Interim report, January–March 2021

The quarter January-March 2021

• Revenue amounted to TSEK 37,131 (59,576).
• Operating profit amounted to TSEK -30,658 (5,355).
• Profit after tax amounted to TSEK -11,254 (33,705). The result includes currency conversions costs of TSEK 19,399 (28,441).
• Earnings per share amounted to -0.24 SEK (0.98).

Significant events during the period

• Ovzon certified according to ISO 9001.
• Per Norén appointed new CEO takes office May 1, 2021.
• Order from the Swedish defense supplier Saab regarding tests of the company’s satellite service on some of Saab’s moving platforms.
• Renewed order from Italian defense.

Significant events after the period

• Listing on Nasdaq Stockholm Mid Cap on April 20, 2021.
• Ovzon has utilized USD 35 million through its loan facility from Proventus.
• Extended order from the Italian National Fire Corps.

Outlook

• The company estimates that revenues in 2021 will be higher than in 2020. With Ovzon 3, which will be put into operation in 2022, the company expects revenues to increase even further.

As expected, the year got off to a weak start. The pandemic continues to be challenging and affects our possibilities for meeting customers, demonstrating our services and bringing in new business. Despite this, we managed to win several contracts with both existing and new customers.

Comments from the CEO

In February 2021, it was announced that Per Norén will take over as new CEO, while I will continue my involvement with the company as Chairman of the Board. We have also taken steps building the company through the recently advertised change of marketplace from NASDAQ First North Premier Growth Market to the Mid Cap segment on the regulated market Nasdaq Stockholm.

New customers and agreements

During the quarter, Ovzon received a renewed order from the Italian Ministry of Defense and brought in the Swedish defense supplier Saab as a new customer. Both agreements concern capacity for high data rates, while maintaining mobility, something that is not possible with traditional fixed systems.

The Italian defense force, which has used Ovzon’s services since 2020, expanded its order in March 2021. The new deal covers Ovzon’s satellite services and terminals, including our new Ovzon T6 terminal for use “On-The-Pause” as well as terminals for “On-The-Move” applications. The renewed order will be used to deliver Ovzon’s broadband service to vehicles and smaller teams, where mobility is vital while maintaining high data rates that are usually only provided in fixed systems. The introduction of Ovzon’s next-generation satellite, Ovzon 3, will further improve performance and functionality.

In March 2021 Ovzon received its first order from the Swedish defense supplier Saab, pertaining to tests of Ovzon’s satellite service on some of Saab’s moving platforms. Ovzon’s service has been developed specifically to enable so-called Beyond Line of Sight (BLOS) broadband communication to moving platforms. Simplified integration on moving platforms whether in the air, on land or at sea is one major advantage of Ovzon’s small terminals.

Ovzon 3, and increased leased capacity

Ovzon 3, which is now under production at our partner Maxar in the United States, is planned for launch during Q4 2021 and will be put into operation in Q2 2022. Maxar will conduct final testing of functionality, composition and quality in the second and third quarters of 2021. Ovzon 3 will multiply our capacity and the satellite allows us to offer services with better performance and expanded functionality. Ovzon 3 is the first of a number of planned satellites to recieve global reach for our services based on own satellites.

During the third quarter of 2020, we secured the capacity of controlled antennas on Intelsat’s satellites IS-39 and IS-37. This capacity is similar to the capacity that Ovzon 3 will provide when in service and, with the agreement, Ovzon’s current offering is strengthened with additional capacity and reach. This is an important strategic investment in capacity as it expands our ability to serve customers with requirements for global reach and high bandwidth and it thus paves the way for our forthcoming satellite Ovzon 3. Already during Q3 2020 we received a confirmatory first order from IGC for US defense for one of these steerable antennas.

New CEO with solid experience from the satellite industry

Per Norén, who takes office on May 1, has a solid background in the satellite industry and experience in leading international organizations. Per comes most recently from a role as president of the satellite services company Global Eagle. Prior to that, he was vice president of Boeing in Seattle and CEO of Carmen Systems, a fast-growing Swedish technology company acquired by Boeing. Per has both Swedish and American citizenship and has resided in the United States since 2007.

Since this is my last quarterly report as CEO, I want to thank my colleagues and our customers and partners for all we have accomplished over the last two years. I am happy to hand over the reins to Per Norén, and I look forward to continue my involvement on the company’s Board of Directors.

With a strengthened organization, an offer with global reach and the large future possibilities for revenue that Ovzon 3 gives us, we have significant opportunities to continue strengthening our position in 2021. We believe that the market for satellite communications services that require high mobility and performance will perform positively and that revenues in 2021 will be higher than in 2020.

Magnus René, CEO

This information is information that Ovzon AB (publ) is obligated to make public pursuant to the EU Market Abuse Regulation 596/2014. 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 additional information please contact

Magnus René, CEO, mre@ovzon.com, +1 781 266 6957

Johan Brandt, CFO, jbr@ovzon.com, +46 70 369 33 00