Newsletter #2, 2016

Published 16 December, 2016

Newsletter #2 2016

CybAero has decided to no longer communicate through newsletters. Announcements to the market will be made through press releases. 

Welcome to CybAero’s newsletter! Our aim is to keep you informed of non-share price sensitive news from the company.

A summary from CEO Rolf Schytt

  • New share issue

After the last newsletter, we have completed the agreed share issue. I want to thank all of you who chose to participate in the share issue. It means a lot to us that you, like us, believe in the company and its systems.

  • Jolly

The shambles in both the Swedish and Chinese customs was a situation no one would have believed possible and I understand how this must be viewed by you.

  • New business area

On an extraordinary general and investment meeting I revealed our plans to establish a new business area, CybAero Air Service.

CybAero Air Service is a business area that will perform flight missions for customers who do not have a full requirement or possibility to own their own unmanned flight system, but who nonetheless need missions to be performed. I promised during the investor meeting in Gothenburg that we would implement our first business before the end of the year is over and we already have two invoiced missions and satisfied customers in the industry and LiU. We have several exciting projects going on in this new business area. Read more about this further on in this newsletter.

Economy

  • Share issue

Erik Penser and Redeye helped us execute the share issue. Many thanks for their participation. The share issue was subscribed 90% and raised approximately 115.2 million SEK before issue costs. We would like to give special thanks to everyone who subscribed and believes in CybAero. This share issue will give us the financial strength to meet our operational mission and drive the business forward.

The share issue was completed in December, and now all the BTA (paid subscription shares) are converted into shares. When we update our ownership list around January 10, the new shares and ownership will appear. We get a report from Euroclear around the 8th of every month on the ownership structure in the previous month.

  • Operational costs

Operationally, we are preparing for the external audit to be conducted by EY starting in week 50. We are developing monitoring and cost control in order to streamline our resources and support the business.

Advertising

Linköpings advertisement has been released. CybAero was asked to participate and the result can be seen here: http://play.linkoping.se/linkoping-dar-ideer-blir-verklighet

Interviews

The magazine Affärsstaden number 9, 2016 has been published in which our CEO Rolf Schytt is interviewed. The interview can also be read on our website http://www.cybaero.se/media/i-media/

Marketing activities

  • IFS World Conference

Our participation in the IFS World Conference at the end of October was good, free PR for CybAero. We met several potential customers who showed great interest in our systems. We also appear in IFS Labs own commercial for the use of unmanned systems: http://www.ifsworld.com/se/solutions/ifs-applications/ifs-labs/drones/

ifs aidex  

Photo of APID One Ranger at the IFS World Conference. The photo on the right shows our stand at AidEx

  • AidEx

In late November, we were also present on the Swedish pavilion that Business Sweden arranged at AidEx in Brussels. AidEx is the world’s largest trade fair for humanitarian and development assistance. The Swedish Ambassador in Brussels and Luxembourg, Annika Hahn Englund was present. While we were there we met with stakeholders that we can potentially secure business with in the future.

  • Autonomous vessels – a higher degree of autonomy for increased safety

CybAero participated in a conference on autonomous vehicles in early December. With representatives from the Nordic countries from universities, the maritime and other industries.

  • Geneva & Vienna

We also participated in Business Sweden events in Geneva and Vienna, where CybAero among others, had meetings with the UN and Red Cross, We have also started cooperation with GAVI, who we are working with currently to develop a concept for medical transport to Africa’s inaccessible areas.

 

Visitors

Between the 20th and 24th November, the Tunisian ambassador and key decision makers from the Tunisian Customs visited CybAero for a business presentation, technical presentations and demonstration flights.

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Photo: CEO Rolf Schytt with decision makers from Tunisian Customs and Fatma Omrani Chargui, the Tunisian ambassador to Sweden

This demonstration was the best CybAero has ever performed. The entire company worked as a team towards this goal. One of our flight team completed two perfect flights for our guests, a day flight with a regular camera and a night flight with an infrared (thermal) camera. We used the same scenario for the visitors in both flights, which was to follow potential smugglers and identify what was being smuggled and who was involved. This was very successful and our visitors were very pleased with us, our system and our company.

We have created a film of this event: https://www.youtube.com/watch?v=fiahAr9ke4c

As you can see, we used our old APID 60 cowlings on these flights, the reason for this is that we use all the new cowlings when we fly test flights with our development helicopter, but underneath it’s an APID One.

Sales department

Right now we are working actively with potential customers in several countries.

New business area: CybAero Air Service

CybAero’s new business area for unmanned services has got off to a flying start !. Air Service has already invoiced for two executed mission. One was a mission for the University Hospital in Linköping, where we measured radioactive emissions and the second was to make a VR (Virtual Reality) movie along with a production company, in workshops in Stockholm and Gothenburg. Two nice assignments with satisfied clients.

These missions were carried out with smaller UAVs

Here are the links to two of the 360 VR films that CybAero Air Service filmed. https://www.youtube.com/watch?v=wvXAsDnDw2s

https://www.youtube.com/watch?v=e-o0FJUWDlE

Flight department

We have had several flight teams in place in China on a rolling schedule to complete the FAT for the Jolly order. Due to delays in customs in China, these tests been delayed.

Jolly

The FAT (Factory Acceptance Test) for the three systems in China has begun. CybAero sent three complete systems on the 31st August, these were held up in Swedish and then Chinese customs.

When the systems that were sent on August 31 passed through customs in China, our flight teams that were already in place, began to unpack the system and start the FAT. Our FAT in China consists of six points, each point can vary in time to perform and thus is not an indication of how far you have come as a percentage of completing the FAT. Paragraph 1 of 6 were performed before we had to send additional materials to China. This material was also held up in customs. Most of this is now in place and our two flight teams are working in shifts until 21/12, when they will return home to celebrate Christmas with their families.

After approval of the FAT, there remains a SAT (Site Acceptance Test) to be performed on the end customers vessels in China and the final parts of the end customer’s training before the deal is complete. We cannot say when the SAT will take place as the customer will decide this.

Regulatory affairs

CybAero attended the RPAS Civil Operators and Operations 2016 conference in Brussels. This is an international conference for the RPAS civil operators community and a forum where the focus is on topics and issues of importance to RPAS operators.

Questions from shareholders

We get questions from some shareholders and other interested parties. We would like to take this opportunity to answer some of these, and to explain how the process works when we receive questions.

  1. Questions come via mail or phone.
  2. If it’s possible to answer the question without communicating share price impacts or insider trading information, we will do so. Otherwise, we issue a standard reply where we explain that we cannot answer the question because of MAR regulations.
  3. Where there is uncertainty about the question and its impact on share price, we consult our Certified Adviser before we answer you.
  4. Sometimes it takes a week before you get a response and this is usually due to prioritization of other activities such as customer visits or participation in trade fairs, or that we know that the question will be answered in a few days in the next newsletter, or similar.

One way or another, we answer all your emails. If we do not, it means that your mail has been blocked by our spam filter and therefore has not been read. We will not be liable when emails contain threats or personal attacks. For some e-mails and serious situations we have had to notify the police.

The following questions have been sent to us after the last newsletter;

Why do you use a pre-heater?

  • Like all diesel engines ours require pre-heating. The difference between the pre-heater in diesel cars and ours is that we use an external heater. The reason for this is that an integrated installed pre-heater would add additional unnecessary weight to the helicopter.

How did the management subscribe to the share issue?

  • CEO Rolf Schytt fully subscribed i.e. +8750 shares
  • COO Andreas Nyander fully subscribed e. +850 shares
  • Marketing and communications manager Emmelie Axelsson fully subscribed and purchased more shares without subscription rights +1072 shares

What camera do you use when you fly?

  • We mostly use a 200 gimbal from TrakkaSystems when we fly. We have integrated various cameras on our system for internal testing and also at the request of potential customers. On our last mission with CybAero Air Services, we used a 360-camera (VR).

Is there a possibility for shareholders to see the helicopter fly?

  • We would have been very happy to have flown at the Swedish Airforce flying show at Malmslätt last summer, but the organizers chose not to mix manned and unmanned flights at the show. We hope to fly there next time!

 

Each newsletter will end with a new CybAero profile, to give you an insight into the different roles we have. This time profile Marcus Stenmark.

Position: Mechanic in the production department

Born: 1990

Background: Marcus has worked as technician and as a salesman. He previously worked in technical sales and has been the marketing manager for unmanned underwater vehicles.

Marcus was employed as a technician in the production department in 2015. He is also responsible for some special production and produces some prototypes for the engineering department. With Marcus’ experience in aftermarket sales, he supports the development of our own aftermarket department. Together with his colleagues in the production department, they have also taken over some of the heavy maintenance on our products. All employees in production also write work instructions for the operations they perform. This is done to facilitate future production and to ensure consistent quality.

Marcus’s views on his role as a technician

I’m very happy ! My work here is technically challenging which, as a technical person, I enjoy a lot. To be working with products that are nice to work with and that I believe in, is very rewarding. To be able to do that with great colleagues, well, it doesn’t get any better than that!

What do I do in my spare time?

I spend most of my time in the garage where I am working on a car project. It is a car that I have completely built myself. For me it is a way to relax, since I started in production here I have noticed that I do not have the same need to unwind after work as I did before when I worked with sales and aftermarket.

 marcus_stenmark_small

Photo of Marcus

 

Published by:
Emmelie Axelsson, Head of Marketing and Communications, CybAero AB, tel 013-465 29 30

E-mail: emmelie.axelsson@cybaero.se

 

 

Website:  www.cybaero.se   Film: www.youtube.com/cybaero

 

About CybAero
CybAero develops and manufactures remote-controlled helicopters, known as RPAS (Remotely Piloted Aircraft System) with associated sensor systems for safer and more cost-effective operation in hazardous environments. The company has made a significant international impact with the APID One helicopter that can be adapted for both defense and civilian missions such as coastal and border surveillance, rescue services and mapping. CybAero headquarters are in Mjärdevi Science Park in Linköping. The company has approximately 50 employees and has been listed on the NASDAQ OMX First North since 2007. FNCA Sweden AB is the Certified Adviser.

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