Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Human Rights
• Equal Opportunities
• Environmental Responsibility
• Corporate Governance

Environmental Achievements

• Reduced power and greenhouse emissions through liquid cooling solutions

Social Achievements

• Continued to actively encourage women to apply for open positions
• Maintained a positive working environment with insignificant sick leave and turnover
• No working accidents or injuries occurred in 2015

Governance Achievements

• Followed NASDAQ OMX Copenhagen’s recommendations for good company governance
• Established an Ethics Website for stakeholder communication and reporting
• Implemented a Code of Business Conduct Ethics

Climate Goals & Targets

Environmental Challenges

• Decreased gross margin due to increased shipments of lower-margin DIY products and a product recall
• Operating losses in the data center segment due to continued investment
• Intellectual property defense lawsuits
• Manufacturing supply reliance on a single contract manufacturer
• Foreign exchange rate fluctuations
• Data center market development challenges

Mitigation Strategies

• Added a new contract manufacturer to diversify manufacturing
• Company-owned supplemental manufacturing lines
• Active risk management and continuous risk monitoring
• Matching expenses against income and liabilities against assets
• Continued investment in data center business with a focus on long-term growth and scalability
• Close collaboration with ecosystem partners and OEMs

Supply Chain Management

Responsible Procurement

• Requires suppliers to respect EICC principles on human rights, employee rights, child labor, health and safety, environment, and anti-corruption

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS as adopted by the EU

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Energy efficient liquid cooling systems

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Circular Economy

Environmental Achievements

• Reduce energy used for cooling by up to 50%
• Recycle energy through remote heating
• Reduce CO2 emissions

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Market adoption of liquid cooling remains slow with need for public standards to trigger wider investments
• Segment revenue and operating results are expected to fluctuate as partnerships with OEMs are developed.

Mitigation Strategies

• Optimising segment overhead
• Influence the influencers
• Increase end-user adoption with existing and new OEMs
• Exploit established leadership within HPC
• Explore growth opportunities beyond the HPC segment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Data center energy efficiency
• Waste heat recycling
• Carbon emissions reduction

Environmental Achievements

• Not disclosed

Social Achievements

• Launched CoolNation forum for gamer and enthusiast community
• CoolNation Masters Counter-Strike tournament underway

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Unresolved US-China trade issues and Brexit uncertainty
• Softer market conditions for PCs and components
• Decreased US and EU consumer confidence impacting end-user demand
• Changes to OEM purchasing patterns and reduced OEM forecasts
• Slow market adoption of liquid cooling in data centers
• Cash flow effect of paying 25% upfront US tariff on China imports

Mitigation Strategies

• Incentive to minimize inventory due to tariff uncertainty
• Building a gaming and enthusiast brand
• Widening OEM customer base
• Accelerated innovation and product development
• Meeting regulators to advocate data center energy efficiency potential
• Cost base optimization
• Cash flow improvement

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed