CGit

Mölndal                                                                                      2024-04-23

Group financial overview

A historically successful first quarter of 2024. Our first quarter of 2024 was fantastic and demonstrates our ability to not only meet but also exceed our goals. We have transformed our ambitions into measurable results, with an impressive increase in net revenue from 22,246 TSEK to 205,596 TSEK compared to the previous year. This success is partly driven by our large business, which, after currency adjustments and other factors, generated revenues of 177 MSEK out of the planned 185 MSEK. Apart from this large business, our operational activity demonstrates an impressive growth of approximately 27%!

As we look ahead to the remainder of 2024, we do so with a foundation of stable solidity and profitability. Our impressive earnings before interest, taxes, depreciation, and amortization (EBITDA) of 16,855 TSEK reflects our operational ability to generate sustainable value. We have successfully transformed a previous negative operating income (EBIT) of -550 TSEK during the first quarter of the previous year into a significant increase, reaching 15,426 TSEK this year, emphasizing that our business model is performing excellently and is highly adapted to the current paradigm shift within AI.

The strong net income result, amounting to 12,075 TSEK compared to last year’s -637 TSEK speaks to our financial stability and effective strategy. This is also reflected in the earnings per share after tax, which has increased from 0.40 SEK to 7.66 SEK, confirming our profitability and the strength of our business model.

We look forward to continuing our growth and enhancing our value-creation processes through further investments in technology, people, and processes. With a focused and determined outlook, we are ready to continue the journey of growth and navigate through 2024 with renewed vigor and optimism.

A MESSAGE FROM THE CEO:

A historic first quarter demonstrates our ability to exceed expectations.

Out first quarter of 2024 has been historic. A period that not only demonstrates our ability to exceed expectations but also translates our ambitions into tangible results. At the close of 2023, we closed the largest deal in the company’s history. It has been realized during Q1. In addition to that, we feel a very positive sentiment surrounding the AI market, with customers beginning to act and invest to ensure their competitiveness! A comparison with the previous year reveals an incredible increase in our net revenue from 22,246 TSEK to 205,596 TSEK, emphasizing our strategic position and the right timing to maximize market opportunities and drive growth.

We find ourselves amid a paradigm shift where artificial intelligence (AI) not only shapes the future but IS the future. In 2024, I am convinced that we will witness the transformative power of AI as an integral part of our society and businesses. The market’s perception of AI technologies has accelerated, leading to significant changes in how we drive innovation and deliver value to our customers. With a forecast indicating even greater growth and development in the years ahead, we are excited to take the lead and guide the market into this new era of technological advancement and business transformation.

Solidity and profitability:

In Q1 2024, we optimized operations and generated sustainable value, with EBITDA landing at 16,855 TSEK. From a previously negative operating result in the comparative period - Q1 2013 (-550 TSEK) to 15,426 TSEK in Q1 2024 - we have purposefully transformed challenges into opportunities. With this strong result, we can engage in forward-looking planning that demonstrates continued growth and profitability. However, I also want to emphasize realistic expectations, as each subsequent quarter may not reach the levels of Q1 2024. I want to emphasize that even though we have achieved remarkable successes through our large business, it’s important to have realistic expectations for the future. Large and complex deals take time to materialize, meaning we won’t regularly execute deals of this magnitude every quarter. However, there are both similar and larger deals in progress within the same domain, demonstrating the potential of our long-term strategy. We continue to work towards realizing these opportunities while also aiming to balance expectations for the upcoming quarters.

From vision to reality:

Our ability to handle larger and more complex deals has marked a significant milestone in our business development, not only elevating our profile but also confirming our capacity to scale up our operations. The recently executed deals, where we have delivered comprehensive AI infrastructures to some of the most complex industries, have not only showcased our technical capability but also our financial acumen and organizational stability. These deals have been considerably larger than what we have previously handled and have involved advanced integration of both hardware and software solutions. By completing these transactions, we have not only built new trust with our existing clients but also attracted new major players from various sectors. This, in turn, has cemented our legitimacy to tackle even larger and more complex challenges, opening doors to new, expansive market segments and solidifying Aixia’s position as a trusted partner at the forefront of the AI industry.

With this, we move forward with renewed vigor and determination, steadfast in our commitment to continue our path of success and strengthen our leadership position in AI development. Our offering remains incredibly strong in the market and is closely aligned with the overall trends and developments within the AI sector, highlighting our strategic positioning and innovative capability.

In the rapidly changing landscape of artificial intelligence (AI), which is now being implemented both in the Swedish and global markets, Aixia finds itself at the forefront of the industry, confident in our deep expertise and extensive experience in AI and related technologies. Our unique position in the market is anchored in our ability to provide comprehensive solutions, with a particular focus on GPU-based platforms such as Nvidia’s DGX systems. These platforms are central to our strategy to enable powerful AI development for our customers, equipping them with the necessary tools to harness the full potential of AI in their operations.

Our expertise extends beyond hardware solutions. With deep understanding and broad experience, our team of experts guides our customers through their specific needs and ensures that the solutions are perfectly tailored to their business objectives.

As a Nvidia DGX Elite partner, and with some of Scandinavia’s largest DGX systems, we are leading specialized AI development in the region. Our software solution AiQu and its associated solutions regarding applied AI, especially in quality management within production environments, directly address the increased challenge of resource management in AI development, driven by the rapid expansion of GPU-based systems. AiQu efficiently optimizes customer investments through intelligent resource allocation and security management, but it also serves as the foundation for our successful concepts around applied AI and AI for industry, which we increasingly inform about in press releases.

With our focus set on the future, we have also integrated applications of generative AI, particularly with Microsoft’s OpenAI technology. These innovative solutions redefine the interaction with digital content and bolster our position as a leader in AI development.

I want to emphasize Aixia’s leadership and adaption to the latest AI development, as well as our strategic direction and timing in the industry, which are crucial for continued growth and profitability!

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Mattias Bergkvist CEO, Aixia Group AB (publ)

Significant events Q1 2024

2024/01/09

Aixia is pleased to announce that we have entered an agreement with NexGen Cloud, an international Infrastructure-as-a-Service (IaaS) company, for the installation of a data center in Norway. The contract is valued at 10 MSEK, and the project is scheduled to take place in H1, 2024. This underscores Aixia’s expertise in delivering advanced AI solutions and strengthens the strategic partnership with NexGen Cloud.

NexGen Cloud, an Elite member of the NVDIA Partner Network, plans to invest an impressive sum of 1 billion dollars in one of Europe’s pioneering AI Supercloud, deployments. This ambitious venture aligns with NexGen Cloud’s commitment to promoting the development and growth of AI companies across the continent. As a key partner in this collaboration, Aixia will lead the installation of the data center and contribute to the realization of NexGen Cloud’s vision.

2024/03/29

Aixia Group: Aixia secures a new order with an existing customer, valued at 25 MSEK.

Aixia secures a new order with an existing customer operating in the software industry, focusing on AI and Automotive. The customer is investing in new storage, archiving, and network solutions. The deal is based on innovative technology from IBM and Arista Networks. The delivery is scheduled for Q2.

This information is information that Aixia Group AB (publ) is required to make public pursuant to the EU Market Abuse Regulation. The information was provided by the above contact, for publication 2024-04-23.

F O R M O R E I N F O R M A T I O N /

Get in touch with the company at:
CEO Mattias Bergkvist
Phone: 031-762 02 40
info@aixia.se
www.aixia.se

Aixia Group AB (publ)
Taljegårdsgatan 11 431 53 Mölndal