

Our operational operations personnel needed to support current and any additional near term orders.

Speaker 2: I can tell you we're well prepared for the opportunity ahead, and I believe we have the right team with the right product.

I can tell you we are well prepared for the opportunity and.

And I believe we have the right team with the right products.

Speaker 2: and the right operational structure and capacity to capitalize on this opportunity.

And the right operational structure and capacity to capitalize on this opportunity.

Speaker 2: With that, let me turn it over to Stefan to walk you through our results in more detail. Stefan?

With that let me turn it over to Stephane to walk you through our results in more detail Scott.

Thank you.

Speaker 3: So our results for the half year 2020

Mustafa Veziroglu: On the commercial side, there are a number of significant opportunities that are moving into our B stage. Some of those are very large mega constellation while others are smaller, more regionally focused and specific use case focused specifically. You've seen two major developments within the mega constellations is Nevada selected far north and tell us how selected MDA as their satellite provider following the selection of the satellite provider. We would expect for the satellite provider to select key sub-system providers over the coming months.

So onto our results for the half year 2010.

Speaker 3: First, thank you for two key test responses that we believe will continue to best demonstrate the momentum we are seeing in the business.

For us.

Yes.

I think we believe will continue.

Right.

Okay.

Yes.

Sponsor.

Speaker 3: This is a key forward-looking predictor of revenue.

Business in our key forward looking predictor of revenue.

If the cash is only received as we meet the contractual milestone.

Yes.

When cash is received from customer contract.

Mustafa Veziroglu: We've also seen continued developments on the irisquired constellation for Europe as the bits for the technical specifications are starting to develop while major funding has been approved. The team has worked hard to ensure we are in position to meet the needs of these significant programs as they look to make their final selections over the coming months.

Okay.

This is pending.

Pending contract term.

Speaker 3: These are contractual payments received in certain milestones are met, but full delivery and acceptance have not been achieved.

Michael.

Our contract payments with eastern certain milestones are met.

So the library.

One <unk>.

Speaker 3: In essence this is free revenue cash received and we believe a very significant indicator of the future revenue of the company.

This is Ralph.

And we believe a very significant indicator of the future revenue of the company.

Mustafa Veziroglu: Management. They can't quick look back since the start of the year, we've announced a number of key awards that we believe position as well for the future awards. As we have said many times in the past, successful execution and incumbency are powerful predictors of future success in our industry. The awards announced this year include multiple awards in support of the SDA's proliferated, war-fired space architecture with key customers, such as Loft Federal and most recently Region.

Yes.

Cash it in from customer contracts for the first half of 2023 was 23 million.

$1 million, which is greater than the $18 3 million, we reported for all of 2022 and up.

Very nicely from the $7 9 million euros, we reported in the first half of 2022.

Speaker 3: Second, optical communication terminal backlog in units at the half year was 370 units compared to 256 units at year end and up from 211 units at the half year 2022. As a reminder, our current terminal backlog is heavily weighted towards government-funded contracts, including programs with the FDA.

Second uptake of communication terminal backlog in units at the half year was 370 unit compared to 156 units.

Mustafa Veziroglu: Which when added to the previous the announced awards with Noftal Premon, we believe it gives us a fine market share of this program. They are extremely proud to support this program. In addition, we secured our first award in the Japanese space market. We also signed a definitive agreement for a $24 million award with a new undisclosed US-based customer for the delivery of Condor Mark III Optical Communication Terminals. Finally, we've received two separate awards for the development of ground-based terminals.

Year end and up from 211 units at the half year 2022.

As a reminder, our current terminal backlog is heavily weighted towards government funded contracts included including programs with the FDA.

Speaker 3: We continue to see a strong and steady pipeline of opportunities for all terminal products across both government and commercial markets.

We continue to see strong and steady pipeline of opportunities for all of the terminal products across both government and commercial markets.

Speaker 3: Let's look at a few other figures before opening the call for questions.

Mustafa Veziroglu: One in support of Germany's Q&A initiative relate to quantum key distribution. The other award is a direct award from the US SDA to develop and test connections between space-based and ground-based terminals. Also, in the first half of this year, we deliver the multiple development units to multiple times for the SDA interoperability testing. We're executing on our plan to begin the terminal deliveries in the coming months and throughout the next year. We anticipate we should have our first terminals in space in the second half of 2024, based on our customers' current launch schedule.

Let's look at a few other figures before opening the call for questions.

Speaker 3: Revenue was 4.4 million euros for the half year 2023 compared to 4.4 million euros for all of 2022. In the year ago period we reported a very small amount of service revenue.

Revenue was $4 4 million euros for the half year 2023, compared to $4 4 million euros for all of 2022.

Our goal period, we reported a very small amount of service revenue.

Speaker 3: Revenue in the first half of 2023 was driven by terminal shipment to multiple customers as well as service revenue. Our current contractually committed optical communication terminal backlog, primarily consisting of Condor Max 3 products, mostly for these scheduled shipments starting over the coming months.

Revenue in the first half of 2023 was driven by terminal shipments to multiple customers as well as service revenue our current contractually committed.

Take a communication terminal backlog.

Mustafa Veziroglu: As we stated on our full 2022 results called in April, we're focused on continuing to improve our operational excellence. This focus remains on three main areas, including production readiness, continuous process improvements, and streamlining the product development process. As philosophy, my focus continues to be in those areas while also keeping a keen eye on the long term strategic needs of the company. This includes ensuring that we have all the resources we need to capitalize on the tremendous multi-year opportunities we see ahead of us.

Merrily, consisting of <unk> III products, mostly foresees catalyst shipments starting over the coming months.

Speaker 3: of 2023 throughout 2024 and into the first half of 2025.

Of 2023 throughout 2024 and into the first half of 2025.

Cost of material to decrease by more than 52% compared to the year ago period, driven by reduced costs for finalizing the development and testing of our product as well as production line testing.

Materials and consumables used included a write down of 671000 euros for the half year 2023.

Mustafa Veziroglu: The team has continued to make great strides to ensure we're ready to handle zero production. This includes building pre-serial production units, verifying our assumptions about pack times, involved in a different manufacturing and assembly steps, and ensuring that our data systems are ready for demanding requirements of complex air-space systems production documentation. In addition, we've accelerated our hiring plans to ensure we have the necessary levels of operational operations personnel needed to support current and any additional near-term orders. I can tell you, we're well prepared for the opportunity ahead, and I believe we have the right team with the right products and the right operational structure and capacity to capitalize on this opportunity.

Our production rate increased substantially over the coming months and into next year, we expect our cost of materials to increase.

Speaker 3: Personal costs increased 8% compared to the year-ago level as we continue to add talent and capabilities to our team, but at a much slower pace than we reported in the prior period.

Personnel costs increased 8% compared to the year ago level as we continue to add talent and capabilities to our team.

At a much slower pace than we reported in the prior periods.

Speaker 3: This is in line with that we discussed this year in April during our full year 2022 results call.

In line with that we discussed this year in April during our full year 2022 results call.

Speaker 3: Currently our total head count similar to the level we reported at end year 2022 is around 300 employees.

Currently our total head count similar to the 11, we reported it and year 2022.

Round 300 employees.

Stefan Berndt: With that, let me turn it over to Stefan to walk you through our results in more detail. Stefan, thank you for your time.

Speaker 3: Looking ahead, we expect to continue to add to our operation headcount as we look to support high level of production, which we've discussed with you previously.

Looking ahead, we expect to continue to add to our operation head count as we look to support higher level of product.

Stefan Berndt: So, I'm to our results for the half-year 2020- First, turns to the two key business managers that we believe will continue to best demonstrate the momentum we are seeing in the business. The cash is on customer contracts. This is a key forward looking predictor for revenue. As the cash is only received as we need contractual milestones. There is typically a lack between cash received from customer contracts and when shipments are made.

Which we've discussed with you previously.

We are taking a disciplined approach to adding.

Other operating expenses.

We feel comfortable with the overall investment in engineering, we believe the growth rate in personal expenses over the near term.

EMEA first half level.

Speaker 3: Overall, the company reported an operating loss of 28.3 million euros for the half year 2023 compared to an operating loss of 34.9 million euros for the half year 2022.

Overall, the company reported an operating loss of $28 3 million euros for the half year 2023.

Stefan Berndt: This area is depending on contractual. This is a reminder. These are contractual payments received in certain milestones are met for delivery and acceptance has not been reached. In essence, this is free revenue cash received and we believe a very significant indicator of the future revenue of the company. As Mustafa said, cash is from customer contracts for the first half of 2020. In 2023 was 23.0 million, which is greater than the 18.3 million euros we reported for all of 2022.

<unk> operating loss of $34 9 million euros for the half year 2022.

Speaker 3: The more than 6 million euros reduction in our half-year reporting loss

To more than 6 million reduction in our half year reporting loss.

Speaker 3: was the result of higher revenue, decreased costs for production development, set up and testing of production capacities and other cost reductions.

What's the risk side of higher revenue decreased costs drove production development set up and testing of protection capacities and other cost reductions compared.

Speaker 3: Compared to the first half of last year, we reported higher personal costs as we continue to add headcount to support our production ramp.

Compared to the first half of last year, we reported higher personnel costs as we continue to add head count to support our production ramp.

Speaker 3: This increase was partially offset by lower other operating costs, specifically our insurance costs. Now, let's turn to a view.

This increase was partially offset by lower other operating costs.

Stefan Berndt: Up very nicely from the 7.9 million euros we reported in the first half of 2022. Second, optical communication terminal backlog in units at the half year or 370 units compared to 256 units at year end and up from 211 units at the half year 2022. As a reminder, our current terminal backlog is heavily rated towards government funded contracts including programs with the SDA. We continue to see a strong and steady pipeline of opportunities for all terminal products across both government and commercial markets.

Specifically our insurance costs.

Now, let's turn to a view.

So a few key balance sheet figures.

Our cash balance at the end of June 2023 was more than 47 million euros compared to $10 2 million euros at the end of 2022. This includes the debt and equity raise we concluded this year.

The impact from the prepayment of our previous line of credit along with fees and expenses.

Speaker 3: We remain in a market-leading mode, and as a pre-break-even company, we expect our cash balance to decrease from today's level through year-end before stabilizing in late 2024. With our debt and capital raise completed in April , we believe we have a strong balance sheet and are very well positioned to capitalize on the opportunities ahead of us.

We remain in a market, leading molecule and S&P breakeven company, we expect our cash balance to decrease from todays level through year end before the <unk> in late 2024.

Stefan Berndt: Let's look at a few other figures before opening the call for questions. Revenue was 4.4 million euros for the half year 2023 compared to 4.4 million euros for all of 2022. The year ago period we reported a very small amount of service revenue. Revenue in the first half of 2023 was driven by terminal shipment to multiple customers as well as service revenue. Our current contractually committed optical communication terminal backlog, primarily consisting of condom marks re-products, mostly for seas, cattle shipments starting over the coming months of 2023 throughout 2024 and into the first half of 2025.

With our debt and capital raise completed in April we believe we have a strong balance sheet and are very well positioned to capitalize on the opportunities ahead of us.

Inventories were 17.

9 million euros up from $13 3 million euros at the end of last year as we continue to invest in component inventory ahead of the expected ramp and determined that a production over the remainder of this year.

Speaker 3: Property land and equipment were 24.0 million euros compared to 22.3 million euros at year-end 2022.

Robert the property plant and equipment.

<unk> 4.0 million euros compared to $22 3 million euros at year end.

And 2022.

Speaker 3: We invested €1.5 million in property, plant and equipment in the first half of 2023 as compared to €6.4 million in the first half of 2022.

We invested $1 5 million in property plant and equipment in the first half of 2023.

Stefan Berndt: Cost of materials decreased by more than 52% compared to the year ago period driven by reduced costs for finalizing the development and testing of our products as well as production line testing. Raw material and consumables used included a write down of 671,000 euros for the half year 2023. As our production rate increased substantially over the coming months and into next year we expect our cost of material to increase. Personal costs increased 8% compared to the year ago level, as we continue to add talent and capabilities to our team, but at a much slower pace than we reported in the beer prior periods.

Compared to $6 4 million in the first half of 2022.

We expect our investments in property plant and equipment to increase from this level in the second half of 2023 and likely hold at that higher level next year, given the anticipated significant higher rates of production over the coming months and into 2024.

Speaker 3: Now let me walk you through our guidance for 2023.

Now, let me walk you through our guidance for 2023.

For 2023, we continue to expect cash from customer contracts to increase significantly for the full year 'twenty sweep our cash in from customer in the first half of CES was driven by milestone payments and customer deposits.

Stefan Berndt: This is in line with that we discussed this year in April during our full year 2022 results call. Currently our total head count similar to the level we reported at the end year 2022 with around 300 employees. Looking ahead, we expect to continue to add to our operation head count as we look to support high level of production which we discussed with you previously. We are taking a disciplined approach to adding other operating expenses. We feel comfortable with the overall investment in engineering, we believe the growth rate in personal expenses over the near term should remain near the first half level.

Speaker 3: Over the next 12 to 18 months, as our production level increases, we expect cash-in-from-customer contracts to be a bit more balanced in terms of deposits and milestone payments relative to delivery related to receipts.

Our next 12 to 18 months.

Our production levels increase we expect kitchen from customer contract to be a bit more balanced in terms of deposits and milestone payment relative to deliver related to receipts.

Speaker 3: So as we see our shipments start to ramp, cash in from customer contracts will be much more closely correlated to shipments going forward.

So if you see our shipments start to ramp from customer contract will be much more closely correlated to shipments going forward.

Speaker 3: As noted earlier, we have had a great start to the year in terms of cash-in from customer contact.

As noted earlier, we have had a great start to the year in terms of cash in from customer contracts.

Speaker 3: which here today cashed in earlier, already above last year, 2011, and we see a strong pipeline of cash-in based on secured orders and potential opportunities through the year-end.

Today cash.

Alrighty above.

Yes.

And we see a strong pipeline of cash in based on secured orders and potential opportunities through year end.

Stefan Berndt: Overall, the company reported an operating loss of 28.3 million euros for the half year 2023 compared to an operating loss of 34.9 million euros for the half year 2022. The more than 6 million euros reduction in our half year reporting loss was the result of higher revenue, decreased costs for production development, set up and testing of production capacities and other cost reductions. Compared to the first half of last year, we reported higher personal costs as we continue to add head count to support our production ramp. This increase was partially offset by lower other operating costs specifically our insurance cost.

We expect continued growth in our optical communications terminal backlog by the end of.

This year.

We expect our year end, thank you Jay Z optical communications dominant effect.

Significantly compared to 2022.

Speaker 3: As a reminder, the backlog is a net of shipments and we have a strong ramp in shipments projected for the coming months and into next year. Additions to the year-end backlog will be a function of our ability to capitalize on a number of opportunities that could close by year-end and our team remains well positioned to capture these.

As a reminder, the back.

Let me just net of shipment and we have a strong ramp in shipments protected for the coming months and into next year.

Additions.

Year end backlog will be a function of our ability to capitalize on a number of opportunities that could close by year end and our terminal.

And our team remains well positioned to capture.

Speaker 3: These opportunities are across both the government and the commercial sectors, as well as spanning all our product lines.

These opportunities across both the government and the commercial sectors.

Well, our spending all our product lines.

Stefan Berndt: Now let's turn to a few key balance sheet figures. Our cash balance at the end of June 2023 was more than 47 million euros compared to 10.2 million euros at the end of 2022. This includes the debt and equity raise. We concluded this year as well as the impact from the prepayments of our previous line of credit along with fees and expenses. We remain in a market leading mode and as a big break even company we expect our cash balance to decrease from today's level through year end before stabilizing in late 2024.

Speaker 3: As a reminder, we define a significant increase as a year-over-year increase of 30% or more.

As a reminder, we define a significant increase year over year increase of 30% or more.

Speaker 3: With that, operator, would you please provide the introductions for the question and answer session? Operator. Yes, thank you. As a reminder to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster. And one moment for our first question.

With that operator would you. Please provide instructions for the question and answer session. Operator, yes. Thank you.

As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Please standby, while we compile the Q&A roster and one moment Bob first question.

Yes.

Speaker 1: One moment, and our first question comes from

One moment and our first question comes from.

Stefan Berndt: With our debt and capital raise completed in April, we believe we have a strong balance sheet and a very well position to capitalize on the opportunities ahead of us. Inventories were 17.9 million euros up from 13.3 million euros at the end of last year as we continue to invest in component inventory ahead of the expected ramp in the terminal production of the reminder of this year. Property, property, land, and equipment were 24.0 million euros compared to 22.3 million euros at year end 2022. We invested 1.5 million euros in property, plant, and equipment in the first half of 2023 as compared to 6.4 million in the first half of 2022.

Greg Conrad from Jefferies. Your line is now open.

Speaker 4: Good morning. Maybe just to start, I mean, you mentioned pipelines, the biggest in history, any metric or thoughts in terms of maybe the number of terminals in the current pipeline or kind of submitted bids?

Good morning.

Maybe just to start I mean, you mentioned pipeline the biggest in history any metric or your thoughts in terms of maybe the number of terminals in the current pipeline are kind of submitted bids.

Stefan Berndt: We planned an equipment to increase from this level in the second half of 2023 and likely hold at the higher level next year, given the anticipated significant higher rates of production over the coming months and into 2024.

Speaker 2: So, in terms of, you're talking about forward looking statements, right?

So in terms of you're talking about forward looking statements right.

Speaker 2: correct right so it's obviously

Correct.

So it's.

Speaker 2: We have a lot of identified opportunities and, but I'm not sure it would be, you can really comment specifically on the aging or the opportunities or the probabilities at this point.

We have a lot of identified opportunities and.

But I'm not sure.

You can't really comment specifically on the aging of the opportunities are the probabilities at this point.

And then just on the 370 <unk>.

Backlog I mean, how are you thinking about the cadence of those shipments you shipped three an H, one and talk about a substantial ramp in the second half, but maybe contractually I mean, how are you thinking about shipments in <unk>.

Speaker 2: Well, I think they're all driven at the end of the day by, uh, it's a good question, by the way. It's all driven by at the end of the day by the launch schedule for crunch two for, um, crunch one for the primes.

Well I think they are all driven at the end of the day bye.

It's a good question, but it's all driven by at the end of the day by the launch scheduled for tranche two four tranches.

Stefan Berndt: Now, let me walk you through our guidance for 2023. For 2023, we continue to expect cash in from customer contracts to increase significantly for the fully year in 2023. Our cash in from customer in the first half of the year was driven by milestone payments and customer deposits. Our next 12 to 18 months as our production level increase, we expect cash in from customer contracts to be a bit more balanced in terms of deposit and milestone payment relative to delivery related to receipts.

<unk> for the primes and were working very well with all our customers on their scheduled Nissan each one has its own variance on.

Speaker 2: And we are working very well with all our prime customers on their scheduled needs. And each one has its own variance on.

Time and delivery.

So in terms of the ramp on that obviously, we plan to start shipping in volume this year.

Dissipate the bulk of the shipments to continue on over the next 12 months or so.

Speaker 4: And then maybe just one last one. I mean, you talked about the two ground terminals contracts, and we've seen that contract come for the SDA.

Okay, and then maybe just one last one.

Talked about the two ground terminals contract.

We've seen that contract come for the SBA.

Speaker 4: When you think about that opportunity, I mean, how does that compare, you know, relative to size to actual, the terminals themselves versus kind of the ground infrastructure opportunity?

When you think about that opportunity I mean, how does that compare relative to size the actual the terminals themselves versus kind of the ground infrastructure opportunity.

Stefan Berndt: So, as we see our shipment start to ramp, cash in from customer contracts will be much more closely correlated to shipments going forward. As noted earlier, we have had a great start to the year in terms of cash in from customer contracts, which year today cash in earlier that already above last year. And we see a strong pipeline of cash in based on secured orders and potential opportunities through the year end.

Speaker 2: So, I mean, from the opportunity size, the biggest opportunity in front of us is in space. However, like any other market, it starts with one and two, and then it blossoms into larger opportunities. So we think there's a potentially a significant opportunity. The quantities will not be as large since there isn't as many satellites that will be launched, but there will be a meaningful.

So.

But from the opportunity size the biggest opportunity in front of me losses in space. However, like any other market. It starts with one and two and then it plateaus into larger opportunities. So we think there is that.

Potentially a significant opportunity.

The quantities will not be as large since there is as many satellites that will be launched but there will be a meaningful demand for ground stations and this would be our first two forays into that market.

Stefan Berndt: We expect continuous growth in our optical communication terminal backlog by the end of this year. As we expect our year in 2023 optical communication terminal and backlog to increase significantly compared to 2022. As a reminder, the backlog is net of shipments and we have a strong ramp in shipments protected for the coming months and into next year. Additions to the year end backlog will be a function of our ability to capitalize on the number of opportunities that could close by it year end and our terminal and our team remains well positioned to capture these.

Speaker 2: Demand for ground stations and this would be our first two forays into that market

Thank you.

And thank you.

Speaker 1: And if you would like to ask a question, that is star 11. Again, if you would like to ask a question, that is star 11. One moment while the Q&A.

And if you would like to ask a question that is star one one again, if you would like to ask a question that is star 111 moment a lot of Q&A.

Compiled.

Okay.

Speaker 1: And I am showing no further questions. I would now like to turn the call back over to Tom Dingis for closing remarks.

And I am showing no further questions I would now like to turn the call back over to Tom Dinges for closing remarks.

Speaker 5: Thank you, operator. For further information about our upcoming engagement with the investment community, please visit the investor relations section of Mineric.com. Thank you everyone who joined us today and we thank you for your interest in Mineric. We will speak with you all again when we release full year 2023 financial results. Goodbye for now.

Thank you operator for further information about our upcoming engagement with the investment community. Please visit the Investor Relations section of <unk> Dot Com. Thank you, everyone, who joined US today and we thank you for your interest in <unk>, We will speak with you all again, when we release full year 2023 financial results Goodbye for now.

Stefan Berndt: These opportunities are across both the government and the commercial sectors as well as banning all our product lines. As a reminder, we define a significant increase as a year over year and increase of 30% or more.

Speaker 1: This concludes today's conference call. Thank you for participating. You may now disconnect.

This concludes today's conference call. Thank you for participating you may now disconnect.

Operator: With that operator, would you please provide the instructions for the question and answer session operator? Yes, thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster and one moment by our first question. One moment.

Gregory Konrad: And our first question comes from Greg Konrad from Jeffries. Your line is now open.

Mustafa Veziroglu: Good morning. Maybe just to start, I mean, you mentioned pipelines, the biggest in history. Any metric or thoughts in terms of maybe the number of term models in the current pipeline are kind of submitted fits? So in terms of you're talking about forward-looking statements, right? Correct.

Mustafa Veziroglu: So it's obviously we have a lot of identified opportunities, but I'm not sure it would be, it can really comment specifically on the aging or the opportunities or the probabilities at this point. And then just on the 370 terminals and backlog, I mean, how are you thinking about the cadence of those shipments? You shift three in H1 and talk about a substantial ramp in the second half, but maybe contractually, I mean, how are you thinking about shipments in H2?

Mustafa Veziroglu: Well, I think they're all driven at the end of the day by, it's a good question, by the way. It's all driven by, at the end of the day, by the launch schedule for crunch two, for the crunch ones for the primes. And we are working where well with all our time customers on their schedule needs. And each one has its own variance on time and delivery. So in terms of the ramp on that, obviously, we plan to start shipping involved in this year and anticipate the amount of the shipments to continue on over the next 12 months or so.

Mustafa Veziroglu: And then maybe just one last one, I mean, you talked about the two ground terminals contracts and we've seen that contract come for the SDA. When you think about that opportunity, I mean, how does that compare relative to size to actual the terminals themselves versus kind of the ground infrastructure opportunity? So, I mean, from the opportunity size, the biggest opportunity in front of us is in space. However, like any other market, it starts with one and two and then it blossoms and for larger opportunities.

Mustafa Veziroglu: So we think there's potentially a significant opportunity. The quantities would not be as large since there's as many satellites that will be launched, but there will be a meaningful demand for ground stations and this would be our first two forays into that market.

Operator: Thank you. And thank you. And if you would like to ask a question that is star 11, again, if you would like to ask a question that is star 11, one moment, a lot of Q&A, compiles. And I am showing no further questions.

Thomas Dinges: I would now like to turn the call back over to Tom Dinges for closing remarks.

Thomas Dinges: Thank you, operator.

Thomas Dinges: For further information about our upcoming engagement with the investment community, please visit the Investor Relations section of Mynaric.com. Thank you everyone who joined us today, and we thank you for your interest in Mynaric.

Thomas Dinges: We will speak with you all again when we release full year 2023 financial results. Goodbye for now.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Half Year 2023 Mynaric AG Earnings Call

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