OptiCept Technologies

OptiCept Technologies - Shareholder Letter September 2022

As the summer of 2022 now draws to a close, we can look back on intense months that have given us the highest order intake in OptiCept's history. We are well on our way to establishing a new industry standard with oliveCEPT®, while developing new applications for markets with even greater potential. Within OptiBoost® intensive sales work is ongoing, both in Sweden and internationally. We continue to work with our established relationships and have discussions with more new potential customers.

Now we have the next generation oliveCEPT® - BALDER. BALDER meets the customers' needs for higher capacity and this, in combination with the fact that we have created a better understanding of the olive market, means that we had a record high order intake during the summer, on par with total order intake in the last 3 years.
We see fantastic potential with the oliveCEPT® agreements we signed this year. We have signed agreements with large customers such as Jaén COOP, Uniò, DePrado and Acesur. Through these alone, we open up a potential installed base of close to 400 machines. Should we succeed in covering 50% of our newly signed customers' total capacity, which is not unreasonable over a number of years, this means sales equivalent to SEK 750 million, just on these. So we are on a exciting journey with our CEPT technology which can basically streamline and make the food industry more sustainable.
Our organization has been continuously strengthened and the level of competence is very high. It has contributed to, among other things, oliveCEPT® being improved, stabilized and optimized.

During the summer, we also rolled out wineCEPT® on the market, the collaboration with our partner HTS has started and our first treatments are in full swing in Italy. Wine is by far the largest market we operate in, there is a fantastic opportunity for us to grow. wineCEPT® can be used to extract both more and better juice for grape production. wineCEPT+® extends both shelf life and minimizes the need for additives. The combination of this opens the door to better wines and more organic wines. The total estimated market value amounts to €317 billion and is also expected to grow to €425 billion by 2028. During the autumn, we plan to continue working with HTS and the progressive wineries we now collaborate with.

oatCEPT® has positive evaluations and analyzes from previous periods. We are now awaiting the final results after long-term storage of the product we produced this summer, before entering the commercial stage. We know that the market has high expectations of what oatCEPT® can do, which we also have. The positive effects we see are many, we produce an oat drink that foams well, and is dense and creamy in texture, while reducing sedimentation and improving the nutritional content. We make this possible without the addition of foamability enzyme that is currently needed during production, which improves profitability for producers and meets the market's demands for a "clean-label" product.

We have also managed to start up juiceCEPT+® at the Italian research institute CREA for extended shelf life of juices. The focus is on improving the shelf life of delicate juices. Above all, these fruits are harvested in September and we look forward to the results in the autumn.

The Covid-19 restrictions are finally easing in China, which enabled continued tests at ZhongWu and that we were able to initiate discussions with further large players in China within the juice segment. Our hope is also to resume the tests with Coca Cola regarding cold-brewed green tea in the last months of 2022, which was also delayed due to the shutdown.

We are very satisfied with how OptiBoost for cut flowers is used at Dagab and APH. We have now started processing mixed bouquets and have received very positive feedback.

The installation of OptiBoost in South America is now complete. The evaluation and treatment of roses will begin shortly at EQR in Ecuador. This is an important milestone for us and an important first step into the South American and therefore North American market.

The evaluation of OptiBoost at Flamingo International Group in the UK is coming to an end, the same applies to Porta Nova in Holland, we look forward to the results and the continued discussions.

At the same time, discussions are ongoing with actors in Sweden and internationally, OptiBoost will fundamentally change the cut flower industry, I am completely convinced of that. Implementing new technologies in conservative industries takes time, but the need is great, both from an environmental, quality and profitability perspective.

Regarding OptiBoost for cuttings, we have very exciting discussions with world-leading players in the forest industry. Here we have good hopes for an imminent breakthrough. The interest is great as our product shows clear gains both from a financial and sustainability perspective.

In the long term, OptiCept has very good prospects, we are a disruptive force in several areas and the potential is very exciting. Our focus remains on doing the right things at the right time and in the right order - it takes us step by step forward.

For those who want some more in-depth facts about OptiCept and the potential of the patented technology we work with, I would like to conclude by telling you about the media we have been in, or been mentioned in, in recent weeks. These elements provide a very good overview of the opportunities that lie ahead of the company.

Opticept in Penserpodden, from minute 51.25 OptiCept is discussed:

Analyst presentation Hjalmar Jernström

Opticept's CEO, Thomas Lundqvist presentation company day

Interview with Opticept's CEO, Thomas Lundqvist

Datum 2022-09-06, kl 12:30
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