Hi, and welcome everyone to the next presentation here at ABG Investor Days. My name is Simon Granath, and I work as an equity analyst at ABG, covering IT and technology companies, in which I also cover Ovzon, which we have the pleasure of hosting here today. Here today, we have the CFO Noora Jayasekara, and also on a virtual link, we have the CEO Per Norén, who is joining us from USA. So with that said, I'll leave the word over to you, Per, and you have 15 minutes-20 minutes, and then we'll follow up with a shorter Q&A session. So please go ahead, Per.
Thank you, Simon. Thank you very much, and excited to be here today at ABG and talk a little bit about Ovzon and all the things that is happening around the company. Let's go to the next slide, please. There will likely be a delay here. Yes. So this is the commercial. The company, Ovzon, is currently in a rights issue situation, and we have a subscription period for the rights issue from November 22nd to December 6th. So this is to say that this is an advertisement, partly in this presentation for that, obviously, based on the information of the company, and there is a prospectus out that you can get hold of through either our bankers and advisors or on our website, which is www.ovzon.com.
Next slide, please. Let's start with talking about Ovzon and where Ovzon comes from. Ovzon has been around as a company for quite some time. It was founded in Sweden in 2006. At that time, focused on designing, developing, and delivering mobile satellite terminals, actually, the smallest mobile satellite terminals in the industry. You should think of them as laptop size. Where most other terminals or antennas and terminals that connects with the satellite are of a bigger size, and at that time, they were 1.2 meters or two meter parabolic, circular antennas with tripods. And we've been able to drive that towards a very, very, very small size. So that's where it started. It started in the hands of users, users of satellite communication.
We're listed on Nasdaq Mid C ap in Stockholm, but we have main operations in Sweden, obviously, but in the United States, where our main customer is, the U.S. Department of Defense, and customers spread out through Europe as well. We offer not only the terminals, as was the origin, but a world-class mobile satellite communication solutions we call Ovzon Satcom-as-a-Service, and we're focused on organizations and customers that have specific and critical missions. We'll talk a little bit more about that.
It's all driven by our ability to deliver something that transmits and receives data and information, videos, et cetera, over satellite link with the highest performance or the highest throughput through the smallest terminal, which drives our ability to do it in mobile situations, both on land-going, air-going, and maritime-going vessels, as well as in the hands of users. Resiliency or cybersecurity is built in both in the terminal, as well on the satellite and the network, and in the so-called teleport, where the signal goes down. Lastly, as a summary of all of it, you can see our revenue there on the right-hand side. You can see that the revenues have, through the years and the quarters, been a little up and down.
We normally have a very strong fourth quarter due to the customer group we have, that is government customers, that normally starts and ends their fiscal years, sometimes in mid-September, mid-December and at the end of December. We've also invested quite heavily in a couple of big technology programs, the most significant one being our first satellite, Ovzon 3. So we've invested around SEK 1.9 billion or SEK 1.88 billion in that, in a new mobile satellite terminal we call Ovzon T7, and in a very unique technology that is placed on the satellite, a software-enabled gateway called the onboard processor. We'll come back to that in a second. Next slide, please. Here's a very, very simplistic way of looking at what makes Ovzon unique.
Most of our competitors, which we'll talk through about in a minute, have either one or two of these four things, meaning they sell bandwidth or capacity, antennas on satellites in the middle, sort of, at twelve o'clock. Other competitors can be found in the satellite terminal business, from small to large, but no one has the size and the abilities of Ovzon's terminal. So that combination means that we can guarantee performance, we can guarantee service-level agreements, and we can guarantee uniqueness of resiliency by having those two. We then partner with teleport operators. We are not in the teleport business, where the signal comes down to a big teleport and connects to fiber on the ground, and then the signal goes back to the satellite and down to the user.
But we have a selected few which we work with to optimize this system. And last but not least, our staff and our organization and our technology is built to manage this through both network operation centers, centrally in the U.S., but also decentralized in wherever sovereign markets our customers are, because most customers that are countries want their signal to go down in their, in their jurisdiction, so to speak. That we manage through a network operation center and twenty-four-seven customer service and support with very high service level agreements, guarantees. So this is a unique loop that we have that no one else offers. Most of the customers that don't operate with Ovzon have to put this together themselves.
We're a turnkey solution, and we are at the high end of any segment of satellite communications. Next slide, please. Market. Ovzon was previously, through many years, really focused both on commercial organizations, TV, and broadcasting companies. You could think of anything where there was no infrastructure, there was maybe scattered infrastructure for telecommunications, or where there was a need for specific missions that needed guaranteed connectivity. We've honed that in much more. Our customer segments are specifically in the government business and in the NGO areas. They go from military defense to civil defense, national security, public safety. You can see examples of police, emergency, and rescue service.
We also, because we're so very good at building smaller antennas and the mobile satellite terminals, we'll start to have applications and solutions for surveillance and any kind of unmanned system in the future. So very focused on areas where their critical missions matters. You can see that our position is that we, as I just said, our integrated SATCOM service, we're very close to the end customer, which we think is extraordinarily important. We are in the premier segment. We have industry-leading customer success rate, up to 99.995 percentage points of guaranteed connectivity. We are very, very fast in both setting up networks and delivering the service with an agility, because we've built an operational concept around it that delivers very high quality in very short period of time, if needed. And we have a technology leadership.
We have a number of patents and protections of our intellectual rights, as well as also innovations, which we also patent, both on the mobile satellite terminal side, as well as on the side of the satellite. I would say this, the market is about $23 billion, the total satellite communications market. I think the segment we are in, as you can see there, so government and mobility, so to speak, is $7 billion-$9 billion, and it's growing with 7%-8% a year. So it's a market that is growing quite fast. We'll talk a little bit about the differences of those competitors that are there. There's also a number of market trends.
So the satellite operators that sell capacity, if you remember the 12 o'clock on that picture I just showed, they're trying to become closer to the end customer, the users. So, there is trends to acquire service providers in the market. But a surprising trend maybe has also been that satellite operators have acquired or merged. Examples of that is Viasat and Inmarsat, two very prominent producers of bandwidth and managing the satellites. Plus a few others that have actually merged into one another. There's also specialized companies for terminals, as we spoke about, and there are several different orbits you can operate within with your satellites. Low Earth Orbit, Medium Earth Orbit, and Geostationary Orbit.
Ovzon is in the geostationary orbit in the Ku- band, in a specific band called 30 B, which has much, much higher resiliency to weather and any disturbance of the connectivity, as we are the premier service provider for those kind of things. Next, please. This is just a way to illustrate, I would say, the uniqueness that I just spoke about. If you look on the, on the x-axis, the horizontal piece here, you can see how there are, the terminal side or the antenna side is from very large fixed antennas, all the way out to mobility and on the move, and even, trending towards mobile phone-size, terminals and antennas, which are gonna be able to connect to the satellite. There is some trends now, even with, satellite-to-device direct connectivity, but you cannot stream on that.
There are very, very few megabits that can be both transmitted and sent. So we're the number one in the smaller laptop-size segment of mobility, but can be used on any means of transportation and people. You can see on the other axis there, that's about transmitting and receiving data. So this is bandwidth. It's called bandwidth, so 0.5 megabits per second, 5 megabits per second or over 100 megabits per second. Ovzon is in the upper kind of quadrant already today, where we buy satellite capacity from others. When we will have Ovzon 3 offering, we will be able because it has five steerable beams, it will have very, very, very strong offerings of mobility, steerability, all, and the energy of the ter of the antennas will...
can be directed to a very specific point, and you can get over 100 Mbps in transmit from the terminal to the satellite. Next slide, please. Of course, this is very exciting. You saw earlier that we've spent about SEK 1.88 billion in investing in technology programs, not only our own first satellite, but this is our own first satellite. It's called Ovzon 3. We are delayed in that, and we have been delayed with about two years. It has increased our costs as well, and therefore, the rights issue, which we'll come to in a minute.
But we are very excited that the satellite is out, built, and it's going to be at SpaceX, who is the launch provider in Cape Canaveral in Florida, and we are targeting a launch within a month from now, basically, in mid to late December or sometime in December. And that's very exciting. On that satellite is, of course, the onboard server, which has also been tested, and we're building a ground system for that as well.
Then we will, in parallel with the satellite being ready, launch the first production units now soon of the newest terminal, which is even smaller than laptop, called Ovzon T7, that has dual modems in it, one that can talk to the onboard server and one that can talk to the more traditional way of communicating. So very, very exciting times, very busy times for the company. This has led to the... We had to switch from another launch provider called Arianespace, French one, that ran out of rocket capacity, and we switched in early in February 2023 to SpaceX. That increased our cost somewhat in the program, and also delayed—the delays has increased the cost. So if we go to the next slide, please, we can talk about that.
I think I've talked about this already. You can see the picture of the two terminals that are what we call on the PAUSE terminals, the laptop-sized one and the smaller one, the little sister to the big sister here, Ovzon T7. I shall say that it takes about 60 seconds from when you push one button, you turn the terminal on, it finds the satellite immediately by itself. You don't have to gear it towards it, and you have connectivity within 60 seconds, which is also very, very unique in the satellite communications world. Next slide, please. What I was going to talk about, I think in a bit, was the rights issue and what that's gonna be used to.
But before that, maybe this is repetitive to most of you that are listening, but we've had an interesting year from a growth perspective. We actually thought we were determined that we were gonna have a similar growth as we had in 2022. But I think the geopolitical situation and the situation in the world, it might sound like that would mean what we deliver is more and more more in need than any time in history, and it's true, but it also means that decisions are going all the way up to politicians. There are not budgets set aside for those specific events that we've experienced with the situation in Ukraine, the situation in Gaza, environmental catastrophes, immigration movements, et cetera, et cetera.
So I think the whole ecosystem of decision-makers, politicians, NATO, MSB in Sweden, the civil protection agencies, and so on, were not fully geared, if we take that to for what, what's actually in play now. So it's taken longer to allocate funds and money. You have to play the long game, you have to sell, and you have to shape the market. We've been very successful with the renewals that we've had with the current customers in Europe and the U.S., and we have added one big, bigger deal, SEK 4.8 million in April this year. We've had extension of that as well for a big European customer, and we've had some added-on business in Italy, in Spain, and also with the U.S. DOD.
We also announced earlier this week that we are in final negotiations with the Swedish Space Corporation, through a press release, on a larger contract for about $10 million. So we believe that, you know, it's been a tough year from a growth perspective, but we believe we're in a very good position to harness the work we put in for the long-term growth of the business, and also with the launch of Ovzon 3, that should be a proof that our technology is ready, and our technology will be ready to be used in 2025. We sell directly on... You can see on the right-hand side, with the order intake, you can see exactly what I said. We sell directly and through partners. We're going through now, analyzing all of our partners.
As you can see there, we have everyone from a big Airbus to a small Bansat. Bansat is a Colombian partner we have that has been very successful working with the government, with United Nations, and so on, with a number of things, for public safety and other things. Next slide, please. This is what I thought was gonna come earlier. So this is the rights issue, which I don't want to make a big deal about, but understanding that, it's difficult, obviously, to go out in this current market to ask for more money, but I think it was right. The management and the board of the company decided that it was right to do. We're so close in launching the satellite and our technology and capabilities.
We've played the long game with growth, so it's going to be, we believe strongly in the future of the company and our ability to produce both positive cash flow, profitability, and continued growth. And we're gonna try to close this rights issue here in this early December, and the proceeds are gonna be used for financing operations and based on the adjusted outlook we had to have for 2023 with delayed sales cycles and also for the completion and launch of Ovzon 3. Next slide, please. I think going forward, I think I've already mentioned most of this, really, historic milestone with the launch of Ovzon 3.
Of course, executing our plan towards profitable growth, very country-specific, defense, national security, and public safety, organized, and a go-to-market that actually can take on that work. And then really continue to position us, which we've built upon in 2022 and 2023, with high-end decision makers in countries that really needs this. Finalize our technology programs, accelerate our industrial initiatives, and strengthen our financial position. And with that, we can go to the next slide, please, and we can go over to questions and answers, Simon.
Thank you so much, Per, for that presentation. Very interesting to hear your thoughts about the current momentum and about the outlook as well. A general question that I often receive from investors is around the LEO space. You did mention it during the presentation, but there are different types of layers in the satellite industry space, and you operate in the geostationary space. But could you talk about how your offering fits into that, and whether you see threats from the likes of Starlink's, et cetera?
Absolutely, and it's a very good question and may be difficult sometimes to understand. We don't really see the low Earth orbit space as a competitor, because it serves a different need. I think it's very exciting that the industry has Starlink, OneWeb, owned by Eutelsat, Project Kuiper, owned by Amazon, that is massively investing in the low Earth orbit capabilities. They are for consumer internet or for consumer connectivity. They don't have... They will not provide any service-level agreements of guaranteed connectivity. They won't have the same size or performance or transmit and receive, so it's really for for people in remote areas with their own farms or whatever it might be for consumers. That's what that is, that they are not gonna change that business model, we believe.
So we think it's a very strong complementary connectivity solution for consumers, where we're very targeted towards the high-end users that need guaranteed uptime, that need guaranteed transmit and receive of high volume of data and videos and information, and that needs a high ability for mobility and resiliency, so built-in security. So low Earth orbit has been spoken about for over 25 years, if not more, and it's now happened, foremost thanks to Starlink, in essence. But we see it as a complementary, so we see societies needing that solution and our solution for specialty or unique connectivity. So that's how we view that, and I think it's good for humanity and it's good for the users that this is happening at the same time.
It's very good. Thank you for a detailed answer. And then going into Ovzon 3, obviously it's a large project that is now reaching its final stages. Could you talk about what remains to be done? I know I've asked that question multiple times, but what remains to be done? And then also, is it too early to talk about the next big step after Ovzon 3 has been launched? What's on the agenda?
No, we can talk about both, and I'll try to do it briefly here. But what needs to be done now is that the satellite needs to get to the launch pad, the one in Cape Canaveral, SpaceX launch pad. When it's there, the satellite will be then mounted on the rocket. The rocket is Falcon 9 that is gonna launch the satellite, and it's mounted on there with a specific technique. So that will take a little time here to test that and make sure that everything is working, and there are some tests for that. But we're out of production of the satellite. Now it's more the process of the assembly for the, as you can see on this slide here, for the launch, basically.
So we are in very good hands. SpaceX have done, I think it's close to 90 launches this year, both LEO and MEO and GEO launches this year. They are really professional, so we're in good hands with them. We're working with our production partner, Maxar, and them to finalize this. So that's what's there, and then we'll get a more detailed launch date sometime early in December when the satellite has arrived to Cape Canaveral, when they've mounted it on the satellite. So that's what remains, very exciting. The second question you had, Simon, was around what's next. Well, we've been extraordinarily focused on getting this first satellite launched, well, produced and launched.
But I would say that, one of the key things for the future, we live on, on leased capacity today from other satellite providers. We'll continue to do that, and we'll continue to then combine that with Ovzon 3. And then we have to make a decision on should we have global, global reach and global coverage ourselves, which would mean, we would invest in, maybe two to thre to four satellites to complement Ovzon 3. That decision hasn't been taken, but I think, you know, if you want to think about a satellite network as something you roam on, and you can, either buy a full beam, that you can control yourself as a customer, or you can roam on it, then I think, it's probably worthwhile considering doing that.
No decision being made, but that's what's on the drawing board right now.
Very good. Thank you for that as well. And just a final question, and we are running out of time, but what would you say are your main areas to focus on in 2024?
2024, launch the satellite, get it operational, and sell, sell, sell, grow the business based on leased capacity, and get anchor tenants on Ovzon 3. That's market expansion, launch, utilize the technology we've developed, and grow the business to positive cash flow, profitability, and higher levels of revenue.
Thank you so much for attending here today, Per, and I wish you a continued nice evening. Thank you all the rest for attending here today. We will now take a brief pause before the next presentation joins in about five minutes. Thank you all!