Climate Change Data

Environmental Metrics

Social Achievements

• Recruited two engineers with extensive experience in microwave technology from Ericsson.

Governance Achievements

• Listed on Nasdaq First North Stockholm on November 18, 2016.
• Increased share capital to 504 kSEK through a rights issue.

Climate Goals & Targets

Environmental Challenges

• Relatively few but large companies in the market; loss of a customer could have a significant impact.
• Dependence on subcontractors meeting their commitments.
• Competition from other companies with larger financial resources.
• Need to recruit, develop, and retain qualified employees.
• Risk of failure to generate revenue or obtain further financing.

Mitigation Strategies

• Actively seeking relationships with new potential customers and in new application areas.
• Working actively and long-term with several partners where quality is a high priority.
• Strong patent portfolio and continuous development to prevent IP infringement; rapid commercialization of products.
• Actively developing competence within the company and promoting knowledge and experience sharing; close relationships with academia and industry for recruitment.
• Following its sales plan and having the possibility of raising additional capital through a potential new issue in November 2017.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: K3 (Swedish accounting standards)

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Market & Customers: Relatively few large potential customers. Failure of potential customers to become customers could negatively impact sales.
• Subcontractors: Dependence on subcontractors meeting commitments.
• Competition & IP: Competition from companies with greater financial resources. Protecting IP through a strong patent portfolio and rapid commercialization.
• Key Personnel & Recruitment: Difficulty recruiting and retaining qualified employees in an expansion phase.
• Financing Risk: Potential capital needs as the company grows, despite generating revenue.

Mitigation Strategies

• Actively seeking new relationships with companies and in new application areas.
• Working actively and long-term with multiple partners to reduce supplier dependence.
• Continuously developing the patent portfolio.
• Actively developing company competence and promoting knowledge and experience sharing. Utilizing close relationships with academia and industry for recruitment. Working to be an attractive employer.
• Continuously monitoring the company's liquidity situation. Stable cash position after the 2021 directed share issue.

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: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Governance Achievements

• Added Dietmar Stapel, owner representative from HELLA with extensive experience in radar and the automotive industry, to the board of directors.

Environmental Challenges

• Development risks related to project timelines, recruitment of qualified personnel, and technology industrialization for scalability.
• Dependence on collaboration with other component manufacturers and customers.
• Risks associated with supply chain disruptions due to COVID-19.
• Market risks related to customer preferences for the technology, integration challenges, and end-product demand.
• Risks and uncertainties associated with the timing and success of next-generation automotive radar and 5G introduction.
• Potential capital needs as the company grows.

Mitigation Strategies

• The board assesses that the company is well-capitalized after the June 2021 capital increase with HELLA, reducing short-term financing risk.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: K3 (Swedish accounting standards)

Third-party Assurance: KPMG AB (limited review)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Attracting competent personnel
• Appealing to investors
• Creating competitive products

Social Achievements

• Oversight of the company's Vision and Strategy to ensure alignment with the UN's Sustainable Development Goals (SDGs) under Agenda 2030.

Climate Goals & Targets

Environmental Challenges

• Slowdown in the Mobility segment due to economic uncertainty and financing difficulties.
• Customer dependence and potential component shortages.
• Market risks related to customer preferences, technology integration, and end-product demand.
• Risks associated with the timing and success of new product introductions.
• Potential capital needs as the company grows.

Mitigation Strategies

• Intensive work with potential European production partners to identify and qualify production capacity.
• Expansion of development capacity (20-25% larger organization than a year ago).
• Strategic investment in Sensrad AB to strengthen the value chain and access new market segments.
• The board believes the company is well-capitalized after a new issue in connection with Hella's entry as an owner in June 2021.

Supply Chain Management

Climate-Related Risks & Opportunities