January–March 2024

• Revenue totaled 65 MSEK (57)
  Adjusted revenue totaled 64 MSEK (57)
• Operating loss and totaled -25 MSEK (-23)
  Adjusted operating loss totaled -25 MSEK (-34)
• Loss after tax totaled -43 MSEK (-19)
• Earnings per share totaled -0.39 SEK (-0.37)
• Cash flow for the quarter totaled -77 MSEK (72)

Significant events during the quarter

• Successful launch of Ovzon 3 on January 3, 2024
• U.S. DOD first to order the new Ovzon T7 mobile satellite terminal
• Renewal for delivery to the Italian Fire and Rescue Services
• Order of 9.7 MUSD from a European customer
• New order of 6 MSEK from Swedish Space Corporation

Significant events after the end of the quarter

• No significant events have occurred after the end of the quarter

Strong order intake - good start to 2024
For Ovzon, the first months of 2024 have started in the same positive manner as we finished 2023. The launch of our own first satellite Ovzon 3 on January 3rd 2024 was not only a significant milestone for the company, it is also the ignition for active in-depth customer dialogues and demonstrations of the enhanced performance, mobility and resiliency that Ovzon’s next generation SATCOM-as-a-Service will offer. Even though Ovzon 3 is not entering service until mid-2024, our accelerated sales efforts and strengthened position among our defense, national security and public safety customers, especially in Europe, have already resulted in important contract wins for Ovzon.

I am pleased with the order intake in the first quarter, which came in strong at 11.1 MUSD (0.5), following a solid fourth quarter 2023. The largest order in the quarter was a 12-month contract with a European customer at a value of 9.7 MUSD. It includes both mobile satellite terminals as well as our high-performing SATCOM-as-a-Service. The service starts in the second quarter. This win is important as it is a significant expansion of our installed base in Europe.

We also renewed the continued delivery of our integrated SATCOM-as-a-Service solution to the Italian Fire and Rescue Services throughout 2024. Furthermore, we received another new order from Swedish Space Corporation (SSC). In February, the U.S. DOD was the first customer to place an order for the recently launched Ovzon T7 mobile satellite terminal – the smallest and most powerful mobile satellite terminal in the industry.

During the first quarter we actively engaged with customers at the satellite industry’s most prominent event, Satellite 2024 in Washington D.C. This flagship exhibition attracted 350 exhibitors and more than 15,000 visitors. We won a prestigious award as the industry’s best on-orbit innovation with Ovzon 3. I am proud to conclude that Ovzon during the last year has raised its profile considerably.

Ovzon – unique integrated solutions, beyond cutting-edge technology
Ovzon is today positioned in the premium segment of mission critical connectivity, delivering integrated mobile satellite communications by utilizing cutting-edge technologies. We continue to receive positive feedback for our dedicated customer service where we are committed to Service Level Agreements, delivering the highest level of performance and customer support. Our service model includes local, 24/7 expert support, to ensure that any anomalies are resolved in real time. Our customers view Ovzon as a true partner and our commitment to customer service is one of our most distinct critical success factors.

Setting the pace for the company’s next phase
Ovzon 3’s orbital raising progress is fully on track. The satellite is very healthy and in good shape. We are actively preparing for its entry into the service. By mid-year, when the satellite is operational, we will be in an improved position. With Ovzon 3 online we will be managing a hybrid network with a mix of our own satellite and leased capacity which creates flexibility in terms of geographical coverage, performance and cost effectiveness. It allows us to meet customer demands, optimize our services and capacity utilization. In parallel, we are continuously evaluating the company’s mid to long-term strategy.

Many nations, alliances and organizations are accelerating and strengthening their capabilities for total defense, national security, and civil defense. Space, and satellite communications, plays a vital role and is rapidly becoming a critical part of any nation’s overall strategy. Countries with little to no satellite infrastructure are now shaping plans to create sovereign systems that allow for more autonomy in an increasingly space-based geopolitical environment. This enables governments to build a more resilient communications infrastructure. The Ovzon 3 satellite and the unique Ovzon proprietary developed On-Board-Processor will shortly bring capabilities online that will be more important now than ever.

At the moment, our main focus is getting Ovzon 3 into service which will enhance our ability to grow by utilizing our own capacity and capabilities. This in addition to our commitment to deliver the highest level of customer satisfaction, further sharpen our market activities and invest in and protect our technology leadership to drive profitable growth.

Per Norén, CEO Ovzon

Webcast
In conjunction with this interim report, a webcast will be conducted at 1:30 pm CEST on April 19, 2024. Ovzon’s CEO Per Norén and CFO Noora Jayasekara will present the results and answer questions.

The webcast can be reached via the following link: https://www.finwire.tv/webcast/ovzon/q1-2024/