Year-end report, January–December 2021

January–December 2021

• Revenue increased to TSEK 191,378 (160,477). Revenue for the period include compensation for divested production stock of TSEK 19,247
• Operating profit amounted to TSEK -113,383 (-48,284)
• Profit after tax amounted to TSEK -83,854 (-104,049). The result includes currency conversions and financial transaction costs of TSEK 29,861 (-58,759)
• Earnings per share amounted to SEK -1.78 (-2.52)

October–December 2021

• Revenue increased to TSEK 73,209 (33,633). Revenue for the period include compensation for divested production stock of TSEK 19,247
• Operating profit amounted to TSEK -29,030 (-19,326)
• Profit after tax amounted to TSEK -21,723 (-55,683). The result includes currency conversions and financial transaction costs of TSEK 7,386 (-36,362)
• Earnings per share amounted to -0.42 SEK (-1.20)

Significant events during the quarter

• Order at MSEK 16.5 from new U.S. Department of Defense costumer on Ovzon T6 terminals
• Renewed order at MUSD 14.6 from the U.S. DOD for renewal of SATCOM-as-a-Service
• Ovzon selects Syntronic as production partner for mobile satellite terminals
• Renewed order from Airbus for UK MoD
• Order for SATCOM-as-a-Service to support Colombia’s presidential election
• Order at MUSD 9.8 from the Italian Fire and Rescue Service

Significant events after the quarter

• Announcement that Ovzon 3 satellite launch will be slightly delayed but launched during 2022

Outlook

• The company believes that sales for 2022 will be higher than 2021

Key figures

Strong order intake and a new customer segment

During the year in general and the fourth quarter in particular, Ovzon took many important steps to enable increased momentum towards profitable growth. Orders were signed for almost MSEK 250 in the quarter, which clearly indicates that our SATCOM-as-a-service offering is well received by the market. Equally gratifying is that Ovzon, through the large order from the Italian Fire and Rescue Service, now has broken ground within a new important customer segment – international rescue organizations. As we sum up the year of 2021, it’s clear that the company has advanced its position, especially in terms of creating a growth platform through industrialization, profitable growth and innovation.

Industrialization – progress provides increased predictability
During the year, we put a lot of effort into transforming our business, making it more process-driven and thus able to quickly scale up and deliver globally. Above all, this applies to our production and supply chain for mobile satellite terminals. The strategic choice of Syntronic as Ovzons’s production partner for our terminals took place during the fourth quarter. The transfer went according to plan with an initial focus on knowledge transfer, testing, production and quality control. Having a professional production partner is a key prerequisite when we now scale up the delivery volumes significantly, primarily when it comes to the Ovzon T6 terminal.

The collaboration with Maxar on the production of the Ovzon 3 satellite is also functioning well. However, the global challenge of the component shortage and delivery problems unfortunately continues, affecting the completion of a large number of other satellites in the industry. Today, we have announced that the Ovzon 3 satellite launch will be slightly delayed, but is planned to be launched during 2022. This rescheduling will not affect Ovzon’s current business and deliveries to current and new customers as the company has already strategically secured leased satellite capacity.

Another important milestone in the company’s history was the listing on Nasdaq Stockholm (Mid Cap) in April 2021.

Growth – now with two distinct customer segments

The most significant progress in 2021, is the increased growth together with a clear improvement in the ability of making business with focus on customers, service and sales. In our core business, we have strengthened the cooperation with the US DOD, both through renewed contracts with existing costumers but also new contracts with more customers within this comprehensive organization. During the year, we signed contracts with the U.S. DOD to a total value of approximately MSEK 205. Through the collaboration with Airbus, we also received our second order from the British Armed Forces during the year – an important reference for future expansion and deeper customer dialogue.

From a strategic perspective, however, the order of MUSD 9.8 from the Italian Fire and Rescue Service on the very last day of the year – was a real breakthrough for Ovzon. The order highlights the interest and need for high transmission speed for data and voice communication as well as for the transmission of high-resolution video for critical rescue missions. Through this order, the company has now created two major revenue streams as well as two distinct customer segments. The contract was signed through our partner Gomedia Satcom and illustrates the importance of well-functioning partner relationships. During the year, we also strengthened our cooperation with international partners and distributors such as Network Innovations, Bansat and Orbita, with smaller orders as a result.

Innovation – remains in focus
Ovzon’s focus on continuous improvement and innovation has taken the company to our current market position with a leading offering for high-performance mobile communication services over satellite. Today, through Ovzon’s in-house developed network with controllable antennas and purchased satellite capacity, we can offer global reach. Once we have Ovzon 3 in orbit, functionality, speed and performance will be able to take another step through our in-house developed OBP (On-Board Processor). It will further secure our leading position and create the conditions for expansion for many years to come. In addition to that, we are proud of our latest generation of satellite terminals, the Ovzon T6. In 2021, we have successfully demonstrated our mobile broadband service via satellite on aircraft and helicopters. We plan to create products and services around these applications in the future. All this emphasizes that our innovations and applications are important for creating clear competitive advantages and broaden our offer. Innovation will undoubtedly be in the limetlight and an important success factor also in the future.

2022 will be perhaps the most important year in Ovzon’s history. We have important milestones to achieve and ambitious profitable growth targets to meet. The year has started well, and we have the foundation in place to be able to deliver on the orders we took in 2021 and at the same time improve and increase the pace of our processes. We commence 2022 with an order book of MUSD 29.20, which is closer to double compared to 2021.

With an increased business focus, a shift in momentum, and a scalable production, delivery and service capability, we look forward to creating new business and broadening our range of products and services and thereby positioning Ovzon as a de facto standard for SATCOM-as-a-service globally.

We believe that the market for satellite communications services that require high mobility and performance will continue to develop positively and that our revenue for 2022 will be higher than in 2021.

Per Norén, CEO Ovzon

This information is information that Ovzon AB (publ) is obligated to make public pursuant to the EU Market Abuse Regulation 596/2014 and the Securities Markets Act (2007:528). The information in this press release has been published through the agency of the contact persons set out below, at the time stated by Ovzon AB’s (publ) news distributor Cision upon publication of this press release.

For further information please contact:

Per Norén, CEO, pno@ovzon.com, +1 206 931 7232
Johan Brandt, CFO, jbr@ovzon.com, +46 (0)703 693300