Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Stopped using Perfluorocyclobutane (PFC-318) and Sulphur hexafluoride (SF6) in 2020
• Sweden uses solely renewable energy

Social Achievements

• Decreased employee turnover from 30% in 2019 to 12% in 2020

Governance Achievements

• Expanded the board; welcomed Jens Maaløe as chairman

Climate Goals & Targets

Environmental Challenges

• Nanosatellite market stagnation or unpredictable development
• Competition from operators with better financial conditions
• Delays in nanosatellite launches and air tracking projects due to the COVID-19 pandemic
• Competition from companies offering satellite-as-a-service
• Dependence on key personnel
• Risks related to product quality
• Dependence on a few large customers
• Risks related to acquisitions, subsidiaries, and associates

Mitigation Strategies

• Quarterly forecasting and yearly updates of 5-year plans
• Adapting the company to market situations
• Monitoring business and adapting to market situations
• Quality Assurance department and ISO 9001:2015 certification
• Creating an attractive work environment
• Debtor insurance and milestone payments
• Increasing sales in Commercial, Academia, and Defense business areas
• Settlement agreement with Aerial & Maritime Ltd., resulting in cancellation of remaining order value and company liquidation

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Center for ESG Research’s Integrated Ratio Guideline

Certifications: ISO 9001:2015

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Employee turnover rate decreased slightly in 2022 (11% compared to 12% in 2021).

Climate Goals & Targets

Environmental Challenges

• Cancellation of a large customer project.
• Spillover effects from the cancelled project affecting revenue and costs.
• Low order intake from sales of satellite solutions.
• Delays in new product development.
• Increased tendency for customer projects to be delayed and become more expensive.
• Global shortage of semiconductor microchips leading to longer delivery times.
• Material part of the Group’s sales and revenue generated from a few larger customers.
• Missing payments from one large commercial customer.

Mitigation Strategies

• Staff reduction to minimize costs.
• Quarterly forecasting and yearly updates of 5-year plans.
• Adapting the company to the market situation.
• Debtor insurance to gain knowledge of customers’ funding situation.
• Milestone payment plans with positive cash flow.
• Increasing sales in new customers to spread risk.
• Procuring microchips in advance to reduce production delays.
• 2-year forecasting and advance payment contracts with customers.
• Monitoring and reevaluating ongoing business in subsidiaries.
• Write-down of the value of associated companies and started liquidating the company.
• Monitoring and evaluating project progress and comparing it to the budget.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Center for ESG Research's Integrated Ratio Guideline

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Sweden and Luxembourg offices use solely renewable energy

Social Achievements

• Increased share of women from 19% in 2019 to 27% in 2023.

Governance Achievements

• Board meeting attendance rates in 2023 increased from 90% in 2022 to 97% in 2023.

Climate Goals & Targets

Environmental Challenges

• Nanosatellite market stagnation or unpredictable development
• Competition from companies with better financial conditions
• Reliance on key personnel
• Risks related to product quality
• Dependence on a few large customers
• Supplier risks, especially regarding timely supply of materials and components
• Risks related to acquisitions, subsidiaries, and associates
• Risks related to non-recurring engineering in project execution

Mitigation Strategies

• Established two new Business Units: Products and Programs
• Intensified product sales focus and market-driven product roadmap execution
• Defined market needs and crafted solution roadmaps for Programs Business Unit
• Offered value to customers through diverse products and satellite solutions
• Built key accounts plans and long-term customer relationships
• Reduced order backlog significantly in 2023
• Implemented a system to measure employee satisfaction
• Offered employment on favorable terms in desirable locations
• Completed cost reduction program
• Continuous quality control registration and monitoring
• Debtor insurance to gain knowledge of customers’ funding situation
• Milestone payment plan with positive cash flow and pre-payments
• Avoided single-source supplier solutions
• Procured microchips in advance
• 2-year forecasting and advance payment contracts with customers
• Balanced new sales to existing and new customers
• Monitored and evaluated project progress
• Prioritized less risky projects
• Restructured organization into Business Units

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Center for ESG Research’s Integrated Ratio Guideline, Danish ESG Nasdaq guidelines