Year-end report 2023

Mölndal                                                                                      2024-02-22

Group financial overview

During Q4, Aixia closes the largest deal in the company’s history, valued at SEK 185 million. We are also kick-starting 2024 by achieving a significant profit in January. The tide is turning!

2023 was a challenging year for Aixia, considering the global economic downturn and a time-consuming legal process with CGI that weighed on our results and affected the organization with a significant amount of extra work. The revolutionary developments in artificial intelligence (AI) that we all experienced in 2023 led many companies to hold back on their investments. The cautious approach aimed to allow for a deeper understanding of the potential of AI technology. Many executive teams and boards had to sit down to analyze the breakthrough of this new technology that would affect their respective organizations and operations amid an economic downturn. Now, we see the effects of the analysis, and there is a tremendous willingness to invest in AI.

Despite these obstacles, Aixia has achieved significant success, positioning the company strongly for the future. Q4 has been transformative, and we can already see that 2024 will be the strongest year in the company’s history. •

The Q4 revenue amounts to SEK 27.4 million (compared to SEK 31 million the same period the previous year). For the full year 2023, the revenue reaches SEK 107.8 million (compared to SEK 156.1 million the same period the previous year). Q4 is partly affected by long delivery times, but we are starting to see significant improvements in that aspect as well.

During Q4 we closed six deals with million SEK-numbers, with some deliveries and invoicing scheduled for H1 2024 – the largest one at SEK 185 million. Additionally, we executed three deals based on Generative AI. In January 2024, we also secured our largest service deal within the AI data center sector. •

The Annual Recurring Revenue (ARR) from ongoing operations increases by 8 %, reaching 28.3 million SEK (compared to 26.2 million SEK the same period the previous year).

The gross margin for current operations increases significantly to 43.7 % (compared to 29.6%). •

EBITDA stands at SEK 935 thousand (compared to SEK 5.7 million). In 2023 we experienced a substantial increase in expenses due to our name change and the legal costs associated with the dispute with CGI. During Q4, we implemented a cost-cutting package, and we anticipate seeing the impact of this in 2024.

The consolidated earnings per share for Q4 is SEK -1.02 (compared to SEK 0.22 in the same period the previous year).

                                                    CALENDAR

INTERIM REPORT Q1 2024:                           ANNUAL GENERAL MEETING: 2024:

23 April                                                              25 April

Words from CEO

In Q4, Aixia secures the largest deal in the company’s history, valued at SEK 185 million. This achievement serves as undeniable proof of our leading position in the field of AI.

The year of 2023 posed numerous challenges for Aixia, marked by the global economic downturn and a time-consuming legal battle with CGI. These factors had a substantial impact on our results, and lingering effects of the pandemic such as component shortages and prolonged delivery time still affected us. However, as we start 2024, we have already achieved significant profits in January. This marks the beginning of what will be our best year ever. Finally, the tide has turned, and we find ourselves in the right market. AI is now the coveted technology everyone desires, and we eagerly anticipate exceptional success.

In 2023 we witnessed a monumental breakthrough in artificial intelligence (AI) that defined a new paradigm shift for technology and innovation. The development has not only opened new possibilities, but also marks the beginning of a period of extensive investments in AI technology the coming years. As the CEO of Aixia, a leading player in AI solutions, I am excited about the opportunities and challenges this new era presents and how it can impact us positively.

Aixia has long been at the forefront of the industry, thanks to our extensive and profound expertise in AI and related technologies. The extensive experience in providing comprehensive solutions has granted us a unique market position, especially concerning GPU-based platforms such as Nvidia’s DGX Systems.

These systems the core of our strategy to facilitate powerful AI development for our clients, providing them with the tools needed to implement the full potential of AI in their operations. Our expertise extends beyond hardware solutions. We also possess a deep understanding and extensive experience in consultation, advisory services, design, and the implementation of tailor-made AI solutions. Our team of experts assist clients in understanding their specific needs and ensures that AI solutions are aligned with their business objectives. We provide support and training to ensure maximal return on investment. This means we can offer our clients a comprehensive solution that encompasses everything from the initial conceptualization to the complete implementation and integration of AI within their operations.

Aixia is an Nvidia DGX Elite partner and has designed and built some of the largest DGX systems, specializing in AI development in Scandinavia.

One of our most significant innovationsis our software solution, AiQu and its complement, AiQu Edge. In line with the incredibly rapid development of artificial intelligence (AI) and deep learning, the management and optimization of resource utilization have become increasingly challenging. This is where AiQu, developed by Aixia, emerges as a game-changer. AiQu is a versatile tool designed to maximize the efficiency of AI initiatives within organizations. It addresses the new challenges arising from the proliferation of

GPU-based systems in AI development. By avoiding pitfalls like resource overallocation and autonomously handling job clusters, AiQu ensures that our clients’ investments in both hardware and personnel are not only utilized but also optimized. The intelligent allocation leads to tangible cost savings.

These platforms form the foundation of our unique concept in AI for industry. Our “AI for Industry” concept is built on vision-based AI, where computers and machines are equipped with cameras and AI algorithms to see, analyze, and act on visual information. This is revolutionizing manufacturing processes and efficiency in factories worldwide.

Aixia is at the forefront, working to help companies leverage the tremendous opportunities that vision-based AI offers. By implementing AI-driven vision systems, factories can automate and enhance processes such as quality control, sorting, and packaging. This results in faster production times and reduced costs. Visionbased

AI can also help reduce human errors and enhance product quality by identifying defects and deviations in real-time. We currently have several implemented solutions, and the impact on our customers is tangible.

Another exciting area within AI, which gained significant momentum in the latter half of 2023, is generative AI and its application. Particularly in combination with Microsoft’s Open AI technology. The technology has the potential to revolutionize how we create and interact with digital content. Chatbots, as a specific application of AI, have undergone incredible development driven by advances in generative AI.

The bots can now offer more natural interactions. Aixia is at the forefront here, integrating advanced chatbots into solutions for our clients.

Aixia – A One Stop Shop for your AI Projects.

Aixia stands out in the AI industry by having the capacity to transform AI ideas into functional solutions entirely in-house, without the need to involve external vendors or partners.

This unique ability is grounded in our extensive experience and deep expertise in artificial intelligence and machine learning, spanning from data centers and software development to applied AI.

The future of AI is incredibly promising, and with the breakthroughs witnessed in 2023, it is evident that the coming years will be characterizes by significant investments in the field. Aixia is ready to lead the way, with our profound expertise, innovative solutions, and proven experience. We are here to help our clients harness the power of Ai and to realize their ambitions, driving success in the digital era.

Together, we are facing a future where AI will not only shape how we do business, but also how we live our lives. Aixia is proud to be at the forefront of this transformation. We look forward to continuing to be a trusted partner to our clients as we navigate this exciting landscape together. The momentum has started, and now we are in full gear.

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Mattias Bergkvist, CEO

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

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 2024-02-22.

Aixia is an AI/IT company based in Mölndal, Sweden, which is part of Aixia Group AB (publ). Aixia has since 2007 been operating in the construction and development of AI/IT, including AI/Deep Learning platforms, data centers, security, management, hosting, networks & communication and backup/ DR. The company supplies products in three business areas; IT operations, IT consultants, and IT products, and  currently has around 120 clients across several different industries.