AVTECH Sweden AB (publ) Interim Report January – June 2024

FINANCIAL KEY FIGURES FOR THE PERIOD

• Net sales in the second quarter increased by 28.8% compared to the same period in 2023 thanks to new customer agreements. This is once again our best quarterly sales to date.
• Net earnings increased by 30,2% compared to the same period in 2023. At the same time, net earnings decreased slightly compared to the previous quarter, largely thanks to the investments made in the sales department.
• Cash flow for the period is negative, mainly due to the dividend paid in May, but also due to delayed customer payments that are expected to come in the coming quarter.

EVENTS DURING THE PERIOD

• On April 25, it was announced that AVTECH Sweden AB (publ) has entered into a one-year agreement with Air Caraïbes and French bee for AVTECH's Aventus wind uplink service. The start date was in January 2024 and expected total value in the range of MSEK 0.2 to 0.4 depending on the fleet and EUR's exchange rate development. These two airlines belong to the same group (Dubreuil Group) and with their fleet of a total of about 15 larger Airbus A350 and A330 aircraft, they link Paris with destinations in the Caribbean, Guyana, Reunion Island, French Polynesia and destinations in North America. The Aventus service, which uses the latest high-resolution aviation weather forecasts from the UK Met Office, provides accurate and tailored in-flight wind and temperature information to its users, including Air Caraïbes and French bee. This leads to improved flight efficiency, punctuality, and reduced workload for pilots.

Clément Cibot, Head of Flight Ops Engineering Department for Air Caraïbes Atlantique & French Bee added: "We are very pleased with this enhancement with the Aventus system, which will enable us to use the most up-to-date weather data in our inflight flight management systems. It is a big step forward for our long-haul operations. The best flight paths will be calculated using the very latest weather data available, which means optimized flight safety and fuel consumption. We are very excited about this new technology that Aventus offers us and are very confident in the positive impact it will have on our operations."

• On May 15, AVTECH's Annual General Meeting was held. In connection with the Annual General Meeting, the current Board member Jonny Olsson resigned at his own request and the Annual General Meeting proposed the election of new Board members Martin Lagerqvist and Per Jensen.

Martin was born in 1971 and has a degree in electrical engineering. He is a long-term shareholder in AVTECH, since before the IPO, and has extensive experience in several different IT industries and works as an advisor in IT architecture to various companies. Martin has previously founded and worked in IT and e-commerce companies. He is now a partner in the integration company Connect Excellent Companies Sweden AB, which focuses on integration solutions and proprietary software for that purpose. Martin is also a board member of Connect Excellent Companies Sweden AB and Lideko AB.

Per Jensen was born in 1960. He is the principal owner and responsible for business development within Air Support AS in Denmark. Air Support is one of the three major providers of flight plans for all the world's flying vehicles. Per has more than 30 years of experience in commercial aviation and is involved in a few smaller development companies with a focus on streamlining existing aviation operations. Per is also a trained pilot and holds a valid commercial pilot's license for both aircraft and helicopters. Per is a member of the Board of Directors of the following companies in the aviation industry, ADSB Support (Flight tracking data), Tail log (EFB), Aeroplan (Compliance and SMS systems), Selca soft (App and web development), Mesh-Data (cost controlling for airlines), Asistim Gmbh Germany (Dispatch education and flight service provider) and Musketeer SA (Scheduling Software).

• On May 23, a dividend of SEK 0.10 per share, corresponding to a total of approximately SEK 5.6 million, was paid in accordance with the resolution of the Annual General Meeting. "Thanks to an ongoing positive result and good financial strength, it was proposed and the Annual General Meeting approved a dividend of SEK 0.10 per share. Even after the dividend, we have good financial liquidity and will be able to continue to invest in the business to further strengthen our position.", said Chairman of the Board Ingvar Zöögling.
• On June 28, it was announced that AVTECH Sweden AB (publ) and the airline PLAY have entered into an agreement for AVTECH's Aventus and ClearPath services, with a start date in April 2024 and an expected annual value of around SEK 0.5 million depending on the number of aircraft and EUR exchange rate development.
  AVTECH's ClearPath and Aventus services, both based on state-of-the-art high-resolution flight weather forecasts from the UK Met Office, deliver accurate and tailored tactical decision support in real-time to PLAY's pilots to improve the efficiency of each individual flight. By providing its flight crews with the latest weather data and guidance on the most effective flight altitudes, PLAY can take maximum advantage of prevailing winds and temperatures to reduce its overall carbon emissions. This leads to improved flight execution and efficiency, increased situational awareness and reduced workload for the pilots. In addition, the system also warns of turbulence along the flight path, which increases comfort for all passengers travelling with PLAY.