Railway Metrics and Dynamics Releases Interim Report for January–March 2024

Patent valuation, Business Sweden's Catalyst program, numerous deliveries and tests, and an order for a "Proof of Concept" to Brazil. It has been an intensive first quarter of 2024, summarized in Railway Metrics and Dynamics' interim report released today. The interim report is available as an attached document and on the company's website, railwaymetrics.com.

The transformation of the railway has become a government issue, and we have and will continue to participate in that discussion. Safety issues have also become highly topical, with the Swedish Work Environment Authority placing great emphasis on personnel outside trains during shunting. We see that our camera solution will become relevant to these issues.

2024 is expected to continue at a rapid pace, and our visibility in the railway sector will increase both domestically and internationally. We continue to focus on further developing the product to remain at the forefront of the railway's ongoing transformation.

Progress update

– Our strategic goals are in line with the plan, with market trends matching our forecasts. We are pleased with the progress and continue to focus on delivering value to our stakeholders, commented Jan Lindqvist, CEO.

Period: January 1 – March 31, 2024

• The company's net sales for the period amounted to 760 (1,760) TSEK.
• The operating result (EBIT) for the period amounted to –1,673 (857) TSEK.
• EBITDA for the period amounted to –1,673 (881) TSEK.
• Earnings per share for the period were –0.09 (0.05) SEK.
• The company capitalized costs of 3,428 (1,577) TSEK during the period.

Significant events during the reporting period

• Series T02 subscription options were exercised to 92.65 percent.
• RMD selected for Business Sweden's growth program, Catalyst.
• First serial delivery of new PMUs.
• VÄTE Rail purchased two cameras for testing.
• Three "tollgates" delivered and invoiced in the MAJ project with the Swedish Transport Administration.

Significant events after the end of the reporting period

• Listing change from Spotlight Stock Market to Nordic Growth Market.
• Expansion to South America.
• Additional SEK 1 million financing from the Swedish Transport Administration for continued development of AI and Machine Learning.
• Green Cargo's MB locomotives equipped with RMD's infrastructure sensors.
• TX Logistics ensures that all locomotives in Sweden are equipped with rear-view cameras.
• AWA Patent evaluates RMD's patent portfolio at EUR 20.71 million.

The camera market is accelerating and estimated to reach 800-1200 units in Sweden

Railway Metrics and Dynamics (RMD) has assessed the Swedish market for rear-view cameras and estimates the need to be between 800 and 1200 units. With today's increased focus on safety in the railway sector, the expectation is that the Nordic market will follow Sweden's example with rear-view cameras, and that the rest of Europe will also follow suit.

The transition to digital solutions for train reversing, for example during shunting, is expected to be accelerated by the Swedish Work Environment Authority's decision to prohibit riding on footboards. The prohibition takes effect from September 3rd this year and has been associated with a penalty of SEK 15 million for a railway company. RMD's updated and state-of-the-art rear-view camera, already in use by, among others, VÄTE Rail, is therefore a highly relevant option.

Patent Valuation

During the period, the company's patent portfolio was valued by the market-leading AWA Patent. The value is determined at EUR 20 million for all published patents owned by the company.

After consideration with tax and accounting advice, the company's board has decided to write up its intangible assets to 65% of the patent's value, including the already accrued intangible assets in the accounts.

The write-up is based on the company's expected turnover from the patents and the value it is expected to generate and should therefore be seen as an asset to report. The amount of the write-up is made cautiously and therefore constitutes only a part of the total valuation.