Tekna Holding ASA

Tekna Holding ASA - 549300B8BGP6YLHH0K80 - 2025 549300B8BGP6YLHH0K80 2024-01-01 2024-12-31 549300B8BGP6YLHH0K80 2022-12-31 549300B8BGP6YLHH0K80 2022-12-31 ifrs-full:NoncontrollingInterestsMember 549300B8BGP6YLHH0K80 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 549300B8BGP6YLHH0K80 2022-12-31 ifrs-full:OtherReservesMember 549300B8BGP6YLHH0K80 2022-12-31 tek:ShareCapitalAndSharePremiumMember 549300B8BGP6YLHH0K80 2023-01-01 2023-12-31 549300B8BGP6YLHH0K80 2023-01-01 2023-12-31 ifrs-full:NoncontrollingInterestsMember 549300B8BGP6YLHH0K80 2023-01-01 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 549300B8BGP6YLHH0K80 2023-01-01 2023-12-31 ifrs-full:OtherReservesMember 549300B8BGP6YLHH0K80 2023-01-01 2023-12-31 tek:ShareCapitalAndSharePremiumMember 549300B8BGP6YLHH0K80 2023-12-31 549300B8BGP6YLHH0K80 2023-12-31 ifrs-full:NoncontrollingInterestsMember 549300B8BGP6YLHH0K80 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 549300B8BGP6YLHH0K80 2023-12-31 ifrs-full:OtherReservesMember 549300B8BGP6YLHH0K80 2023-12-31 tek:ShareCapitalAndSharePremiumMember 549300B8BGP6YLHH0K80 2024-01-01 2024-12-31 ifrs-full:NoncontrollingInterestsMember 549300B8BGP6YLHH0K80 2024-01-01 2024-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 549300B8BGP6YLHH0K80 2024-01-01 2024-12-31 ifrs-full:OtherReservesMember 549300B8BGP6YLHH0K80 2024-01-01 2024-12-31 tek:ShareCapitalAndSharePremiumMember 549300B8BGP6YLHH0K80 2024-12-31 549300B8BGP6YLHH0K80 2024-12-31 ifrs-full:NoncontrollingInterestsMember 549300B8BGP6YLHH0K80 2024-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 549300B8BGP6YLHH0K80 2024-12-31 ifrs-full:OtherReservesMember 549300B8BGP6YLHH0K80 2024-12-31 tek:ShareCapitalAndSharePremiumMemberiso4217:CAD iso4217:CADxbrli:shares Annual Report 2024 January 1—December 31 Tekna Holding ASA one particle at a time... CONTENTS Contents | 2 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 vision Advancing the world with sustainable material solutions, one particle at a time… The magic of Tekna originates in the strong drive of its employees to do better. Better for an earth that is in need of a green transition. At Tekna we make tiny particles of advanced materials that enable this transition. It is through the transformation of the metal supply chain in additive manufacturing, and enabling electrification through the miniaturization of microelectronic compo- nents that these tiny particles become magical. And so does the plasma technology that produces them. mission To be the ultimate partner We achieve this by leveraging our talented people, our innovations and manufacturing excellence to provide our business partners with plasma technology and material solutions that drive their success, today and tomorrow. Photo credit: Microsoft CONTENTS Contents | 3 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents About Tekna ....................................... 5 A message from the Group CEO ................................. 6 Key figures at a glance ......................7 Highlights and important milestones in 2024 ............................ 8 Sustainability indicators .................... 9 Shareholder Information ................ 10 Business and Location .................... 12 Analysis of the development and performance of the under- taking’s business and its position Market sectors .................................. 13 Important events in 2024 ............... 14 Financial review ................................ 15 Research and development........... 15 The undertakings likely future developments Subsequent events, Going concern and Outlook ...................... 16 Description of the principal risks and uncertainties Risk factors and risk management .................................... 18 Sustainability Environmental information ............ 19 Social information ............................ 19 Governance information ................20 Statement from the Board of Directors ...........................22 Introduction Board of Directors’ Report 2024 Appendix Website www.tekna.com | Presentation of the groups profile and activities. www.tekna.com/investors Presentation of (non-)financial information (share, financial reports, regulated information, analysts and investors, Annual General Meeting) Other reporting The following report can be downloaded at www.tekna.com/ investors/finreports • Remuneration report Tip If you want to return to this index page, press this icon on the top left corner. I. Organization chart, shareholders, entities ............... 105 II. Indicators supporting SFDR Principal Adverse Impacts disclosure.................................... 106 III. Abbreviations ESG .................... 107 IV. Alternative Performance Measures ................................... 108 V. Carbon Accounting Report................................... 110 VI. EU Taxonomy Report ....... 125 VII. Human Rights and Transparency Report ........ 135 Corporate Governance Report Index ................................................... 24 Consolidated Income statement............................ 25 Other comprehensive Income ......... 25 Balance sheet ................................... 26 Changes in equity............................ 27 Cash flow ........................................... 28 Notes ............................................29-50 Parent company Income statement.............................51 Other comprehensive Income ..........51 Balance sheet ................................... 52 Changes in equity............................ 53 Cash flow ........................................... 53 Notes .......................................... 54-60 ... 61 Governance and Risk management............................. 65 Board of Directors and Executive Leadership Team.....67 Implementation and reporting on corporate governance .................... 70 The business ..................................... 70 Equity and dividends....................... 70 Equal treatment of shareholders and transactions with close associates ......................................... 71 Shares and negotiability ................. 71 General meetings ............................ 71 The nomination committee ........... 71 Board of Directors: composition and independence .......................... 72 Work of the Board of Directors .... 72 Risk Management and Internal Control ............................................... 73 Board remuneration ........................ 73 Remuneration for executive personnel ........................................... 73 Information and communication.. 73 Take-over situations ........................ 74 Auditor ............................................... 74 General disclosures ...................76 Basis for preparation ................. 76 Sustainability governance ........ 77 Strategy, business model and value chain .................................. 78 Material impacts, risks and opportunities .............................. 79 Environment ...............................82 Carbon Accounting ................... 83 Climate Change ......................... 85 Resource use and circular economy ...................................... 86 EU taxonomy ............................. 88 Social ...........................................90 Own workforce ............................ 91 Workers in the value chain ...... 97 Human Rights and Transparency ............................. 98 Governance ............................... 101 Business conduct .....................102 Cyber security ...........................103 Financial Statements Auditors Report Sustainability Report INTRODUCTION | 4 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents About Tekna .................................. 5 A message from the Group CEO ................................... 6 Key figures at a glance ............... 7 Highlights and important milestones in 2024 ....................... 8 Sustainability indicators .............. 9 Shareholder Information .......... 10 | 4 Introducing Tekna Introduction Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents About Tekna Tekna is a global leader in the development, manufacturing and sales of advanced micron- sized and nano-sized powders as well as plas- ma processing solutions. Since we started in 1990, Tekna has developed a unique and pro- prietary plasma technology platform for manufacturing micron- sized and nano-sized powders for a range of industries. Our busi- ness model relies on two revenue streams, both with synergistic effects: • Development and sale of systems: We develop and sell sys- tems customized for the purpose of research and develop- ment. • Development and sale of materials: We develop and operate our own proprietary plasma processes to produce and sell micron-sized spherical powders and nano powders. Tekna is developing in major market verticals thriving on global mega trends such as Space Exploration and Space Tourism, Deglobalization and Climate Change, Digitalisation & Connectivity as well as Demography & Health Care. Tekna is headquartered in Québec, Canada, and has additional offices in France, China, Korea, USA, and seven distributors oper- ating globally (Europe, Asia and North America). Systems The Systems business line acts as the technol- ogy hub of the corporation and has generat- ed derivative opportunities, such as the Mate- rials business, and the newly launched Plas- maSonic product line. The flagship product line, PlasmaSonic, is a wind tunnel engineered to replicate the extreme heat, pressure, and speed conditions of hypersonic flight, enabling our customers to develop innovative materials for use in space vehicles. The opportunity pipeline and order intake for these devices have steadily grown. We are targeting at least one new PlasmaSonic sys- tem order in 2025 maintaining the momentum observed over the past five years. Materials for additive manufacturing: Tekna produces high quality micron-sized, spherical, high-purity metal powders. Its port- folio includes titanium, aluminum, tungsten and tantalum. Currently our fastest growing segment, this global market is on track to outperform, in terms of growth, traditional machining due to improved environmental efficiency, for instance through resource effi- ciency and speed of availability of parts. We guide to grow in line with the market. Mat Materials for microelectronics: In close cooperation with selected customers, Tekna is in the final development stage of nano nickel powders for the microelectronics industry. Nano powders below 100 nm are expected to become the new industry stand- ard for high-end MLCC devices, and Tekna is one of only three producers that can deliver this. We aim to secure an industrial scale order to a global tier 1 customer. Founded in 1990 Tekna Holding ASA listed in OSLO 2022 Headquartered in Sherbrooke, QC, Canada 185 employees 69 active and 38 pending patents 2 manufacturing and research centers Global reach Commitment 2030 50% reduction Note: In India and Japan, Tekna has distri- bution / sales representative agreements CONTENTS Contents | 6 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 As we close out 2024, I am pleased to share the significant strides Tekna has made in a year marked by a challenging market environment. Our resilience and adaptability have been key to navigate through these conditions. Notably, our efforts to strengthen our financial position have resulted in a meaningful improvement in cash flow from operations. This achievement is a direct result of our proactive man- agement of net working capital and a favorable outcome in a litigation settlement. Throughout the year, we remained focused on continuous improvement, driving cost-reduction initia- tives and restructuring our management team to enhance transparency and performance across the organization. Our Plasma Systems product line demonstrated strong operational efficiency and main- tained solid contribution margins, despite a decrease in revenue. Additionally, our Advanced Material segment experienced strong growth in key sectors such as Medical, Aerospace, and Consumer Elec- tronics, while we saw a decline in sales to 3D printer manufacturers. As I reflect on my 11 years at the helm of Tekna, I am immensely proud of the progress we have made. From a company with a magnificent potential, Tekna has developed into one of the world’s leading players in the manufacturing of plasma systems and advanced materials for 3D printing, with a global presence serving customers across all five continents. This success is a testament to the dedication of the many individuals who have contributed to Tekna’s growth and helped shape its remarkable jour- ney. Today, as I transition leadership to Mr. Claude Jean, I am confident that Tekna is well-positioned for continued success. With a strong foundation in place, I know that under Mr. Jean’s leadership, Tekna will continue to create value for our customers and stakeholders for years to come. Our focus on profitability and positive cash flow, our dedicated workforce, strategic priorities, and confidence in our long- term ambitions are driving the company’s performance today and tomorrow. Luc Dionne Chief Executive Officer A message from the Group CEO I would like to thank you for your trust and hope you enjoy reading this report. INTRODUCTION INTRODUCTION | 7 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Revenues 37.2 M CAD vs 40.9 M CAD in 2023. Systems (-30%) and Materials (+3%) 1 ; Adjusted for service revenues to the JV in 2023, the actual growth in materials revenues was 7%. Key figures at a glance Revenue distribution Business segments Key financial figures in CAD million 2024 2023 2022 Revenues 37.2 40.9 26.9 Adjusted EBITDA -6.9 -4.1 -12.8 EBITDA -4.0 -8.2 -16.7 Net profit / loss -11.1 -15.0 -22.5 Cash balance 12.8 10.1 11.4 Employees 185 222 216 Additive Manufacturing: Micron-sized powder mate- rials including titanium-, aluminum-, nickel alloys, tungsten and tantalum. Microelectronics: Nano-sized nickel (sample sales) Global revenues 37.2 MCAD 28% 72% Materials Geography Asia / Rest of world Europe 46% 27% 27% North America Systems 2 Plasma systems, PlasmaSonic wind tunnel After service and spare parts Customer segments 13% 50% Aerospace 3D Machine OEM 3 9% 20% 1: Adjusted by CAD 1 million charged by Tekna to the joint venture in 2023. 2: Includes after service and spare parts. 3: OEM stands for Original Equipment Manufacturer. Order backlog 16.7 M CAD vs 24.0 M CAD in 2023. Systems (-49%) and Materials (-18%) Adj. EBITDA -6.9 M CAD vs –4.1 M CAD in 2023. The effect of lower systems revenue was –2.9 M CAD 9% Consumer Electronics Medical Implants Other: Academic, Industrial Research and Distributors INTRODUCTION | 8 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Highlights and important milestones in 2024 1 Focus on cash, NWC $–5.1M OpEx reduced by >$2M Defending our right to operate Improvement Net Working Capital In the past two years, much effort has gone into improving the Net Working Capital (“NWC”) of Tekna with the aim to enhance our financial position. NWC at year-end amounted to CAD 14.5 million (CAD 19.6 million), an improvement of CAD 5.1 million as depicted in the graph on the left. With consistent efforts over time, we have improved the net working capital through better payment terms with suppliers, strong discipline on aging receivables and convert- ing inventory to cash. Cost reduction Tekna continued to execute on its comprehen- sive profitability improvement program which started in 2022. Efforts focused on simplifying the organization, creating a leaner operation, reducing operating cost and further improving cash flow. Many of the cost reductions execut- ed in 2024 will have recurring effect. In 2024 headcount was reduced from 222 to 185, more than CAD 2 million was taken out of the operating costs. The dissolution of a loss-making joint venture will have a positive effect on cash flow going forward. Revenue development On a like-for-like basis 2 and under challenging market circumstances Tekna grew its Materials business by 7% in 2024 from CAD 24.6 M to CAD 26.4M. Aerospace, med- ical and consumer electronics were the strongest drivers. Revenues from 3D machine manufacturers were signifi- cantly reduced from 2023. Revenue for Systems was affected by slower demand. Materials growth +7% Intellectual Property Litigation case won In a decisive judgement released in June, the Federal Court of Canada ruled strongly in favor of Tekna in an Intellectual Proper- ty case concerning competing patent rights to produce titanium powder in Can- ada. The ruling confirmed that Tekna does not infringe any of Advanced Powders & Coatings Inc. 3 (“AP&C”)'s patents at issue. In December, AP&C paid Tekna CAD 2.9 million as compensation for litigation cost. First revenue- generating order for nano nickel particles In April, Tekna received the first order for nano nickel material samples for devel- oping metal paste suitable for the manufacturing of multi-layer ceramic capaci- tors (MLCC). Tekna continues to develop its nanomaterials in close cooperation with its potential customers. Business Development 1: Read more on all of these highlights in the Board of Directors’ report . 2: Adjusted for service revenues of CAD 1 million charged by Tekna to the joint venture in 2023, the actual growth in revenues was 7%. 3: AP&C is a Colibrium Additive company and Colibrium Additive is a GE Aerospace company Operating cash flow In 2024, we achieved a sig- nificant enhancement in cash flow from operations, im- proving from CAD -11.6 mil- lion in 2023 to CAD -0.1 mil- lion. This turnaround was driven by a CAD 5.1 million reduction in net working capital and a CAD 2.9 million litigation settlement, with an additional CAD 3.6 million improvement attributed to other operational enhance- ments, underscoring a trans- formative year. Cash flow up by $11.5 M INTRODUCTION | 9 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Environment 1 Historical data should not change, but we always revise historical figures if data quality or science has improved. 2: Tekna increased its produc- tion output by 68% compared to 2021 baseline, while only increasing scope 1 emissions by 3%, and even reducing scope 2 emissions by 67%. 3: Reduce in absolute terms compared to baseline year. 4: This excludes employees on long-term absence. Sustainability indicators 1 -50 % vs 66% (+11 pp) in 2021 (Location based). Renewable energy share 77 % vs 577 (+3%) in 2021. Tekna has added a third facility in Canada in 2022 increasing natural gas consumption for heating com- pared to baseline 2021. vs 42 (-67%) in 2021. Tekna continues to im- prove energy efficiency in its powder produc- tion 2 . By discontinuing production in France the consumption of nuclear electricity is re- ducing. This is the first year that we have a complete estimation of the value-chain footprint. This creates a solid basis from which to focus our reduction effort. Energy Intensity per kg metal powder produced Performance vs baseline FY19 Direct electricity of plasma systems within Tekna | Ti64 and AlSiMg | in kWh per kg Our capacity improvement program increases the productivity of the plasma atomization systems, ie higher output for the same energy. The Production output for Ti64 and AlSiMg powder has more than doubled since 2019. Scope 1 596 tCO2e Scope 2 14 tCO2e Scope 3 27 730 tCO2e FY19: 16.3 kWh/kg FY24: 12.1 kWh/kg baseline -26% (vs FY19) FY23: 12.4 kWh/kg -24% (vs FY19) Target 2030 3 -50 % Not defined yet Lost time injuries | LTIFR 2 | 5.8 Successful cyber attacks 0 67% 33% 20% 80% 43% 57% Board of Directors Management excl ELT Executive Leadership Team All employees 74% 26% Gender diversity Our people 16% 58% 26% under 30 30-50 years over 50 Age distribution all employees excl Board of Directors Nationalities 23 Total employees 185(222) Employees sick leave rate 3% Health & Safety Code of Conduct signed (per 31.3.2024 4 ) 100% Ethics & compliance Fatalities 0 Compliance incidents detected 0 Unadjusted Gender Pay Gap 3.9% Social Governance Not defined yet Voluntary turnover rate 16.3% Greenhouse gas emissions INTRODUCTION | 10 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Tekna Holding ("Company") aims to be an attrac- tive investment for shareholders, delivering a competitive return on investment through devel- oping strong positions in high growth verticals representing opportunities for high profitability going forward. The Company's share capital as of 31 December 2024 was NOK 254 924 466 divided into 127 462 233 shares, each with a nominal value of NOK 2.00. In March 2024, the Board of Directors of Tekna Holding ASA (the "Company") has resolved to increase the Company's share capital by NOK 4 469 774 by issuing 2 234 887 new shares as part the settle- ment of the Company's employee share purchase plan (the "ESPP"). Under the ESPP, which was established on 18 February 2021, certain qualified employees purchased Class B Common shares in Tekna Holding Canada Inc ("Tekna Holding Canada"). Pursuant to the terms of the ESPP, there was a three-year lock-up period on these shares. The three-year lock-up period expired on 18 February 2024 and the ESPP has been settled by way of the employees transferring the Class B Common shares in Tekna Holding Canada to Tekna Holding ASA in exchange for the issuance of new shares in Tekna Holding ASA. Fol- lowing this transaction, Tekna Holding Canada is a wholly owned sub- sidiary of Tekna Holding ASA. The Company's shares are registered in book-entry form with the Norwegian Central Securities Depository under ISIN NO 001 0951577. The account operator of the Company's share register is DNB Bank ASA. The Tekna share was listed on Oslo Børs, the main list at the Oslo Stock Exchange, on 1 July 2022. Shareholder structure As of 31 December 2024, Tekna had 4 211 shareholders, down from 4 584 at the end of 2023. Arendals Fossekompani ASA remained the Company’s largest shareholder, owning 69.5 percent of the shares. No other shareholder held more than five percent while four share- holders held more than two percent. Share price and market valuation On 31 December 2024, the closing share price was NOK 3.25 per share, corresponding to a market capitalization of NOK 0.4 billion. The closing share price on 31 December 2023 was NOK 8.30. Option schemes The board of directors of Tekna Holding ASA (the "Company") has resolved to implement an employee share option plan (the "Plan"). The Plan is available to eligible individuals as determined by the board of directors. The Plan enables the eligible person to acquire a proprietary interest in the growth and performance of the Company and to enhance the ability of the Company to attract, retain and re- ward qualified individuals. Options can be granted on an annual or ad hoc basis, with annual grants projected for 2024, 2025, and 2026, all subject to the board's discretion. Upon exercising their options, op- tion holders can choose between acquiring shares after paying the strike price or opting for a cashless transaction. The latter involves the transfer of a number of treasury shares equivalent to the NOK amount of the number of exercised options, multiplied by the differ- ence between the Company's shares' market price and the strike price. On 23 October 2024, the board of directors has granted a total of 2,124,000 options in the 2024 allocation round. These options have a strike price of NOK 4.88. Issued options vest 33% after one year, 33% after two years, and 33% after three years. The expiry date for any option granted is the date falling 24 months following the vesting date. Link to the 2024 Remuneration Report. Current Authorizations During the 2024 Annual General Meeting (“AGM”) the Board of Di- rectors of the Company received the authorization to increase the share capital and to acquire shares of the company. The authoriza- tions remain in force until the AGM of 2025, but in no event later than 30 June 2025. Link to AGM minutes: www.tekna.com/investors Investor Relations Tekna wishes to maintain open communications with its sharehold- ers and other stakeholders. Shareholders and stakeholders are kept informed by announcements to the Oslo stock exchange and press releases. Please refer to the investor relations section of the Tekna website for further information, including contact details: www.tekna.com/ investors or contact [email protected]. See appendix for Indicators supporting Investor’s SFDR Principal Ad- verse Impacts (PAI) disclosure Shareholder information Upcoming events 8 May 2025 Annual General Meeting 8 May 2025 Interim Report for Q1 2025 link Tekna.com/investors link AGM minutes Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Business and Location .............. 12 Analysis of the development and performance of the under- taking’s business and its position Market sectors ............................. 13 Important events in 2024......... 14 Financial review ........................... 15 Research and development .... 15 The undertakings likely future developments Subsequent events, Going concern and Outlook ................ 16 Description of the principal risks and uncertainties Risk factors and risk management ............................... 18 Sustainability Environmental information ...... 19 Social information ...................... 19 Governance information ..........20 Statement from the Board of Directors ........................................22 | 11 Board of Directors’ report 2024 Board of Directors’ report 2024 | 12 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Board of Directors’ Report 2024 The macro-economic circumstances were challenging in 2024, with generally weak growth, inflationary pressures and high interest rates. This had a negative impact on both demand for materials for the Additive Manufacturing industry and for plasma systems. Navi- gating these challenging market conditions, Tekna Group (“Tekna” or “company”) in 2024 mainly focused on enhancing profitability and improving cash flow. In the period, revenues decreased to CAD 37.2 million (40.9) mainly due to delays in new Systems orders. Total order backlog stood at CAD 16.7 million (24.0) at the end of 2024. Adjusted EBITDA declined to negative CAD 6.9 million (negative 4.1) due to lower sales and effects from the discontinuation of a joint venture. The net working capital improved to CAD 14.5 million (19.6). Introduction Business and location The Group currently engages in two main business- es: Materials and Systems (incl. PlasmaSonic). The growth of these businesses is driven by megatrends having significant impact on consumer behavior globally: Space Exploration and Space Tourism, De- globalization and Climate Change, Digitalization & Connectivity, as well as Demography & Health Care. Tekna is a world-leading provider of advanced ma- terials to industry. Tekna produces high purity, mi- cron-sized and nano-sized metal powders as well as optimized induction plasma systems for industrial research and hypersonic test facilities. Micron-sized powders are used for applications such as 3D print- ing in the aerospace, medical and consumer elec- tronics sectors. The advanced nano-sized materials are currently developed in close cooperation with potential customers and are to be applied in the manufacturing of microelectronic devices (MLCCs) used in consumer electronics, autonomous vehicles, and 5G and Internet-of-Things (IoT) communications equipment. The Group develops and operates its own plasma systems and sells customized plasma systems for research applications. The PlasmaSonic product line, a part of Systems, consists of plasma wind tunnel solutions for the simulation of hypersonic and orbital flight conditions. Building on 30 years of delivering excellence, Tekna is a global player recognized for its quality products and commitment to its large base of multinational blue-chip customers. Tekna’s low carbon technology and high-quality materials increase productivity and enable more efficient use of materials, reducing the climate footprint of the downstream value chain. Tekna Holding ASA, a Norwegian public limited lia- bility company, is listed on Oslo Stock Exchange. The Group is headquartered in Sherbrooke, Canada, with subsidiaries and teams based across six offices in Canada (2), France, USA, China and South Korea. All amounts in this document refer to the consolidated financial statements for the Group, unless otherwise stated. The financial statements cover the period from January 1, 2023 to December 31, 2024. | 13 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Market sectors Tekna currently has two reporting lines: • Materials - manufacturing and sales of powders for additive manufacturing industry as well as the business development area nano nickel particles for MLCC. • Systems - development, manufacturing and sales of sophisticated plasma systems for research and development, including the PlasmaSonic systems for hypersonic test facilities. Materials In 2024, revenues in Materials increased by 3.2% to CAD 26.5 million (25.5). This represented 72% of consolidated revenues. Adjusted for service revenues of CAD 1 million charged by Tekna to the discontin- ued joint venture in 2023, the actual growth in Mate- rials revenues was 7%. Throughout 2024, Tekna con- tinued to experience rising demand for its materials for Additive Manufacturing in customer segments such as Aerospace and Medical, further confirming the company’s position in this market. Growth was supported by demand for both small and large par- ticle-sized material, valorizing a greater portion of the production yield. In addition to the material for additive manufactur- ing, Tekna is developing nano nickel for Microelec- tronics. These businesses follow global megatrends and represent major growth opportunities. Systems After a record year in 2023, Systems has seen a sig- nificant slow-down in order intake in 2024. The year ended at CAD 10.7 million in revenues, compared to CAD 15.2 million in 2023. Contribution margin for Systems for the year was stable at 63%. Opportunities continued to develop in 2024, particu- larly for PlasmaSonic systems. Steady progress was made throughout the year, with one opportunity that is advanced in the sales cycle. In addition, busi- ness development efforts are directed towards four other similar opportunities that could materialize within the next two-year period, with an average selling price of over CAD 10 million per unit. Space tourism and hypersonic flight ambitions are in rapid development globally and continue to stimulate the demand for PlasmaSonic solutions developed by Tekna. The Systems business is of importance to Tekna as it supports the continued development of the core technology applicable in the inhouse mate- rials production. Board of Directors’ report (continued) Analysis of the development and performance of the undertaking’s business and its position We produce advanced materials that act as enablers for rapidly growing industries that are driving the green transition. | 14 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Important events in 2024 Intellectual Property Litigation case won In a decisive judgement released in June, the Federal Court of Canada has ruled strongly in favor of Tekna in an Intellectual Property case concerning compet- ing patent rights to produce titanium powder in Canada. The ruling confirmed that Tekna does not infringe any of Advanced Powders & Coatings Inc. 1 (“AP&C”)'s patents at issue. Furthermore, it was ruled that AP&C’s Canadian patent no. 3,003,502 is, and has always been, invalid and void, and that AP&C’s Canadian patent no. 3,051,236 is also invalid except for a few select claims that are not infringed by Tekna in any event. A Notice of appeal was submitted in September by AP&C. It is Tekna’s opinion that the risk resulting from the appeal is low. In December, AP&C paid Tekna CAD 2.9 million as compensation for litigation cost. Cost reduction Tekna continued to execute on its comprehensive profitability improvement program which started in 2022. Efforts focused on simplifying the organiza- tion, creating a leaner operation, reducing operating cost and further improving cash flow. Key contributors are: • Discontinuing production of lower margin nickel alloy powders in favour of higher margin products of titanium and aluminum, • Optimizing sales mix including particle size, and exploring opportunities to valorize a broader specter of powder qualities, • Reducing overhead and other indirect costs. In 2024 headcount was reduced from 222 to 185, more than CAD 2 million was taken out of the operating costs, • Dissolution of loss-making joint venture, which will have a positive effect on cash flow going forward. Many of the cost reductions executed in 2024 will have recurring effect. Improvement Net Working Capital Over the past two years much effort has gone into improving cash conversion including optimizing Net Working Capital (“NWC”). NWC at year-end amounted to CAD 14.5 million (CAD 19.6 million), an improvement of CAD 5.1 million as depicted in the graph below. With con- sistent efforts over time, cash conversion has im- proved through better payment terms with sup- pliers, strong discipline on aging receivables and converting inventory to cash. For details see Financial Review in this report. Execution of Employee Share Purchase Plan In March 2024, the Board of Directors of Tekna Holding ASA (the "Company") resolved to increase the Company's share capital by NOK 4 469 774 by issuing 2 234 887 new shares as part the settlement of the Company's employee share purchase plan (the "ESPP"). Under the ESPP, which was established on 18 February 2021, certain qualified employees purchased Class B Common shares in Tekna Holding Canada Inc ("Tekna Holding Canada"). Pursuant to the terms of the ESPP, there was a three-year lock- up period on these shares. The three-year lock-up period expired on 18 February 2024 and the ESPP was settled by way of the employees transferring the Class B Common shares in Tekna Holding Canada to Tekna Holding ASA in exchange for the issuance of new shares in Tekna Holding ASA. Following this transaction, Tekna Holding Canada is a wholly owned subsidiary of Tekna Holding ASA. Completion Granting of share options The Board of Directors has resolved to implement an employee share option plan (the "Plan"). The Plan is available to eligible individuals as determined by the Board of Directors. The Plan enables the eligible per- son to acquire a proprietary interest in the growth and performance of the company and to enhance the ability of the company to attract, retain and re- ward qualified individuals. For details see Sharehold- er Information in the annual report and the Remu- neration report on the website. Board of Directors’ report (continued) First revenue-generating order for nano nickel material In April, Tekna has received the first order for nano nickel material samples for developing metal paste suitable for the manufacturing of multi-layer ceramic capacitors (MLCC). The customer is a leading pro- ducer of MLCC devices, which are critical compo- nents in most of the fast-growing consumer elec- tronic applications. Tekna continues to develop its nanomaterials in close cooperation with its potential customers. Re- cent validation tests conducted on samples delivered have yielded promising outcomes. Increased sales of small and large size particles Metal powder production processes naturally yield a wide distribution of particle sizes. For Tekna, the small and large sizes are byproducts, but with the same high quality as the mean size. However, until recently there was a limited demand for the small and large cut sizes. In 2024, Tekna had a break- through in having a wider distribution of these parti- cles qualified by customers, thus maximizing the utilization of the production yield. This is expected to have a positive impact on revenue and cash flow going forward. 1: AP&C is a Colibrium Additive company and Colibrium Additive is a GE Aerospace company | 15 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Financial review The Board of Directors believes that the annual fi- nancial statements provide a true and fair view of the net assets, financial position and result of Tekna Holding ASA and the Group for the year. The Group’s consolidated financial statements are pre- sented in compliance with International Financial Reporting Standards (IFRS) as adopted by the EU, and the reporting currency is Canadian dollars (CAD). Profit and loss Revenue was CAD 37.2 million, a 9% decrease from CAD 40.9 million in 2023. EBITDA was negative CAD 4.0 million compared to negative CAD 8.2 million in 2023. Adjusted EBITDA net of non-recurring charges was negative CAD 6.9 million compared to negative CAD 4.1 million in 2023. Tekna had a loss for the period of CAD 11.1 million, compared to a loss of CAD 15.0 million in 2023. Earnings per share were negative CAD 0.09, compared to negative CAD 0.12 in 2023. Cash flow Net cash from operating activities was negative CAD 0.1 million, compared to negative CAD 11.6 million in 2023, with improved results and net working capital being the main contributors. Net cash used for in- vesting activities was CAD 2.6 million, compared to CAD 7.8 million in 2023. Net cash from financing activities was CAD 4.8 million and is mainly related to changes in debts and loans, in particular new CAD 5 million loan, compared to negative CAD 18.4 million of net cash from financing activities in 2023. Cash and cash equivalents at year-end were CAD 12.4 million, compared to CAD 10.1 at the end of 2023. Financial position Tekna’s financial position at the end of the year showed a long-term debt/equity ratio of 1.31, com- pared to 0.69 at the end of 2023. Interest-bearing debt was CAD 28.6 million and total debt was CAD 31.9 million at year-end, while the cash position was CAD 12.4 million and total assets were CAD 73.0 million. Total equity as of 31 December 2024 amounted to CAD 26.5 million. The credit risk is re- garded as low, given that most customers are large multinational companies. Tekna Holding ASA The parent company Tekna Holding ASA is a hold- ing company, with limited activity and a few corpo- rate functions. Profit for the year was CAD 2.9 mil- lion, compared to CAD 2.0 million in 2023. The posi- tive result of the year was due to interest income on intragroup loans. Research and development Investments in research and development (R&D) have been an important part of Tekna’s strategy to develop new and innovative solutions and is ex- pected to remain an important part of the compa- ny’s strategy going forward. Tekna has a long-term ambition to invest significantly in R&D. The compa- ny’s investments in R&D are critical to its near- and long-term goals and in 2024 it represented 7.1% of its total revenue. The company continued to benefit from the Canadian government's Strategic Innova- tion Fund, which supports its research and develop- ment efforts. This program, running until March 2027, offers Tekna up to CAD 20 million in financial assistance through grants and reimbursable loans. Board of Directors’ report (continued) In 2024, Tekna continued its focus on improving margins, cash flow and fur- ther enhancing of organizational productivity. | 16 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Subsequent events New CEO On March 18, 2025, Tekna Holding ASA announced the appointment of Mr. Claude Jean as the new Chief Executive Officer (CEO) of the Tekna Group, effective April 28, 2025. Mr. Jean, a seasoned tech- nology executive with over 30 years of experience in the semiconductor and digital imaging sectors, suc- ceeds Mr. Luc Dionne, who has led the company since 2014. This leadership transition follows a period of strategic growth for Tekna, and is not expected to have a material financial impact on the company’s operations or financial position as of the balance sheet date. Link to Introduction of the new CEO Going concern Based on the situation at the end of 2024 as well as the forecast going forward the company is well- positioned to meet its obligations and continue its business for the foreseeable future. There have been no events to date in 2025 which significantly affect the result for 2024 or valuation of the company’s assets and liabilities at the balance sheet date. According to section 3-3a of the Norwegian Ac- counting Act, the Board confirms that the consoli- dated financial statements and the financial state- ments of the parent company have been prepared based on the conditions of going concern and that the conditions are present. Board of Directors’ report (continued) The undertakings likely future developments | 17 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Outlook The macroeconomic sentiment continues to be chal- lenging entering 2025. The global economy is being redefined and geopolitical tension, trade restrictions and tariffs will make lasting changes to supply chains. A series of tariffs have been introduced by the U.S. administration in 2025. These tariffs have created a lot of uncertainty in the market that had a negative impact on the business of Tekna at the beginning of the year. The situation is fluid, and it is difficult to assess the outcome of a trade war. However, both the materials and systems of Tekna are in compli- ance with the United States-Mexico-Canada- Agree- ment ("USMCA") and are therefore currently exempt from the recent tariffs introduced by the U.S. Admin- istration under the IEEPA. In this environment, maintaining a strong focus on profitability and capital discipline remains the priority moving forward. In 2025, Tekna will benefit from the profitability improvement program implemented - with a leaner organization and a lower cost base. Tekna remains focused on its core business in Mate- rials, which continues to demonstrate resilience and growth. Tekna’s position in the additive manufactur- ing industry remains strong. The long-term demand for materials to this industry is projected to grow by over 20% 1 annually. Growth opportunities are driven globally by transition towards more efficient manu- facturing technology and products as well as supply chain constraints and manufacturing reshoring across multiple industries. The company’s existing machine capacity is project- ed to adequately meet the anticipated growth in demand for AM materials through the end of 2027. This will be achieved by continuously enhancing ma- chine productivity and energy efficiency. This will shorten delivery lead times and, in turn, positively impact sales. As a result, the company will have a minimal need for capital expenditure for its current operations in the coming years, estimated at CAD 2- 3 million per year, excluding leases under IFRS 16. Tekna has a strong pipeline of potential orders for Systems, where it sees an acceleration of interest for PlasmaSonic wind tunnel solutions that are pivotal to the development of hypersonic flight and spacecraft. The company will continue its efforts in the develop- ment of nano nickel particles for MLCC applications in close cooperation with the industry leading cus- tomers. The current environment is characterized by eco- nomic uncertainty, geopolitical instability, and an increasing demand for sustainable solutions. The company’s strategy, technology, and products have gained significant relevance in this context, as its customers are increasingly transitioning towards new Board of Directors’ report (continued) The undertakings likely future developments technology, moving manufacturing closer to mar- kets, and considering more sustainable production processes. At the same time, economic uncertainty and high interest rates may have a dampening effect on the short-term industry growth rate. Tekna ex- pects any volatility in demand to be transitory and remains committed to addressing the market needs as it is well positioned for continued growth in the coming years. On this basis, the Board of Directors’ assessment is that there are reasons for cautious optimism as the fundamentals and long-term prospects for Tekna are positive. 1: Sources: AMPower Report 2024, Smartech 2024 and internal modelling. Employee preparing materials for laboratory testing | 18 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Risk factors and risk management Tekna’s Enterprise Risk Management (“ERM”) aims to contribute to the creation, optimization, and protec- tion of enterprise value by managing Tekna’s busi- ness risks as it creates value in the marketplace. Tekna’s Board of Directors is ultimately responsible for the governance of risk management. Tekna's Executive Leadership Team is responsible for the ERM, i.e. implementing and overseeing the applica- tion of efficient risk management processes. The employees of the Company are expected to follow the requirements defined in the Company's policies. Tekna’s Board of Directors and Executive Leadership Team conduct risk assessments related to various dimensions and aspects of operations to verify that adequate risk management systems are in place. As a global operator, Tekna is exposed to risk sce- narios ranging from controllable risks, such as raw material price fluctuation, currency fluctuation, mar- ket changes, competition or fuel price volatility, to uncontrollable ones such as natural disasters. The tariffs recently imposed by the U.S. Administration increases geopolitical uncertainty and represent a risk of trade war that may have an impact on supply chains. Supply chain disruptions in terms of lead times and shortages can have a significant impact on the company’s business and financial performance. Qualified labor shortages in the markets where Tekna operates can lead to challenges in retaining and recruiting talent. This could lead to increased pressure on the remaining workforce translating into unfilled client orders, declining competitiveness, a deteriorating product/service quality and eventually a slower growth rate. Tekna is currently not able to sell the full production yield of metal powders for additive manufacturing at attractive prices, such that a provision of costs for the accumulation of inventory above sales levels is expensed at cost in the financial statements on an ongoing basis. This provision of costs thus limits the financial risk in the financial statements as presented, meanwhile there is a business risk given the uncer- tainty in timing of market development and higher sales volumes of the full production yield at attrac- tive prices. Tekna Plasma Systems Inc., the Group’s operating subsidiary, is currently involved in an appeal process with AP&C Advanced Powders & Coatings Inc. re- garding patent rights related to titanium powder production in Canada. The case concerns two AP&C patents that fall within the same category as one of the Group’s key patents. In 2024, the Court ruled decisively in Tekna’s favor, invalidating all claims of one of the two disputed AP&C patents and all but a few claims of the second patent. The Court also con- firmed that Tekna had not infringed any of the pa- tents in question. AP&C has since filed an appeal, and hearing dates have yet to be scheduled. If the appeal does not conclude in Tekna’s favor, the com- pany plans to implement alternative technological solutions to bypass any potential patent restrictions. The Group's business is subject to price and ex- change rate risks. There is no guarantee that the Group will be able to obtain the expected prices for its materials and systems, and any change in the market conditions, including in the global technolo- gy and powder markets or in a specific regional and/ or end markets in which the Group operates, could lead to lower sales prices or volumes of the Group's products and systems. The most material climate risks in the short and me- dium term are physical risks in the supply chain and in Tekna’s own operations. There is a risk of extreme weather events impacting Chinese suppliers and their ability to supply Tekna with titanium. Also, high- er temperatures put the health and safety of suppli- ers’ workers in China at risk. Physical climate risks might also impact goods transportation. In the me- dium and long term, physical risks might impact where the company considers establishing new pro- duction locations. A more detailed description is to be found in the Sustainability report included in that annual report and available on the company’s web- site from 10 April. Board of Directors’ report (continued) Description of the principal risks and uncertainties Tekna employees with a Powered Air Purifying Respirator Unit, personal protective equipment | 19 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents The following summarizes the results: • Tekna’s economic activities are eligible under Climate Change Mitigation and not under any of the other five environmental objectives. • Additive manufacturing and PlasmaSonic wind tunnels are activities assessed as aligned with the EU Taxonomy. However, the substantial contribution criteria are not considered met due to the lack of documentation verified by a third party demonstrating life-cycle GHG emission savings. • All Tekna revenues are eligible except for its R&D revenue (~1% in 2024). Total eligible revenue: CAD 36.8m. • 63% of Tekna’s CapEx is invested in eligible activ- ities, totaling CAD 2.9m. • Tekna does not yet have a CapEx plan aimed at increasing the percentage of aligned activities. • 100% of Tekna’s OpEx is spend on eligible activi- ties, totaling CAD 2.5m. The high percentage of eligible activities reflects the great potential of the company and the challenge for medium sized companies in niche, high-tech industries to comply with the screening criteria as per the current requirements. It is likely that Tekna will not be able to prioritize the third party research required to prove alignment. Tekna has prepared a separate Sustainability report in accordance with Section 3-3 of the Norwegian Accounting Act regarding corporate social responsi- bility and in line with the European Corporate Sus- tainability Reporting Directive. The report is included in this annual report and will be available on the company’s website from 10 April. The report describes Tekna’s material impacts, risks and opportunities. The materiality assessment identi- fied the following topics to report on: • Environment: Tekna reports on Climate Change (E1) and Resource use and circular economy (E5), • Social: Own workforce (S1) and Workers in the value chain (S2), • Governance: Business Conduct (G1) and Cyber Security (Gx—entity specific). For all these topics it describes the strategy, how it is operationalized through guidelines, targets and an action plan, followed by measurements consisting of 2024 compared to 2023 where available and a base- line if applicable. Tekna sets high ethical standards, and communica- tion with the outside world is to be open, clear and honest. The Company is responsible for ensuring safe and good workplaces in the local communities where it is present. Tekna seeks to create value for society, customers, employees and shareholders. Environment Tekna’s environmental impact is two-fold. Tekna has a positive environmental impact through developing products which enable a green transition. Tekna produces metal powders for Additive Manufacturing (“AM”) that significantly reduce the metal consump- tion in product manufacturing processes down- stream. In the application of AM parts in airplanes and vehicles parts are usually lighter and therefore more energy efficient (less weight, less fuel con- sumption). On the other hand, the company also has an environmental impact from internal business op- erations such as emissions from employee com- mutes, business travels, energy consumption at the company’s locations and waste generation. Tekna started climate accounting in 2019 and for the first time this year it has completed a full estimation of material emissions in scope 3, which are mostly up- and downstream GHG emissions. The carbon accounting was updated using CEMAsys’ digital so- lution, and a full overview can be found in the ap- pendix of the annual report. For scope 1 and 2 Tekna has already committed to an absolute reduction of 50% by 2030 over 2021. EU Taxonomy Tekna has prepared an EU Taxonomy report, which is part of the annual report and published on the website. Board of Directors’ report (continued) Sustainability Operations The activities covered by the environmental permit as delivered by the Quebec Ministry of Environment, are metallic powders manufacturing and induction plasma systems and auxiliary manufacturing. The manufacturing of both metallic powders and induc- tion plasma systems has relatively low environmental risks. Limited hazardous waste is generated, and mostly from R&D. It is stored and treated according to regulations, air emissions are purified when need- ed, and wastewater is treated before being disposed of. There are low CO2 emissions (GHG) in our pro- duction process. The production of nano nickel nano powder is in the industrialization phase, and risk analyses and miti- gating measures have been put in place as the team proceeds in this project. | 20 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Activities on gender equality and non- discrimination Tekna is committed to ensuring that people with different backgrounds, irrespective of ethnicity, gen- der, religion, sexual orientation or age, have the same opportunities for work and career develop- ment at Tekna. Women represented 26 per cent of the Tekna work- force in 2024. Out of 43 managers (managers with employees reporting to them) 22 per cent were fe- male. Tekna aspires to substantially increase the share of female employees and is working through the employee life cycle to see where measures could be implemented to enhance diversity across the or- ganization. To date, Tekna’s workforce comprises 23 different nationalities, of which about 2/3 are Cana- dian. In 2022, Tekna has developed and transitioned its workers compensation system to ensure equality, based on an objective job evaluation method that positions employees on the relative value of their jobs. This system is compliant with the legal require- ments prescribed by the Commission for labor standards, pay equity and occupational health and safety (CNESST) of the Province of Quebec. There- fore, the average pay for men and women vary due to differences in job categories and years of service, not because of gender. No gender-based differ- ences exist with regard to working hour regulations or the design of workplaces. The unadjusted gender pay gap was 3.9% in 2024. Social Tekna Group is subject to the two following legal frameworks, both having the objective of improving respect for fundamental human rights in supply chains and increasing transparency on the topic. • 1 January 2024, the Canadian Fighting Against Forced Labour and Child Labour in Supply Chains Act came into effect. • 1 July 2022, the Norwegian Transparency Act came into effect. The Human Rights and Transparency report is part of the annual and will be published on the website of the company: www.tekna.com/esg. Tekna takes its social responsibility seriously and continues to embed human rights into company- wide governance and compliance programs. Both Employee and Business Partner Code of Con- duct have been updated recently and approved by this Board of Directors and are in place. Tekna is working to ensure compliance with fundamental human rights and acceptable working conditions in our supply chains and with their business partners. 80 per cent of Tekna’s global spend comes from suppliers based in the EU or North America, which we deem well-governed by legal standards. The remaining 20 per cent is spent on a key raw material, i.e. titanium, supplied by two regularly audited man- ufacturers in China. Both are well-established and qualified suppliers to major western industrial con- glomerates. We have addressed the issue of tantalum and tung- sten, sometimes conflict minerals, by asking our sup- pliers to certify the provenance of the material. In addition to ensuring Occupational health and safety Tekna respects the freedom of association and does not accept any form of forced labor, child labor or work-related discrimination. Reference is made to Sustainability and Governance documents available at www.tekna.com. People and organization The competence of our employees represents a ma- jor asset and competitive advantage for Tekna. At the end of 2024, the Group employed a total of 185 people. The number of employees were divided across loca- tions as follows: Canada: 161 (186) France: 18 (31) China: 4 (4) South Korea: 1 (1) USA: 1 (0) There were no serious work-related accidents and two lost time injuries in 2024. Sick leave was 2.9% per cent in 2024, compared to 3.3 per cent in 2023. Board of Directors’ report (continued) The Remuneration policy on determination of salary and other remuneration for leading persons was approved by the Extraordinary General Meeting in October 2022 and a full disclosure can be found in the separate Remuneration report. Guidelines for remuneration of leading persons are available in the Corporate Governance Policy on the company’s website. The province of Quebec (Canada) has strong legisla- tion on discriminatory harassment in the workplace. The Employee as well as the Business Partner Code of Conduct clearly reject any form of discrimination and emphasize the importance of respect and civili- ty. It also includes a clear process for reporting and dealing with inappropriate behavior. In 2024 the Executive Leadership Team had four male and two female members. The Board of Direc- tors has four female members and three male mem- bers. Refer to the CSRD report for further statistical map- ping on gender equality. | 21 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Cyber security Information and Communications Technology (ICT) security relates to the internal policies and protocols specific to the Group that help ensure that infor- mation and data are protected and secure from un- wanted breaches or incidents, and handled in such a manner that protect company-specific data and in- dividual rights, and adhere to applicable external regulations. Executives and Finance positions are at risk for their access to sensitive data and presumed ability to au- thorize or move money (17 employees in 2024). Tekna does not store personal data of a sensitive Governance The Company is subject to corporate governance reporting requirements as defined in the Norwegian Accounting Act, section 3-3b and the Norwegian Code of Practice for Corporate Governance (the “Code”) available at www.nues.no. Reference is made to the Corporate Governance Report , which is included in the annual report and will be published on the company’s website on 10 April. Tekna launched a new online independent whistle- blowing system. Further compliance policies were approved by the board and are in implementation, namely the Human Rights policy and the updated Business Partner Code of Conduct in line with princi- ple 10 of the UN Global Compact 2 . The Ethics and Compliance Committee, which reports to the Audit Committee, is operational. Tekna’s Board of Directors has the overall responsi- bility for ensuring that the company has a high standard of corporate governance. The Company’s corporate governance model is designed to provide a foundation for long-term value creation and to ensure good control. The Board has adopted a cor- porate governance policy to safeguard the interests of the company’s shareholders, employees and oth- er stakeholders. The policy describes the company’s main principles for corporate governance and ad- dresses the framework of guidelines and principles regulating the interaction between the company’s shareholders, the Board of Directors and the Execu- tive Leadership Team. These principles and associat- ed rules and practices are intended to increase pre- dictability and transparency, and thus reduce uncer- tainties related to the business. The company follows the Norwegian Code of Practice for Corporate Gov- ernance. The company’s practice is largely in ac- cordance with these recommendations. Tekna Holding ASA is a public limited company and is organized under Norwegian law with a govern- ance structure based on Norwegian corporate law and other regulatory requirements. The company’s shares are freely transferable and are not subject to ownership restrictions pursuant to law, licensing con- ditions, articles of association or similar restrictions. Currently, Tekna has seven Board members, none of whom are members of the company’s management. Three Board members are independent of company management and significant business partners. Four Board members, including its Chair Dag Teigland elected in 2023, have an affiliation with Arendals Fossekompani ASA, Tekna’s main shareholder. The Audit Committee consists of one dependent and one independent Board member. Tekna’s Board of Directors met for a total of nine board meetings with 97% participation. The Board members and the Executive Leadership Team are covered by liability insurance. The policy has worldwide coverage, and in addition to financial loss, it provides cover for aggravated, punitive and exemplary damages imposed on the insured, where these are insurable by law. Board of Directors’ report (continued) 2: Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. nature, except of its own employees. Tekna keeps a log of (attempted) cyber attacks. No successful cyberattacks have taken place in 2024. Tekna is implementing a cyber security roadmap based on conclusions of a third party vulnerability test performed in 2023. All employees pass compul- sory security awareness training on an annual basis and simulated phishing attacks throughout the year. Additional training is imposed to employees failing security training, simulated fishing attacks or as de- termined by management. | 22 BOARD OF DIRECTORS’ REPORT 2024 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Anne Lise Meyer Member of the Board Kristin Skau Åbyholm Member of the Board Ann-Kari Amundsen Heier Member of the Board Luc Dionne CEO We hereby confirm that, to the best of our knowledge, the consolidated annual financial statements for 1 January to 31 December 2024 have been prepared in accordance with applicable accounting standards and that the information in the financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the company. We confirm that the financial statements give an accurate and fair view of the development, profit and position of the company, as well as a description of the principal risks and uncertainties it is facing. Arendal, 9 April 2025 The Board of Directors and CEO Tekna Holding ASA This document was electronically signed. Declaration by the Board of Directors and CEO “We would like to express our gratitude to all of Tekna's employees for their dedication and contributions to the company's growth and success.” Board of Directors’ report (continued) Dag Teigland Chair of the Board Torkil Sigurd Mogstad Member of the Board Barbara Thierart-Perrin Member of the Board Lars Magnus Eldrup Fagernes Member of the Board From left to right: Ann-Kari Amundsen Heier, Dag Teigland (Chair), Lars Magnus Eldrup Fagernes, Barbara Thierart-Perrin, Anne Lise Meyer, Kristin Skau Åbyholm and Torkil Sigurd Mogstad. Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 23 Contents Index...............................................24 Consolidated Income statement ......................25 Other comprehensive Income...25 Balance sheet ..............................26 Changes in equity ...................... 27 Cash flow ......................................28 Notes....................................... 29-50 Parent company Income statement ...................... 51 Other comprehensive Income... 51 Balance sheet ..............................52 Changes in equity ......................53 Cash flow ......................................53 Notes ..................................... 54-60 ... 61 | 23 Financial Statements Financial Statements Consolidated & Parent Independent Auditor’s report FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 24 ANNUAL REPORT 2024 Contents Consolidated Financial Statements Income statement ......................................................................................... 25 Other comprehensive income .................................................................. 25 Balance sheet ................................................................................................. 26 Changes in equity ......................................................................................... 27 Cash flow ......................................................................................................... 28 Notes to the Consolidated Financial Statements Organization and accounting principles ................................................ 29 Note 1 Research and Development ......................................................... 32 Note 2 Revenue from contracts with customers ................................. 32 Note 3 Other income ................................................................................. 33 Note 4 Remuneration and employee benefits ..................................... 33 Note 5 Other operating expenses ........................................................... 34 Note 6 Income tax ........................................................................................ 35 Note 7 Inventories ........................................................................................ 37 Note 8 Trade and other receivables ....................................................... 37 Note 9 Cash and cash equivalents .......................................................... 38 Note 10 Property, plant and equipment ................................................ 38 Note 11 Intangible assets............................................................................. 39 Note 12 Non-current receivables ............................................................. 39 Note 13 Leases ............................................................................................... 40 Note 14 Trade payables and other current liabilities ......................... 40 Note 15 Financial risk and financial instruments ................................... 41 Note 16 Borrowings ...................................................................................... 44 Note 17 Finance items ................................................................................. 46 Note 18 Share information ......................................................................... 46 Note 19 Earnings per share........................................................................ 47 Note 20 Investment in joint ventures ..................................................... 47 Note 21 Subsidiaries ..................................................................................... 48 Note 22 Related parties .............................................................................. 49 Note 23 Contingent liabilities .................................................................... 50 Note 24 Subsequent events ..................................................................... 50 Appendix Alternative Performance Measures ................................... 108 Index Parent Financial Statements Income statement .......................................................................................... 51 Other comprehensive income ................................................................... 51 Balance sheet ..................................................................................................52 Changes in equity ..........................................................................................53 Cash flow ..........................................................................................................53 Notes to the Parent Financial Statements Accounting principles ...................................................................................54 Note 1 Remuneration and employee benefits ......................................55 Note 2 Other expenses ..............................................................................55 Note 3 Tax .......................................................................................................56 Note 4 Investments in subsidiaries ...........................................................57 Note 5 Cash and cash equivalents ...........................................................57 Note 6 Intercompany balances and transactions ................................57 Note 7 Financial items ..................................................................................58 Note 8 Financial risk ......................................................................................58 Note 9 Share capital and shareholder information .............................59 Note 10 Subsequent events ........................................................................60 Index Tip If you want to return to this financial index page, press this icon at the cen- ter bottom of a financial page. Independent Auditor’s report.......................................... 61 Consolidated Financial Statements Board of Directors’ Financial Statements Corporate Governance Sustainability Appendix Contents Introduction Report 2024 Auditors Report Report Report Contact Information Income Statement Other Comprehensive Income Note FY2024 FY2023 Note FY2024 FY2023 Amounts in CAD 1000 Amounts in CAD 1000 Revenues 2 37 166 40 888 Items that may be reclassified to statement of income Other income 3 3 914 991 Exchange differences on translation of foreign operations 35 -49 Items that may be reclassified to statement of Materials and consumables used 21 165 22 658 income 35 -49 Employee benefit expenses 4 16 392 17 143 Other operating expenses 5 7 515 10 248 Items that will not be reclassified to statement of income Exchange differences on translation of foreign operations - - EBITDA -3 993 -8 170 Items that will not be reclassified to statement of income Depreciation and amortisation 10, 11 4 021 4 222 - - Net operating income/(loss) -8 014 -12 391 Other comprehensive income/(loss) for the period, net of tax 35 -49 Share of net income (loss) from associated companies and 20 joint ventures 1 -608 Total comprehensive income/(loss) for the period -11 115 -15 058 Finance income 17 334 575 Attributable to equity holders of the company -10 999 -14 470 Attributable to non-controlling interests Finance costs 17 2 620 1 119 -116 -589 Profit/(loss) before income tax -10 299 -13 543 Income tax expense 6 851 1 467 Profit/(loss) for the period -11 150 -15 009 Attributable to equity holders of the company -11 036 -14 422 Attributable to non-controlling interests -114 -587 Basic earnings per share 19 -0.09 -0.12 Diluted earnings per share 19 -0.09 -0.12 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT ANNUAL REPORT 2024 | 25 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 26 ANNUAL REPORT 2024 Contents Consolidated Financial Statements (continued) Balance sheet Arendal, 9 April 2025 The Board of Directors and CEO of Tekna Holding ASA This document was electronically signed. Note 31.12.2024 31.12.2023 Amounts in CAD 1000 Non-current assets Property, plant and equipment 10 24 446 23 894 Intangible assets 11 6 962 7 785 Associated companies and joint ventures 20 - - Non-current receivables 12 4 085 4 531 Deferred tax assets 6 - - Total non-current assets 35 493 36 210 Current assets Inventories 7 17 261 17 607 Contract assets 2 1 502 3 905 Trade and other receivables 8 6 421 8 394 Cash and cash equivalents 9 12 352 10 148 Total current assets 37 536 40 054 Total assets 73 029 76 264 Anne Lise Meyer Member of the Board Kristin Skau Åbyholm Member of the Board Luc Dionne CEO Dag Teigland Chair of the Board Torkil Sigurd Mogstad Member of the Board Barbara Thierart-Perrin Member of the Board Ann-Kari Amundsen Heier Member of the Board Lars Magnus Eldrup Fagernes Member of the Board Note 31.12.2024 31.12.2023 Amounts in CAD 1000 Equity Share capital and share premium 18 497 260 494 956 Other reserves -470 723 -455 405 Capital and reserves attributable to holders of the company 26 537 39 552 Non-controlling interests - -1 197 Total equity 26 537 38 354 Non-current liabilities Borrowings 16 31 486 24 662 Lease liabilities 13 1 637 773 Deferred tax liabilities 6 1 649 1 163 Total non-current liabilities 34 771 26 598 Current liabilities Bank loan 16 - - Lease liabilities 13 647 595 Trade and other payables 14 3 741 4 875 Provision for warranties 182 137 Contract liabilities 2 1 513 2 442 Other current liabilities 14 5 217 2 860 Borrowings short-term portion 16 420 402 Total current liabilities 11 721 11 311 Total liabilities and equity 73 029 76 264 Consolidated Financial Statements (continued) Board of Directors’ Financial Statements Corporate Governance Sustainability Appendix Contents Introduction Report 2024 Auditors Report Report Report Contact Information Changes in Equity Attributable to equity holders of Amounts in CAD 1000 Note Share capital and share premium Other reserves Total Non- controlling interests Total equity Balance at 1 January 2023 494 956 -440 934 54 022 -609 53 412 Profit/(loss) for the period - -14 422 -14 422 -587 -15 009 Other comprehensive income/(loss) - -47 -47 -2 -49 Balance at 31 December 2023 494 956 -455 405 39 552 -1 197 38 354 Balance at 1 January 2024 494 956 -455 405 39 552 -1 197 38 354 Profit/(loss) for the period - -11 036 -11 036 -114 -11 150 Other comprehensive income/(loss) - 37 37 -2 35 Settlement/conversion share based payment 18 2 304 -4 338 -2 034 1 312 -722 Share-Based Compensation - 20 20 - 20 Balance at 31 December 2024 497 260 -470 723 26 537 - 26 537 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT ANNUAL REPORT 2024 | 27 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 28 ANNUAL REPORT 2024 Contents Cash flow Consolidated Financial Statements (continued) Note FY2024 FY2023 Amounts in CAD 1000 Cash flow from operating activities Net profit/(loss) -11 150 -15 009 Depreciation, amortization and impairment 10, 11 4 021 4 222 Variation in deferred taxes 6 486 1 163 Accretion of discounted loan 16 402 345 Loan discount recognition 10, 11, 16 -354 -775 Share-Based Compensation 20 - Write-off of license liability 16 -116 - Write-off of capitalized license costs 11 116 - (Gain)/Loss from sales of assets - 9 Net gain from settlement in subsidiary via equity instruments 18 -722 - Capitalized interests on loan 16 1 946 981 Investing interest received -334 -364 Financing interest paid 108 138 Share of results from associated companies and joint ventures -1 608 Total after adjustments to profit before income tax -5 579 -8 682 Change in Inventories 7 345 2 985 Change in other assets 4 823 -3 443 Change in other liabilities 339 -2 504 Total after adjustments to net assets -72 -11 644 Net cash from operating activities -72 -11 644 Note FY2024 FY2023 Amounts in CAD 1000 Cash flow from investing activities Proceeds from the sales of PPE 10 4 - Purchase of PPE and intangible assets, net of grants 10, 11 -2 891 -8 205 Interest received 334 364 Net cash flow from investing activities -2 552 -7 841 Cash flow from financing activities Increase (decrease) of bank loan 16 - -1 197 New loans 16 6 873 21 159 Repayment of loans 16 -1 263 -839 Repayment of lease liabilities 16 -661 -565 Interest paid -108 -138 Net cash flow from financing activities 4 840 18 420 Change in cash and cash equivalents 2 216 -1 065 Cash and cash equivalents at the beginning of the period 10 148 11 364 Effects of exchange rate changes on cash and cash equivalents -13 -150 Cash and cash equivalents at end of the period 12 352 10 148 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 29 ANNUAL REPORT 2024 Contents Notes to the Consolidated Financial Statements Organization and accounting principles Information about the company Tekna Holding ASA is domiciled in Norway, and with headquarters in Sherbrooke, Canada. The consolidated financial statements for financial year 2024 include the company and its subsidiaries (as a whole, referred to as "the Group"). Information about the companies included in the scope of consolidation is disclosed in Note 21, together with information about Group investments in associates. Basis for preparation The consolidated financial statements have been prepared in accordance with International IFRS® Account- ing Standards as adopted by the EU and associated interpretations, as well as Norwegian disclosure require- ments pursuant to the Norwegian Accounting Act applicable as of 31 December 2024. The annual and con- solidated financial statements were approved by the board of directors on 9 April 2025. The financial statements are presented in Canadian dollar (CAD), which is the functional currency of the par- ent company. All amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand CAD units unless otherwise stated. The financial statements have been prepared using the historical cost principle, with the exception of the fol- lowing assets, which are presented at fair value: Financial instruments at fair value through profit or loss and financial instruments at fair value through other comprehensive income. The Group recognizes changes in equity arising from transactions with owners in the statement of changes in equity. Other changes in equity are presented in the statement of comprehensive income (total return). Preparation of financial statements in accordance with IFRS requires the use of assessments, estimates and assumptions that influence which accounting policies shall be applied, and also influence recognized amounts for assets and liabilities, revenues and costs. Actual amounts can deviate from estimated amounts. Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates are recognized in the period in which they arise if they only apply to that period. If the changes also apply to subsequent periods, the effect is allocated over the current and subsequent periods. Areas with significant estimation uncertainties, and where assumptions and assessments made have signifi- cantly influenced the application of the accounting policies, are disclosed in each relevant note. Accounting policies The accounting policies applied in the preparation of the annual and consolidated financial statements are described below. With the exception of effects described in the section on changes in accounting policies below, the policies are applied consistently for all periods. In case that subsidiaries have used other principles to prepare their separate annual financial statements, adjustments have been made so the consolidated fi- nancial statements are prepared according to common policies. Changes in accounting policies for 2024 No new standards have been adopted by the Company and the Group with effect from 1 January 2024. Principles of consolidation Foreign currency translation Functional and presentation currency Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). All amounts disclosed in the consolidated financial statements have been rounded off to the nearest thousand CAD units unless otherwise stated. From the date of incorporation, the functional currency of the parent company has been determined to be Norwegian kroner (NOK) due to its ties to Aren- dals Fossekompani ASA and predominantly NOK financing. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transac- tions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates, are generally recognized in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net in- vestment in a foreign operation. Foreign exchange gains and losses that relate to borrowings are presented FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 30 ANNUAL REPORT 2024 Contents in the statement of profit or loss, within finance costs. All other foreign exchange gains and losses are pre- sented in the statement of profit or loss on a net basis within other gains/(losses). Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non- monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss, and translation differences on non-monetary assets such as equi- ties classified as at fair value through other comprehensive income are recognized in other comprehensive income. Revenue recognition Revenues from contracts with customers Under IFRS 15, Revenue from Contracts with Customers, the Group recognizes revenue at the agreed trans- action price when control of promised goods or services transfers to the customer, reflecting the considera- tion the Group expects to be entitled to in exchange for those goods or services. Revenue is recognized ei- ther at a point in time or over time, depending on when control transfers, as determined at the inception of each contract. The timing of revenue recognition varies based on the nature of the goods or services provid- ed and the specific terms agreed with the customer. The Group’s primary revenue sources are the sale of Materials and the delivery of Systems. Contracts differ based on customer needs, ranging from straightforward material sales to complex system projects involving design, manufacturing, and testing. Customers include universities, research laboratories, niche companies, domain experts, small to large industrial firms, and government research centers across industries such as aerospace, defense, medical, consumer electronics, and 3D printing. Transaction price - Sale of Materials The Group determines the transaction price for Materials sales as the amount of consideration it expects to be entitled to in exchange for transferring the promised goods to the customer, net of discounts and sales- related taxes, which are collected on behalf of tax authorities. Revenue is typically recognized at a point in time, upon shipment under EXW (Ex Works) or similar terms, when control transfers to the customer. Howev- er, this timing may shift depending on shipping methods, customer location, export/import regulations, or local trade customs. Materials are sold on standardized or custom specifications, serving a wide range of applications. Pricing is based on market conditions, with discounts periodically offered or applied to high-volume purchases. Pay- ment terms generally align with standard commercial practices (e.g., net 30 days) and may vary depending on customer relationships or order specifics. Customers include small to large industrial companies and gov- ernment research centers, reflecting a diverse base with needs spanning bulk standardized orders to high- precision custom materials. Fixed price contracts - Sale of Systems Revenue from the sale of Systems is recognized in accordance with IFRS 15, with control transferring over time due to the custom-designed nature of the systems, which have no alternative use, and the Group’s en- forceable right to payment for work completed to date. These fixed-price contracts typically span 6 to 18 months, depending on complexity and standardization, and involve activities such as design, manufacturing, testing, and delivery. Revenue is recognized progressively using the percentage-of-completion method, where income and profits are recorded based on the degree of work completed. The cost-to-cost method is applied, comparing actual costs incurred to total expected costs, provided the sales price is fixed or determi- nable and collection is reasonably assured. Payment terms are structured around project milestones, typically including a significant prepayment upon placement of the Purchase Order, a downpayment at design approval, a downpayment at Site Acceptance Test (SAT), and a final payment at Factory Acceptance Test (FAT). Customers, such as universities, research labs, niche companies, and domain experts, collaborate closely with the Group to meet tailored specifica- tions, influencing project timelines and the revenue recognition process. Contract balances Contract balances consist of client-related assets and liabilities. Contract assets relate to consideration for work completed, but not yet invoiced at the reporting date. The contract assets are transferred to trade receivables when the right to payment has become unconditional, which usually occurs when invoices are issued to the customers. When a client pays consideration in advance, or an amount of consideration is due contractually before transferring of the license or service, then the amount received in advance is presented as a liability. Notes to the Consolidated Financial Statements (- Note Organization and accounting principles—continued) FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 31 ANNUAL REPORT 2024 Contents Contract liabilities represent mainly prepayments from clients for unsatisfied or partially satisfied performance obligations in relation to licenses and services. Contract assets are within the scope of impairment require- ments in IFRS 9. For contract assets the simplified approach is applied, and the expected loss provision is measured at the estimate of the lifetime expected credit losses. Share-based compensation For share-based compensation by equity instruments granted that do not vest until the employee completes a specified period of service, it is assumed that the services to be rendered as consideration for the equity instruments will be received in the future, during the vesting period. Such services are accounted for as they are rendered by the employee during the vesting period, with a corresponding increase in equity. Government Grants Government grants are recognized when there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. The grants related to an expense are presented as other reve- nues, not against the expense. The grants related to fixed assets or intangible assets are recorded against the cost on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is presented in the statement of financial position by deduct- ing the grant in arriving at the carrying amount of the asset. The grant is recognized in the income statement over the useful life of a depreciable asset as a reduced depreciation. Financial Liabilities: Interest-Free Loans The Group recognizes interest-free loans initially at fair value, determined by discounting the future cash flows using a market-related interest rate that reflects the time value of money, and the credit risk associated with the loan. The difference between the nominal amount of the loan and its fair value at initial recognition is recorded as a loan discount in the statement of financial position. Subsequently, the loan is measured at amortized cost using the effective interest method in accordance with IFRS 9 Financial Instruments. The loan discount is amortized over the term of the loan, with the amortization recognized under “Loan discount recognition” as a reduction of purchase in PPE and intangible assets in the balance sheet (note 10 and 11), reduction of non-current debt (note 16) and as an increase of grant as other income in the income statement. Additionally, the unwinding of the discount, representing the theoretical or imputed interest, is presented as “Accretion of discounted loan” within finance costs (note 17) in income statement and an increase of non-current debt (note 16). This approach ensures that the interest-free loans are presented in a manner consistent with the economic substance of the transactions, as required by IFRS. Segment information The Chief Operating Decision Maker (CODM) assesses the financial performance and position of the Group and makes strategic decisions. The internal financial reporting to the CODM is on a consolidated basis. As a result, the Group has only one reportable segment. The CODM is identified as the Board of Directors. Climate Risk Considerations The company has assessed climate-related risks and their potential impact on the financial statements. In the short and medium term, key physical risks include extreme weather and higher temperatures, which may dis- rupt the supply of materials like titanium or pose health and safety risks to workers, such as in regions like China, potentially raising costs or delaying production. These risks may also increase transportation costs. In the medium to long term, physical risks could affect decisions on new production locations, impacting future capital expenditures. As of 31 December 2024, no material financial impacts from climate risks have been identified. Management continues to monitor these risks for effects on inventory valuation, cost of sales, and asset impairments, as part of its accounting estimates and judgments. Key Accounting Estimates and Judgments The preparation of these financial statements in accordance with International Financial Reporting Standards (IFRS) requires management to make judgments, estimates, and assumptions. These are based on historical experience, current conditions, and expectations of future events that are considered reasonable under the circumstances. However, actual results may differ from these estimates due to their inherent uncertainty. A key area of estimation uncertainty is: • Provision for slow-moving inventory (Note 7 – Inventories): The provision reflects inventory that may not be sold due to fluctuating demand and market penetration levels, assessed using historical sales, growth rates and order intake. Movements in the provision are also considered material and are driv- en by changes in inventory levels and historical sales performance. This is deemed a key accounting estimate under IAS 1.125, as it is material and depends on future market conditions (demand) and op- erational outcomes (production). The provision is sensitive to production (inventory buildup) and de- mand (sales and orders): Scenario one: If production increases inventory by 10% (adding ~CAD 866 thousand to finished goods of CAD 8 664 thousand in 2024) and demand drops by 10%, the provision could rise by ~CAD 600 thousand, reducing profit before tax. Scenario two: If production stops (no new inventory) and demand drops by 10%, the provision could fall by ~CAD 500 thousand, increasing profit before tax. Estimates are regularly reviewed and updated as new information becomes available. Notes to the Consolidated Financial Statements (- Note Organization and accounting principles—continued) Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (continued) (- Note 2 continued) Note 1 Research and development Amounts in CAD 1000 2024 2023 Salaries 1 814 1 711 Materials and other costs 902 836 R & D Tax credits -87 -161 Research and Development costs 2 629 2 386 Less: development capitalized -508 -428 Research expensed 2 121 1 958 Note 2 Revenue from contracts with customers Accounting principles and information related to external customers are described in the Organization and accounting principles. There are no customers that represent ten per cent or more of the Group's total reve- nues on an annual basis in 2024. Disaggregation of revenue from contracts with customers 2024 Amounts in CAD 1000 Systems & Equipment Materials Spare parts Other Total Revenue recognized at a point in time - 26 504 915 380 27 799 Revenue recognized over time 9 367 - - - 9 367 Revenue from external customers 9 367 26 504 915 380 37 166 Contribution margin 5 931 9 083 607 380 16 001 Contribution margin % 63.3% 34.3% 66.4% 100.0% 43.1% Revenue from external customers specified per geographical area: North America 3 606 12 608 544 238 16 997 Europe 496 9 331 219 142 10 188 Asia 5 265 4 564 152 - 9 981 Total 9 367 26 504 915 380 37 166 Order backlog 4 781 11 921 - - 16 702 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information The backlog is expected to be recognised as revenue within 12 months. 2023 Amounts in CAD 1000 Systems & Equipment Materials Spare parts Other Total Revenue recognized at a point in time - 25 692 1 031 489 27 212 Revenue recognized over time 13 677 - - - 13 677 Revenue from external customers 13 677 25 692 1 031 489 40 888 Contribution margin 8 572 8 493 675 489 18 230 Contribution margin % 62.7% 33.1% 65.5% 100.0% 44.6% Revenue from external customers specified per geographical area: North America 8 914 10 118 515 244 19 791 Europe 2 599 11 873 515 245 15 233 Asia 2 164 3 700 - - 5 864 Total 13 677 25 692 1 030 489 40 888 Order backlog 9 442 14 596 - - 24 038 Overview of non-current asset per geography Amounts in CAD 1000 2024 2023 Canada 31 884 32 639 France 3 486 3 551 China 17 15 South Korea 3 4 USA 103 - Total non-current assets 35 493 36 210 Customer concentration Amounts in CAD 1000 2024 2023 Top 1 customer 6.7% 17.3% Top 10 customers 38.3% 42.0% Top 20 customers 55.5% 57.7% ANNUAL REPORT 2024 | 32 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (continued) (- Note 4 continued) Note 3 Other income Accounting principles and information related to grants and other income are described in the Accounting Principles. Disaggregation of other income Amounts in CAD 1000 2024 2023 Grant 973 1 001 Gain/loss disposals 3 -9 Other (Litigation payment) 2 938 - Other Income 3 914 991 In 2024, the recognised grant includes CAD 815 thousand from the Canadian Federal Government's Strategic Innovation Fund (SIF), as part of an amended contribution agreement originally announced on June 28, 2018. The SIF program supports research and development initiatives aimed at advancing technology transfer, commercialization, and the growth of innovative firms. The agreement, extended to March 31, 2027, main- tains a maximum disbursement of CAD 20 million, with an accumulated CAD 11.2 million disbursed as of 2024. Other income derived from litigation payments pertains to the settlement received from AP&C as reimburse- ment for a portion of the legal expenses incurred by Tekna. Refer to Note 23 for additional details. Under the Investissement Québec government assistance program that ended in 2024, Tekna received fund- ing tied to the creation of 75 new jobs in addition to the 105 existing jobs in Quebec as of 2017. These 75 jobs must be maintained through at least March 31, 2028. The assistance has been recognized in the financial statements based on cash received to date. As of the reporting date, there are no related accruals recorded in the balance sheet, as the company has met the job creation and maintenance conditions thus far. Howev- er, a contingency exists: non-compliance with the job maintenance commitment could require repayment of the contribution at a rate of CAD 10 700 per year for each of the 75 jobs not sustained. Management contin- ues to monitor compliance with these conditions. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information Note 4 Remuneration and employee benefits Amounts in CAD 1000 2024 2023 Salaries 15 884 16 853 Social security contributions 2 770 2 857 Pension costs 476 504 Other benefits 802 641 Share-Based Compensation 20 - Capitalized as development, inventories etc. -3 559 -3 712 Total employee benefit expenses 16 392 17 143 Average number of full time employees 201 218 Share option plan—Tekna Group The guidelines for remuneration of leading persons in the Tekna group was approved by the shareholders at the annual general assembly dated 3 May 2023. The establishment of the share option plan was approved by the shareholders at the annual general assem- bly dated 15 May 2024. The board of directors of Tekna Holding ASA (the "Company") has resolved to implement an employee share option plan (the "Plan"). The Plan is available to eligible individuals as determined by the board of directors. The Plan enables the eligible person to acquire a proprietary interest in the growth and performance of the Company and to enhance the ability of the Company to attract, retain and reward qualified individuals. Op- tions can be granted on an annual or ad hoc basis, with annual grants projected for 2024, 2025, and 2026, all subject to the board's discretion. Upon exercising their options, option holders can choose between acquir- ing shares after paying the strike price or opting for a cashless transaction. The latter involves the transfer of a number of treasury shares equivalent to the NOK amount of the number of exercised options, multiplied by the difference between the Company's shares' market price and the strike price. On 23 October 2024, the board of directors has granted a total of 2 124 000 options in the 2024 allocation round. These options have a strike price of NOK 4.88. Issued options vest 33% after one year, 33% after two years, and 33% after three years. The expiry date for any option granted is the date falling 24 months follow- ing the vesting date and will lapse if not exercised. ANNUAL REPORT 2024 | 33 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (- Note 4 continued) The share options plan have been treated as an equity-settled plan under IFRS. The strike price of the share options will be based on the volume weighted average share price over the last five last trading days preced- ing the grant date. The total profit each option holder may achieve shall be limited to 400% of the fair market value of the share at grant, or limited to 400% of annual fixed salary of the option holder in the year of grant. Set out below are summaries of options granted under the plan: 2024 2023 Average exercise price per share option Number of options Average exercise price per share option Number of options As at 1 January - - - - Granted during the year 4.88 2 124 000 - - Exercised during the year - - Forfeited during the year - - - - As at 31 December 4.88 2 124 000 - - Vested and exercisable at 31 December No options expired during the periods covered by the tables above. Share options outstanding at the end of the year have the following expiry dates and exercise prices: Grant Date End of period Contractual days remaining Expiry date Exercise price Share options 2024 Share options 2023 23 Oct 24 31 Dec 24 1 026 23 Oct 27 4.88 708 000 - 23 Oct 24 31 Dec 24 1 392 23 Oct 28 4.88 708 000 - 23 Oct 24 31 Dec 24 1 757 23 Oct 29 4.88 708 000 - Total 2 124 000 - Weighted average remaining contractual life (years) of options outstanding at end of period: 3.87 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information Name Title Share options 2024 Share options 2023 Luc Dionne CEO 319 000 - Espen Schie CFO 140 000 - Other executive management 560 000 - Other key employees 1 105 000 - Total share options 2 124 000 - Fair value of options granted The assessed fair value at grant date of options granted during the year ended 31 December 2024 was NOK 1.2, 1.5 and 1.7 for the different vesting periods. The fair value at grant date is independently determined us- ing an adjusted form of the Black-Scholes model that considers the exercise price, the term of the option, the share price at grand date and expected price volatility of the risk-free interest rate for the term of the option, and the volatilities of the peer group companies. The model inputs for options granted during the year ended 31 December 2024 included: Vesting Year 2025 2026 2027 a) Options are granted for no consideration and vest after one, two and three years (service condition). Vested options are exerciseable for a period of 24 months years after vesting. b) Share price 4.6 4.6 4.6 c) Exercise price 4.88 4.88 4.88 d) Risk free-rate (3, 4 and 5 year) 3.53% 3.53% 3.53% e) Volatility 35% 38% 39% f) Maturity 3 4 5 g) Days (360 per year) 1 080 1 440 1 800 h) Date of exercise 23 Oct 27 23 Oct 28 23 Oct 29 i) Valuation date 23 Oct 24 23 Oct 24 23 Oct 24 The estimated expected price volatility is based on the median of volatilities of the peer group companies over an historical period of 3-5 years since Tekna has a short historical period only. The estimated expected lifetime of the options is set at 3,4 and 5 years. ANNUAL REPORT 2024 | 34 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (- Note 4 continued) Total expenses arising from share options are recognized during the period as part of employee benefit ex- penses and based on vesting of 84% regarding service condition, representing the actual churn, and adjusted for the profit cap of 400% of the fair market value of the share at grant. Expenses arising from share-based payment transactions Total expenses arising from share-based payment transactions recognized during the period as part of employee benefit expense were as follows: For this share-based incentive program no new shares have been issued during 2024. The share incentive program was only applicable in 2024 and no new shares have been purchased. For further information see the Remuneration Report. Amounts in CAD 1000 2024 2023 Expense of options issued under employee share option plan 20 - Total share options expenses 20 - Amounts in CAD 1000 2024 2023 Share price 31 Dec 2024 3.25 - Intrinsic value (out-of-the money @ 4.88 exercise price) -1.63 - Number of subscription rights 2 124 000 - Accrual payroll tax - - FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information Note 5 Other operating expenses Amounts in CAD 1000 2024 2023 Maintenance equipment & buildings 792 807 Marketing, travel and representation costs 1020 1 439 Consultants and professional fees 1348 1 071 IT costs 1291 1 217 Bad debts -513 4 033 Manufacturing overhead costs 3577 1 680 Total operating expenses 7 515 10 248 For additional details regarding bad debt, please refer to Note 8 and note 15. Remuneration to auditor Amounts in CAD 1000 2024 2023 Statutory audit 500 356 Other assurance services 28 38 Tax advisory 52 20 Other non-audit services - 5 Total remuneration to auditor 581 420 ANNUAL REPORT 2024 | 35 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (continued) Note 6 Income tax Amounts in CAD 1000 2024 2023 Tax payable on ordinary income 366 303 Adjustment for previous years - - Current tax expense 366 303 Deferred tax expense 486 1 163 Total tax expense in the income statement 851 1 467 Reconciliation of effective tax rate Profit / (loss) before income tax -10 299 -13 543 Tax based on current ordinary tax rate -2 729 -3 589 Effect of non-deductible expenses 524 357 Effect of unrecognised tax loss carryforward 3 026 4 725 Effect of changed tax assessments for previous years 30 -26 Total tax expense 851 1 467 Effective tax rate -8.26% -10.83% Amounts in CAD 1000 2024 Assets Liabilities Net assets Property, plant and equipment 767 - 767 Intangible assets - -1 179 -1 179 Other items 113 - 113 Restricted interest - EIFEL 1 241 - 1 241 Tax loss carryforward 21 225 - 21 225 Unrecognised tax assets -22 167 - -22 167 Recognised tax loss carryforward - - - Deferred tax asset/liability 1 179 -1 179 - Offsetting of assets and liabilities - -1 649 -1 649 Net deferred tax asset/liability 1 179 -2 828 -1 649 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information Amounts in CAD 1000 2023 Assets Liabilities Net assets Property, plant and equipment 236 - 236 Intangible assets - -1 207 -1 207 Other items 29 - 29 Tax loss carryforward 20 192 - 20 192 Unrecognised tax assets -20 192 - -20 192 Recognised tax loss carryforward 942 - 942 Deferred tax asset/liability 1 207 -1 207 -0 Offsetting of assets and liabilities - -1 163 -1 163 Net deferred tax asset/liability 1 207 -2 370 -1 163 The amount of losses carried forward subject to expiration represent $ 60,4 m for federal income tax purposes and $ 66,4 m for pro- vincial tax purposes and $ 9,2 m from France that do not expire. The federal income tax rate is 15% and the provincial in- come tax rate is 11%. Some of the losses are expiring according to the following tables: Amounts in CAD 1000 Canada Losses carried forward, Expiry by Year Federal Provincial France 2043 7 545 8 093 - 2042 17 416 21 213 - 2041 11 919 11 990 - 2040 3 258 3 171 - 2039 4 929 5 052 - 2038 3 297 3 300 - 2037 4 457 4 644 - 2036 2 288 2 288 - 2035 1 864 1 897 - 2034 1 890 3 151 - 2033 115 115 - 2032 292 291 - 2031 585 585 - 2030 260 260 - 2029 326 328 - No expiry - - 9 297 60 441 66 377 9 297 ANNUAL REPORT 2024 | 36 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (continued) Note 7 Inventories Inventory stock Amounts in CAD 1000 2024 2023 Raw materials 8 104 10 336 Work in progress 493 386 Finished goods 8 664 6 886 Total inventories (net after provision for obsolescence) 17 261 17 607 Provision for obsolescence related to finished goods Amounts in CAD 1000 2024 2023 Balance at 1 january 4 737 4 996 New provisions recognised during the year 2 156 3 055 Provisions reversed -999 -3 313 Balance at 31 December 5 894 4 737 Provision slow moving When producing powder of a specific alloy, the process generates a distribution of size fractions, which are dedicated to various markets and applications. Some of the size fractions could accumulate in inventory, depending on the demand and on the level of market penetration. A provision for slow moving inventory is recorded by Tekna following a periodic review of historical sales data for each fraction as well as the growth rate of sales and order intake. The provision could fluctuate depending on the level of inventory and the historic performance of sales. Note 8 Trade and other receivables Trade receivables Amounts in CAD 1000 2024 2023 Trade receivables from contracts with customers 4 823 9 930 Loss allowance -136 -4 075 Total 4 687 5 855 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information (- Note 8 continued) Provision for losses * Amounts in CAD 1000 2024 2023 Balance at 1 january -4 075 -42 Change in expected losses and outstanding receivables -121 -4 033 Provisions reversed 1 078 - Realized bad debts 3 044 - Exchange differences on translation of foreign operations -61 - Balance at 31 December -136 -4 075 For more information about credit risk and write-downs, see note 15. Other receivables Amounts in CAD 1000 2024 2023 Indirect Tax Receivable 735 363 Refundable deposit on Raw material 308 489 Grant and Investment tax credit receivable 273 167 Loan to employees - 934 Prepaid Expenses 418 585 Total 1 734 2 538 Total trade and other receivables 6 421 8 394 Tekna made a provision of CAD 4.0 million in the fourth quarter of 2023 related to one joint venture. This provision for bad debt on receivables is considered non-recurring. The expense is excluded from Tekna's Adjusted EBITDA and has no cash effect. The 50/50 joint venture was established with a business partner in 2020 to produce and market nickel alloy powders. The entry into this market has proven less profitable than anticipated due to the market conditions, and the joint venture has been loss making since the inception. The losses have been funded by the joint venture partners. In 2024, the joint venture shareholders, including Tekna, have voted to start a dissolution of the joint venture and it is expected to be completed in 2025. Please refer to Note 20 for more information about the joint venture. For additional details on credit risk, please refer to note 15. ANNUAL REPORT 2024 | 37 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (continued) Note 9 Cash and cash equivalents Amounts in CAD 1000 2024 2023 Total cash at bank 12 352 10 148 Restricted cash - - Note 10 Property, plant and equipment Property, plant and equipment is recognized at historical cost less depreciation. Depreciation is calculated using the straight-line method over their estimated useful lives as follows: Asset Period Asset Period Building 25 years Permanent systems incl. development cost 10 years Equipment incl. development cost 5-8 years Right-of-Use (RoU) assets 5-8 years Mobile Infrastructure incl. development cost 25 years 2024 Amounts in CAD 1000 Vehicles, machinery and equipment Buildings and land RoU assets Total Year ended 31 December 2024 Cost at 1 January 2024 27 909 13 145 3 471 44 525 Purchase of PPE, net of grants 2 114 329 1 548 3 991 Loan discount recognition -510 -92 - -602 Disposal -13 -23 - -36 Translation adjustments 107 28 86 221 Cost at 31 December 2024 29 607 13 387 5 105 48 099 Accumulated depreciation at 1 January 2024 13 031 5 469 2 131 20 631 Depreciation 1 673 568 668 2 909 Disposal -13 -18 - -31 Translation adjustments 70 16 58 144 Accumulated depreciation at 31 December 2024 14 761 6 035 2 857 23 653 Carrying amount at 31 December 2024 14 846 7 352 2 248 24 446 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information (- Note 10 continued) 2023 Amounts in CAD 1000 Vehicles, machinery and equipment Buildings and land RoU assets Total Year ended 31 December 2023 Cost at 1 January 2023 21 200 12 460 3 115 36 775 Purchase of PPE, net of grants 7 041 755 351 8 147 Loan discount recognition -339 -83 - -422 Disposal -41 - - -41 Translation adjustments 48 14 5 67 Cost at 31 December 2023 27 909 13 145 3 471 44 525 Accumulated depreciation at 1 January 2023 11 106 4 904 1 525 17 535 Depreciation 1 928 559 605 3 092 Disposal -31 - - -31 Translation adjustments 28 7 1 36 Accumulated depreciation at 31 December 2023 13 031 5 469 2 131 20 631 Carrying amount at 31 December 2023 14 878 7 676 1 340 23 894 ANNUAL REPORT 2024 | 38 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (continued) (- Note 11 continued) Note 11 Intangible assets 2024 Technologies IP and licenses Development Total Amounts in CAD 1000 Year ended 31 December 2024 Cost at 1 January 2024 10 767 5 212 2 605 18 584 Additions, net of grants - 204 244 448 Loan discount recognition - -16 -26 -42 Write-off of capitalized license costs - -210 - -210 Cost at 31 December 2024 10 767 5 190 2 823 18 779 Accumulated amortization at 1 January 2024 7 538 2 785 476 10 799 Amortization 718 265 129 1 111 Write-off of capitalized license costs - -94 - -94 Translation adjustments - 1 - 1 Accumulated amortzation and impairment at 31 December 2024 8 255 2 957 605 11 817 Carrying amount at 31 December 2024 2 512 2 233 2 217 6 962 Estimated useful lives 15 years 15 years 10 years Intangible assets are recognized at historical cost less amortization. Amortization is calculated using the straight-line method to allocate the cost over their estimated useful lives. Intangible assets with definite useful life consists of acquired technology, internally generated intangible assets arising from development costs as well as licenses for software. Useful life varies between four and ten years. If there are indications of impairment for the intangible assets with defined useful life, an impairment test is performed. For 2024, there are no such indications. Development cost is recognized as an asset when it is identifiable and the company has the power to obtain the future economic benefits following from the underlying resource and to restrict the access of others to those benefits. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information 2023 Technologies IP and licenses Development Total Amounts in CAD 1000 Year ended 31 December 2023 Cost at 1 January 2023 10 767 4 978 2 466 18 211 Additions, net of grants - 235 175 410 Loan discount recognition - -1 -36 -37 Disposal - - - - Cost at 31 December 2023 10 767 5 212 2 605 18 584 Accumulated amortization at 1 January 2023 6 820 2 507 347 9 674 Amortization 718 278 134 1 130 Translation adjustments - - -5 -5 Accumulated amortzation and impairment at 31 December 2023 7 538 2 785 476 10 799 Carrying amount at 31 December 2023 3 230 2 427 2 128 7 785 Note 12 Non-current receivables Amounts in CAD 1000 2024 2023 R&D Tax Credit Receivable 4 085 4 531 Total non-current receivables 4 085 4 531 In 2024, Tekna Plasma Europe SAS received a reimbursement from Crédit Impôt Recherche (CIR), as well as set aside a provision for Corporate Income Tax payable. R&D Tax Credit Carryovers, by Expiry Year A research and development (R&D) tax credit receivable of CAD 3.8 million is recognized in the balance sheet for Tekna Plasma Systems Inc., representing federal tax credits for R&D activities. The recovery of this ANNUAL REPORT 2024 | 39 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (-note 12 continued) amount is dependent on the generation of future taxable profits. These credits expire 20 years from the date of issuance. A research and development (R&D) tax cred- it receivable of CAD 287 thousand is recog- nized in the balance sheet for Tekna Plasma Europe SAS, relating to the French Crédit d’Impôt Recherche (CIR). The recovery of this amount is dependent on future taxable prof- its. In France, CIR credits do not expire but are subject to specific utilization rules: they may be offset against corporate income tax when the company is profitable or refunded after a delay of up to four years if the com- pany incurs losses. Amounts in CAD 1000 Credits by Expiry Year Canada France 2043 237 - 2042 230 - 2041 248 - 2040 245 - 2039 475 - 2038 480 - 2037 465 - 2036 242 - 2035 256 - 2034 288 - 2033 255 - 2032 477 - 2031 77 - 2030 59 - 2029 358 - No expiry - 287 R&D Tax Credit Carryovers 4 391 287 Unrecognized tax credits 592 - Note 13 Leases This note provides information for leases where the group is a lessee. Amounts recognised in the balance sheet The balance sheet shows the following amounts relating to leases: Amounts in CAD 1000 2024 2023 Total right-of-use assets 2 248 1 340 Current lease liabilities 647 595 Non-current lease liabilities 1 637 773 Total lease liabilities 2 284 1 369 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information (- Note 13 continued) Amounts recognised in the statement of income The statement of income shows the following amounts relating to leases: Amounts in CAD 1000 2024 2023 Total depreciation charge right-of-use assets 668 605 Interest expense 80 68 The group has no variable rate leases. Expenses in the statement of income related low value leases are immaterial to these financial statements. Note 14 Trade payables and other current liabilities Amounts in CAD 1000 2024 2023 Trade payables 3 741 4 875 Other current liabilities 5 217 2 860 Total 8 958 7 73 Trade payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature. Specification of other current liabilities Amounts in CAD 1000 2024 2023 Accrued expenses and other current liabilities 3 052 2 860 Accrued Labor cost / holiday pay 2 004 - Accrued Bonus 161 - Total 5 217 2 860 The accrued expenses account represents costs incurred by the company that have not yet been recorded in accounts payable. ANNUAL REPORT 2024 | 40 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (continued) Note 15 Financial risk and financial instruments This note explains the group’s exposure to financial risks and how these risks could affect the group’s future financial performance. Current year profit and loss information has been included where relevant to add further context. Tekna operates on an international level, and produces spherical powders and nano powders, and delivers plasma systems for powder production of advanced materials. The Group's metal powders and plasma sys- tems are produced for and delivered to a number of industrial sectors, such as aviation, aerospace, medical, mining and drilling, energy storage and microelectronics, and are delivered to its customers worldwide. The Group is headquartered in Canada and operates manufacturing centres in Canada and France, as well as sales and distribution offices in China, South Korea and USA. Capital management Tekna's capital management objectives are to ensure its ability to operate as a going concern, support ongo- ing business activities, and deliver sustainable returns to shareholders while maintaining sufficient financial flexibility to pursue growth opportunities. Tekna defines its capital as total equity, which includes share capital, reserves, and retained earnings, as well as interest-bearing loans and borrowings, where applicable. Tekna actively manages its capital structure by monitoring economic conditions, operational cash flow re- quirements, and the risks associated with its business activities. To maintain an optimal capital structure, Tekna may take actions such as issuing new equity, adjusting dividend distributions, or managing debt levels. Key financial metrics, including the debt-to-equity ratio and working capital levels, are regularly assessed to ensure they align with the Tekna's strategic goals and financial health. Tekna is currently subject to externally imposed capital requirements in form of financial covenants of its bor- rowing facilities (bank overdraft), which stipulate a Net Interest Bearing Debt (NIBD) of less than 0 (<0). The loan facility agreement with Arendals Fossekompani ASA of CAD 25 million is exempted from the calculation. As of December 31, 2024, Tekna complied with these requirements. During the reporting period, there were no significant changes to the Tekna's capital management policies or processes. The Board of Directors conducts a regular review of the capital structure, with additional evalua- tions as needed in response to material business developments, to ensure it supports Tekna's long-term ob- jectives. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information Currency risk Currency risk arises from the potential fluctuation in the fair value or future cash flows of financial instruments due to changes in foreign exchange rates. This risk emerges when financial assets or liabilities are denominat- ed in a currency other than the Group’s functional currency, which is the Canadian Dollar (CAD). The Group is exposed to foreign exchange rate risk as its business transactions, operations, and sales are conducted in multiple currencies, including the Canadian Dollar (CAD), U.S. Dollar (USD), Euro (EUR), Chinese Yuan (CNY), Indian Rupee (INR), and South Korean Won (KRW). Additionally, cash outflows are primarily denominated in CAD, USD, EUR, Norwegian Krone (NOK), and CNY, while cash inflows are mainly received in USD, EUR, CNY, and CAD (notably from governmental subsidies and grants). The Group manages currency risk through natural hedging, whereby the diversity of currencies in its revenue streams and expenditures partially offsets the impact of exchange rate fluctuations. For instance, inflows in USD, EUR, and CNY from sales align with outflows in these currencies for operational costs, reducing net ex- posure. The Group does not engage in formal hedging activities using derivative financial instruments, relying instead on this natural balance to mitigate risk. Unfavorable fluctuations in exchange rates could still affect the Group’s financial position, results of operations, or cash flows, but the impact is generally limited due to the offsetting nature of currency movements across its global operations. The positive and negative effects of exchange rate changes vary depending on the specific currencies in- volved and the timing of transactions. Given the Group’s diversified currency exposure and natural hedging, a sensitivity analysis indicates that reasonably possible changes in foreign exchange rates would not have a material impact on the Group’s profit or equity. Management monitors currency risk on an ongoing basis and assesses the adequacy of its natural hedging strategy in light of market conditions and operational needs. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Group is exposed to interest rate risk through its portfolio of financial instruments, which includes both fixed and floating interest rate components. Fixed-rate instruments expose the Group to fair value risk, as their value may decrease if market interest rates rise, while floating-rate instru- ments expose the Group to cash flow risk, as interest payments fluctuate with changes in market rates. ANNUAL REPORT 2024 | 41 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (- Note 15 continued) As at December 31, 2024, the Group’s exposure to interest rate risk is summarized as follows: • Cash: Floating rate, subject to prevailing market rates. • Accounts Receivable: Non-interest bearing, not exposed to interest rate risk. • Bank Loan: Floating rate, with interest payments varying based on market conditions. • Accounts Payable and Accrued Liabilities: Non-interest bearing, not exposed to interest rate risk. • Long-Term Debt: Floating rate on loans totaling CAD 28.6 million, subject to cash flow risk, and non- interest bearing on other loans, not exposed to interest rate risk. The Group does not currently use derivative financial instruments, such as interest rate swaps, to hedge its exposure to interest rate risk. Instead, management monitors market interest rate trends and assesses the balance between fixed and floating rate instruments to mitigate potential adverse impacts on financial perfor- mance. The Group’s exposure to floating-rate instruments, particularly the CAD 28.6 million in long-term debt and bank loan, represents the primary source of cash flow risk, while the fixed-rate finance leases miti- gate cash flow volatility but introduce fair value sensitivity. To illustrate the potential impact of interest rate changes, a sensitivity analysis was performed. A reasonably possible increase or decrease of 100 basis points (1%) in market interest rates, with all other variables held constant, would affect the Group’s profit before tax as follows: • Floating-rate instruments (CAD 28.6 million long-term debt, bank loan, and cash): An increase of 1% would increase annual interest expense and reduce profit before tax by approximately CAD 286 thousand, while a decrease of 1% would decrease interest expense and increase profit before tax by the same amount. The sensitivity analysis assumes a parallel shift in interest rates and does not account for management actions that could be taken to mitigate risk. The actual impact of interest rate fluctuations may differ due to changes in the composition of the Group’s financial instruments or market conditions. Management reviews interest rate risk exposure regularly to ensure it remains within acceptable levels aligned with the Group’s financial strategy. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting its obligations associated with finan- cial liabilities as they fall due. The Group is primarily exposed to liquidity risk through its accounts payable and accrued liabilities, long-term debt, and obligations under committed credit facilities. The Group manages liquidity risk by maintaining adequate cash reserves, marketable securities, and access to funding through committed credit facilities to ensure it can meet its financial obligations when due. This pru- dent approach involves maintaining flexibility in funding by keeping available credit lines and monitoring li- quidity reserves to support operational and financial commitments. Management prepares rolling forecasts of the Group’s liquidity position, which include cash and cash equivalents and undrawn borrowing facilities, based on expected cash flows. These forecasts enable the Group to anticipate and address potential liquidity shortfalls. As at December 31, 2024, the Group has access to committed credit facilities totaling USD 0.75 million and CAD 4.0 million. These facilities may be drawn at any time, subject to the specified limits, and are subject to termination by the bank with notice as per the terms of the agreements. At year-end, the undrawn portion of these facilities provides additional liquidity to meet short-term obligations and unexpected cash flow needs. The Group’s liquidity risk is influenced by the timing of cash inflows from its operations, including revenue from Systems and Materials sales, and outflows related to operational expenses and debt repayments. Man- agement actively monitors these cash flows to ensure sufficient liquidity is maintained to settle financial liabili- ties as they mature. Information on contractual maturities of financial liabilities are available in the table: 2024 Amounts in CAD 1000 Carrying amount Contractual cash flows 6 months or less 6 to 12 months 1 to 2 years 2 to 5 years Over 5 years Lease liabilities 2 284 2 693 340 307 615 670 761 Trade and other payables 3 741 3 741 3 741 - - - - Borrowings 31 906 39 865 455 454 25 394 7 864 5 698 ANNUAL REPORT 2024 | 42 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (- Note 15 continued) 2023 Carrying amount Contractual cash flows 6 months or less 6 to 12 months 1 to 2 years 2 to 5 years Over 5 years Amounts in CAD 1000 Lease liabilities 1 369 1 508 343 256 406 498 5 Trade and other payables 4 875 4 875 4 875 - - - - Borrowings 25 064 34 245 443 401 739 27 432 5 230 Credit Risk Credit risk is the risk that a counterparty to a financial instrument will fail to meet its obligations, resulting in a financial loss to the Group. The Group’s primary exposure to credit risk arises from its cash and trade receiva- bles, which represent the main financial instruments subject to this risk. The Group’s cash is held with reputable, major financial institutions with high credit ratings, minimizing the risk of non-performance. Consequently, management considers the credit risk associated with cash balances to be negligible. Trade receivables, primarily arising from sales of Systems and Materials, expose the Group to credit risk if customers fail to settle amounts owed. To manage this risk, the Group maintains an allowance for expected credit losses on its trade receivables, which is assessed and updated regularly based on historical collection trends, customer creditworthiness, and economic conditions. As at December 31, 2024, all trade receivables have maturities of less than one year, reducing the duration of credit exposure. To further mitigate credit risk, the Group employs proactive measures, including regular monitoring of cus- tomer credit profiles and requiring advance payments or letters of credit for Systems contracts, which typical- ly involve higher transaction values and longer delivery timelines. These practices help secure payment and reduce the likelihood of default, particularly for significant contracts with universities, research labs, and in- dustrial clients. Historically, the Group has not incurred material losses from trade receivable defaults, reflect- ing the effectiveness of its credit risk management processes. Financial assets, including trade receivables, are written off when there is no reasonable expectation of recov- ery—for example, when a debtor fails to engage in a repayment plan or is deemed insolvent. Even after write -off, the Group continues enforcement efforts to recover amounts due, such as through legal action or col- lection agencies. Any subsequent recoveries are recognized in profit or loss as they occur, offsetting prior impairments. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information The Group’s maximum exposure to credit risk at the reporting date is the carrying amount of its cash and trade receivables, as disclosed in the statement of financial position, net of any allowances for expected credit losses. Management considers the concentration of credit risk to be low due to the diverse customer base spanning multiple industries and geographies, including aerospace, defense, medical, and research sectors. Trade receivables Provisions for losses are based on individual assessment of each item and customer. Expected loss in catego- ries without any provisions made is based on the assumption that there are not risk of any material losses. Amounts in CAD 1000 External customer rec not due External customer rec 1-30 days past due External customer rec 31-60 days past due External customer rec 61-90 days past due External customer rec > 90 days past due Trade accounts receivable 2024 Outstanding trade receivables 3 092 1 309 201 - 221 4 823 Provision for losses - - - - -136 -136 2023 Outstanding trade receivables 3 179 1 556 1 069 514 3 612 9 930 Provision for losses - - -264 -380 -3 431 -4 075 Provisions for losses are based on individual assessment of each item and customer. Expected loss in catego- ries without any provisions made is based on the assumption that there are not risk of any material losses. For additional details regarding bad debt, please refer to note 8. ANNUAL REPORT 2024 | 43 Board of DirectorsContents Introduction Report 2024 Notes to the Consolidated Financial Statements (continued) Note 16 Borrowings This note provides information on the contractual terms of the Group’s interest-bearing loans and borrowings. For more information on the Group’s interest rate risk and for- eign exchange risk see Note 15. On April 11th, 2023, a CAD 25 million term loan facility with three tranches was made available for Tekna until June 2024 by Arendals Fossekompani ASA. The loan facility agreement provides financing through three tranches of CAD 10, 10 and 5 million, where each tranche is a loan with 3 years duration. This represents a total amount of CAD 25 million. The interest on the loan is accrued and added to the principal of the loan at the end of each interest period (payment in kind), and it is based on a 300 bps margin on top of the Canadian interbank rate 3-months CORRA. As of December 31st, 2024, Tekna had drawn CAD 25 mil- lion under this loan agreement with Arendals Fossekompa- ni ASA and represents CAD 27.6 million on the balance sheet including accrued interest. For more information regarding Loan discount recognition and Accretion of discounted loan, please refer to Financial Liabilities: Interest-Free Loans in Organization and account- ing principles. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT ’ Financial Statements Corporate Governance Sustainability Appendix Auditors Report Report Report Contact Information The table below reconciles the movement in financial liabilities to cash flow from financing activities. Amounts in CAD 1000 Borrowings Lease liabilities Bank loan (ST) Total financial liabilities 2024 2023 2024 2023 2024 2023 2024 2023 Balance at 1 January 25 064 4 651 1 369 1 620 - 1 197 26 433 7 468 New loans 6 873 21 159 - - - - 6 873 21 159 Capitalized interest on loan 1 946 981 - - - - 1 946 981 Cash Flow - repayment -1 263 -839 -661 -565 - -1 197 -1 925 -2 601 Write-off of license liability (non-cash) -116 - - - - - -116 - FX variation loss (gain) - - 29 -38 - - 29 -38 New leases (non-cash) - - 1 548 351 - - 1 548 351 Loan discount recognition -999 -1 234 - - - - -999 -1 234 Accretion of discounted loan 402 345 - - - - 402 345 Total debt 31 907 25 064 2 284 1 369 - - 34 191 26 433 Short-term portion -420 -402 -647 -595 - - -1 067 -997 Balance long-term portion at 31 December 31 486 24 662 1 637 773 - - 33 123 25 435 Amounts in CAD 1000 2024 2023 Loans secured by pledged assets Building and land 1 006 1 075 Machinery and equipment - - Universality of movable and immovable property, tangible and intangible, current and future 1 164 983 Universality of movable property, tangible and intangible, current and future 27 561 20 981 Total non-current borrowings secured by pledged assets 29 731 23 039 ANNUAL REPORT 2024 | 44 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 45 ANNUAL REPORT 2024 Contents Notes to the Consolidated Financial Statements (Note 16—continued) List of borrowings 2024 2023 Amounts in CAD 1000 Loan from ultimate parent company, bearing floating interest at Canadian Overnight Repo Rate Average (CORRA-3 months) plus 3.00%, capital and interest payable in April 2026. 11 228 10 582 Loan from ultimate parent company, bearing floating interest at Canadian Overnight Repo Rate Average (CORRA-3 months) plus 3.00%, capital and interest payable in July 2026. 11 067 10 399 Loan from ultimate parent company, bearing floating interest at Canadian Overnight Repo Rate Average (CORRA-3 months) plus 3.00%, capital and interest payable in March 2027. 5 266 - Loan, secured by land and a building with a net carrying amount of $4 394 986 as at December 31, 2024, bearing interest at the lender's prime rate plus 0.75% (as at December 31, 2024 – 6.20%; 2023 – 7.95%), payable in monthly capital instalments of $5 750, maturing in July 2039. 1 006 1 075 Pre-authorized amount from Strategic Innovation Fund for a maximum amount of $10 000 000 non-repayable and $10 000 000 non-interest-bearing debt, evaluated at fair val- ue, payable in 14 equal annual instalments beginning in April 2042. 1 705 1 174 Loan from Investissement Quebec, evaluated at fair value, without interest, secured by a first ranking hypothec totaling $5 000 000 and an additional $1 000 000 movable and immovable hypothec on all of the two Canadian subsidiaries' assets, payable in monthly capital instalments of $45 152, maturing in October 2027. 1 164 983 Loan from Canada Economic Development for Quebec Regions, capital of $1 100 000 (2023 – $1 100 000), evaluated at fair value, payable in 60 monthly instalments of $18 333, maturing in December 2027. 452 600 Loan under the ''Programme de developpement economique du Quebec'', capital of $750 000 (2023 – $750 000), evaluated at fair value, without interest, payable in monthly instalments of $12 500, maturing in August 2024. - 100 Other loans 19 35 Purchase price balance payable, without interest. - 116 Total debt 31 907 25 064 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (continued) (- Note 18 continued) Note 17 Finance items Amounts in CAD 1000 2024 2023 Interest income 334 364 Currency exchange income - 212 Total Finance income 334 575 Leasing interest 80 68 Interest expense 2 054 1 119 Accretion of discounted loan 402 345 Loan discount recognition adjustment - -414 Currency exchange expense 84 1 Total finance cost 2 620 1 119 Net finance items -2 286 -5 44 Note 18 Share information Amounts in CAD 1000 2024 2023 Share capital 37 850 37 277 Share premium 459 410 457 679 At 31 December 2024 there were 127 462 233 ordinary shares each with a par value of NOK 2.00. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held. In 2024, Tekna Holding ASA issued 2 234 887 new shares to settle obligations arising from the Employee Share Purchase Plan (ESPP) established on February 18, 2021. As part of this transaction, Tekna Holding Can- ada Inc. became a wholly owned subsidiary of Tekna Holding ASA. The settlement of the ESPP involved a non-cash transaction, whereby obligations previously related to shares in Tekna Holding Canada Inc. were settled through the issuance of new shares in Tekna Holding ASA. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information At the inception of the ESPP, Tekna Holding Canada Inc. provided financing to employees for the purchase of its shares. Upon conversion of these shares into Tekna Holding ASA shares, employees were given the option to either repay the loans in cash or settle them through a corresponding reduction in the number of Tekna Holding ASA shares they were entitled to receive. Certain employees elected to use their entitlement to Tekna Holding ASA shares to settle the outstanding loans. The net impact on equity of CAD 722 thousand from this settlement corresponds to the value of the loans extinguished through the reduction in the number of Tekna Holding ASA shares issued. There were no paid out dividends in 2024. Major shareholders at year-end 2024 Number of shares % of total Country ARENDALS FOSSEKOMPANI ASA 88 530 456 69.46% NOR ULFOSS INVEST AS 2 941 975 2.31% NOR HAVFONN AS 2 913 580 2.29% NOR MUST INVEST AS 2 821 245 2.21% NOR KVANTIA AS 2 354 862 1.85% NOR VICTORIA INDIA FUND AS 1 331 883 1.04% NOR CARUCEL FINANCE AS 1 073 791 0.84% NOR Other 25 494 441 20.00% Various Total number of shares 127 462 233 100.00% ANNUAL REPORT 2024 | 46 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (continued) Note 19 Earnings per share Basic earnings per share are based on profit attributable to the equity holders of the parent and the weighted average number of outstanding ordinary shares. Amounts in CAD 1000 2024 2023 Net profit for the year -11 150 -15 009 Attributable to non-controlling interests -114 -587 Attributable to ordinary shares -11 036 -14 422 Basic weighted number of ordinary shares 127 028 689 125 227 346 Diluted weighted number of ordinary shares 127 028 689 125 227 346 Number of shares end of period 127 462 233 125 227 346 Basic earnings per share -0.09 -0.12 Diluted earnings per share -0.09 -0.12 The options under the share option program are not in the money by 31.12.2024 and are not dilutive. The options may be dilutive in the future. For further information with regards to the share option program, see note 4. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information Note 20 Investment in joint ventures The Imphytek Powders S.A.S. joint venture is owned in equal parts by the Group (TPE; Tekna Plasma Europe S.A.S.) and Aperam. The business is organized as a company with limited liability corresponding to Norwe- gian corporations. Guidelines for the operation of companies are based on the shareholders agreement. Ac- cording to the shareholder agreement it is required unanimity between the parties for making decisions about relevant activities. Accordingly, participants in the companies have joint control over the activities. The Group's responsibility as a participant in Imphytek Powder S.A.S. is limited to the capital contribution, and the return equals the Group's share of profit. Thus, the group as a participant is entitled to the arrangements net assets. The investments in joint ventures are accounted for according to the equity method. Entity Country Activities Ownership interest Imphytek Powders S.A.S. France Production of powders 50% Based on an overall assessment where the size and complexity is taken into consideration Imphytek Powders S.A.S. is considered to be an insignificant joint venture. Further information regarding this company is dis- closed below. Imphytek Powders S.A.S. Amounts in CAD 1000 Book value 31.12.2022 579 Book value as at 01.01.2023 579 Share of profit after tax 2023 -608 Investment during the period 29 FX variations - Book value 31.12.2023 - Book value as at 01.01.2024 - Share of profit after tax 2024 8 Investment during the period -8 FX variations - Book value 31.12.2024 - The company has no observable market value in form of market price or similar. ANNUAL REPORT 2024 | 47 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (- Note 20 continued) Description of the business Imphytek Powders S.A.S. has its headquarters and operations in Mâcon, France. The company is combining Aperam's expertise in Nickel & Specialty Alloys with Tekna's unique wire plasma atomization technology. The joint venture has the exclusive right to sell nickel alloy powder in Europe, and benefits from all market and product developments made by Tekna and Aperam in the past years. The company's main activities are the production of high-performance powder for advanced manufacturing technologies. The company is orga- nized as a company with limited liability similar to Norwegian private limited liability companies, and the company is not publicly traded. Imphytek Powders S.A.S. has no contingent liabilities or capital commitments as of 31.12.2024. The partners have an agreement with Imphytek Powders S.A.S. that profits of the company will not be distributed until it has the consent of both partners. The partners have not given consent at the reporting date. In 2024, the joint venture shareholders, including Tekna, voted to start a dissolution of the joint venture and it is expected to be completed in 2025. Please refer to Note 8 for more information on the dissolution. The table below shows the condensed financial information of the joint venture, based on 100% ownership. Imphytek Powders S.A.S. Amounts in CAD 1000 2024 2023 Total revenue 1 056 1 645 Depreciations - -1 347 Interest income - - Interest expenses -43 -51 Tax expenses -5 - Profit 17 -5 085 Other income and expenses - - Comprehensive income - - The Groups share of comprehensive income 50% 50% Current assets 241 5 339 whereof cash and cash equivalents 219 1 658 Non-current assets - 1 Current liabilities 132 8 178 Long-term liabilities - 4 397 Equity 109 -7 235 The joint venture has the same reporting period as the Group. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information Note 21 Subsidiaries Company Ownership held by the group Ownership held by the non- controlling interests Domicile Tekna Holdings Canada Inc. 100.00% Canada Tekna Plasma Systems Inc. 100.00% Canada Tekna Advanced Materials Inc. 100.00% Canada Tekna Plasma Europe S.A.S. 100.00% France Tekna Plasma Systems Suzhou Co. Ltd. 100.00% China Tekna Plasma India Pr. Ltd. 100.00% India Tekna Inc. 100.00% USA Tekna Plasma Korea Co. Ltd. 100.00% South Korea ANNUAL REPORT 2024 | 48 Board of Directors’ Financial Statements Corporate Governance Sustainability Contents Introduction Report 2024 Auditors Report Report Report Notes to the Consolidated Financial Statements (continued) Note 22 Related parties At year end Arendals Fossekompani ASA (AFK) owned 88 530 456 shares, representing 69.5% of the total number of shares in Tekna. Board of Directors compensation 2024 and number of shares owned 31 December 2024 Name Title Board of Directors remunerated Remuneration provision Own Holdings Related Parties Number of shares in Tekna Holding ASA Dag Teigland 1,2 Chair 82 39 - 728 818 728 818 Torkil Sigurd Mogstad 2,6 Member of Board - - - 52 125 52 125 Ann-Kari Amundsen Heier 2,7 Member of Board - - - 17 000 17 000 Lars Magnus Eldrup Fagernes 2 Member of Board - - - - - Anne-Lise Meyer 3 Member of Board 77 35 - - - Barbara Thierart Perrin 4 Member of Board 62 28 - - - Kristin Skau Åbyholm 5 Member of Board 62 28 - 3 686 745 3 686 745 Total 284 130 - 4 484 688 4 484 688 Name Title Fixed salary Paid bonus Pension Share- based compensa- tion Other benefits Own Holdings Related Parties Number of shares in Tekna Holding ASA Luc Dionne CEO 333 10 13 - 20 338 164 - 338 164 Espen Schie CFO 297 10 14 - 2 - 379 990 379 990 Other executive management 879 62 79 - 20 567 436 - 567 436 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT ANNUAL REPORT 2024 Appendix Contact Information 1 Dag Teigland elected from May 2024, representing Tibidabo Indus- trier AS with 52 000 shares and Tib- idabo Invest AS with 676 818 shares. On 22 May 2023, Dag Teigland bought, through his wholly owned company Tibidabo Invest AS, 678 818 shares from Arendals Fossek- ompani ASA, with a 20% discount against a lock-up period of 3 years. 2 Representing Arendals Fossek- ompani ASA with 88 530 456 shares. Lars Magnus Eldrup Fagernes elected from May 2023. Ann-Kari Amundsen Heier from December 2023. 3 Anne-Lise Meyer elected from May 2024. 4 Barbara Thierart Perrin elected from May 2024. 5 Kristin Skau Åbyholm elected from May 2023, representing 1 331 883 shares in Victoria India Fund AS and 2 354 862 in Kvantia AS. 6 Torkil Mogstad elected from May 2023, representing 52 125 shares in Loma Plata AS. 7 Ann-Kari Amundsen Heier from December 2023, representing 17 000 shares in Damglott AS. | 49 Board of Directors’ Financial Statements Contents Introduction Report 2024 Auditors Report Notes to the Consolidated Financial Statements (- Note 22 continued) The CEO’s period of notice is eight (8) weeks, with a period of pay of twelve (12) months after termination of employment if the CEO is dismissed by the company. The other members of the Group Executive have a period of notice varying from four (4) weeks to eight (8) weeks. The purpose of Tekna's compensation and benefits policy is to attract personnel with the competence that the Group requires, develop and retain employees with key expertise and promote a long-term perspective and continuous improvement supporting achievement of Tekna's business goals. The general approach adopted in Tekna's policy is to pay fixed salaries and pensions in line market prices, while offering variable pay linked to results for bonus. a) Fixed elements b) Variable elements – annual bonus Executives in Tekna participate in the Group’s central annual bonus program. The program has a maximum ceiling of 25% of the executive’s fixed salary and 35% for CEO. The basis for bonus payments is based on financial targets and performance strategic KPIs. In addition, the Group has share-based incentive programs described in (c) below. (c) Shared incentive program The establishment of the share option plan was approved by the shareholders at the annual general assem- bly dated 15 May 2024. On 23 October 2024, the board of directors has granted a total of 2,124,000 options in the 2024 allocation round. These options have a strike price of NOK 4.88. Issued options vest 33% after one year, 33% after two years, and 33% after three years. The expiry date for any option granted is the date falling 24 months following the vesting date and will lapse if not exercised. Please refer to Note 4 and the Remuneration Report for more information. Board of Directors remunerated corresponds to fees paid in the period, as elected, for the period May 2023 until April 2024. Board of Directors remuneration provision corresponds to accrued provisions for fees, for the period May 2024 until December 2024. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Corporate Governance Sustainability Appendix Report Report Contact Information Note 23 Contingent liabilities In January 2019, Tekna Plasma Systems Inc. filed a lawsuit in Federal Court against AP&C Advanced Powders & Coatings Inc., challenging the validity of Canadian patents 3,003,502 and 3,051,236 and seeking a non- infringement declaration, while AP&C counterclaimed for infringement; the trial took place in fall 2022. On June 7, 2024, the Federal Court ruled in Tekna’s favor, declaring patent ‘502 entirely invalid and not infringed, and most claims of patent ‘236 invalid and not infringed, though some ‘236 claims were upheld as valid but not contested by AP&C for infringement. AP&C appealed this ruling (file A-274-24), aiming to overturn it, with a hearing expected in late 2025 or early 2026, and Tekna is actively defending the decision. A second Federal Court decision on December 5, 2024, ordered AP&C to pay Tekna $2.9 million for partial legal costs, which AP&C paid in December 2024, but AP&C has also appealed this cost award (file A-55-25), with proceedings just beginning. If both rulings are upheld on appeal, the case may conclude; however, if overturned, Tekna could face repaying the $2.9 million and potentially additional damages to AP&C, depending on the appeal outcomes. Note 24 Subsequent events New CEO On March 18, 2025, Tekna Holding ASA announced the appointment of Mr. Claude Jean as the new Chief Executive Officer (CEO) of the Tekna Group, effective April 28, 2025. Mr. Jean, a seasoned technology execu- tive with over 30 years of experience in the semiconductor and digital imaging sectors, succeeds Mr. Luc Di- onne, who has led the company since 2014. This leadership transition follows a period of strategic growth for Tekna, and is not expected to have a material financial impact on the company’s operations or financial posi- tion as of the balance sheet date. ANNUAL REPORT 2024 | 50 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 51 ANNUAL REPORT 2024 Contents Parent Financial Statements Income Statement Other Comprehensive Income Amounts in CAD 1000 Note FY 2024 FY 2023 Items that may be reclassified to statement of income Exchange differences on translation of foreign operations - - Items that may be reclassified to statement of income - - Items that will not be reclassified to statement of income Exchange differences on translation of foreign operations - - Items that will not be reclassified to statement of income - - Other comprehensive income/(loss) for the period, net of tax - - Total comprehensive income/(loss) for the period 2 932 1 970 Attributable to equity holders of the company 2 932 1 970 Attributable to non-controlling interests - - Amounts in CAD 1000 Note FY 2024 FY 2023 Employee benefit expenses 1 277 371 Other operating expenses 2 1 069 1 190 Net operating income/(loss) -1 346 -1 561 Finance income 7 5 470 5 155 Finance costs 7 372 132 Profit/(loss) before income tax 3 753 3 463 Income tax expense 3 821 1 493 Profit/(loss) for the period 2 932 1 970 Attributable to equity holders of the company 2 932 1 970 Attributable to non-controlling interests - - FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 52 ANNUAL REPORT 2024 Contents Balance Sheet Parent Financial Statements (continued) Arendal, 9 April 2025 The Board of Directors and CEO of Tekna Holding ASA This document was electronically signed. Anne Lise Meyer Member of the Board Kristin Skau Åbyholm Member of the Board Luc Dionne CEO Dag Teigland Chair of the Board Torkil Sigurd Mogstad Member of the Board Barbara Thierart-Perrin Member of the Board Ann-Kari Amundsen Heier Member of the Board Lars Magnus Eldrup Fagernes Member of the Board Amounts in CAD 1000 Note 2024-12-31 2023-12-31 Non-current assets Investment in subsidiaries 4 100 526 97 500 Intercompany loans 6 77 438 74 113 Total non-current assets 177 965 171 613 Current assets Trade and other receivables 6 17 270 Cash and cash equivalents 5 563 1 419 Total current assets 579 1 689 Total assets 178 544 173 302 Amounts in CAD 1000 Note 2024-12-31 2023-12-31 Equity Share capital and share premium 497 260 494 956 Other reserves -321 126 -324 058 Capital and reserves attributable to holders of the company 176 135 170 898 Non-controlling interests - - Total equity 176 135 170 898 Non-current liabilities Deferred tax liabilities 3 1 649 1 163 Total non-current liabilities 1 649 1 163 Current liabilities Trade and other payables 6 203 625 Payable income tax 3 335 330 Other current liabilities 6 223 286 Total current liabilities 761 1 241 Total liabilities and equity 178 544 173 302 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 53 ANNUAL REPORT 2024 Contents Changes in Equity Parent Financial Statements (continued) Share capital and share premium Other reserves Total Balance at 1 January 2023 494 956 -326 028 168 928 - 168 928 Profit/(loss) for the period - 1 970 1 970 - 1 970 Other comprehensive income/(loss) - - - - - Balance at 31 December 2023 494 956 -324 058 170 898 - 170 898 Balance at 1 January 2024 494 956 -324 058 170 898 - 170 898 Profit/(loss) for the period - 2 932 2 932 - 2 932 Other comprehensive income/(loss) - - - - - Issue of stock 2 304 - 2 304 - 2 304 Balance at 31 December 2024 497 260 -321 126 176 135 - 176 135 Amounts in CAD 1000 Non- controlling interests Total equity Attributable to equity holders of the Company Cash flow Amounts in CAD 1000 Note FY 2024 FY 2023 Cash flow from operating activities Net profit/(loss) 2 932 1 970 Variation in deferred taxes 3 486 1 163 Increase in investment in subsidiary via share issuance 4 -722 - Capitalized interest on intercompany loans -3 325 -4 578 Total after adjustments to profit before income tax -629 -1 445 Change in trade and other receivables 253 -193 Change in trade and other payables -480 1 082 Total after adjustments to net assets -857 -556 Net cash from operating activities -857 -556 Cash flow from investing activities Cash Flow from Internal Loans and Borrowings - -2 000 Net cash flow from investing activities - -2 000 Cash flow from financing activities Proceeds from issue of shares - - Net cash flow from financing activities - - Net increase in cash and cash equivalents -857 -2 556 Cash and cash equivalents at the beginning of the financial year 1 419 3 975 Effects of exchange rate changes on cash and cash equivalents - - Cash and cash equivalents at end of the period 563 1 419 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 54 ANNUAL REPORT 2024 Contents Notes to the Parent Financial Statements Accounting principles The financial statements comprise the statement of income, statement of financial position, statement of cash flows, and related notes. The financial statements have been prepared in accordance with the Norwegian Accounting Act §3-9 and Regulations for simplified IFRS issued by the Ministry of Finance on 10 December 2019 (generally accepted accounting principles). This means that recognition and measurement comply with International Financial Reporting Standards (IFRS) and the presentation and disclosures are in accordance with the Norwegian Accounting Act and general accepted accounting practice. All amounts are in CAD, un- less otherwise stated. The financial statements give a true and fair view of the assets and liabilities, financial position, and income. When applying accounting principles and presenting transactions and other matters, emphasis is placed on economic realities, not just legal form. Contingent losses that are probable and quantifiable are expensed. Transactions are recorded at the value of the consideration at the time of execution. Revenue is recognized in the accounting period in which they are earned and associated costs are matched with revenues. Assets and liabilities that are due within one year after the balance sheet date are classified as current assets or current liabilities. Current assets and liabilities are valued at the lowest or highest value of acquisition cost and fair value. Fair value is defined as the estimated future sales price less expected sales costs. Other assets are classified as fixed assets. Corresponding principles are normally used as a basis for liability items. Use of estimates In the preparation of the annual accounts, estimates and assumptions have been applied that have affected the statement of income and the valuation of assets and liabilities, as well as doubtful assets and liabilities on the balance sheet date in accordance with generally accepted accounting principles. Areas that to a large extent contain such discretionary assessments, a high degree of complexity, or areas where assumptions and estimates are material to the financial statements, are described in the notes. Foreign currency Foreign currency transactions are translated at the exchange rate at the time of execution. Cash items in for- eign currency are translated into Norwegian kroner using the exchange rate on the balance sheet date. Non- cash items measured at the historical exchange rate expressed in foreign currency are translated into Norwe- gian kroner using the exchange rate at the time of execution. Non-monetary items that are measured at fair value expressed in foreign currency are translated at the exchange rate determined at the measurement date. Exchange rate fluctuations are recognized in the statement of income on an ongoing basis during the accounting period under other financial income/costs. Tax Income tax expense represents the sum of the tax currently payable and deferred tax. Deferred tax is calcu- lated at 22% percent on the basis of existing temporary differences between accounting and tax values to- gether with tax loss carry forward at the year end. Tax-increasing and tax-reducing temporary differences that are reversed or can be reversed in the same period are offset and netted. Net deferred tax assets are recognized in the balance sheet to the extent that it is probable that this can be utilized. Non-current financial assets Fixed assets include assets intended for permanent ownership and use. Long-term receivables are carried at the nominal amount at the time of the transaction. Long-term receivables in foreign currency are carried in the balance sheet based on the exchange rate on the balance sheet date. Current assets Current assets and current liabilities normally include items that due within one year after the balance sheet date, as well as items related to the product cycle. Current assets are valued at the lower of acquisition cost and fair value. Current liabilities are carried at the nominal amount at the time of the transaction. Subsidiaries Investments in subsidiaries are evaluated at lower of cost or fair value. Any impairment losses and reversal of impairment losses are classified as net gains (loss and impairment) on financial assets in the income state- ment. An impairment to fair value has been recognized when impairment is due to reasons that cannot be expected to be temporary, and it is necessary in accordance with generally accepted accounting principles. Impairment losses are reversed when the basis for impairment is no longer present. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 55 ANNUAL REPORT 2024 Contents Notes to Parent Financial Statements (- Note Accounting Principles - continued) Receivables Trade receivables and other receivables are carried at face value after deduction of provisions for expected credit losses. Provisions for credit losses are made on the basis of a separate assessment of the individual receivables. For other accounts receivable, an unspecified provision is made to cover expected losses. Statement of cash flows The cash flow statement has been prepared according to the indirect method. Cash and cash equivalents include cash, bank deposits and other short-term, liquid investments. Note 1 Remuneration and employee benefits The company has no employees. Salaries and social security contributions are related to board fees. The company is not required to have an occupational pension scheme in accordance with Norwegian law on obligatory occupational pension (“lov om obligatorisk tjenestepensjon”). Note 2 Other operating expenses Amounts in CAD 1000 2024 2023 Audit and other fees 245 169 Marketing, travel and representation costs 18 66 ICT expenses - - Other expenses 353 220 Intercompany expenses 453 734 Total operating expenses 1 069 1 190 Amounts in CAD 1000 2024 2023 Statutory audit 150 139 Other assurance services 21 19 Tax advisory - - Other non-audit services - - Total remuneration to auditor 171 158 Amounts in CAD 1000 2024 2023 Salaries 235 339 Social security contributions 42 32 Pension costs - - Other benefits - - Capitalized as development, inventories etc. - - Total employee benefit expenses 277 371 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 56 ANNUAL REPORT 2024 Contents Notes to Parent Financial Statements (continued) Note 3 Tax Income tax - current year Effective tax rate 21.87% 43.11% The tax effect of temporary differences and loss carry forwards that have given rise to deferred tax and de- ferred tax asset, specified by type of temporary differences. Amounts in CAD 1000 2024 2023 Income tax expense: Tax Payable 335 330 Change in deferred tax asset/liability 486 1 163 Income tax expense in the Income Statement 821 1 493 Taxable income: Ordinary profit before tax 3 753 3 463 Unrecognized tax loss carried forward - -5 421 Temporary differences -2 229 3 457 Taxable income 1 524 1 498 Taxable payable: Taxable income 1 524 1 498 Statutory tax rate 22.00% 22.00% Taxable payable 335 330 Calculation of effective tax rate Ordinary profit before tax 3 753 3 463 Tax at the applicable tax rate 826 762 Unrecognized tax loss carried forward - -1 193 Tax effect of temporary differences -490 760 Change in deferred tax asset/liability 486 1 163 Total tax expense 821 1 493 Deferred tax asset is not carried in the balance sheet. Deferred tax liability is carried in the balance sheet. Statutory tax rate in Norway was 22.00% in 2023 and 2024. The 22% tax rate was used to calculate Deferred tax assets and liabilities as at 31 December 2024. Amounts in CAD 1000 2024 2023 Accumulated loss carryforward - - Not included in basis for calculation of deferred tax - - Change in deferred tax liability 486 1 163 Deferred tax asset/liability - - FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 57 ANNUAL REPORT 2024 Contents Notes to Parent Financial Statements (continued) Note 4 Investments in Subsidiaries In 2024, Tekna Holding ASA issued 2 234 887 new shares to settle the Employee Share Purchase Plan (ESPP) established on February 18, 2021. As a result, Tekna Holding Canada Inc. became a wholly owned subsidiary of Tekna Holding ASA. Consolidated accounts for Tekna Holdings Canada Inc for 2024 reported a net loss of CAD 13 823 thousands and booked equity of CAD –49 071 thousands. Tekna Holdings Canada Inc owns 100 % of the following 7 subsidiaries: • Tekna Plasma Systems Inc; Canada • Tekna Advanced Materials Inc; Canada • Tekna Plasma Europe S.A.S; France • Tekna Plasma Systems Suzhou Co Ltd; China • Tekna Plasma India Pr Ltd; India • Tekna Inc; USA • Tekna Plasma Korea Co Ltd; South Korea Note 5 Cash and cash equivalents Tax deduction deposits (restricted deposits) amounts to 0 CAD. Unused credit facilities as of 31 December 2024 was 4 000 000 CAD and 750 000 USD. Tekna Holding ASA are compliant with the financial covenant requirements in the loan facilities at the end of 2024. Note 6 Intercompany balances Loans to group companies consists of one loan in CAD and one loan in EUR. The CAD 69 516 044 loan is to the subsidiary Tekna Holdings Canada Inc. The loan will be repaid with CAD 500 000 every quarter from 15 June 2026. Interest on the loan is calculated at a rate corresponding to the Canadian 3 month Interbank rate (CIBOR) + 2% on an annual basis. The EUR 5 300 000 loan is to the subsidiary Tekna Plasma Europe S.A.S. The loan will be repaid with EUR 300 000 every quarter from 15 April 2026. Interest on the loan is calculated with EURIBOR 3 months + 2% on an annual basis. Amounts in CAD 1000 2024 2023 Total cash at bank 563 1 419 Restricted cash - - Amounts in CAD 1000 2024 2023 Intercompany loans to group companies 77 438 74 113 Trade accounts receivables from group companies 17 270 Total intercompany receivables 77 455 74 383 Amounts in CAD 1000 2024 2023 Trade accounts payables to group companies 42 613 Total intercompany payables 42 613 Ownership held by the group Ownership held by the non-controlling interests Value in Tekna Holding ASA balance sheet Company Domicile 2024 2023 2024 2023 2024 2023 Tekna Holding Canada Inc. Canada 100.00% 96.54% 0.00% 3.46% 100 526 068 97 500 000 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 58 ANNUAL REPORT 2024 Contents Notes to Parent Financial Statements (continued) Note 7 Financial items There was no impairment loss in 2024. Note 8 Financial risk The company's operations consist of financing the operations of the subsidiaries. The company is exposed to various types of financial risk: market risk (including currency, interest rate and market price risk), credit risk and liquidity risk. The company is somewhat sensitive to currency exchange rate fluctuations, limited cash flows, relatively low interest rate exposure. Interest rate risk The company has loans to group companies with interest rate returns based on the 3 month EURIBOR and CIBOR; see note 6. Returns from interest rates on bank deposits are also exposed to rate levels. The funds are deposited at a floating interest rate. Credit risk The company is only exposed to credit risk on receivables from subsidiaries. The risk that counterparties do not have the financial ability to meet their obligations is considered moderate. Currency risk The company’s currency exposure is related to CAD and EUR receivables from subsidiaries, as well as EUR bank deposits. Market price risk The company’s is mainly invested in subsidiaries and associated companies. The value of these investments is to a high degree connected to the underlying operations of these companies. Liquidity risk The company is financed through a combination of bank and equity financing. See note 6 for more infor- mation on unused credit facilities. Amounts in CAD 1000 2024 2023 Interest income 7 21 Currency exchange income (net) 545 246 Interest Income, IC 4 918 4 888 Total financial income 5 470 5 155 Amounts in CAD 1000 2024 2023 Interest expense 8 - Currency exchange expense (net) 364 126 Other finance cost - 6 Total financial expense 372 132 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 59 ANNUAL REPORT 2024 Contents Notes to Parent Financial Statements (- note 9 continued) Note 9 Share Capital and Shareholder Information At 31 December 2024 there were 127 462 233 ordinary shares each with a par value of NOK 2.00. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held. In 2024, Tekna Holding ASA issued 2 234 887 new shares to settle obligations arising from the Employee Share Purchase Plan (ESPP) established on February 18, 2021. As part of this transaction, Tekna Holding Can- ada Inc. became a wholly owned subsidiary of Tekna Holding ASA. The settlement of the ESPP involved a non-cash transaction, whereby obligations previously related to shares in Tekna Holding Canada Inc. were settled through the issuance of new shares in Tekna Holding ASA. At the inception of the ESPP, Tekna Holding Canada Inc. provided financing to employees for the purchase of its shares. Upon conversion of these shares into Tekna Holding ASA shares, employees were given the option to either repay the loans in cash or settle them through a corresponding reduction in the number of Tekna Holding ASA shares they were entitled to receive. Certain employees elected to use their entitlement to Tekna Holding ASA shares to settle the outstanding loans. The net impact on equity of CAD 722 thousand from this settlement corresponds to the value of the loans extinguished through the reduction in the number of Tekna Holding ASA shares issued. There were no paid out dividends in 2024. At year end Arendals Fossekompani ASA (AFK) owned 88 530 456 shares, representing 69,46 % of the total number of shares in Tekna. Board of Directors remunerated corresponds to fees paid in the period, as elected, for the period May 2023 until April 2024. Board of Directors remuneration provision corresponds to accrued provisions for fees, for the period May 2024 until December 2024. 1 Dag Teigland elected from May 2024, representing Tibidabo Industrier AS with 52 000 shares and Tibida- bo Invest AS with 676 818 shares. On 22 May 2023, Dag Teigland bought, through his wholly owned compa- ny Tibidabo Invest AS, 678 818 shares from Arendals Fossekompani ASA, with a 20% discount against a lock- up period of 3 years. 2 Representing Arendals Fossekompani ASA with 88 530 456 shares. Lars Magnus Eldrup Fagernes elected from May 2023. Ann-Kari Amundsen Heier from December 2023. 3 Anne-Lise Meyer elected from May 2024. 4 Barbara Thierart Perrin elected from May 2024. 5 Kristin Skau Åbyholm elected from May 2023, representing 1 331 883 shares in Victoria India Fund AS and 2 354 862 in Kvantia AS. 6 Torkil Mogstad elected from May 2023, representing 52 125 shares in Loma Plata AS. 7 Ann-Kari Amundsen Heier from December 2023, representing 17 000 shares in Damglott AS. Major shareholders at year-end 2024 Number of shares % of total Country ARENDALS FOSSEKOMPANI ASA 88 530 456 69.46% NOR ULFOSS INVEST AS 2 941 975 2.31% NOR HAVFONN AS 2 913 580 2.29% NOR MUST INVEST AS 2 821 245 2.21% NOR KVANTIA AS 2 354 862 1.85% NOR VICTORIA INDIA FUND AS 1 331 883 1.04% NOR CARUCEL FINANCE AS 1 073 791 0.84% NOR MUEN INVEST AS 899 611 0.71% NOR TOLUMA NORDEN AS 850 000 0.67% NOR Other 23 744 830 18.63% Various Total number of shares 127 462 233 100.00% Board of Directors compensation 2024 and number of shares owned 31 December 2024 Name Title Board of Directors remunerated Remuneration provision Own Holdings Related Parties Number of shares in Tekna Holding ASA Dag Teigland 1,2 Chair 82 39 - 728 818 728 818 Torkil Sigurd Mogstad 2,6 Member of Board - - - 52 125 52 125 Ann-Kari Amundsen Heier 2,7 Member of Board - - - 17 000 17 000 Lars Magnus Eldrup Fagernes 2 Member of Board - - - - - Anne-Lise Meyer 3 Member of Board 77 35 - - - Barbara Thierart Perrin 4 Member of Board 62 28 - - - Kristin Skau Åbyholm 5 Member of Board 62 28 - 3 686 745 3 686 745 Total 284 130 - 4 484 688 4 484 688 Amounts in CAD 1000 2024 2023 Share capital 37 850 37 277 Share premium 459 410 457 679 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 60 ANNUAL REPORT 2024 Contents Notes to Parent Financial Statements 10 Subsequent Events New CEO On March 18, 2025, Tekna Holding ASA announced the appointment of Mr. Claude Jean as the new Chief Executive Officer (CEO) of the Tekna Group, effective April 28, 2025. Mr. Jean, a seasoned technology execu- tive with over 30 years of experience in the semiconductor and digital imaging sectors, succeeds Mr. Luc Dionne, who has led the company since 2014. This leadership transition follows a period of strategic growth for Tekna, and is not expected to have a material financial impact on the company ’s operations or financial position as of the balance sheet date. FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 61 ANNUAL REPORT 2024 Contents Independent auditor’s report FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 62 ANNUAL REPORT 2024 Contents Independent auditor’s report (continued) FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 | 63 ANNUAL REPORT 2024 Contents Independent auditor’s report (continued) Contact Information Corporate Governance Report Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Governance and Risk management ...............................65 Board of Directors and Executive Leadership Team ..... 67 Implementation and reporting on corporate governance ........ 70 The business ................................ 70 Equity and dividends ................. 70 Equal treatment of share- holders and transactions with close associates ......................... 71 Shares and negotiability ........... 71 General meetings ....................... 71 The nomination committee..... 71 Board of Directors: composition and independence ..................... 72 Work of the Board of Directors ........................................ 72 Risk Management and Internal Control........................................... 73 Board remuneration .................. 73 Remuneration for executive personnel ...................................... 73 Information and communication ........................... 73 Take-over situations ..................74 Auditor...........................................74 | 64 Corporate Governance Report Corporate Governance Report 2024 (part of Annual Report Tekna Group ) January 1—December 31 Tekna Holding ASA CORPORATE GOVERNANCE STATEMENT ANNUAL REPORT 2024 Contact Information Corporate Governance Report | 65 Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Corporate Governance Incorporating best governance standards Enterprise Risk Management (“ERM”) A diligent process from identification to monitoring Segregation of duties Board of Direc- tors and Executive Leadership Team To ensure Tekna benefits from strong governance there is a segregation between the members of the Executive Leadership Team and the members of the Board of Directors. The complementary profiles of Dag Teigland and Luc Dionne enable a transparent and balanced exchange between the Board of Directors and the Executive Leadership Team. Additional diversity and skills Changes and additions in the board of directors has increased the number of independent mem- bers and contributed a diverse range of profiles, skills, expertise and experience to the board im- proving the company’s preparedness to navigate an increasingly complex business environment. The following relevant skills and experiences are included: Aerospace, Battery and other industries, Sustainability, IT security, Strategy, Finance and controls, M&A and international experience. Committees addressing important topics Already in 2022 Tekna created the Audit Committee. Reporting to them is the newly created Ethics and Com- pliance Committee as well as External Assurance, ie the Auditors. Reporting to Executive Leadership are the Occupational Health & Safety Management Committee (CRD), the Employee Committee (CORE) and the Environmental Committee. Tekna refers to the Norwegian Code of Practice for Corporate Governance and has drafted its own Corporate Governance Code. It publishes an an- nual Corporate Governance Report. 2024 key figures Board of Directors Audit Committee Members 7 2 Meetings 9 5 Participation 97% 100% Independence 43% 50% Identification, appraisal, processing and control of major risks is regularly updated by Finance and reviewed with the Audit Committee. Risk relating to the Group’s trade environment • Geopolitical risks and supply chain difficulties • Risks related to inflation • Competitive risks and cycle effects • Financial market risks • ESG risks • Legal and regulatory risks • Risks of negative media coverage Risk related to the Group operations • Risks relating to Group products • Business line profitability risks • Partner risks • Supplier and subcontracting risks • Property and (Occupational) Health & Safety risks Risk related to the Group‘s strategic development • Risks relating to technological innovation • Risks related to digitalization (data confidentiality and cyber threats) • Human resources risks • Risk management update • Tax (Controls and Tax matters) Main risks Material risks, exposure greater than 10% of revenue, identified by the Group are organized in a risk matrix reflecting its impact in various (mitigation) scenarios and the probability of occurrence. Quarterly monitoring with Audit Committee To ensure continuous monitoring and management, material risks are reviewed in the quarterly Audit Committee meeting. Standard agenda items include: • Significant events during quarter • Compliance (incidents and legal) 1: In 2024 the external auditor was PWC. 2: Internal Audit function remains to be instated. CORPORATE GOVERNANCE STATEMENT ANNUAL REPORT 2024 Contact Information Corporate Governance Report | 66 Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Board of Directors and Executive Leadership Dag Teigland 1 (1966) Chair (2022) Torkil S. Mogstad (1958) Director and member of the audit committee (2023) Barbara Thierart- Perrin (1977) Director | Independent (2022) Anne Lise Meyer (1968) Director and Chair of the audit committee | Independent (2022) Shares per 31.12.2024: 728 818 2 Shares per 31.12.2024:52 125 3 Shares per 31.12.2024: 0 Shares per 31.12.2024: 0 Dag Teigland is a board professional and strategic advisor to several compa- nies. He is a seasoned exec- utive with broad internation- al experience, including in the global metal industry. He has previously held execu- tive management positions in Elkem and been CEO of Tinfos and Holta Invest. Mr. Teigland is a board room veteran, serving as member and chair of the Board of Directors of several Norwegian and international companies. He holds a bachelor’s degree in finance, an MBA from IESE and AMP from Harvard Business School. Torkil Mogstad is Executive Vice President at Arendals Fossekompani ASA since 2015. He has previously held several executive management posi- tions, including CEO at Markedskraft ASA, Director at Icon Medialab Norge AS and Engagement Manager at McKinsey & Company. He started his career in R&D at McDonnell Douglas Aero- space (now Boeing) in the US. Mr. Mogstad also holds Direc- torships in the satellite com- munications company NSSL Global Ltd. He holds a M.Sc. from NTNU, a SM from MIT and an MBA from the Norwe- gian School of Management (BI). Barbara Thierart-Perrin is Head of innovation and develop- ment of Veolia Group, provid- ing game-changing solutions for water, waste and energy management worldwide. She was formerly President of Northvolt Systems, a European supplier of sustainable, high- quality lithium-ion battery cells. An engineer by education, Ms Thierart-Perrin has two dec- ades of previous experience from the automotive industry, holding senior management positions with Groupe Renault and Nissan Motor Corporation. She has been based in France, Japan and Sweden, held busi- ness P&L responsibility, led operational and global teams and worked extensively in cor- porate social responsibility. Anne Lise Meyer is an expe- rienced CEO, Chair and board member, with more than 25 years of experience from several management positions. Meyer was previ- ously the CEO of the invest- ment firm Hamang AS, CEO of the Gillette Group Norway and has held several leading positions with Hewlett- Packard and Netcom (now Telia). Ms. Meyer holds several Directorships, both as chair and member of the Board of Directors of Bertel O. Steen Kapital, Pancom AS, Sissener AS and Skeie Kapital AS. Meyer holds a Bachelor of Management from the Nor- wegian School of Manage- ment. Attended board meetings: 9 Attended board meetings: 8 Attended board meetings: 9 Attended board meetings: 9 The Board of Directors (“BoD”) is at the head of Tekna Holding ASA’s (“Tekna”) governance system. The BoD and its Au- dit Committee remained unchanged in composition in 2024. All seven members are independent of executive manage- ment, three members are independent of the main shareholder Arendals Fossekompani ASA. Responsibilities of the Board of Directors In accordance with Norwegian law, the Board of Directors (“BoD”) is responsible for, among other things, supervis- ing the general and day-to-day management of the Company’s business, ensuring proper organization, preparing plans and budgets for its activities, ensuring that the Company’s activities, accounts and asset man- agement are subject to adequate controls and undertak- ing investigations necessary to perform its duties. Members of the Board of Directors 1: Mr. Teigland is engaged by Arendals Fossekompani as a senior business advisor with a special focus on Tekna and, as such, is not to be considered as an independent Chair of the Board; 2: Mr. Teigland owns shares through his 100% owned company Tibidabo Invest AS and Tibida- bo Industrier AS. 3: Mr. Mogstad is representing Arendals Fossekompani ASA. He owns shares through his 100% owned company Loma Plata AS. (Section continues on the next page.) CORPORATE GOVERNANCE STATEMENT ANNUAL REPORT 2024 Contact Information Corporate Governance Report | 67 Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Kristin Skau Åbyholm (1978) Director | Independent (05.2023) Lars Magnus Eldrup Fagernes (1991) Director (05.2023) Ann-Kari Amundsen Heier (1966) Director (12.2023) Shares per 31.12.2024: 3 686 745 1 Shares per 31.12.2024: 0 2 Shares per 31.12.2024: 17 000 2,3 Kristin Skau Åbyholm is an experienced board executive with a keen focus on opera- tions and strategy. She is cur- rently member of the board at Marketer Tech and Ocean Sun. She has over a decade experi- ence in IT technology organi- zations. In Confirmit ASA she worked with global 500 brands - working at the Oslo, London and San Francisco office. Then working for Cicero Consulting, creating platforms and solu- tions for the Norwegian finan- cial industry. Ms. Åbyholm has a Master of Science in computer technolo- gy from NTNU in Trondheim and an Executive Master of Management from the Norwe- gian Business School (BI) in Oslo. Lars Magnus Eldrup Fagernes has several years experience from EY, working as Manager within Strategy & Transac- tions and from the Group finance function of Cermaq Group. He is currently Investment Manager in Arendals Fosse- kompani. Mr. Eldrup Fagernes holds a Master of Science in Eco- nomics and Business Admin- istration from the Norwegian School of Economics (NHH) in Bergen. Ann-Kari Heier is Executive Vice President at Arendals Fossekompani ASA (AFK) since 2023. She has previ- ously held several executive management positions in industry sectors such as Oil & Gas, Maritime, and Tele- com. She holds a M.Sc. de- gree in Technical Cybernet- ics from NTNU in Trond- heim, Norway. She started her career as R&D engineer at CERN in Geneva, and at Data Respons in Norway, before entering manage- ment positions. Ms. Heier is member of the board of directors of Space Norway AS, NHO Agder, NSSLGlobal Ltd, AFK Property AS and Bøylestad Energipark AS (Chair). Attended board meetings: 9 Attended board meetings: 9 Attended board meetings: 8 1: Ms Åbyholm represents Kvantia AS (2.354.862) and Victoria India Fund AS (1.331.883) 2: Ms Heier and Mr Fagernes represent Arendals Fossekompani ASA. 3: Ms. Heier owns shares through her 100% owned company Damgløtt AS. Board of Directors and Executive Leadership (continued) Members of the Board of Directors (continued) CORPORATE GOVERNANCE STATEMENT ANNUAL REPORT 2024 Contact Information Corporate Governance Report | 68 Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Board of Directors and Executive Leadership (continued) Profile of incoming CEO: Claude Jean Let us introduce the incoming CEO. Tekna announced on March 18, 2025 that Mr. Claude Jean will take over as Chief Executive Officer of Tekna Group per April 28, 2025. Dag Teigland, Chair of the Board of Tekna Holding ASA said: "I am happy to announce the appointment of Claude as the new CEO of Tekna. He is well known in the industry for driving business results and maximizing profitability through the delivery of ex- ceptional product quality, service and effective man- agement of people, technology, processes and finan- cial resources. I am confident that he will further strengthen the great platform of Tekna and ensure that we bring the company to the next level. His ex- tensive background from the semiconductor industry will also be valuable as we progress with our nano nickel project for MLCC production." Claude Jean Chief Executive Officer (starting 28 April 2025) It is an honor for me, and I am excited to take over as CEO of this impressive high-tech company. Together with the highly competent Tekna team I am looking forward to executing on its strategy and growth plan to increase value for our customers and shareholders. Claude Jean is known within the industry for driving business results and maximizing profitabil- ity through the delivery of exceptional product quality and service and effective management of people, technology and processes. He has managed companies and budgets in excess of $100 million and is driven by achieving his (business) goals and exceeding client expectations. Mr. Jean is an accomplished Senior Technology Executive with a proven track record for build- ing and leading world-class electronic manufacturing services and R&D. His expertise includes: General management, Research/Development, Production management, Continuous improvement, margin enhancement, Partnership Development, Strategic Planning, P&L Man- agement. He has a Master of Physics, Microelectronics (MSc) as well as a Master of Business Administra- tion (MBA) from the university of Sherbrooke, Canada. When asked about his strengths , he points out he is a highly effective communicator with great people skills along with strong leadership, problem solving and decision-making abilities. CORPORATE GOVERNANCE STATEMENT ANNUAL REPORT 2024 Contact Information Corporate Governance Report | 69 Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Shares per 31.12.2024: 175 052 Rémy Pontone EVP Sales and Marketing AM Materials (2016) Rémy Pontone has been the Vice President Sales & Mar- keting since Mars 2016; prior to this he held various man- agement positions in sales, business development and product management. Ré- my Pontone has 25 years’ experience in management, sales, marketing and prod- uct development. Prior to joining Tekna he held sever- al int. management and sales positions in five differ- ent countries for Johnson Matthey and research and development center of Saint Gobain. Mr. Pontone is graduated engineer in ma- terial science and chemical engineering. Shares per 31.12.2024: 338 164 Luc Dionne Chief Executive Officer (2014 - April 2025) Luc Dionne has been the CEO of Tekna Holding Can- ada and its global subsidiar- ies since 2014 and was ap- pointed CEO of Tekna Hold- ing ASA in 2021. Mr. Dionne has extensive experience from various Directorships and executive management positions in advanced mate- rials research, aerospace, microelectronics and de- fense. Mr. Dionne served on the Canadian government stra- tegic table for advanced manufacturing and was awarded the Technology Innovation Award from Polytechnic Engineering School. Shares per 31.12.2024: 379 990 1 Espen Schie took over the CFO position of the Tekna group in early 2023. Mr. Schie brings long-term fi- nancial management experi- ence and comes from the role as Vice President of Finance & Controlling at Arendals Fossekompani ASA (“AFK”), Tekna’s largest shareholder. Mr. Schie has held several different roles at AFK, was previously CFO at EFD Induction Group and holds a double master’s degree in finance from No- va School of Business and Economics (Portugal) and Fundação Getulio Vargas São Paulo School of Eco- nomics (Brazil). Espen Schie Chief Financial Officer (2023) Arina van Oost VP Corporate Strategic Dev. and Innovation (2020) Arina van Oost joined Tekna early 2020 as VP Corporate and Strategic Development & Innovation. ESG, IR and Corporate Communication are part of her portfolio. She has held several executive positions at ThyssenKrupp (“TK”), including VP GM of its Canadian Aerospace division and Global Head of Marketing and Sales of their Access Solutions division. Further roles included Man- aging Director in UK, Spain, and Netherlands for compa- nies of TK Elevator. She holds an eMBA from ESMT, Germany, and a BSc in International Manage- ment, Netherlands. Shares per 31.12.2024: 392 384 Shares per 31.12.2024: 56 361 Yanick Fontaine Executive Director Operations AM Materials (2019) Yanick Fontaine currently holds the position of Execu- tive Director – AM Powder Operations. Mr. Fontaine joined Tekna’s ranks in 2019 and held various leadership positions evolving around ERP systems, procurement, and logistics. His involve- ment in quality regulated manufacturing environment began more than 15 years ago first in medical devices at ArjoHuntleigh then in the automotive / powersports industry supply chain. He graduated in business administration and holds a M.B.A. Romain Vert is the Executive Director – Plasma Systems, driving strategic growth in advanced plasma technolo- gies. Since joining Tekna in 2012, Mr. Vert has held key roles in R&D, business devel- opment, and sales, contrib- uting to the advancement of both materials and plasma equipment. Before Tekna, he worked in the thermal spray industry, specializing in en- ergy and defense applica- tions. With a PhD in Materi- als Science & Processes, Mr. Vert combines deep tech- nical expertise with strategic leadership to drive techno- logical advancements and market expansion in the field of plasma systems. Romain Vert Executive Director Plasma Systems (2012) Shares per 31.12.2024: 0 The Tekna group Executive Leader- ship Team (“ELT”) currently consists of six executives with extensive ex- perience from rel- evant industries. Refer to the 2024 Remu- neration report for more details on shareholdings and stock options. 1: Mr. Schie owns shares through his 100% owned company ESC Holding AS. Board of Directors and Executive Leadership (continued) Prospectus Members of the Executive Leadership Team CORPORATE GOVERNANCE STATEMENT ANNUAL REPORT 2024 Contact Information Corporate Governance Report | 70 Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Corporate Governance report Code of Conduct for suppliers and for employees In 2021 Tekna implemented the supplier code of conduct (“sCoC”) and the employee code of conduct (“eCoC”). It gives clear guidance to our employees and business partners that we expect clean, trans- parent and fair business dealings. In 2024, the sCoC, was updated to a Business Part- ner Code of Conduct and signed off by the Board of Directors on November 5. The eCoC was updated in 2023 and signed off at the most senior level by the Board of Directors of Tekna on December 15 as part of the corporate code of governance. Both documents can be found here: www.tekna.com/esg. Deviations from the Code of Practice: None 2. The business The Company business is to conduct business devel- opment, including investments, and to be co-owner of other companies. The Company is the owner of the Tekna Group. The Tekna Group’s core business is to produce high-purity metal powders for applica- tions such as 3D printing in the aerospace, medical and automotive sectors, as well as optimized induc- tion plasma systems for industrial research and pro- duction. The Board has prepared clear goals, strategies, and a risk profile for the Company. The Company has guidelines for how it integrates the interests of the Tekna aims to maintain high stand- ards for corporate governance. In the Company’s opinion, good corporate governance is an important condition for value creation. Tekna Holding ASA’s (the “Company”) corporate governance defines the business framework within which all activities in the Company should operate and clarifies the roles and responsibilities between governing bodies in the Company. The Company is subject to corporate governance reporting requirements as defined in the Norwegian Accounting Act, section 3-3b and the Norwegian Code of Practice for Corporate Governance (the “Code”) available at www.nues.no. The Board of Di- rectors’ Statement of Corporate Governance follows the structure of the Code. This report provides an overview of how Tekna fol- lows the 15 points set out in the Code and the devia- tions from the Code in Tekna’s operations. This re- port should be viewed in conjunction with all the measures relating to corporate governance detailed in the Company’s annual report 2024. 1. Implementation and report- ing on corporate governance Our governance structure The Board has the overall responsibility for ensuring that the Company has a high standard of corporate governance. The Board has adopted a corporate governance policy document (the “Policy”). This Poli- cy describes the Company’s main principles for cor- porate governance and addresses the framework of guidelines and principles regulating the interaction between the Company’s shareholders, the Board of Directors, the Chief Executive Officer (the “CEO”) and the Tekna Group senior management (the “Executive Leadership Team”). The Company is a holding com- pany, and the operations of the Tekna group of Companies are carried out through the operating subsidiaries of the Company (the “Tekna Group”). The Policy is based on the Code, the Company’s goal is to act in accordance with every recommen- dation in the Code. The Board and Executive Leadership Team perform an annual assessment of its principles for corporate governance. The Board members and the Executive Leadership Team are requested once a year to complete a Di- rectors and Officers compliance questionnaire, dis- closing any conflicts of interest. 1: In 2024 the external auditor was PWC. 2: Internal Audit function remains to be instated. society at large into its value creation for sharehold- ers in a sustainable manner. The ESG – Environmen- tal, Social, Governance - report is included in the annual report and is available on the Company’s website. The Board evaluates targets, strategies and a risk profile on an annual basis, at a minimum. Deviations from the Code of Practice: None 3. Equity and dividends Equity Total equity for the group at 31 December 2024 was CAD 26.5 million, corresponding to a long-term debt/equity ratio of 1.31. Considering the nature and scope of Tekna’s business, the Board considers that the Company has adequate equity and capital struc- ture. The Board constantly assesses the company’s financial capacity in light of its objectives, strategy and risk profile. Dividend policy The Company strives to follow a dividend policy fa- vourable to its shareholders. The amount of any divi- dend to be distributed will be dependent on, inter alia, the Company's investment requirements and rate of growth. In deciding whether to propose a dividend and in determining the dividend amount, the Board takes into account legal restrictions as well as capital expenditure plans, financing requirements and maintaining the appropriate strategic flexibility. The Company has not distributed any dividends since the date of its incorporation. CORPORATE GOVERNANCE STATEMENT ANNUAL REPORT 2024 Contact Information Corporate Governance Report | 71 Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Corporate Governance report (continued) tors have normally not participated in the general meeting. Matters under consideration at the general meeting of shareholders have not previously re- quired this. The Chair of the Board of Directors is always on hand to present the report and answer any questions. Other board members participate as needed. The Board considers this to be adequate. 2) “the general meeting is able to elect an independ- ent Chair for the general meeting”: The General Meetings are opened by the Chair of the Board. Normally, the Board proposes that the Chair of the Board shall also chair the General Meetings. The Board will propose an independent Chair for the General Meeting if any of the matters to be consid- ered calls for such arrangement. 7. The nomination committee The Company has not established a nomination committee. The remuneration of the members of the Board has been voted by the General Meeting. Deviations from the Code of Practice: The Company has not established a nomination committee. The function and responsibilities of a nomination com- mittee are considered by the Company to have been sufficiently handled by the Board of Directors in close dialog with the major shareholders. Transaction with close associates All transactions with close associates are disclosed in the notes to the annual accounts. All business activi- ties are based on arm’s length terms. In the event of transactions with insiders or close associates, proce- dures apply to ensure the respect of the Norwegian Public Limited Liability Companies Act. Deviations from the Code of Practice: None 5. Shares and negotiability The Shares in Company are listed on the Oslo Stock Exchange and are freely negotiable. There are no provisions in the Company’s Articles of Association that limit the right to own, trade or vote for shares in the Company. Deviations from the Code of Practice: None 6. General meetings Through the General Meeting, the shareholders ex- ercise the highest authority in the Company. All shareholders have a right to attend, make a state- ment and vote at the General Meeting as long as they are recorded in the Company’s share register no later than two business days before the date of the general meeting. The General Meeting deals with such matters as required by Norwegian law. The notice of the meeting, the agenda and detailed and comprehensive supporting information, are made available on Tekna’s website at least 21 days before a general meeting takes place. At the same time the notice and agenda are distributed to all shareholders. The Annual General Meeting for 2024 takes place on 8 May 2025. Shareholders who cannot attend the meeting in per- son can vote by proxy and voting instructions can be given on each item on the agenda. In addition, shareholders may vote in advance, either in writing or by electronic means. The General Meetings are opened by the Chair of the Board. Normally, the Board proposes that the Chair of the Board shall also chair the General Meet- ings. The Board will propose an independent Chair for the General Meeting if any of the matters to be considered calls for such arrangement. The notices and minutes of the General Meetings are published in Oslo Børs’ information system (https://newsweb.oslobors.no, ticker: TEKNA) and on Tekna’s website (www.tekna.com/investors). Deviations from the Code of Practice: two deviations from this section: 1) ”the members of the Board of Directors and the Chair of the nomination committee attend the gen- eral meeting”: The Company does not have a Nomi- nation Committee. All members of Board of Direc- Capital increase and Repurchase of shares Existing mandates granted to the Board, to issue shares and to purchase its own shares, are present- ed in the shareholder information section of the an- nual report. The mandates are restricted to defined purposes and limited in time to no later than the date of the next Annual General Meeting, but in no event later than 30 June 2025. Deviations from the Code of Practice: None 4. Equal treatment of share- holders and transactions with close associates Equal treatment of shareholders There is only one class of shares, and all shares have equal voting rights. At 31 December 2024 there were 127 462 233 ordinary shares each with a par value of NOK 2.00. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the Company in proportion to the number of and amounts paid on the shares held. The articles of as- sociation place no restriction on voting rights. Share- holders do not have pre-emption rights upon any change of ownership of shares in the company. Largest shareholder Arendals Fossekompani ASA (“AFK”) is the Compa- ny’s largest shareholder, owning 69.5% of the Com- pany’s shares at 31 December 2024. The Company’s guidelines require that AFK acts in a manner condu- cive to equal treatment of Company’s shareholders. CORPORATE GOVERNANCE STATEMENT ANNUAL REPORT 2024 Contact Information Corporate Governance Report | 72 Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Corporate Governance report (continued) 9. Work of the Board of Directors Duties of the Board of Directors The Board of Directors has adopted Rules of Proce- dures for the Board, which indicate rules as to the work and administrative procedures of the Board and as to the functions and duties of the CEO to- wards the Board. The overall management of the Company is vested in the Board and the Executive Leadership Team. In accordance with Norwegian law, the Board of Direc- tors is responsible for, among other things, supervis- ing the general and day-to-day management of the Company’s business, ensuring proper organization and allocation of responsibilities and duties, prepar- ing plans and budgets for its activities, ensuring that the Company’s activities, accounts, and assets man- agement are subject to adequate controls and un- dertaking investigations necessary to perform its duties. The Board leads the governance system and meets with relevant Board Committees a minimum of four times a year to gain insights, review and ensure proper implementation of internal control mecha- nisms and risk management processes for good governance. The Board meets the CEO, the CFO and the Executive Leadership Team as often as nec- essary to perform its duties. ESG, including climate- related risks and opportunities are subject to an an- nual review with the Board. Top risks and emerging risks are reported in the company’s Enterprise Risk Management. 8. Board of directors: composition and independence Composition and election According to the Articles of Association, the Board shall consist of minimum three and maximum nine members. At 31 March 2025, the Board consisted of seven members. Four of the seven Board members are women. The Public Limited Companies Act states that there should be at least 40 per cent of each gender on the Board of Directors. None of the Board members are executive person- nel. The Board members are elected for a period of up to two years. The Board members including the Chair are elected by the General Meeting. There is no corporate assembly in Tekna. The Board of Directors currently has the following composition: • Dag Teigland, Chair of the Board re-elected on May 15, 2024 • Torkil Sigurd Mogstad, re-elected on May 3, 2023 • Barbara Thierart-Perrin, re-elected on May 15, 2024 • Anne Lise Meyer, re-elected on May 15, 2024 • Kristin Åbyholm, elected on May 3, 2023 • Lars Magnus Eldrup Fagernes, elected on May 3, 2023 • Ann-Kari Amundsen Heier, elected on December 19, 2023 See presentation of Board members in the annual report for details. Independence of the Board of Directors The composition of the Board ensures that it can operate independently of any special interest. The current Board meets the requirement set forth in the Code that the majority of board members should be independent of the Group’s executive personnel and material business contacts, and that at least two of the seven board members should be independent of the main shareholders. Executive Vice President Torkil Mogstad, Executive Vice President Ann-Kari Amundsen Heier, Business Developer Lars Magnus Eldrup Fagernes and Dag Teigland engaged by Arendals Fossekompani ASA (“AFK”), are not considered to be independent of the main shareholders due to their respective po- sitions in, and engagement by AFK, the Company’s majority shareholder. All other Board members are considered to be independent. The Board members are requested once a year to complete a Directors and Officers compliance ques- tionnaire, disclosing any conflicts of interest. Board members’ shareholdings Board members are encouraged to own shares of the Company. Board members’ shareholdings in the Company are disclosed in Note 22 Related Parties of Tekna’s consolidated financial statements. Deviations from the Code of Practice: None The Board had 9 meetings during 2024 with 97 per cent participation. The Board has evaluated its performance in 2024. Agreements with related party The Board has also adopted Guidelines for Related Party Agreements to ensure proper handling of agreements between the Company and related par- ties. These Guidelines stipulate that Members of the Board and the Executive Leadership Team must no- tify the Board if they have any material direct or indi- rect interest in any agreement to be entered into by the Company. In each case, the Board will consider whether it is necessary to obtain an independent evaluation. In 2024, no Related Party Agreements were execut- ed. The Audit Committee In light of the company’s conversion to public limited company Tekna’s Board established an Audit Com- mittee in 2022 (the “Audit Committee”) and adopted Guidelines for the Audit Committee. The Audit Com- mittee is a subcommittee of the Board and acts as a preparatory and advisory body for the Board and supports the Board in the exercise of its responsibil- ity for financial reporting, internal control, and risk management. The Audit Committee also reviews and monitors the independence of the Company’s auditor. The Audit Committee consists of two members who are members of the Board: Anne Lise Meyer and Torkil Mogstad. They have been appointed by the CORPORATE GOVERNANCE STATEMENT ANNUAL REPORT 2024 Contact Information Corporate Governance Report | 73 Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Corporate Governance report (continued) 12. Salary and other remuner- ation for executive personnel The Board has resolved guidelines to the CEO for remuneration to the Executive Leadership Team, including performance-related remuneration. The Guidelines can be found in the Corporate Govern- ance Policy of the Company. The salary and other remuneration of the CEO are decided by the Board. The Company’s senior executive remuneration policy is based primarily on the principle that executive pay should be competitive and motivating, in order to attract and retain key personnel with the necessary competence, in order to ensure the long terms inter- est of the Company. The performance-related remuneration portion is limited in the variable compensation plan. Details relating to the salary and benefits payable to the CEO and other subsidiaries’ senior executives are available in note 22 to the financial statements and the Remuneration Report 2024. Deviations from the Code of Practice: None Board which has also designated Anne Lise Meyer as the Chair of the Audit Committee. The members of the Audit Committee have collectively the expertise required for the performance of the tasks assigned to the Audit Committee. Deviations from the Code of Practice: ”The majority of the members of the Audit Committee should be independent.”: The Audit Committee has two mem- bers, one is independent, the other is not. The Board considers this to be adequate. 10. Risk Management and Internal Control The Board ensures that Tekna has sound internal control and systems for risk management that are appropriate in relation to the extent and nature of the company’s activities. The internal control and the systems also encompass the Company’s corporate values and ethical guidelines. The objective of the risk management and internal control is to manage exposure to risks to ensure successful conduct of the Company’s business and to support the quality of its financial reporting. The Board carries out an annual review of the Com- pany’s most important areas of exposure to risk and the Board and the Executive Leadership Team con- duct risk assessments related to various dimensions and aspects of operations to verify that adequate risk management systems are in place. The Board provides an account in the annual report of the main features of the Company’s internal con- trol and risk management systems as they relate to the Company’s financial reporting. Internal control of financial reporting is conducted through day-to-day follow- up by Executive Leader- ship Team, and supervision by the Audit Committee. Deviations from the Code of Practice: None 11. Board remuneration The General Meeting determines the Board’s remu- neration annually. Remuneration of Board members is reasonable and based on the Board’s responsibili- ties, work, time invested and the complexity of the enterprise. The remuneration of the Board members is not performance-related nor includes share option elements. The Board is informed if individual Board members perform tasks for the Company other than exercising their role as Board members. Work in sub- committees may be compensated in addition to the remuneration received for Board membership. Additional information on remuneration paid to the individual Board members can be found in Note 22 of the financial statements for 2024. Deviations from the Code of Practice: None 13. Information & communication Communication with shareholders, investors and analysts is a priority for the Company. The Board has implemented an Investor Relations Policy with the objective to provide the public with accurate, com- prehensive and timely information to form a good basis for making decisions related to valuation and trade of the Company share. The Company's com- munication is based on openness and respects the requirement for equal treatment of all shareholders. All notices sent to the stock exchange are made available on the Company website and at https:// newsweb.oslobors.no. The dates for major events such as the Annual Gen- eral Meeting, the publication of interim reports and public presentations are published on the Compa- ny’s website: www.tekna.com/investors/calendar and at https://newsweb.oslobors.no. Deviations from the Code of Practice: None CORPORATE GOVERNANCE STATEMENT ANNUAL REPORT 2024 Contact Information Corporate Governance Report | 74 Contents Introduction Board of Directors’ Report 2024 Financial Statements Auditors Report Sustainability Report Corporate Governance report (continued) The Auditor annually provides the Board with a sum- mary of all services in addition to audit work that have been undertaken for the Company. The fees paid for audit work and fees paid for other specific assignments are specified in the notes to the finan- cial statements. Deviations from the Code of Practice: None 14. Take-over situations The Board has adopted Guidelines relating to take- over bids. In the event of a take-over bid being made for the Company, the Board will follow the overriding principle of equal treatment for all share- holders and will seek to ensure that the Company’s business activities are not disrupted unnecessarily. The Board will strive to ensure that shareholders are given sufficient information and time to form a view of the offer. The Board will not seek to prevent any take-over bid unless it believes that the interests of the Company and the shareholders justify such actions. The Board will not exercise mandates or pass any resolutions with the intention of obstructing any take-over bid unless this is approved by the General Meeting following the announcement of the bid. If a take-over bid is made, the Board will issue a statement in accordance with statutory requirements and the recommendations in the Code. In the event of a take-over bid, the Board will obtain a valuation from an independent expert. If a major shareholder, any member of the Board or Executive Leadership Team, or related parties or close associ- ates of such individuals, or anyone who has recently held such a position, is either the bidder or has a particular personal interest in a take-over bid, the Board will arrange for an independent valuation. Any transaction that is in effect a disposal of the Company’s activities will be submitted to the General Meeting for its approval. Deviations from the Code of Practice: None 15. Auditor Role of Auditor PwC is the Company’s Auditor. The primary task of the Auditor is to perform the audit work required by law and professional stand- ards with the level of care, competence and integrity required by law and such standards. The Auditor participates in all meetings of the Audit Committee. The Minutes of the Audit Committee are shared with the Board Members. If required by the Board, the Auditor can assist to the Board. The Auditor has assisted the Board related to 2024 Annual financial results. Use of the Auditor for services other than the audit. The Audit Committee reviews and monitors the in- dependence of the Company's auditor, including the extent to which services other than auditing provid- ed by the auditor or the audit firm represent a threat to the independence of the auditor. The Auditor provides the Board with an annual writ- ten confirmation that it continues to satisfy the re- quirements for independence. Testing the flowability of metal powder materials SUSTAINABILITY STATEMENT | 75 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Sustainability Statement 2024 (part of Annual Report Tekna Group ) January 1—December 31 General disclosures .................... 76 Basis for preparation ............ 76 Sustainability governance ... 77 Strategy, business model and value chain .............................. 78 Material impacts, risks and opportunities .......................... 79 Environment.................................82 Carbon Accounting ............. 83 Climate Change .....................85 Resource use and circular economy ..................................86 EU taxonomy .........................88 Social ..............................................90 Own workforce ...................... 91 Workers in the value chain .97 Human Rights and Transparency .........................98 Governance ................................. 101 Business conduct ................ 102 Cyber security ..................... 103 Every year Tekna employees embark on a spring cleaning of the Sherbrooke industrial park, every particle (or bathtub :-) removed from the environment counts | 75 Sustainability Statement Every particle counts… Tekna Holding ASA SUSTAINABILITY STATEMENT | 76 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents General disclosures This Sustainability statement is pre- pared in accordance with the EU's Corporate Sustainability Reporting Directive (CSRD) and the associated European Sustainability Reporting Standards (ESRS). The report describes Tekna’s material impacts, risks and opportunities. The materiality assessment identi- fied the following topics to report on: • Environment: Tekna reports on Climate Change (E1) and Resource use and circular economy (E5), • Social: Own workforce (S1) and Workers in the value chain (S2), • Governance: Business Conduct (G1) and Cyber Security (Gx—entity specific). For all these topics it describes the strategy, how it is operationalized through guidelines, targets and an action plan, followed by measurements consisting of 2024 compared to 2023 where available and a base- line if applicable. Corporate culture Tekna Group ("Tekna") has integrated sustainability at the highest level of its corporate strategy, starting with its new company vision: “To advance the world with sustainable material solutions, one particle at a time.” Subsequent to that Tekna has defined its Sustainabil- ity Commitment (also referred to as green mission) as: “We are committed to collaborate in powerful partnerships along our value chain to deliver ever more sustainable and ultimately climate neutral materials solutions.” To ensure employees understand its importance, it is also anchored in the company value “We strive for excellence” with the following subtext: “We aim for exceptional quality in everything. We are personally committed to achieving our mission while caring for environmental sustainability and regeneration, safe- ty, and the well-being of our people and the success of our customers.” General requirements and disclosures [ESRS 1 &2] General basis for preparation This report is in accordance with Section 3-3c of the Norwegian Accounting Act regarding corporate so- cial responsibility and published in the annual report 2024 and available on the company’s website from 10 April 2025. Tekna also reports according to the Norwegian Transparency Act and the Canadian Fighting Against Forced Labour and Child Labour in Supply Chains Act. Finally, the report comprises information for com- municating on progress to the UN Global Compact and thus underlines Tekna's ongoing commitment to the Ten Principles on human and labor rights, envi- ronment and anti-corruption. This is the first time Tekna is reporting in accordance with CSRD and ESRS and best efforts have been put into translating the quantitative and qualitative dis- closure requirements into relevant descriptions and data points. As a guiding tool, Tekna has relied on the implementation guides made available by the European Financial Reporting Advisory Group (EFRAG). The quantitative ESRS data points in the report are marked with the ESRS ID number in ac- cordance with IG-3. Furthermore, Tekna follows ESRS recommendations regarding one or three-year phase-in periods. These data points will be reported in 2025 and 2027, re- spectively. This report was not externally assured on its publica- tion date. The Group is well below established thresholds for (audited) CSRD reporting. Note that most CSRD datapoints and GHG metrics were inter- nally audited. The index on page 81 shows material disclosures and their location throughout the report. On page 107 there is a list of abbreviations commonly used in sustainability reports. Contents General disclosures .................. 76 Basis for preparation ............ 76 Sustainability governance ... 77 Strategy, business model and value chain .............................. 78 Material impacts, risks and opportunities .......................... 79 link ESG-related reports SUSTAINABILITY STATEMENT | 77 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Going forward, Tekna will continue to assess and develop its disclosures in line with the disclosure requirements of the ESRS. Scope of reporting The sustainability statements are consistent with the financial statements in terms of undertaking (Tekna Holding ASA and its subsidiaries) and reporting peri- od (1 January to 31 December 2024). See Group chart on page 104. A 3rd facility in Sherbrooke is used in the climate accounting (Warehouse [JLM], Canada) This is not a legal entity and not included in the financial state- ments. The joint venture Imphytek Powders SAS [Imphytek], France is in dissolution and not included in the scope of this report, refer to note 20 and 21 of the financial statements. The Sustainability Statement covers Tekna’s up- and downstream value chain. See further details in the sections: ‘Business model and value chain’ and ‘Material impacts, risks and opportunities’ on pages 37 and 38. Time horizons The short-term time horizon for data in the Sustain- ability Statement refer to maximum two years. Medi- um and long-term horizons refer to up to five years and more than five years respectively in line with the double materiality analysis. Sources of estimation and outcome uncertainty Tekna aims to disclose data as correctly and accu- rately as possible by using primary measurement data and by standardizing the calculation of emis- sions using emission factors from Tekna’s carbon accounting system. Tekna relies on the following key methods of measurement aligned with the recom- mendations of the GHG protocol: 1) Spend-based, 2) Activity-based and 3) Hybrid. Tekna uses estimates in its reporting on selected data points due to its dependency on and lack of data from its value-chain partners. A defined process for assessing and, if necessary, adjusting estimates is in place. For further information on estimates, please refer to the specific disclosure requirement regarding the GHG calculation. Any potential sources of measure- ment uncertainty, assumptions or estimates are de- scribed in the accounting principles of the respective disclosure point. Changes in reporting or reporting errors Materiality thresholds are defined for when to re- state quantitative information together with proce- dures for how a restatement should be performed, which also covers cases of reporting errors in prior periods. If data has been restated, this will be clearly stated. Sustainability governance The responsibility for sustainability & ESG resides with the VP for Corporate Strategic Development and Innovation to ensure proper oversight of sus- tainability matters. ESG is included in the monthly management report to the board. It is discussed with the Audit Commit- tee in the quarterly meetings. At least once a year the topic is on the agenda in the Board of Directors’ meeting. In 2024, the focus of the Board has centered around the preparation of the ESG focus areas and targets as well as CSRD reporting. This covers, among other themes, Tekna’s climate commitment, EU Taxonomy and double materiality assessment. Environment Committee (CDD) The environment committee consists of volunteers from across the organisation driven by the green cause. They have driven projects from waste reduc- tion and recycling to using secondary resources as well as driving more sustainable choices throughout the organisation. Ethics and Compliance Committee (ECC) The ECC is responsible for the development of polic- es and ensuring its implementation and adherence throughout the group. In 2024, the Committee was led by the VP Legal and consisted of various VPs and managers. Remuneration There is no specific remuneration element anchored in sustainability. Risk management and internal controls Risk assessments are integrated into the data collec- tion process to prevent misleading information, statements, figures or conclusions based on inaccu- rate or incomplete data. Data collection and estimation processes are devel- oped and discussed at the executive level to ensure quality reporting. Due diligence We are conducting due diligence for CSRD reporting by assessing and gathering relevant ESG data across our operations. This involves evaluating our sustain- ability practices, identifying risks and opportunities, and ensuring accurate integration into our financial reports. By implementing this process, we aim to meet CSRD requirements, enhance transparency, and improve our long-term sustainability. Contact For any enquiries about sustainability reporting, please contact the VP for Corporate Strategic Devel- opment and Innovation , Ms. Arina van Oost, at [email protected]. SUSTAINABILITY STATEMENT | 78 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Strategy, business model and value chain Tekna Holding ASA, a Norwegian public limited lia- bility company, is listed on Oslo Stock Exchange. The Group is headquartered in Sherbrooke, Canada, with subsidiaries and teams based across six offices in Canada (2), France, USA, China and South Korea. The Group currently engages in two main business- es: Systems (incl. PlasmaSonic) and Materials. The growth of these businesses is driven by megatrends having significant impact on consumer behavior globally: Space Exploration and Space Tourism, De- globalization and Climate Change, Digitalization & Connectivity, as well as Demography & Health Care. Customer centricity and high quality service and so- lutions are key to our success and rewarded with over 80% recurring revenues. Tekna produces high purity, micron-sized and nano- sized metal powders as well as optimized induction plasma systems for industrial research and hyper- sonic test facilities. Micron-sized powders are used for applications such as 3D printing in the aerospace, medical and con- sumer electronics sectors while advanced nano-sized materials are applied in the manufacturing of micro- electronic devices (MLCCs) used in consumer elec- tronics, autonomous vehicles, and 5G and Internet- of-Things (IoT) communications equipment. The Group develops and operates its own plasma systems and sells customized plasma systems for research applications to academic and industrial research organizations. The PlasmaSonic product line, a part of Systems, consists of plasma wind tun- nel solutions for the simulation of hypersonic and orbital flight conditions. The groups activities are classified in the manufac- turing sector. Our value-chain includes activities in the mining and quarrying sector. In 2024 Tekna Group accumulated CAD 37.2 M in revenues. Value chain In figure 1 is a simplified overview of the Tekna value chain for the two business units. We have indicated in red the part with the highest potential for negative impact, which materials are on the Critical raw mate- rial list, and which are potential conflict materials. REACH, RoHS and potential conflict minerals Our procurement team has delivered third-party verification guaranteeing our powder products are meeting REACH (toxic chemicals) and RoHS (hazardous substances) requirements. Tekna is following the Responsible minerals initiative (Conflict minerals reporting) for tungsten and tanta- lum. Both are sourced exclusively from Conflict-Free material based on OECD due diligence and Dodd- Frank requirements. Tekna has the declaration on conflict-free material, which is made with all the in- formation from partners in the entire supply-chain from smelters up to Tekna. We have a general understanding of the potential impacts and risks associated with the upstream value chain and the highest risk is likely to be found in raw material extraction and refining. This may include child labor, forced labor, pollution of land, soil, water and air, perilous working conditions, hazardous workplaces, exposure to hazardous chemicals, con- flict and disputes in local communities and GHG emissions. As a medium sized company we have access to our business partners and are able to inform ourselves about their practices, associated risks and potential impacts. The suppliers of our business partners have proven to be more difficult to assess. Much work remains to be done to complete the understanding. Risk mitigation 80 per cent of Tekna’s global spend comes from suppliers based in the EU or NA, which we deem well-governed by legal standards. The remaining 20 per cent, approximately, is spent on a key raw mate- rial, i.e. titanium, supplied by two regularly audited manufacturers in China. Both are well-established and qualified suppliers to major western industrial conglomerates. 1: Critical raw material list. 2: Potential conflict material Tekna’s supplier guaranteed material purchased non-conflict. Figure 1: simplified overview of the Tekna value chain for the two busi- nesses. Value chain (VC) Upstream value chain Own Operations (OO) Downstream value chain (VC) Business unit: Raw materials and supply chain Production, distribu- tion, marketing Customers End-users (& End-of-life-stage) Materials: Mining and sourcing of raw materials Production of: Utilization: for additive manufacturing industry Aluminum, Tantalum 1,2, , Titanium 1 , Tungsten 1,2 Production of micron-sized materials (A, Ti, W, Ta). Tier 1 and Tier 2 Metal part manufacturers Aerospace, medical implants, consumer electronics, 3D Machine Manufacturers for micro- electronics industry Nickel Production of nano-sized materials (Ni). Multi-Layer Ceramic Capaci- tors (MLCC) Original Equip- ment Manufacturers Electronics in devices, EVs, Systems Production of hardware (Parts and subassemblies) Production and develop- ment of plasma technology (Materials) Research insti- tutes and companies Research and small production of (new) materials General Transportation associated with above activities. Sourc- ing of parts, electricity, water Storage, packaging, transportation and logistics Sales and Marketing, personnel and office Disposal and end-of-life handling SUSTAINABILITY STATEMENT | 79 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Material impacts, risks and opportunities (MRO) Stakeholders Tekna strives to maintain an open dialogue with its stakeholders and throughout the year engages with employees and other workers, customers and end- users, suppliers, local communities and authorities and investors. Tekna held topic specific stakeholder interviews with customers, employee representatives, investors, a trade association and the local govern- ment in Q4 2023. Throughout 2024, conversations with stakeholders included sustainability, particularly with employees, customers and investors. Affected stakeholders in the (upstream) value-chain have not been identified. Tekna is proud to find amongst its major investors many that are driven by sustainability. We are thank- ful for the insights and support they have provided to improve our sustainability strategy. Tekna is seen as very well positioned in the future as we can ena- ble the green transition. Furthermore, our work on the safety of our employees and efforts to improve transparency were praised. Tekna’s customer base consists mostly of large OEMs that have adopted sustainability as part of their strategies. When Tekna is qualified as a supplier sustainability is usually part of the discussion. Cus- tomers frequently enquire about the environmental footprint of our technology. Our customers believe that low carbon solutions will be the standard in the future. They encourage Tekna to perform a Life Cycle Assessment for Materials and are looking for an increase in recycled materials in their feedstock. The expectations of the society-at-large are clear: a more equitable and sustainable future for all, ad- dressing the global challenges we face, including poverty, inequality, climate change, environmental degradation, peace and justice. We aim to make our value-chain as sustainable as possible. We were pleased to hear our stakeholders describe Tekna as being an ‘industry leader, reputable and innovative’. As part of our stakeholder interview process, we in- terviewed an organization from our local community that supports industries, and they believe Tekna’s customer success comes from our quality, experi- ence, and diversified markets. Tekna conducted its first materiality assessment in 2021, which led to defining our material topics. Our employees have shown their approval of the focus area ‘Enabling stakeholders’ positive impact’ as our product allows our clients to obtain a better yield. Employees raised the topic of resources available to improve Tekna’s footprint in relation to how much effort has to go into sustainability reporting. Tekna has committees for advocating key sustainability topics: Health and Safety committee, Ethics and Compliance committee, the Environment committee and the CORE employee committee. Material impacts, risks and opportunities (IRO) In the IRO exercise Tekna has assessed its own oper- ation (OO) and value chain (VC) for negative (NI) and positive impact (PI), risks (R) and opportunities (O) across the CSRD topics. See insert on the right for high-level thoughts on the topics. Climate change: • O (OO): Higher material efficiency than competitors • O (OO): Attractive and relevant for companies demanding carbon neutrality in supply chain • PI (OO): Energy efficiency and climate friendly parts for avia- tion, medical and energy section • NI (OO): Use of non-renewable electricity (outside Canada) • O (VC): Enabling technology • O (VC): Energy efficient operations Pollution: • NI (VC): Transportation and production of upstream materials, including mining • NI (VC): Mining and mineral extraction impact on soil • NI (VC): Wastewater management from mining + production of upstream materials • NI (OO): Transportation and business travel related emissions • PI (OO): No pollution from production • NI (OO): Emissions from business travel and office space Water and Marine resources: • NI (OO): Water consumption in production • O (OO): Water recycling in production Biodiversity and Ecosystems: • NI (VC): Mineral extraction (Land degradation, land-use change) • NI (OO): Red list species with habitats in areas affected by op- erations Circular Economy: • O (OO): Resource efficiency - use of recycled products/ components for additive manufacturing • PI/O (OO): Reuse of raw materials and gas in production • NI (OO): Generation of waste in production • O (OO): Reuse of packing containers • O (VC): Resource efficiency • NI (VC): Hardware + packaging end-of-life issues (waste, recy- cling, reuse), incl. electronic waste Own workforce: • NI (OO): Potential accidents of dangerous materials/substances impacting own workers • PI (OO): Health and safety for own workers • PI (OO): Equal treatment and opportunities of own workforce in production and distribution. • PI (OO): Gender equality, diversity and inclusion • O (OO): Being an attractive employer to attract talents and competence in a competitive market • PI (OO): Employee education and development Workers in the value chain: • PI (VC): Labor conditions and human rights in raw material production. Freedom of association and the effective recogni- tion of the right to collective bargaining. Safe and healthy working environment and conditions • PI (VC): Equal treatment and opportunities in the value chain (direct and indirect suppliers in all countries) • NI (VC): Risk of forced labor and child labor in value chain • PI (VC): Cooperation and training on equipment for safe use Affected communities: • NI (VC): Impacts in less regulated countries, incl. zones in con- flict, related to the use of communities' land for mining and other upstream production, access to water and sanitation and health and safety in local communities related to the transport of materials, mine sites, and substance emission • NI (VC): Minority's rights and rights of indigenous people • PI (VC): Supporting local communities and university Consumers and end-users: • PI (VC): Enabling medical and dental application • R (VC): Application for warfare • O (VC): High quality products (safety, lifespan) Business Conduct: • PI (VC): Supply chain transparency • R (VC): Risk of raw material sourcing from sanctioned countries (trade war). Dependency on sourcing with China • PI (VC): Traceability of raw materials • PI (VC): Business ethics in procurement practices • PI (OO): Business ethics in own operations, global sales and management • PI (OO): Protection of whistleblowers for own workers • R (OO): Anti-corruption and bribery SUSTAINABILITY STATEMENT | 80 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Double Materiality Assessments (DMA) Double Materiality Assessments (DMA) A double materiality assessment takes into account two perspectives: the impact Tekna’s activities have on its surroundings, environment and society (impact materiality) and the impact climate change may have on the company (financial materiality). Impacts can be positive or negative, actual or poten- tial, and relate to the company's effect on people and planet Risks and Opportunities are financial and are incurred by the company due to ESG-related matters. Methodologies and assumptions The goal of the assessment is to identify the material IROs related to matters to be reported. The followed MA process considering both impact and financial materiality is summarised below: 1) identification of impacts; 2) assessment of whether such impacts lead to risks and opportunities. 3) identification of risks and opportunities not sourced from impacts. For most material impacts, a material risk and/or opportunity may emerge over time. The double materiality assessment was performed supported by the topics included in the CSRD and GRI (Global Reporting Initiative) as well as the de- pendence on natural, social, and human resources. The impact assessment includes positive, negative, actual, and potential impacts. The mapping and un- derstanding of impacts were primarily centred on the value chain where impacts were deemed most likely to occur. A topic is material if the company has an actual or potential significant impact on people or the envi- ronment connected to the topic. A topic is also ma- terial if it triggers financial effects on the company that are likely to influence its future cash flow. Material topics and subtopics Based on the double materiality assessment, Tekna has adopted the following topics and subtopics for the 2024 CSRD reporting. Note that there are more material topics and we will continue our journey to develop reporting on those. • Topic E1: Climate Change Sub-topics: Climate change adaptation, Climate change mitigation and Energy Tekna contributes to climate change through our GHG emissions, and we also work to enable the green transition with our clean technology and downstream gains. We are attractive and relevant for companies demanding carbon neutrality in their supply chain. We are vulnerable to a changing cli- mate, if we do not adapt. • Topic E5: Resource Use and Circular Economy Sub-topic: Resource inflows including resource use We rely on the extraction of raw materials upstream, for our Materials. The opportunity lies in the use of secondary resources as well as the resource- efficiency additive manufacturing brings. • Topic S1: Own Workforce Sub-topics: Working conditions, Equal treatment and opportunities for all As a global high-tech organization the group is reli- ant on our people as our most valuable asset. This dependency on employees' wellbeing and safety presents a financial risk that requires continuous at- tention. We also see an opportunity to continue nur- turing diversity and equality throughout the group's global workforce. • Topic S2 Workers in the value chain In the climate-risk assessment the working condi- tions of our main supplier(s) in China is an important topic (excessive heat). Furthermore, locations of cer- tain partners are known for lack of respect for hu- man rights and labor conditions. • Topic G1: Business Conduct With own operations in five countries and business partners in many more, Tekna Group is exposed to corruption risks in business conduct, and generally risks of breaches to our corporate conduct that re- quire ongoing focus. • Topic Gx: Cyber security We are vulnerable to cyber attacks, which demand sophisticated prevention and strong internal con- trols. We have added Cyber security as an entity- specific sub-topic to our Governance reporting. Tekna focus area SDG 2 ESG 3 CSRD 4 See also this Report Sustainability: Enabling customers’ positive impact SDG 9 S ESRS E1, E5 EU Taxonomy Report 2024 Circularity: Strive for circular and sustainable production SDG 12 E, G ESRS E1, E5 Emissions Accounting Report 2024 Human Rights and Transparency Report 2024 Society: Great place to work SDG 8 S ESRS S1 -S4 CSRD Report 2024 (=this report) Remuneration Report 2024 Governance: Ethical business conduct SDG 16 G ESRS G1, Gx Corporate Governance Report 2024 1: Coding at the end of the topic relates to the map in the materiality analyses in Appendix A. “O” is opportunity and “R” is risk. 2: UN Strategic Development Goals. 3: Environment, Social, Governance. 4 Corporate Sustainability Reporting Directive (EU) SUSTAINABILITY STATEMENT | 81 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Index of material disclosures S1 S1-1 Policies related to own workforce 91, 92 S1-2 Process for engaging with own workforce and workers' representatives about impacts 79, 91 S1-3 Process to remediate negative impacts and channels for own workforce to raise concerns 98, 101, 102, 137, 138 S1-4 Taking action on material impacts on own workforce and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 91, 92 S1-5 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities 91, 92 S1-6 Characteristics of the undertaking's employees 93 S1-7 Characteristics of non-employees in the undertaking's own workforce 93 S1-8 Collective bargaining coverage and social dialogue 90, 94 S1-9 Diversity metrics 94 S1-13 Training and skills 90, 94 S1-16 Remuneration metrics (pay gap and total remuneration) 95 S1-17 Incidents, complaints and severe human rights impacts 98, 101 S2 S2-1 Policies related to value-chain workers 97 S2-2 Processes for engaging with value chain workers about impacts 79 S2-3 Channels for value chain workers to raise concerns 98, 101, 102, 137, 138 S2-4 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities 97 S2-5 Taking action on material impacts on value chain workers and pursuing material and effectiveness of those actions 97 S2-6 Approaches to mitigating material risks and pursuing material opportunities related to value chain workers 97, 98, 135-140 G1 G1-1 Corporate culture and business conduct policies 101 G1-2 Management of relationships with suppliers 102 G1-3 Prevention and detection of corruption and bribery 102 Gx Cyber security 103 ESRS 2 BP-1 General basis for preparation of sustainability statement 76 BP-2 Disclosures in relation to specific circumstances 76 GOV-1 The role of the administrative, management and supervisory bodies 65, 66, 72, 77, 101 GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies 77 GOV-3 Integration of sustainability-related performance in incentive schemes 77 GOV-4 Statement on due diligence 77 GOV-5 Risk management and internal controls over sustainability reporting 63 SBM-1 Strategy, business model and value chain 77 SBM-2 Interests and view of stakeholders 79 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 79 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities 79, 80 IRO-2 Disclosure requirements in ESRS covered by the undertaking's sustainability statement 80 E1 E1-1 Transition plan climate change mitigation 82, 83 E1-2 Policies related to climate change mitigation and adaptation 85 E1-3 Actions and resources in relation to climate change policies 85 E1-4 Targets related to climate change mitigation and adaptation 85 E1-5 Energy consumption 79 E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 85, 116-124 E5 E5-1 Policies related to resource use and circular economy 86 E5-2 Actions and resources related to resource use and circular economy 86 E5-3 Targets related to resource use and circular economy 86 E5-4 Resource inflows 86, 87 ESRS standard DR Description Page number ESRS standard DR Description Page number SUSTAINABILITY STATEMENT | 82 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Environment Tekna’s environmental impact is two- fold. Tekna has a positive environ- mental impact through developing products which enable a green transi- tion in line with United Nations Global Compact principle 9 3 and as substan- tiated per the EU taxonomy. Tekna produces metal powders for additive manu- facturing (“AM”) that significantly reduce the metal consumption in product manufacturing processes downstream and simplifies the supply chain, transport and warehousing logistics by reducing the number of parts in mechanical assemblies. In the application of AM, parts in airplanes and vehicles are usually lighter and therefore more energy efficient (less weight, less fuel consumption). On the other hand, the company also has an environmental im- pact from internal business operations such as emis- sions from employee commutes, business travels, energy consumption at the company’s locations and waste generation. Tekna started climate accounting in 2019 and contin- ues to gain insights on its footprint, particularly for up- and downstream GHG emissions (scope 3). For scope 1 and 2 Tekna has already committed to an absolute reduction of 50% by 2030 over 2021. The carbon accounting was updated in 2024 using CEMAsys’ digital solution. A summary is presented here and a full overview can be found in the Carbon Accounting report in the appendix of the annual report and on the website.. Decarbonization Scope 1 emissions have been stable since baseline year 2021. The source of emissions is the natural gas heating system in the Canadian facilities. We are looking to solidify the decision for the best alterna- tive to lower these emissions, from electrical heating to biogas. We plan to budget for this before 2030. Scope 2 emissions are down by 67% compared to baseline 2021. We are approaching scope 2 in the two obvious ways, ie a) by moving consumption to renewable energy sources, and b) reducing con- sumption. The renewable energy share (a) is up by 10 percentage points since 2021 baseline (2024: 77%). This is due to stopping production in France, which uses clean energy, yet not renewable (nuclear). In reduction (b) we are focusing on increasing the productivity of our powder production. Compared to 2019 we have reduced by 26% the kWh required to produce 1 kg of powder (2024: 12.1 kWh/kg). It is clear that the most significant emissions are in Scope 3. Tekna has yet to communicate reduction targets for the scope 3 categories. With the full scope 3 now transparently available we can start prioritising actions further. Nonetheless, we have started taking actions to reduce emissions Replacing single-use packaging Additive manufacturing ("AM") materials are typically transported in single-use packaging, with aluminum powder being shipped in 5kg plastic drums and tita- nium powder in metallic bottles of 2.5kg each. Un- fortunately, once they have been used, the single- use packaging are left with small quantities of resid- ual metal powder making them not easily reusable nor recyclable. As the volumes of AM materials are increasing, the business case for returning the powder to Tekna for reconditioning will become stronger. In order to reduce single-use packaging, Tekna has developed a Universal and Reusable CONTAINER for Additive Materials together with industry partners (see image). One container replaces 25 single-use plastic drums or 80 metallic bottles. The key benefits of this solution: • Enabling resource efficiency, circularity and GHG reduction: the sturdy containers can be reused “indefinitely” and will be used to deliver pristine powder to the customer and the customer can return degraded material back to Tekna • Eliminating the use of single-use packaging and disposal activities • Allowing for safer handling both during transpor- tation and at the point of use. This means 1) re- ducing the risk of exposure to powder, 2) since Contents Environment .............................. 82 Climate Change ....................... 85 Resource use and circular economy .................................... 86 EU taxonomy ............................ 88 Definitions and accounting principles .................................... 89 3: Principle 9: encourage the development and diffusion of environmentally friendly technologies. SUSTAINABILITY STATEMENT | 83 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents the container has wheels, eliminating the risk of drops and lifting related injuries, and 3) based on the plug-and-play nature of the container solu- tion, increasing user-friendliness and reducing the risk of handling mistakes • Increasing efficiency as more material is loaded to the machine per packaging unit The container is ready to be put into operation. Giv- en Tekna’s projected volumes, the company will avoid ~1 Million tCO2e over the next 5-years in the category Purchased goods & services (upstream) and the category Use of sold products (downstream as single-use waste) Reducing logistics emissions In 2023, we completed the assessment of the category Upstream transportation and distribution. Metal powder is considered a hazardous good when in transport, therefore short-term our opportunities are limited. As volumes increase with it will come the possibility of reducing air transport in favor of boat or train. Other elements we are applying where possible: • Divert transport to carriers with a “green” fleet • Consolidate shipments • Improve packaging to reduce shipping “air” Carbon accounting Carbon accounting is a fundamental tool in identify- ing tangible measures to reduce GHG emissions. The annual carbon accounting report enables the or- ganization to benchmark performance indicators and evaluate progress over time. The input data is based on consumption data from internal and external sources, which are converted into tonnes CO2-equivalents (tCO2e). The carbon footprint analysis is based on the international standard; A Corporate Accounting and Reporting Standard, developed by the Greenhouse Gas Proto- col Initiative (GHG Protocol). The GHG Protocol is the most widely used and recognised international standard for measuring greenhouse gas emissions and is the basis for the ISO standard 14064-I. Noteworthy Refer to footprint overview on the next page. • 2030 Target to reduce scope 2 by 50% achieved! • Tekna increased its production output by 68% compared to 2021 baseline, while only increasing scope 1 emissions by 3%, and even reducing scope 2 emissions by 67% • Energy intensity down 26% to 12.1 kWh/kg of powder produced • Closing production in France resulted in a shift away from Nuclear while increasing Hydro power. • Increased renewable energy percentage (+11pp) • Reduced scope 2 emissions significantly (-67%) • Total kWh increased by +32% as produc- tion in Canada increased • Reduction in business travel (Cost-saving meas- ure) has reduced related emissions (down 11%) 2 • All material categories in scope 3 mapped (+4 additional baselines established) Restatements Multiple items had to be restated for 2023, based on improved information, new estimation and extrapo- lation methodologies applied in 2024, which we ap- plied also to 2023 for comparability and unfortunate errors detected. Corrections have been made to the following cate- gories: • Scope 2 Electricity, France (Tekna Plasma Europe) • Scope 3.3 Fuel and Energy related activities. • Scope 3.4 Upstream Transportation and Distribu- tion • Scope 3.7 Employee Commute The most significant change was the incorrect way of estimating the transport emissions. In comparing with the online transport emission calculator Eco- Transit we found we had largely overstated the emissions. Consequence: Reduction of 245 523.5 tCO2e [former 246 757.0 tCO2e restated to 1233.5 tCO2e]. Details are disclosed in the restatement section of the carbon accounting report. A summary of the changes below is included in the table below. External Assurances Internally the Audit Committee approves the Emis- sions Accounting report. This report was not exter- nally assured on its publication date; Note that the CO2 metrics were internally audited. Link to the full report in the appendix. in tCO2e 2023 published 2023 restated 2024 Total Scope 1 589.0 589.0 595.9 Total Scope 2 29.6 29.1 13.9 Total Scope 3 247 482.0 1 981.2 27 730.3 Total 248 100.5 2 599.2 28 340.1 SUSTAINABILITY STATEMENT | 84 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents 11 530 Baseline, new in 2024 Tekna’s climate footprint 1 Historical data should not change, but we always revise historical figures if data quality or science has improved. 2: Tekna increased its produc- tion output by 68% compared to 2021 baseline, while only increasing scope 1 emissions by 3%, and even reducing scope 2 emissions by 67%. Carbon Accounting (continued) 1 271 Tekna’s climate footprint at diﬀerent stages of the value chain (GHG protocol 1 | in tCO2e) Suppliers & Resources Tekna Operations Customers End-users & End-of-life -50 % Fuel– and energy-related activities (scope 3) 391 384 FY24 FY21 baseline -2% (vs FY21) Production (scope 1 + scope 2) Employees (business travel + daily commute - scope 3) Waste (scope 3) 619 610 274 351 21 baseline FY24 FY24 FY24 FY21 FY22 FY23 baseline baseline -1% 2 (vs FY21) -11% (vs FY22) Upstream transportation and distribution (scope 3) 391 FY24 FY21 18 -14% (vs FY23) Use of sold products (scope 3) End-of-life treatment (scope 3) Downstream transportation and distribution (scope 3) Processing of sold product (scope 3) Purchased goods and services (scope 3) Capital goods (scope 3) vs 66% (+11 pp) in 2021 (Location based). Renewable energy share 77 % vs 577 (+3%) in 2021. Tekna has added a third facility in Canada in 2022 increasing natural gas consumption for heating com- pared to baseline 2021. vs 42 (-67%) in 2021. Tekna continues to im- prove energy efficiency in its powder produc- tion 2 . By reducing production in France the consumption of nuclear electricity is reducing. This is the first year that we have a complete estimation of the value-chain footprint. This creates a solid basis from which to focus our reduction effort. Energy Intensity per kg metal powder produced Performance vs baseline FY19 Direct electricity of plasma systems within Tekna | Ti64 and AlSiMg | in kWh per kg Our capacity improvement program increases the productivity of the plasma atomization systems, ie higher output for the same energy. The Production output for Ti64 and AlSiMg powder has more than doubled since 2019. Scope 1 596 tCO2e Scope 2 14 tCO2e Scope 3 27 730 tCO2e FY19: 16.3 kWh/kg FY24: 12.1 kWh/kg baseline -26% (vs FY19) FY23: 12.4 kWh/kg -24% (vs FY19) -50%, linked to scope 1 and 2 FY24 158 FY24 Baseline, new in 2024 FY24 14 081 FY24 new in 2024 for Systems | Not material for Materials FY24 12 Baseline, new in 2024 1 234 FY23 baseline Target 2030 Reduce in absolute terms compared to baseline year Not material, Tekna organizes in- and outbound transport +3% (vs FY23) Not applicable to Systems | Not material for Materials FY24 SUSTAINABILITY STATEMENT | 85 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents I Scope 1 596 tCO2e (+ 3%) 589 tCO2e (+ 2%) 577 tCO2e (2021) II Scope 2 14 tCO2e (-67%) 30 tCO2e (-29%) 42 tCO2e (2021) III Scope 3 n/a 27 730 tCO2e (n/a) 1 981 tCO2e (incomplete) n/a IV Total GHG emissions n/a 28 340 tCO2e (na) 2 599 tCO2e (incomplete) n/a V Energy consumption n/a 12 750 MWh (+21%) 11 553 MWh (+9%) 10 561 MWH (2021) VI Renewable energy share (location-based) 77% (+11pp) 72% (+6pp) 66% (2021) VII Energy intensity per kg of metal powder (Ti64+AlSiMg) 12.1 kWh/kg (-26%) 12.4 kWh/kg (-24%) 16.3kWh/kg (2019) Climate change [ESRS E1] Climate change mitigation / adapta- tion Strategy Tekna’s approach to environmental sustainability, within all aspects of our business operations, is based on two main pillars: • Minimizing our environmental footprint - Dedicated to avoiding and minimizing any adverse environmental impacts linked to our business operations. This includes adverse impacts as a result of Tekna’s business opera- tions directly, as well as any indirect impacts such as impacts related to business partners, suppliers and other third parties. The ultimate goal is to become climate neutral (without relying on carbon offsetting) by reducing more greenhouse gas (GHG) emissions than the Tekna value chain emits, while growing the business. • Promoting environmental sustainability - Dedicated to improving resource efficiency and sustainability across the value chains we operate in. This includes developing new and improving existing sustainable technologies and products that are resource efficient, eco- friendly, recyclable, recoverable and best in class in terms of environmental sustainability. Tekna shall prioritize its efforts within environmental sustainability based on the double materiality assess- ments. Company value: We strive for excellence Progress made in the year • Finished the scope 3 GHG baseline in 2024. • Furthered the decarbonization plan, including improved energy efficiency and productivity of the powder production system • Updated the climate risk assessment according to 4 scenarios and with outlook from 2030-2080 for Tekna locations as well is main suppliers' loca- tions. Comments on material changes in KPI’s Scope 1 remains stable as we study options to achieve the 50% reduction from biogas to installing heat pumps. Scope 2 reduced by more than 50% whilst produc- tion output increased by 26% compared to 2023 in Canada which uses only renewable energy. This does increase the Energy Consumption in MWh. Production in France reduced further (nuclear ener- gy), which improved the renewable energy share. Scope 3 first year with a complete assessment for this scope. Reductions were achieved in waste and business travel. Our capacity improvement program increases the productivity of the plasma atomization systems, ie higher output for the same energy. The Production output for Ti64 and AlSiMg powder has more than doubled since 2019. Environmental policy Sustainable events policy Employee Handbook (MAGRH-01) Ensure budget planning to execute on decarbonization plan by 2027 Quantify potential financial effects linked to significant physical and transition risks and climate related opportunities in 2026 Development of climate risk mitigation plan by 2026 Continue to improve accuracy and understanding of scope 3 upstream and downstream emissions and set reduction target(s) in 2025 100% Carbon neutral by 2050 (incl. scope 3) Scope 1: 50% absolute reduction of CO2 emissions by 2030 compared to baseline 2021. Scope 2: 50% absolute reduction of CO2 emissions by 2030 compared to baseline 2021. Quantifiable targets Policies & Guidelines KPI (per year) 2024 (vs baseline) 2023 (vs baseline) baseline (year) Operationalization Measurement Action plan SUSTAINABILITY STATEMENT | 86 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Resource use and circular economy [ESRS E5] Resources inflows, including re- source use The Executive Leadership Team has oversight and management of all the resources that are used. The majority falls under direction of the VP operations. Our ERP records the resources in our own opera- tions and they are categorized for the GHG emission calculation. Apart from a general understanding of the value chain we have not mapped the upstream resources in detail. For materials, the opportunity to use secondary re- sources may seem obvious. The requirements on characteristics of metal powder are stringent to such extend that purity and oxygen content limit our abil- ity to use recycled materials in feedstock. We are striving to work with our customers to develop a solution for this. Strategy From the Environmental policy: Tekna is dedicated to responsible sourcing of natural resources and strives to use all energy and natural resources as efficiently as possible. Our ambition is to regenerate resources while grow- ing the Tekna business. We aim to consistently in- crease the use of responsibly sourced, renewable or recycled materials in our offer, and have a positive impact by regenerating resources and protecting ecosystems. Progress made in the year • Assessed the resource use for manufacturing our systems and materials • Quantified and categorized the elements Comments on (material changes in) KPI’s This is the first year we assessed our resource use. Current scope is the resources we use to produce our products, ie the feedstock for materials, process gases, packaging and the subassemblies for our sys- tems. General resources (for instance buildings, pro- duction equipment, ICT etc) are not included. Own operations To manufacture Tekna’s products the following busi- ness-specific resources are required for Materials: • Production equipment: plasma systems and peripherals, sieves, blenders, containers, fork- lifts, storage racking, recycling bins • Production enablers: metals (titanium alloy, aluminum alloys, tungsten, tantalum), process gases (argon, helium), cooling water, packag- ing (plastic curtec containers, aluminum bot- tles, pallets, straps, labels), laboratory (test chemicals), OHS (GVP masks, gloves, boots) And for Systems: • Production equipment: tools, welding equip- ment, storage racking, recycling bins, specific software • Production enablers: metals, composites, elec- trical wiring, tubes, pipes, hardware, software, packaging (wooden crates) I 0.00% n/a not established II 16.66% n/a not established % of resource inflows from secondary sources % of renewable resource inflows Environmental policy Improve percentage of recycled material in feedstock to 75%. No target year assigned yet 1 Define R&D collaborations project to develop powder product with increased recycled feedstock Further develop the list of main resource inflows related to the products Tekna manufactures (SG&A not a priority). Quantifiable targets Policies & Guidelines KPI (per year) 2024 2023 baseline (year) Operationalization Measurement Action plan Notes: 1: We have not set a target date for achieving this target. Using recycled material affects important parameters of the powder and how it can be applied. Strong dependence on partners to progress. SUSTAINABILITY STATEMENT | 87 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Table of Resource inflows Component Resource Finite or renewable resource Circularity depends on biological or technical processes Virgin or non- virgin resource Location in value chain Critical Raw Material or Rare Earth Element Current use of the resource Original weight (in kg) Method for estimating weight Uncertainties in the data in this table Titanium wire Finite Technical Virgin Own operations Yes Manufacturing Aluminum wire Finite Technical Virgin Own operations Yes Manufacturing Tantalum Finite Technical Virgin Own operations Yes Manufacturing Tungsten Finite Technical Virgin Own operations Yes Manufacturing Gas for plasma system, post- processing and packaging Argon Finite Technical Virgin Own operations No Manufacturing Packaging 568 865 Helium Finite Technical Virgin Own operations Yes Manufacturing 2 752 Nitrogen Renewable Biological Virgin Own operations No Manufacturing 159 407 7004 and 7011 in virgin HDPE Finite Technical Virgin Direct supplier No Packaging n/a aluminum Finite Technical Virgin Direct supplier Yes Packaging n/a Aluminium Finite Technical Virgin Own operations Yes Manufacturing 5 700 Iron Finite Technical Virgin Own operations No Manufacturing 1 796 Stainless steel Finite Technical Virgin Own operations Yes Manufacturing 27 701 Copper Finite Technical Virgin Own operations Yes Manufacturing 9 636 Metals (bronze, brass) Finite Technical Virgin Own operations Yes Manufacturing 805 Wood Renewable Biological Virgin Direct supplier No Packaging 13 647 Electronic materials Finite Technical Virgin Own operations Yes Manufacturing 1 131 Ceramic Finite Technical Virgin Own operations No Manufacturing 337 PVC Finite Technical Virgin Own operations No Manufacturing 83 Rubber Renewable both Virgin Own operations No Manufacturing 117 Polymer Finite Technical Virgin Own operations No Manufacturing 2 204 Silicon Finite Technical Virgin Own operations Yes Manufacturing 136 Plastic PP/PE Finite Technical Virgin Own operations No Manufacturing 24 Mineral oil Finite Technical Virgin Own operations No Manufacturing 89 Metal feedstock for materials not disclosed Tekna purchased volume only As per GHG scope 3.12 End-of-life calculation incl assumptions. Not adjusted for yield loss across the value chain. Packaging for materials Quantity as purchased, not adjusted for yield loss across the value chain Resources to produce Systems Gas for plasma system Upstream value-chain (based on unverified assumptions) To obtain the mentioned “production enablers” the following processes are likely required upstream for Materials: • Metal feedstock (titanium alloy, aluminum al- loys, tungsten, tantalum): ore extraction (mining and beneficiation resources) > refin- ing and chemical processing > reduction and metal processing > melting and casting re- sources > transformation to feedstock (processing (casting and wire drawing or powder production) and packaging resources. Systems: • Stainless steel: From ore to stainless steel sheet, this process involves mining and ore beneficiation, smelting and alloying, rolling and shaping, and finishing. Refer to table on resource inflows for manufacturing of products only. SUSTAINABILITY STATEMENT | 88 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Measurement 2023 (% of total | unaudited 3 ) baseline (year) 2024 (% of total | audited 2 ) KPI (KPI CCM 1 | in M) I Revenue eligible and aligned - ( 0%) 25.7 ( 64%) - (2024) II Revenue eligible 36.8 ( 99%) 14.7 ( 36%) 99% (2024) III Revenue not eligible, nor aligned 0.4 ( 1%) - ( 0%) 1% (2024) IV CapEx eligible and aligned - ( 0%) 6.7 ( 82%) - (2024) V CapEx eligible 2.9 ( 63%) 1.5 ( 18%) 63% (2024) VI CapEx not eligible, nor aligned 1.4 ( 37%) - ( 0%) 37% (2024) VII OpEx eligible and aligned - ( 0%) 1.2 ( 11%) - (2024) VIII OpEx eligible 2.5 (100%) 1.6 ( 58%) 100% (2024) IX OpEx not eligible, nor aligned - ( 0%) - ( 0%) - (2024) EU Taxonomy | Summary of disclosures pursuant EU Tax- onomy regulation (Article 8) As part of the European Union’s Green Deal, the EU Taxonomy is a classification system for sustainable economic activities, consisting of the following six environmental objectives: 1. Climate change mitigation (CCM) 2. Climate change adaptation (CCA) 3. The sustainable use and protection of water and marine resources 4. The transition to a circular economy 5. Pollution prevention and control 6. The protection and restoration of biodiversity and ecosystems Tekna has assessed for the six objectives, where only climate change mitigation and climate change adap- tation could be applicable. Tekna’s activities are all deemed eligible under the economic activity: 3.6 Manufacture of other low car- bon technologies (CCM). The production of additive material powders and PlasmaSonic are deemed aligned and further supporting documentation needs to be obtained in order to report it as such. Activity assessment Production of additive material powders: Eligible, not aligned The activity is believed to provide substantial life- cycle GHG emission savings compared to the best performing alternative. However, the substantial contribution criteria are not considered met due to the lack of documentation verified by a third party demonstrating life-cycle GHG emission savings. The AMGTA reports used in 2023 are not considered sufficient, hence the change from aligned to eligible. Production of PlasmaSonic wind tunnels: Eligible, not aligned. The Plasmasonic wind tunnels are believed to pro- vide substantial life-cycle GHG emission savings compared to the best performing alternative. How- ever, the substantial contribution criteria are not considered met due to the lack of documentation verified by a third party demonstrating life-cycle GHG emission savings. Production of turnkey plasma systems: Eligible As of today, Tekna does not have a life-cycle GHG emission savings analysis available. Therefore, the plasma systems segment is not considered compli- ant with the substantial contribution requirement. (Development and) Production of Nanomaterials for MLCC: Eligible The documentation requirement regarding life-cycle GHG emissions calculation has not been fulfilled, hence the substantial contribution criteria is consid- ered not met. Since the economic activity is not con- sidered eligible for the environmental objective CCA, no further assessment of technical screening criteria has been carried out. Do no significant harm For screened activities the criteria for Climate Change Adaptation, Water and Marine Resources, Circular Economy, Pollution Prevention and Control and Biodiversity and Ecosystems have been assessed and are considered met. Minimum Safeguards Minimum safeguard requirements are defined in article 18 of the EU Taxonomy regulation. According to which, an undertaking shall implement proce- dures to ensure the alignment with: • The OECD Guidelines for Multinational Enterpris- es (OECD Guidelines for MNE) • The UN Guiding Principles on Business and Hu- man Rights (UNGPs), including the principles and rights set out in the eight fundamental conven- tions identified in the Declaration of the Interna- tional Labour Organisation on Fundamental Prin- ciples and Rights at Work • The International Bill of Human Rights These requirements are considered met. For further information on the process, considera- tions and assessment results, accounting policies, etc, please refer to the full EU taxonomy report in the appendix. Notes: 1: Assessed vs Taxonomy objective Climate Change Mitigation ("CCM"). 2: Sample-audited on behalf of main shareholder Arendals Fossekompani ASA. 3: The 3rd party verification to support alignment of Additive Manufacturing was not specific enough to Tekna products SUSTAINABILITY STATEMENT | 89 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Definitions and Accounting principles Environment Definitions E1 Definitions E5 Accounting principles E1 Emissions accounting Refer to the emissions accounting report in the appendix for detailed accounting principles of the GHG emissions. Energy Intensity Energy Intensity is expressed in kilowatt hour per kilogram of metal powder produced. The total of direct electricity used by all the production plasma systems for titanium and aluminum divided by the total volume produced in a year. The baseline for the indicator is 2019. Accounting principles E5 Due to a lack of understanding of the supply chain, we have categorized conservatively. Ie classified all materials as virgin and own operations. If the material is not on the Critical Raw Material list or Rare Earth Element, but its components are (assumed to be), then we included a yes. Renewable resources: In general the items identified as renewable are considered renewable. Tekna does not have certificates to warrant this. Rubber, wood, and nitrogen are considered renewable resources because they are part of natural cycles or sys- tems that can regenerate over time. Accounting principles EU Taxonomy Refer to the EU Taxonomy report in the appendix for detailed accounting principles. Climate change adaptation The process of adjustment to actual and expected climate change and its Climate change mitigation The process of reducing GHG emis- sions and holding the increase in the global average temperature to 1,5°C above pre-industrial levels, in line with Greenhouse gas (GHG) emission reduction Decrease in Scope 1, 2, 3 or total GHG emissions at the end of the reporting period, relative to emissions in the base year. Emission reductions may result from, among others, energy efficiency, electrification, suppliers ' decarbonisation, electricity mix decar- bonisation, sustainable products de- velopment or changes in reporting boundaries or activities (e.g., out- sourcing, reduced capacities), provid- ed they are achieved within the com- pany's own operations and upstream and downstream value chain. Remov- als and avoided emissions are not counted as emission reductions. Transition plan for climate change mitigation An aspect of a company's overall strategy that lays out the targets, ac- tions and resources for its transition towards a lower--carbon economy, including actions such as reducing its GHG emissions with regard to the objective of limiting global warming to Circular economy Circular economy means an economic system in which the value of products, materials and other resources in the economy is maintained for as long as possible, enhancing their efficient use in production and consumption, thereby reducing the environmental impact of their use, minimizing waste and the release of hazardous substances at all stages of their life cycle, in- cluding through the application of the waste hierarchy. The goal is to maximize and maintain the value of the technical and biological re- sources, products and materials by creating a system that allows for durability, optimal use or re-use, refurbishment, remanufacturing, recy- cling and nutrient cycling. Original weight Refers to the weight of the material in its origi- nal state, as opposed to any weight estimations with data manipulation such as "dry weight". Resource inflows Resource that enters the company's facilities. These include products (incl. packaging), mate- rials (incl. critical raw materials and rare earths), water and property, plant and equipment used in the company's own operations and along the upstream value chain. Finite materials Materials that are non-renewable on timescales relevant to the economy, i.e. not geological timescales. Examples include: metals and min- erals; fossil forms of carbon such as oil, coal, and natural gas; and sand, rocks, and stones. Renewa- ble mate- rials Materials that are continually replenished at a rate equal to or greater than the rate of deple- tion. Examples include: cotton, hemp, maize, wood, wool, leather, agricultural by-products, nitrogen, carbon dioxide, and sea salt. To fit in a circular economy such materials (where rele- vant) must be produced using regenerative Biological materi- als Products and materials that flow through the biological cycle. In the biological cycle, processes - such as composting and anaerobic digestion - together help to regenerate natural capital. The only materials suitable for these processes are those that can be safely returned to the biosphere. Bio- logical materials are natural materials (common elements are carbon, hy- drogen, and oxygen). Technical materials Products and materials that flow through the technical cycle. In the technical cycle, if products and mate- rials are to be kept in circulation, it is through processes such as reuse, repair, remanufacture and recycling. Materials suitable for these processes are those that are not consumed dur- ing use - such as metals, plastics and wood. [Definition from Ellen Macar- thur Foundation]. Virgin materials Materials that have not yet been used in the economy. These include both finite materials (e.g. iron ore mined from the ground) and resources that can be renewable (e.g. newly pro- duced cotton). Non-virgin materi- als (a.k.a. Second- ary materials) Materials that have been previously used. This includes: materials in prod- ucts that have been reused, refur- bished or repaired; components that have been remanufactured; materials that have been recycled. Also referred to as secondary materials. SUSTAINABILITY STATEMENT | 90 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Social Through the development of its policies, training and (future) audits Tekna aims to ensure the two human rights and four labor-related principles of the United Nations Global Compact are fully adhered to in its operations and its value-chain. The competence of our employees represents a ma- jor asset and competitive advantage for Tekna. At the end of 2024, the Group employed a total of 185 people. The number of employees were divided across loca- tions as follows: Canada: 161 (186) France: 18 (31) China: 4 (4) South Korea: 1 (1) USA: 1 (0) Women represented 26 per cent of the Tekna work- force in 2024. Out of 43 managers (managers with employees reporting to them) 22 per cent were fe- male. Tekna aspires to substantially increase the share of female employees and is working through the employee life cycle to see where measures could be implemented to enhance diversity across the or- ganization. To date, Tekna’s workforce comprises 23 different nationalities, of which about 2/3 are Cana- dian. There were no serious work-related accidents and two lost time injuries in 2024. Sick leave was 2.9% per cent in 2024, compared to 3.3 per cent in 2023. All Tekna policies in the Social and Governance space mention and align with : • UN Guiding Principles on Business and Human Rights • ILO Declaration on Fundamental Principles and Rights at Work • OECD Guidelines for Multinational Enterprises Social protection All employees of our employees in all countries are covered by social protection against loss of income due to significant life events, like sickness; unemploy- ment starting from when the employee is working for the company; employment injury and acquired disability; paren- tal leave; and retirement. They are also entitled to family-related leave. All new employees com- plete a confidential self- identification question- naire kept by the HR team. This information is required by the govern- ment and helps identify vulnerable groups (women, visible minori- ties, indigenous people and persons with disabili- ties) in order to promote employment equity in the workplace. Employees may consult the HR depart- ment at any time to discuss a disability that would require accommodation. Training and skills development New employees follow a training plan that outlines all the responsibilities and skills they need to acquire, including the internal trainer and the timeline for skill acquisition. Annually, we develop a company train- ing plan based on the needs identified by managers in collaboration with their employees. We also offer internal conferences led by our employees, focusing on technical topics. Contents Social ........................................... 90 Own workforce.........................91 Workers in the value chain .. 97 Human Rights and Transparency ............................. 98 Definitions and accounting principles .................................... 99 Employees active at the annual spring cleaning event of the industrial park organized by Tekna SUSTAINABILITY STATEMENT | 91 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents I Fatalities 0 0 0 (2022) II # of lost time injuries 2 1 1 (2023) III Lost Time Injury Frequency Rate 5.8 8.1 2.7 (2022) IV Sick leave rate 2.9% 3.3% 3% (2022) V Voluntary turnover rate 16.3% 19.0% 22% (2022) VI 92.9% N/A 92.9% (2024) % of succession plans in place for at- risk positions 90% of risk analyses completed Employee committee (CORE) 95% of behaviour audits completed compared to annual audit plan Zero fatalities, zero high consequence injuries 10% reduction per year on the Severity index Improve maturity independent safety culture Continuous training and risk assessments Root cause analyses of any and all incidents Encourage and continue social dialogue through CORE employee committee (Employee) Code of Conduct and Ethics Employee Handbook (MAGRH-01) OHS policy (PL-SST & DRSST-03) Zero tolerance policy OHS employee training plan OHS Management Committee OHS Committee Own workforce [ESRS S1] Working conditions Strategy Tekna understands the value of its workforce and works in ongoing dialogue to improve the corporate culture, the workplace and conditions. Well-being and work/life balance are an important part of this. At Tekna, health and safety are integral parts of our growth strategy and long-term success. We are committed to establishing and promoting a culture that prioritizes health and safety in the workplace through continuous improvement, involving all em- ployees. Company value: We strive for excellence We have committees in place to address issues relat- ed to employee health, safety and well-being. In addition, we have communication channels through managers and human resources departments that allow us to continually evolve our policies so that they are aligned with best business practices. We conduct periodic Employee Satisfaction survey. We provide a base training plan on health and safe- ty for all workers to ensure a strong foundation of safety knowledge and practices. Additionally, we offer more specific training tailored to particular roles, work-related hazards, activities, and situations to address the unique requirements of different jobs. This approach ensures that all employees are equipped to work safely and effectively in their spe- cific environments. Progress made in the year • Implemented a Human Rights policy in 2024. • Safety culture • Training and risk assessments • Root cause analyses for accidents and near- misses • Social dialogue through CORE Comments on (material changes in) KPI’s The updated social KPIs reflect advancements in diversity, safety, and workforce stability. Workplace safety improved, with the lost time injury frequency rate decreasing from 8.1 to 5.8, though the number of lost time injuries was two in 2024. The voluntary turnover rate decreased from 19% to 16%, and suc- cession planning for at-risk positions reached 93% coverage. These figures underscore continued ef- forts toward equity and employee well-being. Tekna has implemented economic layoffs, resulting in the closure of its production site in France and global workforce reductions (from 221 to 185 em- ployees) as part of cost saving measures. KPI (per year) 2024 2023 baseline (year) Quantifiable targets Policies & Guidelines Operationalization Measurement Action plan SUSTAINABILITY STATEMENT | 92 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents 50% female Board of Directors (Employee) Code of Conduct and Ethics Employee Handbook (MAGRH-01) Workplace Harassment policy (PLGRH-08) Human Rights Policy (PLRSE-04) Workers’ compensation equity system Remuneration policy - leading persons Guideline Training / Competences Tekna does not have a specific action plan at present. 50% female management I 57% 57% 0% (2021) II 22% 29% 25% (2022) III 26% 27% 25% (2022) IV 3.93% 2.95% 9.16% (2022) Unadjusted gender pay gap % of women / non- binary in workforce % of women / non- binary in management % of women / non- binary in Board of Directors Own workforce [ESRS S1] continued Equal treatment and opportunities for all (Activities on gender equality and non- discrimination) The power of diversity comes from welcoming dif- ferences to any discussion. These may come from gender differences, which at Tekna is developing slowly. Fortunately, we can count on a high level of diversity in the mix of nationalities in the team. In 2024 there were people from 23 countries working across the globe. Tekna has a workers compensation system that en- sures equality, based on an objective job evaluation method that positions employees on the relative value of their jobs. This system is compliant with the legal requirements prescribed by the Commission for labor standards, pay equity and occupational health and safety (CNESST) of the Province of Que- bec. In France, with the new collective agreement for Metallurgy that started on January 1, 2024, equity is ensured among jobs. Therefore, the average pay for men and women vary due to differences in job cate- gories and years of service, not because of gender. No gender-based differences exist with regard to working hour regulations or the design of workplac- es. Quebec (Canada) and France have strong legislation on discriminatory harassment in the workplace. Our Code of Conduct clearly reject any form of discrimi- nation and emphasize the importance of respect and civility. It also includes a clear process for report- ing and dealing with inappropriate behavior. Strategy Tekna is committed to ensuring that people with different backgrounds, irrespective of ethnicity, gen- der, religion, sexual orientation or age, have the same opportunities for work and career develop- ment at Tekna. Tekna aspires to substantially in- crease the share of female employees and is working through the employee life cycle to see where measures could be implemented to enhance diversi- ty across the organization. Ensuring diversity and inclusion starts with creating awareness and fostering an open speak-up culture. A framework of guidelines, processes and systems, as well as training for our leadership and employees enable continuous improvement. Unbiased skill- based recruitment, addressing the gender pay gap, mentorships and work-life balance are part of our strategy. Tekna's policies are aligned with UN Guiding Princi- ples on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work, OECD Guidelines for Multinational Enterprises. Progress made in the year The reduction in headcount has had an unfortunate side effect that the gender diversity has reduced. Comments on (material changes in) KPI’s Women/non-binary representation in management reached 22% in 2024, where workforce representa- tion was relatively stable at 26%. The composition of the Board of Directors is unchanged (57% female). the gender pay gap for 2024 shows a gap of 3.9%. Quantifiable targets Policies & Guidelines KPI (per year) 2024 (vs baseline) 2023 (vs baseline) baseline (year) Operationalization Measurement Action plan SUSTAINABILITY STATEMENT | 93 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Social statistical mapping = % = % Category 2024 2023 Requirement Description Unit Coverage = % = % Category 2024 2023 Requirement Description Unit Coverage Total 185 100.0% 222 100.0% M 136 73.5% 162 73.0% F 49 26.5% 60 27.0% X 0 0.0% 0 0.0% F+X 0 0.0% 0 0.0% M 11 5.0% 21 9.5% F 7 3.2% 10 4.5% X 0 0.0% 0 0.0% M 121 54.8% 137 62.0% F 41 18.6% 49 22.2% X 0 0.0% 0 0.0% M 4 1.8% 4 1.8% F 1 0.5% 1 0.5% X 0 0.0% 0 0.0% Total 185 100.0% 221 99.5% M 136 73.5% 162 73.0% F 49 26.5% 59 26.6% X 0 0.0% 0 0.0% Europe 18 9.7% 31 14.0% America 162 87.6% 185 83.3% Asia 5 2.7% 5 2.3% <30 30 16.2% 30-50 107 57.8% >50 48 25.9% Total 0 0.0% 1 0.5% M 0 0.0% 0 0.0% F 0 0.0% 1 0.5% X 0 0.0% 0 0.0% Europe 0 0.0% 1 0.5% America 0 0.0% 0 0.0% Asia 0 0.0% 0 0.0% <30 0 0.0% 30-50 0 0.0% >50 0 0.0% Europe America Asia Tekna Full time n/a n/a n/a n/a Total number of employees, and a breakdown of total per contract type by gender and by region; S1-6 50b/52 # Part-time n/a n/a Employees S1-6 50d/51 Total number of employees, and a breakdown of this total by gender and by region; # Employees continued Total 185 100.0% 221 99.5% M 136 73.5% 162 73.0% F 49 26.5% 59 26.6% X 0 0.0% 0 0.0% Europe 18 9.7% 31 14.0% America 162 87.6% 185 83.3% Asia 5 2.7% 5 2.3% <30 30 16.2% 30-50 107 57.8% >50 48 25.9% Total 0 0.0% 1 0.5% M 0 0.0% 0 0.0% F 0 0.0% 1 0.5% X 0 0.0% 0 0.0% Europe 0 0.0% 0 0.0% America 0 0.0% 1 0.5% Asia 0 0.0% 0 0.0% <30 0 0.0% 30-50 0 0.0% >50 0 0.0% Total 0 0.0% 1 0.5% M 0 0.0% 0 0.0% F 0 0.0% 1 0.5% X 0 0.0% 0 0.0% Europe 0 0.0% 0 0.0% America 0 0.0% 1 0.5% Asia 0 0.0% 0 0.0% <30 0 0.0% 30-50 0 0.0% >50 0 0.0% 1 1 0 0 Workers who are not employees S1-7 55 Self-employed people People provided by companies primarily engaged in employment activities Permanent n/a n/a n/a Temporary n/a n/a n/a # Non- guaranteed hours n/a n/a n/a X4A6T SUSTAINABILITY STATEMENT | 94 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Social statistical mapping = % = % Category 2024 2023 Requirement Description Unit Coverage = % = % Category 2024 2023 Requirement Description Unit Coverage Tekna Total 185 100% 222 100% M 136 74% 162 88% F 49 26% 60 32% X 0 0% 0 0% < 30 | Total 30 16% 37 17% M 18 60% F 12 40% X 0 0% 30-50 | Tot. 107 58% 126 57% M 78 73% F 29 27% X 0 0% > 50 | Total 48 26% 59 27% M 40 83% F 8 17% X 0 0% Total 43 100% 56 100% M 31 72% 38 68% F 12 28% 18 32% X 0 0% 0 0% F+X 12 28% 18 32% Total 7 100% 7 100% M 3 43% 3 43% F 4 57% 4 57% X 0 0% 0 0% Total 6 100% 7 100% M 4 67% 5 71% F 2 33% 2 29% X 0 0% 0 0% Total 30 100% 42 100% M 24 80% 30 71% F 6 20% 12 29% X 0 0% 0 0% n/a n/a n/a n/a Headcount breakdown of company leadership by gender #% All management Board C-suite Non- executive level management Diversity of governance bodies and employees S1-9 66 Headcount of all own employees by age and by gender, on 31-Dec- 2024 # Tekna n/a n/a n/a n/a n/a Tekna Total 18 10% 30 14% EEA 1 100.0% 1 100% America 0 0.0% 0 0% Asia 0 0.0% 0 0% Tekna Total 18 10% 30 14% EEA 1 100.0% 1 100% America 0 0.0% 0 0% Asia 0 0.0% 0 0% S1-13 83 Total 185 100.0% 222 100.0% M 136 73.5% 162 73.0% F 49 26.5% 60 27.0% X 0 0.0% 0 0.0% Total 5 578 100.0% M 4 101 73.5% F 1 477 26.5% X 0 0.0% Collective bargaining coverage | Workers' representatives coverage S1-8 60 Number and percentage of employees covered by collective bargaining agreements by region # S1-8 63 Number and percentage of employees covered by workers' representatives by region # Training and skills development Headcount of employees that participated in regular performance and career development reviews Total number of training hours in 2024 across all employees n/a n/a n/a n/a Tekna # hrs Training SUSTAINABILITY STATEMENT | 95 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Social statistical mapping = % = % Category 2024 2023 Requirement Description Unit Coverage Family-related leave Total 11 100% 11 100% M 9 100% 9 100% F 2 100% 2 100% X Total 11 100% 11 100% M 9 100% 9 100% F 2 100% 2 100% X Workers covered by an occupational health and safety management system S1-14 88 employees 181 97% non empl. 0 98% # of people covered by the company's health and safety management system based on legal requirements and/or recognised standards or guidelines # Tekna n/a n/a S1-15 93 Headcount of employees entitled to take family-related leave # Tekna not applicable not applicable Headcount of entitled employees who took family-related leave # Tekna not applicable not applicable = % = % Category 2024 2023 Requirement Description Unit Coverage employees 0 0 non empl. 0 0 Ext workers @ Tekna 0 0 employees 4 6 non empl. 0 0 employees 4 6 non empl. 0 0 employees 0 0 non empl. 0 0 employees 29 non empl. 0 Rate of recordable work-related accidents Tekna Total 2.15% n/a Lost time injury frequency rate (LTIFR) per million exposed hours Tekna Total 5.8 8.1 # of days lost to work- related injuries and fatalities from work- related accidents, work- related ill health and fatalities from ill health # Tekna Work-related injuries S1-14 88 # of fatalities as a result of work-related injuries and work- related ill health # Tekna # of recordable work- related accidents # Tekna # of cases of recordable work- related injuries # Tekna # of cases of recordable work- related ill health # Tekna SUSTAINABILITY STATEMENT | 96 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Social statistical mapping = % = % Category 2024 2023 Requirement Description Unit Coverage Avg. remuneration Avg. annual salary Avg. remuneration Avg. annual salary M 81 934 81 934 15 161 15 161 F 67 227 67 227 34 883 34 883 X M 303 437 245 940 243 544 208 143 F 245 893 204 911 X M 148 893 120 439 F 120 607 96 929 X M 86 913 70 075 F 77 521 62 664 X Basic salary Variable components S1-16 97b / 98 Highest paid individual in the company 329 379 46 648 Remuneration of CEO 329 379 46 648 Remuneration of median pay level 82 961 0 M 49.1 F 47 X 0 S1-16 97a Gender pay gap 3.93 2.95 Average gross hourly pay for own workforce All other employees n/a not applicable Non- executive level management n/a n/a not applicable n/a n/a n/a Remuneration in Canadian Dollars (CAD) Remuneration by employee category CAD Board not applicable not applicable C-suite consolidated not applicable All other employees n/a n/a not applicable not applicable Employees active at the annual spring cleaning event of the industrial park organized by Tekna SUSTAINABILITY STATEMENT | 97 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Workers in the value chain [ESRS S2] Strategy Tekna is working to ensure compliance with funda- mental human rights and acceptable working condi- tions in our supply chains and with their business partners. Tekna’s first experience with supply-chain due dili- gence stems from its 2022/23 effort to engage with the top 25 suppliers ranked on the basis of risk of location, location of their supply-chain and or spend. We used a professional tool developed for this pur- pose, Factlines.com, and after numerous follow-ups we managed to get 9 completed assessments. For results refer to the 2023 report. 80 per cent of Tekna’s global spend comes from suppliers based in the EU or NA, which we deem well-governed by legal standards. The highest risk supplier (rank 1/25), based on significance for Tekna for (titanium feedstock), spend (approx. 20 percent of total company spend), and location (China classi- fied as a country with high risk because there is no guarantee of workers’ rights), completed the self- assessment, signed the SCoC and was audited on site. They are well-established and a qualified suppli- er to major western industrial conglomerates. Therefore, the Ethics and Compliance Committee has decided to use 2024 for implementing the new policies approved in Q4 2023 and 2024 (see Sub- jects for the Board). In 2025, we will initiate a second due diligence round to identify, measure and under- stand the most important risks in our supply chain. We aim to covers topics such as supply chain, risk assessment, management systems, working condi- tions, social responsibility, environment, anti- corruption, and conflict minerals. Progress made in the year • Implementation of Human Rights Policy and the Business Partner Code of Conduct Comments on (material changes in) KPI’s These are the same KPIs as the Human Rights and transparency report. In 2024, the focus was on im- plementing policies. We have not progressed on improving the participation in the due diligence. We will restart in 2025. Refer to the Human Rights and transparency report. Quantifiable targets Policies & Guidelines KPI (per year) 2024 2023 Target Human Rights Policy (PLRSE-04) Business Partner Code of Conduct Routine - Transparency Act Improve the % of signatories of the updated Business Partner Code of Conduct to 50% Improve particip- ation in its due diligence process and act on “high risk” assessments Increase BP CoC signatories - simplify process Define most critical suppliers and reinitiate Due diligence on 25 most critical suppliers, ECC to track Continue to ensure ethical provenance of potential conflict minerals, such as tungsten and tantalum. Due diligence with top 25 highest-risk suppliers I % of new suppliers that were screened using social criteria 0% (priority focus on risk suppliers) 0% (priority focus on risk suppliers) 10% II # of suppliers assessed for social impacts ("s.i.") 9 9+3 in progress 25 III 0 n/a IV 0 (high risk) n/a V 0 n/a 0 # of suppliers with significant actual and potential negative s.i. % of KPI #III with which improv- ements were agreed % of KPI #III with which relationships were terminated 0% 0% Operationalization Measurement Action plan SUSTAINABILITY STATEMENT | 98 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Human Rights and Transparency Summary Tekna Group (“Tekna” or “Group”) is subject to the two following legal frameworks, both having the objective of improving respect for fundamental hu- man rights in supply chains and increasing transpar- ency on the topic. • 1 January 2024, the Canadian Fighting Against Forced Labour and Child Labour in Supply Chains Act came into effect. • 1 July 2022, the Norwegian Transparency Act came into effect. Guidelines and routines In the last few years Tekna has put in place a solid base of guidelines to serve as an ethical compass for its employees and business partners. Since 2022, the Board of Directors approves all ESG policies. Important policies publicly available on www.tekna.com/esg • Code of Conduct and Ethics (CoC, 2023 update) • Business Partner Code of Conduct (BPCoC, 2024 update) • Corporate Governance policy (2022) • Human Rights Policy (2024) • Routine - Transparency Act (2023) • Anti-Corruption policy (2023) • Competition law compliance policy (2023) Relevant internal policies approved by the CEO: • Donations and Sponsorships Policy • Work Harassment policy • Workers’ compensation equity system • Occupational Health & Safety policy Whistleblowing Tekna will endeavour to protect whistleblowers against retaliation. Tekna may, however, disclose information to competent authorities to the extent appropriate. Tekna established a partnership with Whistleblower Software, enabling us to introduce an anonymous whistleblowing platform to our valued employees and stakeholders. By providing a secure, anonymous and confidential channel for individuals to report concerns, we have strengthened our commitment to maintaining the highest standards of integrity within our organization. In 2024, there were no reported incidents of discrim- ination, anti-corruption or breaches of the BPCoC or CoC. Tekna received three whistleblowing reports involving two (internal) incidents. Performance The Ethics and Compliance Committee has decided to use 2024 for implementing the new policies ap- proved in Q4 2023 and 2024. In 2025, we will initiate a second due diligence round to identify, measure and understand the most im- portant risks in our supply chain. We aim to cover topics such as supply chain, risk assessment, man- agement systems, working conditions, social respon- sibility, environment, anti-corruption, and conflict minerals. Process to remediate negative impacts To date, Tekna has not detected or been informed of any negative impact to remediate. In line with our 2024 Human Rights Policy and com- mitment, Tekna ensures that complaints are handled promptly, impartially, and according to applicable laws and regulations. Our grievance handling team will conducts thorough investigations, taking action, and ensuring transparency throughout the remedia- tion process. Actions planned for 2025 • Employee training in CoC— including focus on child and forced labour, Anti-Corruption and Compliance • Increase BPCoC signatories - simplify process • Reinitiate Due diligence on 25 most critical suppliers, ECC to track For further information on the process, considera- tions and assessment results, accounting policies, etc, please refer to the full Human Rights and Trans- parency Report in the appendix. KPI (per year) 2024 2023 Target I % of new suppliers that were screened using social criteria 0% (priority focus on risk suppliers) 0% (priority focus on risk suppliers) 10% II # of suppliers assessed for social impacts ("s.i.") 9 9+3 in progress 25 III 0 n/a IV 0 (high risk) n/a V 0 n/a 0 # of suppliers with significant actual and potential negative s.i. % of KPI #III with which improv- ements were agreed % of KPI #III with which relationships were terminated 0% 0% Measurement SUSTAINABILITY STATEMENT | 99 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Ill health Work-related ill health can include acute, recur- ring, and chronic health problems caused or aggravated by work conditions or practices. These include musculoskeletal disorders, skin and respiratory diseases, malignant cancers, diseases caused by physical agents (for exam- ple, noise-induced hearing loss, vibration- caused diseases), and mental illnesses (for ex- ample, anxiety, post-traumatic stress disorder). For the purpose of the required disclosures, the undertaking shall, at a minimum, include in its disclosure those cases outlined in the ILO List of Occupational Diseases. Lost-time injuries Work-related injuries that lead to an employee missing work. In this metric, each injury counts as 1 (regardless of the length of time lost). Sickness absence Leave taken by an employee due to sickness, either short-term (16 days or less) or long-term (more than 16 days). Work- related accidents A work-related incident that results in injury or ill health. This is to be distinguished from an incident that has the potential to result in injury or ill health but where none occurs, which is often referred to as a ‘close call’, ‘near-miss’, or ‘near-hit’. Accidents related to commuting are only included if the employer organized the transportation. Work- related hazards Work-related hazards can be physical (e.g. radiation, temperature extremes, constant loud noise, spills on floors or tripping hazards, un- guarded machinery, faulty electrical equip- ment), ergonomic (e.g. improperly adjusted work stations and chairs, awkward movements, vibration), chemical (e.g. exposure to solvents, carbon monoxide, flammable materials, pesti- cides), biological (e.g. exposure to blood and bodily fluids, fungi, bacteria, viruses, insect bites), and/or psychosocial (e.g. verbal abuse, harassment, bullying, excessive workload de- mands, shift work, long hours, night work, Definitions and Accounting principles Social Employee An individual who is in an employment rela- tionship with the company according to na- tional law or practice. Non- employee Non-employees in the company's own work- force include both individual contractors sup- plying labor to the company (self-employed people) and people provided by other compa- nies that are primarily engaged in employment activities (such as employment placing agen- cies, human resources provision, etc. as cov- ered by NACE Code N78). We consider that interns and volunteers (if applicable) fall in this category. All other employ- ees Employees who are not a part of the Board of Directors, the C-suite, or the non-executive level management. Non- executive level man- agement Management team excluding the C-suite. This includes Directors, Sales directors, First line manager, Management committee members in Tekna Plasma Europe. Regular perfor- mance review A regular performance review is defined as a review based on criteria known to the employ- ee and his or her superior undertaken with the knowledge of the employee at least once per year. The review can include an evaluation by the worker’s direct superior, peers, or a wider range of employees . The review can also in- volve the human resources department. Training Initiatives put in place by the company aimed at the maintenance and/or improvement of skills and knowledge of its own workers. It can include different methodologies, such as on- site training, and online training. Remuner- ation Annual total remuneration to own workforce includes salary, bonus, stock awards, option awards, non-equity incentive plan compensa- tion, change in pension value, and nonquali- fied deferred compensation earnings provided Collective bargain- ing agree- ments All negotiations which take place between an employer, a group of employers or one or more employers' organizations, on the one hand, and one or more trade unions or, in their absence, the representatives of the workers duly elected and authorized by them in accord- ance with national laws and regulations, on the other, for: i. determining working conditions and terms of employment; and/or ii. regulating relations between employers and workers; and/ or regulating relations between employers or their organizations and a workers' organization (s). Social dialogue All types of negotiation, consultation or simply exchange of information between, or among, representatives of governments, employers, their organizations and workers' representa- tives, on issues of common interest relating to economic and social policy. It can exist as a tripartite process, with the government as an official party to the dialogue or it may consist of bipartite relations only between workers' repre- sentatives and management (or trade unions and employers' organizations). Social protec- tion The set of measures designed to reduce and prevent poverty and vulnerability. In this con- text social protection can be provided through public programs (e.g. the welfare system of- fered by the country) or through benefits of- fered by the company. Persons with disa- bilities Persons with disabilities include those who have long-term physical, mental, intellectual or sen- sory impairments which in interaction with vari- ous barriers may hinder their full and effective participation in society on an equal basis with others. Disability is the umbrella term for im- pairments, activity limitations and participation restrictions, referring to the negative aspects of the interaction between an individual (with a health condition) and that individual's contextu- al factors (environmental and personal factors). Work- related injuries or ill health Work-related injury or ill health that results in any of the following: i. death, days away from work, restricted work or transfer to another job, medical treatment beyond first aid, or loss of consciousness; or ii. significant injury or ill health diagnosed by a physician or other li- censed healthcare professional, even if it does not result in death, days away from work, re- stricted work or job transfer, medical treatment beyond first aid, or loss of consciousness. Ex- amples of work situations or activities that can cause occupational diseases can include stress or regular exposure to harmful chemicals. Family- related leave Family-related leave include maternity leave, paternity leave, parental leave, and carers’ leave (leave for workers to provide personal care or support to a relative, or a person who lives in the same household, in need of significant care or support for a serious medical reason, as defined by each state) that is available under national law or collective agreements. In some SUSTAINABILITY STATEMENT | 100 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Definitions and Accounting principles Social Adequate wage A wage that provides for the satisfaction of the needs of the worker and their family in the light of national economic and social condi- tions. Lowest wage The company's lowest pay category, excluding interns and apprentices. This is to be based on the basic wage plus any fixed additional pay- Applicable bench- marks In EEA: The minimum wage set by the state in accordance with Directive (EU) 2022/2041 of the European Parliament and of the Council. Outside EEA: The minimum wage set by: i. the wage level established in any existing interna- tional, national or sub-national legislation, official norms or collective agreements, based on an assessment of a wage level needed for a decent standard of living; ii. if none of the instruments identified in (i) exist, any national or sub-national minimum wage established by legislation or collective bargaining ; or iii. if none of the instruments identified in (i) or (ii) exist, any benchmark that meets the criteria set out by the Sustainable Trade Initiative (IDH) (‘ Roadmap on Living Wages - A Platform to Secure Living Wages in Supply Chains ’), in- cluding applicable benchmarks aligned with the Anker methodology, or provided by the Wage Indicator Foundation or Fair Wage Net- work, provided the primacy of collective bar- gaining for the establishment of terms and conditions of employment is ensured. Gross hourly pay Total annual remuneration paid to an employ- ee (see definition of Remuneration) divided by the number of hours they work in the year. Median pay level The pay of the employee that would have half of the employees earn more and half less than they do, excluding the highest-paid individual. Discrimi- nation Discrimination can occur directly or indirectly. Direct discrimination occurs when an individual is treated less favorably by comparison to how others, who are in a similar situation, have been or would be treated, and the reason for this is a particular characteristic they hold, which falls under a ‘protected ground’. Indirect discrimina- tion occurs when an apparently neutral rule disadvantages a person or a group sharing the same characteristics. It must be shown that a group is disadvantaged by a decision when Harass- ment A situation where an unwanted conduct related to a protected ground of discrimination (for example, gender, religion or belief, disability, age or sexual orientation) occurs with the pur- pose or effect of violating the dignity of a per- son, and of creating an intimidating, hostile, degrading, humiliating or offensive environ- Incident A legal action or complaint registered with the company or competent authorities through a formal process, or an instance of non- compliance identified by the company through established procedures. Established procedures to identify instances of non-compliance can include management system audits, formal monitoring programs, or grievance mecha- employee is based. Available work days and hours Estimated on the basis of normal or standard hours of work, taking into account entitlements to periods of paid leave of absence from work, e.g. paid vacations, paid sick leave, public holiday Lost Time Injury Frequency Rate (LTIFR) This shows the average number of injuries occurring over 1 million working hours. LTIFR is calculated as: ([Number of injuries from work situations in the reporting period] x 1,000,000) / (Total hours worked in the reporting period).) Unadjusted gender pay gap Unadjusted gender pay gap’ is defined as the difference between average gross hourly earnings of man and women expressed as a percentage of the average gross hourly earnings of men. Tekna group. Sick leave rate Ratio of total sick leave to total available work days. Voluntary turnover rate Number of employees leaving voluntarily (e.g. resignation) divided by the average number of employees. Average number of employees Calculated as [ total number of employees at the begin- ning of the year + total number of employees at the end of the year divided by 2]. Total number of training hours Each year, we record all completed training sessions and produce a report highlighting the training hours and costs. The data established by gender were calculated on the basis of the number of employees by gender. Family-related leave This reporting relates to all data for the entirety of 2024. For matters such as family-related leave, it is possible that leave would have started in 2023 and continued into 2024. All days in 2024 are included here (but no days from 2023). Accounting principles S2 | Human Rights and Transparency Refer to the Human Rights and Transparency report in the appendix for detailed accounting principles. Accounting principles S1 Methodology: we use headcount at the end of the reporting period. All data from 1-Jan-2024 to 31-Dec-2024 is included unless stated otherwise. If a group contains fewer than 5 people, personal information is not considered anonymous. Privacy regulations such as GDPR may apply and are therefore not disclosed. Definitions for full-time, part-time, permanent, temporary, and non-guaranteed hours are measured according to definitions in the national laws of the countries where the SUSTAINABILITY STATEMENT | 101 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Governance Responsible business conduct is fundamental for Tekna’s business, its credibility, and its ability to suc- ceed with its strategy. Tekna expects its internal and external stakeholders to comply with this responsibil- ity. By working together, the Board of Directors (“BoD”) and Executive Leadership Team (“ELT”) create a strong ethical foundation, promoting compliance, and building trust with employees, customers, and stakeholders. The board sets the overall ethical tone and govern- ance framework for the company, ensuring that business conduct aligns with the organization's core values, mission, and long-term strategy. They review and approve key policies, including the company's Code of Conduct and whistleblower policy. The board monitors the effectiveness of the company's business conduct policies through periodic reports from management, audits, and the ethics and com- pliance committees. They identify and assess risks related to ethical lapses and misconduct and ensures that adequate mitigation measures are in place. They ensure that violations are addressed appropri- ately, including taking disciplinary action against sen- ior executives when necessary and encourage a Speak-Up Culture. By endorsing whistleblower pro- tections and ensuring confidentiality, the board fos- ters an environment where employees feel safe re- porting misconduct. The Executive Leadership Team focuses on imple- menting policies and enforcing them in day-to-day operations. They ensure employees are aware and training is up to date and promote ethical leadership by being role models in our organization. They monitor on report on potential risks and findings to the Audit Committee on a quarterly basis and strive for continuous improvement of business conduct. Collaboration between the BoD and ELT ensures accountability, information flow and policy develop- ment. The bodies consist of an experienced team of individuals with a strong ethical compass and per- sonal values. Code of Conduct Tekna has implemented its Code of Conduct (“CoC”) in 2020 and updated it in December 2023. The Board of Directors approved the policy. Amongst other important topics, the CoC includes Corruption and Bribery, Sanctions, Human Rights, Whistleblow- ing and Protection and Market communication and disclosure. The CoC is available in the Document Management System "Isovision" and on the website. It is part of the introduction program of every employee as well as compulsory (re-)lecture when significant updates are done. Further relevant policies are: • Business partner code of conduct • Anti-Corruption policy • Competition Law Compliance policy • Donations and Sponsorships policy • Employee handbook A new video training has been developed in 2024 and roll out has started early 2025. Its completion in Q1 is compulsory for all employees. No training was provided in 2024. Whistleblowing Tekna is connected to an independent online plat- form hosted on : https://whistleblowersoftware.com/ secure/tekna. Tekna has the link on its website as it is available for use by any stakeholder. We do not ac- tively inform business partners that the channel ex- ists as other governance actions are deemed more important and urgent. The reports are sent for review and action to the HR director and HR business partner (unless they are specifically named in the report) and for information: to the CEO, VP Legal Affairs, VP Corporate Strategy In 2024, there were three reports via the Whistle- blowing channel concerning two internal incidents of breach of the CoC (verbal behavior employees). Currently, there is no independent investigative body, like Internal Audits, in place. Tekna has plans to set one up when it reaches a revenue / transac- tion threshold. The CEO / CFO may retain a 3rd par- ty on a case by case basis to investigate incidents. All cases were resolved by year-end and in average within seven weeks. Contents Governance............................... 101 Business conduct .................. 102 Cyber security ........................ 103 Business conduct SUSTAINABILITY STATEMENT | 102 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Roll out Employee Training on CoC and Compliance policies Business Partner Code of Conduct Anti-Corruption policy Competition law compliance policy Donations and Sponsorships Policy Routine - Transparency Act Increase transparency and accountability by creating business units Zero compliance incidents per annum Code of Conduct and Ethics signed by all employees Continue agenda of Ethics and Compliance Committee Corporate Governance policy (Employee) Code of Conduct and Ethics Employee Handbook Risks Positions considered most at risk in respect of cor- ruption and bribery are management (30 people), procurement (4) and sales (14) due to the seniority of their positions as well as exposure to reputational leverage. We have identified one high risk business partner based on significance for Tekna for (titanium feed- stock), spend (approx. 20 percent of total company spend), and location ((ranking on the corruption index). They have completed the self-assessment, signed the CoC and were audited on site in 2023. Prevention and detection (based on the anti-corruption policy) Prevention is based on policies in place and training for key employees. Tekna will conduct periodic audits of its international offices, manufacturing facilities, Business Partners in order to evaluate the effectiveness of and compli- ance with the requirements of the policies. Audits may be conducted internally by Tekna, or externally by retained third parties. All Representative com- plaints or reports of violations must be addressed to the VP Legal Affairs. All reports received will be promptly and fully investigated. There have be no incidents of corruption or bribery in 2024. Business Conduct [ESRS G1] Strategy Ensuring proper business conduct within Tekna is based on putting in place guidelines, processes, sys- tems and training for our leadership and employees, demonstrating a zero tolerance for infringement as well as performing due diligence in selecting and cooperating with business partners. Company value: We build trust Progress made in the year • Ethics and Compliance Committee instated, with regular meetings on progressing govern- ance at Tekna. • Continued implementation of Whistleblower solution and emphasized its existence with employees. • Training on Code of Conduct and Compli- ance developed, which was launched early 2025 with compulsory completion in Q1. Comments on material changes in KPI’s The governance KPIs highlight robust measures to strengthen integrity and cybersecurity. In 2024, 100% of employees and high-risk business partners signed the respective Codes of Conduct, up from 78% in 2023 for employees. Whistleblowing cases were all handled within seven weeks, showcasing a focus on addressing stakeholder concerns. There were no violations of anti-corruption or anti-bribery laws, reflecting a strong commitment to ethical govern- ance practices. Quantifiable targets Policies & Guidelines KPI (per year) 2024 2023 Target I # of reported incidents/breach CoC 0 0 0 II % signature of CoC 100% 78% 100% III # of corruption cases 0 0 0 IV Whistleblower reports n/a 3 1 n/a Operationalization Measurement Action plan SUSTAINABILITY STATEMENT | 103 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Cyber security [ESRS Gx] (Entity specific) Strategy Information and Communications Technology (ICT) security relates to the internal policies and protocols specific to the Group that help ensure that infor- mation and data are protected and secure from un- wanted breaches or incidents and handled in such a manner that protect company-specific data and in- dividual rights and adhere to applicable external regulations. Executives and Finance positions are at risk for their access to sensitive data and presumed ability to au- thorize or move money (17 employees in 2024). Tekna does not store personal data of a sensitive nature, except of its own employees. Progress made in the year • Tekna keeps a log of (attempted) cyber attacks. • Tekna is implementing a cyber security roadmap based on conclusions of a third party vulnerabil- ity test performed in 2023. • All employees pass compulsory security aware- ness training on an annual basis and simulated phishing attacks throughout the year. Additional training is imposed to employees failing security training, simulated fishing attacks or as deter- mined by management. Comments on material changes in KPI’s Due to the possibility of abuse of any disclosure, information is provided at a summarized level and results of certain KPIs not disclosed. 100% of the workforce received cybersecurity train- ing. The organization suffered no successful cyberat- tacks in 2024. Quantifiable targets Policies & Guidelines KPI (per year) 2024 (vs baseline) 2023 (vs baseline) baseline (year) 0 successful cyber security breaches IT policy Cyber security training Guideline Training / Competences Simulated fishing campaign result <5% avg.p.a. Remain up to date! In terms of training ICT personnel, installing software patches, compliant devices, training personnel etc in line with Tekna's level of exposure. 95% workforce trained at any point in time Implementation cyber security roadmap. 95% compliant devices at any point in time Train all employees annually by elearning, and monthly simulation phishing campaigns. I % of successful cyber attacks (gaining 0% n/a 0% (2024) II % of workforce trained in cyber sec. 100% n/a 100% (2024) III % compliant devices not disclosed n/a n/a IV % Simulated phishing campaign failure not disclosed n/a n/a Operationalization Measurement Action plan Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 I. Organization chart, shareholders, entities ......... 105 II. Indicators supporting SFDR Principal Adverse Impacts disclosure ............................... 106 III. Abbreviations ESG .............. 107 IV. Alternative Performance Measures .............................. 108 V. Carbon Accounting Report .................................. 110 VI. EU Taxonomy Report ....... 125 VII. Human Rights and Transparency Report ........ 135 Appendix Appendix | 104 ADDITIONAL INFORMATION | 105 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Appendix I: Organisation chart, key financial figures, shareholders Tekna Group, as per 31.12.2024 This report comprises the following organisational units: Comment Staﬀ Tekna Holding ASA [THASA], Norway holding, no staff 0 Tekna Holding Canada Inc [THC], Canada holding, no staff 0 Tekna Plasma Systems Inc [TPS], Canada, HQ operational headquarter, Systems production 111 Tekna Advanced Materials Inc [TAM], Canada Materials production 50 Warehouse [JLM], Canada not a legal entity, temporary warehouse 0 Tekna Plasma Europe SAS [TPE], France sales office Europe, powder production (idle in 2024) 18 Tekna Plasma Suzhou Co Ltd [TPZ], China sales office, office move in Q1 2022 4 Tekna Plasma Korea Co Ltd [TPK], Korea sales office, office move in Q2 2024 1 Tekna Inc [TUS], USA sales office, activity started end of 2022 1 Only when specifically mentioned: Imphytek Powders SAS [Imphytek], France, JV JV, in process of dissolution 0 Organization chart Major shareholders Main objectives Vision: Advance the world with sustaina- ble material solutions, one particle at a time. Mission: Be the ultimate partner We achieve this by leveraging our tal- ented people, our innovations and our manufacturing excellence to provide our customers with plasma technology and material solutions that drive their suc- cess, today and tomorrow. Key financial figures in CAD million 2024 2023 Revenues 37.2 40.9 Adjusted EBITDA -6.9 -4.1 EBITDA -4.0 -8.2 Net profit / loss -11.2 -15.0 Cash balance 12.8 10.1 Employees 185 222 ADDITIONAL INFORMATION | 106 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Adverse sustainability indicator Metric (for issuers) 2024 2023 Greenhouse gas emissions 1. GHG Emissions Scope 1 596 tCO2e 589 tCO2e Scope 2 14 tCO2e 29 tCO2e Scope 3 27 730 tCO2e 1 981 tCO2e (incomplete) Total 28 340 tCO2e N/A incomplete 2. Carbon Footprint Not applicable to issuers 3. GHG intensity Revenue 37.2 M CAD 40.9 M CAD tCO2e/M CAD 762 tCO2e/MCAD N/A (scope 3 incomplete) 4. Active in fossil fuel sector Not applicable 5. Share of non-renewable energy consumption and production Consumption 23% (100%-77%) 28% (100%-72%) Production Not applicable 6. Energy consumption intensity per high impact climate sector GWh / M CAD Not applicable NACE Not active in high impact NACE Plasma Systems: C28 | Additive Materi- als C25 | (Microelectronics: C26 | Ener- gy Storage: C27) GWh 12.8 GWh 11.6 GWh Biodiversity 7. Activities negatively affecting biodi- versity-sensitive areas No Tekna sites in “biodiversity sensitive areas” - see CSRD report Water 8. Emissions to water Tons of emissions to water 0 0 Waste 9. Hazardous waste ratio Tons of hazardous waste 79 85 Adverse sustainability indicator Metric (for issuers) 2024 2023 Social and em- ployee matters 10. Violations of UN Global Compact principles and Organisation for Eco- nomic Cooperation and Develop- ment (OECD) Guidelines for Multi- national Enterprises No violations No violations 11. Lack of processes and compliance mechanisms to monitor compliance with UN Global Compact principles and OECD Guidelines for Multina- tional Enterprises Processes in place www.tekna.com/esg Code of Conduct | Business Partner Code of Conduct | Anti-Corruption policy | Competition Law Compliance policy | Human Rights Policy etc. 12. Unadjusted gender pay gap 3.93% 2.95% 13. Board gender diversity M: 43% F: 57% X: 0% M: 43% F: 57% X: 0% 14. Exposure to controversial weapons (anti-personnel mines, cluster muni- tions, chemical weapons and bio- logical weapons) Not applicable Climate and other environment-related indicators Appendix II: Indicators supporting Investor’s SFDR Principal Adverse Impacts (PAI) disclosure Social and employee, respect for human rights, anti-corruption and anti- bribery matters Shareholder information (continued) ADDITIONAL INFORMATION | 107 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents xxx Abbreviation Clarification Useful link Abbreviation Clarification Useful link AFK Arendals Fossekompani ASA Home - Arendals Fossekompani IPCC Intergovernmental Panel on Climate Change IPCC — Intergovernmental Panel on Climate Change AM Additive Manufacturing IR Injury Rate AMGTA Additive Manufacturer Green Trade Association Home - AMGTA IRO Impact, Opportunities and Risks CSRD AR Absentee Rate ISO International Organisation for Standardisation ISO - International Organization for Standardization BoD Board of Directors investors/governance (tekna.com) IT Information Technology BPCoC Business Partner Code of Conduct esg (tekna.com) KPI Key Performance Indicator CoC Code of Conduct LCA Life Cycle Assessment Life-cycle assessment - Wikipedia CoP Communication on Progress (Re: UN Global Compact) LDA Lost Day Rate CSR Corporate Social Responsibility LiB Lithium-ion Battery CSRD Corporate Sustainability Reporting Directive (EU) LTI | LTIFR Lost Time Injury Rate | Lost Time Injury Frequency Rate DMA Double Materiality Assessment CSRD NACE Nomenclature of Economic Activities eCoC employee Code of Conduct esg (tekna.com) NGO Non-Governmental Organisations eNPS employee Net Promotor Score NPS Net Promoter Score ERP Enterprise Resource Planning OECD The Organisation for Economic Co-operation and Devel- Home page - OECD eSAT employee Satisfaction Score OEM Original Equipment Manufacturer ESG Environmental, Social and Governance esg (tekna.com) OHS Occupational Health and Safety ESRD European Sustainability Reporting Directive (EU) R&D Research & Development EU taxonomy an European tool to help investors understand whether an economic activity is environmentally sustainable, and to navigate the transition EU taxonomy for sustainable activities | European Commission (europa.eu) SASB Sustainability Accounting Standards Boards SASB EY Ernst & Young sCoC Supplier Conduct of Conduct esg (tekna.com) FTE Full-time Employees SDG Sustainable Development Goals THE 17 GOALS | Sustainable Development (un.org) GDPR General Data Protection Regulation SFDR Sustainable Finance Disclosure Regulation (EU) GHG Greenhouse Gas TCFD Task Force on Climate-related Financial Disclosures Task Force on Climate-Related Financial Disclosures | GRI Global Reporting Initiative GRI - Home (globalreporting.org) TAM Tekna Advanced Materials HSSE Health, Safety, Security and Environment TPE Tekna Plasma Europe HR Human Resources TPS Tekna Plasma Systems IoT Internet of Things UN United Nations Homepage | UN Global Compact Appendix III: ESG Abbreviations ADDITIONAL INFORMATION | 108 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Appendix IV: Alternative Performance Measures Definitions Tekna presents alternative performance measures as a supplement to measures regulated by IFRS. The Group considers these measures to be an important supplemental measure for investors to understand the Groups’ activities. They are meant to provide an enhanced insight into the operations, financing, and future prospects of the company. These measures are calculated in a consistent and transparent manner and are intended to provide en- hanced comparability of the performance from period to period. The definitions of these measures are as follows: Contribution Margin: Is defined as revenues less direct variable costs such as direct labour, raw materi- al, electricity, gas consumption, commissions, freight, customs and brokerage fees, laboratory supplies and packaging. The Contribution Margin is used to evaluate performance of production before any allocation of fixed manufacturing costs. Contribution Margin %: is defined as the Contribution Margin divided by revenues in the period. EBITDA: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures, depreciation, and amortization. EBITDA Margin %: Is defined as EBITDA as a percentage of revenues. Adjusted EBITDA: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures, de- preciation, and amortization adjusted for certain special operating items affecting comparability. These operating items include, but not limited to, restructuring costs, and litigation costs and incomes, and expenses for vesting and change in social security tax because of the development in the value of the underlying shares in the group’s share-based compensation scheme. Adjusted EBITDA Margin %: Is defined as Adjusted EBITDA as a percentage of revenues. EBIT: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures. EBIT Margin %: Is defined as EBIT as a percentage of revenues. Adjusted EBIT: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures adjusted for certain special operating items affecting comparability. These operating items include, but not limited to, restructuring costs, litigation costs and incomes, and expenses for vesting and change in social se- curity tax because of the development in the value of the underlying shares in the group’s share- based compensation scheme. Adjusted EBIT Margin %: Is defined as Adjusted EBIT as a percentage of revenues. Adjusted EBIT Mar- gin is a non-IFRS financial measure that the Group considers to be an APM, and this measure should not be viewed as a substitute for any IFRS financial measure. Long Term Debt/Equity Ratio: Is defined as total non-current liabilities divided by total equity. Long Term Debt/Equity Ratio is a non-IFRS financial measure that the Group considers to be an APM, and this measure should not be viewed as a substitute for any IFRS financial measure. ADDITIONAL INFORMATION | 109 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents FY 2024 FY 2023 (Audited) (Audited) Revenues 37 166 40 888 Materials and consumables used 21 165 22 658 (b) Contribution margin 16 001 18 230 (c) Revenues 37 166 40 888 Contribution margin % (b/c) 43.1 % 44.6 % Amounts in CAD 1000 FY 2024 FY 2023 (Audited) (Audited) Net profit/loss -11 150 -15 009 Income tax expense (income) -851 -1 467 Finance costs 2 215 777 Finance income 70 -233 Share of net income (loss) from associated companies and joint ventures -1 608 Depreciation and amortization 4 021 4 222 (a) EBITDA -3 993 -8 170 Litigation costs 215 - Litigation income -2 938 - Share-Based Compensation 20 - Provision (reversal) for bad debts on accounts receivable from the joint venture -633 4 060 Restructuring costs 442 - (b) Adjusted EBITDA -6 888 -4 109 (c) Revenues 37 166 40 888 EBITDA margin (a/c) -10.7 % -20.0 % Adjusted EBITDA margin (b/c) -18.5 % -10.1 % Amounts in CAD 1000 FY 2024 FY 2023 (Audited) (Audited) Net profit/loss -11 150 -15 009 Income tax expense (income) -851 -1 467 Finance cost 2 215 777 Finance Income 70 -233 Share of net income (loss) from associated companies and joint ventures -1 608 (a) EBIT -8 014 -12 391 Litigation costs 215 - Litigation income -2 938 - Share-Based Compensation 20 - Provision (reversal) for bad debts on accounts receivable from the joint venture -633 4 060 Restructuring costs 442 - (b) Adjusted EBIT -10 909 -8 331 (c) Revenues 37 166 40 888 EBIT margin (a/c) -21.6 % -30.3 % Adjusted EBIT margin (b/c) -29.4 % -20.4 % Amounts in CAD 1000 2024.12.31 31.12.2023 (Unaudited) (Audited) (a) Total non-current liabilities 34 771 26 598 (b) Total equity 26 537 38 354 Long Term Debt/Equity Ratio (a/b) 1.31 0.69 Amounts in CAD 1000 Appendix IV: Alternative Performance Measures (continued) ADDITIONAL INFORMATION | 110 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Appendix V: Carbon accounting 2021-2024 This report provides an overview of the organization’s greenhouse gas (GHG) emissions, which is an inte- grated part of the organization’s cli- mate strategy. Carbon accounting is a fundamental tool in identify- ing tangible measures to reduce GHG emissions. The annual carbon accounting report enables the or- ganization to benchmark performance indicators and evaluate progress over time. The input data is based on consumption data from internal and external sources, which are converted into tonnes CO2-equivalents (tCO2e). The carbon footprint analysis is based on the international standard; A Corporate Accounting and Reporting Standard, developed by the Greenhouse Gas Proto- col Initiative (GHG Protocol). The GHG Protocol is the most widely used and recognised international standard for measuring greenhouse gas emissions and is the basis for the ISO standard 14064-I. External Assurances Internally the Audit Committee approves the Emis- sions Accounting report. This report was not exter- nally assured on its publication date. Note that the CO2 metrics were internally audited. Noteworthy Refer to footprint overview on the next page. • 2030 Target to reduce scope 2 by 50% achieved! • Tekna increased its production output by 68% compared to 2021 baseline, while only increasing scope 1 emissions by 3%, and even reducing scope 2 emissions by 67% • Energy intensity down 26% to 12.1 kWh/kg of powder 1 produced • Closing production in France resulted in a shift away from Nuclear while increasing Hydro pow- er. • Increased renewable energy percentage (+10pp) • Reduced scope 2 emissions significantly (-67%) • Total kWh increased by +32% as produc- tion in Canada increased • Reduction in business travel (Cost-saving meas- ure) has reduced related emissions (down 11%) 2 • All material categories in scope 3 mapped (+4 additional baselines established) Restatements 2023 Scope 2 Electricity, France (Tekna Plasma Eu- rope): Reduction of 10 000 kWh due to detected summation error (434.822 kWh should be 424.822 kWh). Consequence: Reduction of 0.5 tCO2e [former 22.7 tCO2e -restated 22.2 tCO2e]. Also updated in Scope 3 Fuel and Energy related activities. Consequence: Reduction of 0.2 tCO2e [former 10.3 tCO2e -restated 10.1 tCO2e]. 2023 Scope 3.4 Upstream Transportation and Distri- bution: For those service providers that did not pro- vide a CO2 report the impact is estimated based on type, distance and volume. In 2024 the estimation methodology was changed to the online transport emission calculator EcoTransit instead of calculating it with the distance-based formula of the GHG pro- tocol. 2023 estimations were updated to this new methodology. Consequence: Reduction of 245 523.5 tCO2e [former 246 757.0 tCO2e -restated 1233.5 tCO2e]. 2023 Scope 3.7 Employee Commute, global: Changed extrapolation methodology in 2024 and updated 2023 to this new methodology. Conse- quence: Increase of 23 tCO2e [former 205.6 tCO2e - restated 228.6 tCO2e] 2022 Scope 3.3 Electricity Fuel- and Energy-Related Activities Not Included in Scope 1 or Scope 2, Cana- da (Tekna Microelectronics Corporation): Reduction of 74 580 kWh due to correction applied in Scope 2 results of 2022 for the 2023 report, which was not applied to this category. Consequence: Reduction of 2.6 tCO2e of [former 277.2 tCO2e – restated 274.6 tCO2e] Contents Introduction ................................ 110 Noteworthy ................................. 110 Restatements .............................. 110 Climate footprint at a glance ..111 Accounting principles .............. 112 Key figures ................................... 116 1: Ti64 and AlSiMg combined, compared to baseline 2019. 2: all numbers compare to baseline – see overview slide for year and figures. ADDITIONAL INFORMATION | 111 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents 11 530 Baseline, new in 2024 Tekna’s climate footprint 1 Historical data should not change, but we always revise historical figures if data quality or science has improved. 2: Tekna increased its produc- tion output by 68% compared to 2021 baseline, while only increasing scope 1 emissions by 3%, and even reducing scope 2 emissions by 67%. 1 271 Tekna’s climate footprint at diﬀerent stages of the value chain (GHG protocol 1 | in tCO2e) Suppliers & Resources Tekna Operations Customers End-users & End-of-life -50 % Fuel– and energy-related activities (scope 3) 391 384 FY24 FY21 baseline -2% (vs FY21) Production (scope 1 + scope 2) Employees (business travel + daily commute - scope 3) Waste (scope 3) 619 610 274 351 21 baseline FY24 FY24 FY24 FY21 FY22 FY23 baseline baseline -1% 2 (vs FY21) -11% (vs FY22) Upstream transportation and distribution (scope 3) 391 FY24 FY21 18 -14% (vs FY23) Use of sold products (scope 3) End-of-life treatment (scope 3) Downstream transportation and distribution (scope 3) Processing of sold product (scope 3) Purchased goods and services (scope 3) Capital goods (scope 3) vs 66% (+10 pp) in 2021 (Location based). Renewable energy share 76 % vs 577 (+3%) in 2021. Tekna has added a third facility in Canada in 2022 increasing natural gas consumption for heating com- pared to baseline 2021. vs 42 (-67%) in 2021. Tekna continues to im- prove energy efficiency in its powder produc- tion 2 . By reducing production in France the consumption of nuclear electricity is reducing. This is the first year that we have a nearly complete estimation of the value-chain foot- print. This creates a solid basis from which to focus our reduction effort. Energy Intensity per kg metal powder produced Performance vs baseline FY19 Direct electricity of plasma systems within Tekna | Ti64 and AlSiMg | in kWh per kg Our capacity improvement program increases the productivity of the plasma atomization systems, ie higher output for the same energy. The Production output for Ti64 and AlSiMg powder has more than doubled since 2019. Scope 1 596 tCO2e Scope 2 14 tCO2e Scope 3 27 730 tCO2e FY19: 16.3 kWh/kg FY24: 12.1 kWh/kg baseline -26% (vs FY19) FY23: 12.4 kWh/kg -24% (vs FY19) -50%, linked to scope 1 and 2 FY24 158 FY24 Baseline, new in 2024 FY24 14 081 FY24 new in 2024 for Systems | Not material for Materials FY24 12 Baseline, new in 2024 1 234 FY23 baseline Target 2030 Reduce in absolute terms compared to baseline year Not material, Tekna organizes in- and outbound transport +3% (vs FY23) Not applicable to Systems | Not material for Materials FY24 Appendix V: Carbon Accounting (continued) ADDITIONAL INFORMATION | 112 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Accounting principles The input data is based on consumption data from internal and external sources, which are converted into tonnes CO 2 -equivalents (tCO 2 e). The carbon footprint analysis is based on the international standard; A Corporate Accounting and Reporting Standard, developed by the Greenhouse Gas Proto- col Initiative (GHG Protocol). The GHG Protocol is the most widely used and recognised international standard for measuring greenhouse gas emissions and is the basis for the ISO standard 14064-I. Scope 1 and scope 2 Scope 1 includes all direct emission sources. This in- cludes all use of fossil fuels for stationary combustion or transportation, in owned and, depending on the consolidation approach selected, leased, or rented assets. Scope 2 includes indirect emissions related to pur- chased energy; electricity and heating/cooling where the organisation has operational control. Baseline 2021 was chosen as it was the first year we collected data of our worldwide emissions instead of just Canada. At Tekna, natural gas is only used for heating the buildings in Canada and Korea. At the end of 2021 and throughout 2023 and 2024 Tekna has added Additive Manufacturing production equipment in Canada increasing electricity con- sumption. In France, it reduced operating hours in 2023 and then stopped producing in 2024 reducing electricity consumption in France. Leased building emissions are included in scope 1 and 2. Lease car consumption is included in Scope 3 business travel. Although we are working on replacing the refriger- ants we consider the consumption non material for this report (~20lbs in TPS). Tekna US office opened in October 2024. Tekna in South Korea moved offices in April 2024. Estimated TMC Q4, invoices not received. Scope 3 Scope 3 includes indirect emissions resulting from value chain activities. The scope 3 emissions are a result of the company’s upstream and downstream activities, which are not controlled by the company, i.e. they are indirect. For scope 3 the baseline year is chosen based on when we have worldwide data available for a cate- gory. The scope 3 emissions compared to 2023 increased due to broader emissions mapping in scope 3 and improved data quality. This report is now complete for material categories in scope 3. The Greenhouse Gas Protocol considers 15 catego- ries in scope 3 emissions. The table below includes an overview of the categories. Categories 8, 13, 14 and 15 are not relevant for Tekna and categories 9 and 10 are not material at present. Scope 3 Upstream Purchased Goods and Services [1] This category includes all upstream (i.e., cradle-to- gate) emissions from the production of products pur- chased acquired by the reporting company in the reporting year. Products include both goods (tangible products) and services (intangible products). This category is based on Tekna’s ERP system, which generates a report containing all supplier invoices for the given period. The total expenditure per sup- plier is then calculated. Tekna’s procurement team manually assigns a category to each supplier based on their industry and primary business relationship Scope 1 and scope 2 status baseline 2030 commitment 2050 ambition Scope 1 included worldwide per entity 2021 -50% vs baseline carbon neutral Carbon neutrality is achieved by reduc- ing our carbon footprint to zero through a combi- nation of efficiency measures in-house and supporting external emission reduction projects. Scope 2 included worldwide per entity 2021 -50% vs baseline Scope 3 1: Purchased Goods and Services Included for Canada and France 2024 2: Capital Goods Included for Canada and France 2024 3: Fuel- and Energy-Related Activi- ties Not Included in Scope 1 or Scope 2 Included upstream emissions of scope 1 and 2 consolidated per country 2021 50% (as scope 1 and 2) 4: Upstream Transportation and Distribution included consolidated worldwide 2023 TBC 5: Waste Generated in Operations included for Canada and France 2023 TBC 6: Business Travel included consolidated worldwide 2022 TBC 7: Employee Commuting included consolidated worldwide 2022 TBC 8: Upstream Leased Assets not relevant for Tekna 9: Downstream Transportation and Distribution not material for Tekna 10: Processing of Sold Products not applicable to Systems, not material for Materials (at present) 11: Use of Sold Products included for Systems, not materi- al for Materials (at present) 2024 TBC 12: End-of-Life Treatment of Sold Products included for Systems and Materials 2024 TBC 13: Downstream Leased Assets not relevant for Tekna 14: Franchises not relevant for Tekna 15: Investments not relevant for Tekna Appendix V: Carbon Accounting (continued) ADDITIONAL INFORMATION | 113 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents with Tekna. Categories include Employee Expenses, Capex, Feedstock, Warehousing & Transportation, Packaging, and Government-related costs (such as taxes and licenses). Utilities (gas, electricity) and met- al feedstock are excluded from this process. The next step is to assess the percentage of spending for sup- pliers in the categorized, non-excluded group and continue categorizing until at least 70% of the total non-excluded spending is covered. Spending is then grouped by category, and the total for categorized non-excluded spend is summed up. Finally, the cate- gorized percentage of each category is applied to the total non-excluded spend to extrapolate the to- tal spend per category. Capital Goods [2] This category includes all upstream (i.e., cradle-to- gate) emissions from the production of capital goods purchased or acquired by the reporting company in the reporting year. Emissions from the use of capital goods by the reporting company are accounted for in either scope 1 (e.g., for fuel use) or scope 2 (e.g., for electricity use), rather than scope 3. This category follows the same method as the one used for Scope 3 category 1: Purchased Good and Services. A report is pulled from Tekna’s ERP sys- tems, suppliers are summed and assigned a catego- ry. Fuel and energy related activities Not Includ- ed in Scope 1 or Scope 2 [3] This category includes emissions related to the pro- duction of fuels and energy purchased and consumed by the reporting company in the reporting year that are not included in scope 1 or scope 2. Includes exactly the same consumption data as re- ported in scope 1 and 2. Upstream Transport and Distribution [4] All transportation paid by the company, inbound and outbound, as well as if the customer is billed for the transport and in addition also inbound transportation not paid by the company (upstream). This category was calculated based on transaction reports received from transportation and distribution companies Tekna has contracted in the past year. Most reports directly provided the estimated CO2 emissions. In 2024, we used the online transport emission calculator EcoTransit (https:// www.ecotransit.org/fr/calculateur-demissions/) for all companies and transactions that did not provide the CO2 emissions (5/11 company reports). Inbound transportation not paid by Tekna is not material. See also restatements as 2023 was recalculated with this new methodology. Scope 3 @Tekna Waste Generated in Operations [5] Includes emissions from third-party disposal and treatment of waste generated in the reporting com- pany’s owned or controlled operations in the report- ing year. This category includes emissions from dis- posal of both solid waste and wastewater. In 2022, we estimated how waste from Canada was treated after pick-up. In 2023, we have obtained clear data with significant shifts in volumes and emis- sions. We have therefore made 2023 the baseline for waste. The increase in hazardous waste is due to new Health and Safety measures (single-use protective equipment) and R&D. The rest waste or municipal waste category for Canada or France does not exist in CEMASys as of yet. We have used the closest de- scription to it, in essence "Residual waste, landfill". The emissions are expected to be in the same range. Composition of hazardous waste: (flammable) me- tallic powder, rags, acids, coolants and non-chlorine solvents and single-use protective equipment from the nano sector. Waste for manufacturing sites in Canada is based on facility managments’ estimation. In France, the weight and emissions are provided by the service provider per category. Waste from sales offices is estimated using a calculator provided by Arendals Fossekompani (main shareholder) based on follow- ing sources: Avfall Sverige, Handbok för avfallsu- trymmen (2018); Norsk Gjenvinning, Volum- og vek- tinformasjon (2015); Avfall Sverige, Volymvikter för avfall (2013) Total waste reduced by 14% due to the stopped nickel production in France. Waste collected during the annual Sherbrooke industrial park cleaning in- cluded in Canada. Business Travel [6] Transportation of employees for business-related activities in vehicles owned or operated by third par- ties, such as aircraft, trains, buses, and passenger cars. Employees were requested to complete a form per business trip, including km travelled by car (incl taxi) and train, flights (using ICAO Carbon Emissions Cal- culator ) and hotel nights. We created this form by using the ICAO tool and recommendations from Microsoft Sustainability Calculator. In 2024, travel reduced considerably as cost- reduction measure. Employee Commute [7] Transportation of employees between their homes and their worksites during the reporting year (in vehi- cles not owned or operated by the reporting compa- ny). Employees were requested to complete a form de- tailing how many days per week they are in the of- fice on average and what their commute is like on average. Adjustments were made upon indication of employees around "significantly greener summer commutes" and carpooling. We obtained 104 an- swers out of 185 (56%), which we considered a suffi- cient bases to extrapolate to 100%. We created this form based on the recommendations of the Green- house Gas Protocol and Cemasys categories. In 2024, the rule of 3 method was introduced for extrapolation as it is more accurate: y=(total number of employee at year-end*x)/total employee answers. See also restatements as 2023 was recalculated with this new methodology. Scope 3 Downstream Transport and Distribution [9] All outbound transportation not paid by the compa- ny. More specifically, emissions that occur from trans- portation and distribution of sold products in vehicles Appendix V: Carbon Accounting (continued) ADDITIONAL INFORMATION | 114 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents and facilities not owned or controlled by the reporting company. It was found to be not material as we organise the incoming and outgoing transport. Processing of Sold Products [10] This category includes emissions from processing of sold intermediate products by third parties (e.g., manufacturers) subsequent to sale by the reporting company. Intermediate products are products that require further processing, transformation, or inclu- sion in another product before use, and therefore result in emissions from processing subsequent to sale by the reporting company and before use by the end consumer. Systems: not relevant Materials: Tekna has deemed the category immateri- al at present. Tekna's products represent only a small proportion of the ultimate products sold and used both in weight and in functionality, so it is not significant to attribute to Tekna any scope 3 emis- sions of the ultimate use of the end sold product Use of Sold Products [11] This category includes emissions from the use of goods and services sold by the reporting company in the reporting year. A reporting company’s scope 3 emissions from use of sold products include the scope 1 and scope 2 emissions of end users. End users in- clude both consumers and business customers that use final products. Systems: This category is based on assumptions since Tekna does not collect how its customers use the sold systems. What is known: the number of sys- tems sold, the purpose it was sold for, their power levels and their material composition. What is as- sumed: the annual operating conditions, including the annual usage, the electrical input, and the quan- tity of process gases used. As systems are sold across the globe, the emission factor for electricity for average Asia was chosen as a conservative choice. Materials: Tekna has deemed the category immateri- al at present. Tekna's products represent only a small proportion of the ultimate products sold and used both in weight and in functionality, so it is not significant to attribute to Tekna any scope 3 emis- sions of the ultimate use of the end sold product. End-of-Life Treatment of Sold Products [12] This category includes emissions from the waste dis- posal and treatment of products sold by the reporting company (in the reporting year) at the end of their life. Systems: Tekna has a guide for customers detailing how a system’s different materials should be dis- posed of. The data is then calculated by multiplying the system’s various materials by the number of sys- tems shipped during the reporting period. Materials: The data comes from the total kilograms of powders sold in 2024. Methodology CEMASYS (reporting system) The Greenhouse Gas Protocol initiative (GHG Proto- col) was developed by the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD). This analysis is done accord- ing to A Corporate Accounting and Reporting Stand- ard Revised edition, currently one of four GHG Proto- col accounting standards on calculating and report- ing GHG emissions. The reporting considers the fol- lowing greenhouse gases, all converted into CO 2 - equivalents: CO 2 , CH 4 (methane), N 2 O (laughing gas), SF 6 , HFCs, PFCs and NF3. For corporate reporting, two distinct approaches can be used to consolidate GHG emissions: the equity share approach and the control approach. The most common consolidation approach is the control ap- proach, which can be defined in either financial or operational terms. The carbon inventory is divided into three main scopes of direct and indirect emissions. Scope 1 includes all direct emission sources. This includes all use of fossil fuels for stationary combus- tion or transportation, in owned and, depending on the consolidation approach selected, leased, or rent- ed assets. It also includes any process emissions, from e.g. chemical processes, industrial gases, direct methane emissions etc. Scope 2 includes indirect emissions related to pur- chased energy; electricity and heating/cooling where the organisation has operational control. The elec- tricity emission factors used in Cemasys are based on national gross electricity production mixes from the International Energy Agency’s statistics (IEA Stat). Emission factors per fuel type are based on assump- tions in the IEA methodological framework. Factors for district heating/cooling are either based on actu- al (local) production mixes, or average IEA statistics. In January 2015, the GHG Protocol published new guidelines for calculating emissions from electricity consumption. Primarily two methods are used to “allocate” the GHG emissions created by electricity generation to the end consumers of a given grid. These are the location-based and the market-based methods. The location-based method reflects the average emission intensity of the grids on which en- ergy consumption occurs, while the market-based method reflects emissions from electricity that com- panies have purposefully chosen (or not chosen). Organizations who report on their GHG emissions will now have to disclose both the location-based emissions from the production of electricity, and the marked-based emissions related to the potential purchase of Guarantees of Origin (GoOs) and Re- newable Energy Certificates (RECs). The purpose of this amendment in the reporting methodology is on the one hand to show the impact of energy efficiency measures, and on the other hand to display how the acquisition of GoOs or RECs affect the GHG emissions. Using both methods in the Appendix V: Carbon Accounting (continued) ADDITIONAL INFORMATION | 115 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents emission reporting highlights the effect of all measures regarding electricity consumption. The location-based method: The location-based method is based on statistical emissions information and electricity output aggregated and averaged within a defined geographic boundary and during a defined time period. Within this boundary, the differ- ent energy producers utilize a mix of energy re- sources, where the use of fossil fuels (coal, oil, and gas) result in direct GHG-emissions. These emissions are reflected in the location-based emission factor. The market-based method: The choice of emission factors when using this method is determined by whether the business acquires GoOs/RECs or not. When selling GoOs or RECs, the supplier certifies that the electricity is produced exclusively by renew- able sources, which has an emission factor of 0 grams CO 2 e per kWh. However, for electricity with- out the GoO or REC, the emission factor is based on the remaining electricity production after all GoOs and RECs for renewable energy are sold. This is called a residual mix, which is normally substantially higher than the location-based factor. As an exam- ple, the market-based Norwegian residual mix factor is approximately 7 times higher than the location- based Nordic mix factor. The reason for this high factor is due to Norway’s large export of GoOs/RECs to foreign consumers. In a market perspective, this implies that Norwegian hydropower is largely substi- tuted with an electricity mix including fossil fuels. Scope 3 includes indirect emissions resulting from value chain activities. The scope 3 emissions are a result of the company’s upstream and downstream activities, which are not controlled by the company, i.e. they are indirect. Examples are business travel, goods transportation, waste handling, consumption of products etc. In general, the carbon accounting should include information that users, both internal and external to the company, need for their decision making. An important aspect of relevance is the selection of an appropriate inventory boundary which reflects the substance and economic reality of the company’s business relationships. Sources CEMASYS (reporting system) Department for Business, Energy & Industrial Strate- gy (2022). Government emission conversion factors for greenhouse gas company reporting (DEFRA) IEA (2022). Emission Factors database, International Energy Agency (IEA), Paris. IMO (2020). Reduction of GHG emissions from ships - Third IMO GHG Study 2014 (Final report). Interna- tional Maritime Organisation, http://www.iadc.org/ wp-content/uploads/2014/02/MEPC-67-6-INF3-2014 -Final-Report-complete.pdf IPCC (2014). IPCC fifth assessment report: Climate change 2013 (AR5 updated version November 2014). http://www.ipcc.ch/report/ar5/ AIB, RE-DISS (2020). Reliable disclosure systems for Europe – Phase 2: European residual mixes. WBCSD/WRI (2004). The greenhouse gas protocol. A corporate accounting and reporting standard (revised edition). World Business Council on Sustain- able Development (WBCSD), Geneva, Switzer- World Resource Institute (WRI), Washington DC, USA, 116 pp. WBCSD/WRI (2011). Corporate value chain (Scope 3) accounting and reporting standard: Supplement to the GHG Protocol corporate accounting and report- ing standard. World Business Council on Sustainable Development (WBCSD), Geneva, Switzerland /World Resource Institute (WRI), Washington DC, USA, 149 pp. WBCSD/WRI (2015). GHG protocol Scope 2 guid- ance: An amendment to the GHG protocol corpor- tate standard. World Business Council on Sustainable Development (WBCSD), Geneva, Switzerland /World Resource Institute (WRI), Washington DC, USA, 117 pp. The reference list above is incomplete but contains the essential references used in CEMAsys. In addi- tion, several local/national sources may be relevant, depending on which emission factors are used. Appendix V: Carbon Accounting (continued) ADDITIONAL INFORMATION | 116 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Category Unit 2021 2022 2023 2024 ▲ to base year ▲ to 2023 Target ▲ to target Total Scope 1 tCO2e 576.6 585.1 589.0 595.9 3% 1% 288 307.64 Total Scope 2 tCO2e 41.7 33.7 29.1 13.9 -67% -52% 21 -6.99 Total Scope 3 tCO2e 434.3 752.8 1 981.2 27 730.3 n/a n/a n/a tCO2e 1 052.7 1 371.6 2 599.2 28 340.1 n/a n/a n/a Total Key figures GHG Emissions Appendix V: Carbon Accounting (continued) Key figures GHG Emissions—Summary Category Unit 2021 2022 2023 2024 ▲ to base year ▲ to 2023 Scope 1 Stationary combustion Natural gas tCO2e 576.6 585.1 589.0 595.9 Stationary combustion Total tCO2e 576.6 585.1 589.0 595.9 3% 1% Total Scope 1 tCO2e 576.6 585.1 589.0 595.9 3% 1% Scope 2 Electricity location-based Electricity France tCO2e 32.1 26.6 22.2 5.9 -82% -73% Electricity China tCO2e 5.0 1.9 1.5 1.2 -77% -24% Electricity Korea tCO2e 0.6 0.5 0.4 0.2 -71% -62% Electricity USA tCO2e - - - 0.8 n/a n/a Electricity location-based Total tCO2e 37.6 29.0 24.1 8.0 -79% -67% Electricity general Hydropower, Quebec tCO2e 4.1 4.7 4.9 5.8 42% 18% Electricity general Total tCO2e 4.1 4.7 4.9 5.8 42% 18% Total Scope 2 tCO2e 41.7 33.7 29.1 13.9 -67% -52% ADDITIONAL INFORMATION | 117 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Category Unit 2021 2022 2023 2024 ▲ to base year ▲ to 2023 Appendix V: Carbon Accounting (continued) Scope 3 3.01 Purchased goods and services Architectural and engineering services tCO2e 9.1 Building, repair and maintenance tCO2e 115.6 Business Support Services tCO2e 20.0 Chemicals, general tCO2e 425.2 Cloud & facility management services tCO2e 38.3 Compressed gases tCO2e 1 824.0 Computer-related hardware tCO2e 40.9 Dry-cleaning and laundry tCO2e 15.5 Electronic components tCO2e 73.9 Electronic components tCO2e 19.6 Facility services tCO2e 35.8 Insurance and brokerage tCO2e 7.1 Laboratory instruments tCO2e 21.3 Legal services tCO2e 37.8 Machine tool manufacturing tCO2e 79.0 Machinery, equipment, and supplies tCO2e 63.1 Machinery, repair and maintenance tCO2e 82.0 Measuring and Controlling Devices tCO2e 6.1 Mechanical power trans.equipment tCO2e 7.1 Metal structural products tCO2e 14.4 Other electrical equipment tCO2e 20.9 Pipes and pipe fittings tCO2e 141.3 Plastic products tCO2e 108.1 Postal service tCO2e 11.0 Pumps and pumping equipment tCO2e 48.2 Screws, nuts, and bolts tCO2e 60.1 Software tCO2e 13.9 Technical consulting services tCO2e 12.3 Telecommunications tCO2e 3.8 Waste management tCO2e 71.4 Advertising and PR tCO2e 24.1 Aluminium tCO2e 774.1 Titanium tCO2e 7 304.9 Total 3.01 Purchased goods and services tCO2e 11 530.0 2024 is base year 3.02 Capital goods Building, repair and maintenance tCO2e 7.8 Machinery, equipment, and supplies tCO2e 145.2 Computer-related hardware tCO2e 1.0 Office furniture tCO2e 4.0 Total 3.02 Capital goods tCO2e 158.0 2024 is base year ADDITIONAL INFORMATION | 118 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Category Unit 2021 2022 2023 2024 ▲ to base year ▲ to 2023 Appendix V: Carbon Accounting (continued) 3.03 Fuel-and-energy-related activities Natural gas (WTT) tCO2e 98.0 98.9 96.5 97.2 Electricity Canada (upstream) tCO2e 284.2 274.6 269.5 283.3 Electricity France (upstream) tCO2e 7.1 8.3 10.1 2.5 Electricity China (upstream) tCO2e 1.6 0.5 0.3 0.2 Electricity Korea (upstream) tCO2e 0.2 0.1 0.1 0.0 Electricity USA (upstream) tCO2e 0.2 Total 3.03 Fuel-and-energy-related activities tCO2e 391.2 382.4 376.8 383.6 -2% 2% 3.04 Upstream transportation and distribution Truck avg. (WTW) tCO2e 104.5 39.6 Air freight avg. (WTT) tCO2e 89.7 Air transportation (WTW) tCO2e 846.1 1 180.0 Rail freight tCO2e 3.2 Sea ship avg. (WTW) tCO2e 182.4 48.9 Transportation tCO2e 7.6 2.6 Total 3.04 Upstream transportation and distribution tCO2e 1 233.5 1 271.0 3% 3% 3.05 Waste Hazardous waste, landfill tCO2e 0.3 0.2 0.4 0.0 -93% Hazardous waste, treated tCO2e 0.0 1.0 0.1 0.0 -63% Hazardous waste, recycled tCO2e 0.0 0.0 1.3 0.5 -62% Hazardous waste, re-used tCO2e 0.0 0.1 0.0 -81% Paper waste, recycled tCO2e 0.1 0.1 0.0 Cardboard waste, recycled tCO2e - 0.3 0.3 0.1 -74% EE waste, recycled tCO2e 0.0 0.0 0.0 -70% Plastic waste, recycled tCO2e 0.0 0.0 0.0 0.0 -89% Metal waste, recycled tCO2e 0.1 0.2 0.1 -51% Wood waste, recycled tCO2e 0.1 0.2 0.4 0.1 -81% Glass waste, recycled tCO2e 0.0 Mineral oil waste, incinerated (H) tCO2e 2.5 1.5 2.5 67% Organic waste, recycled tCO2e 0.0 Organic waste, composting tCO2e 0.0 0.0 0.0 -38% Sorted waste, recycled tCO2e 0.2 0.2 0.1 -66% Residual waste, landfill tCO2e 2.5 14.4 16.3 14.2 -13% Residual waste, incinerated tCO2e 0.2 Total 3.05 Waste tCO2e 2.9 19.1 20.7 17.8 -14% -14% 3.06 Business travel Hotel nights, world tCO2e 6.2 42.1 40.6 13.8 -67% -66% Train International tCO2e 0.0 0.1 0.1 0.0 -74% -67% Mileage all. avg. car tCO2e 11.3 21.4 16.1 9.7 -55% -40% Flights tCO2e 22.8 51.7 64.9 41.3 -20% -36% Mileage all. el car EU27 tCO2e 0.2 Total 3.06 Business travel tCO2e 40.3 115.4 121.8 64.8 -44% -47% ADDITIONAL INFORMATION | 119 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Category Unit 2021 2022 2023 2024 ▲ to base year ▲ to 2023 Appendix V: Carbon Accounting (continued) 3.07 Employee commuting Car, petrol (avg.) tCO2e 170.3 154.1 134.1 -21% -13% Electric car EU27 tCO2e 6.5 10.1 15.3 134% 52% Motorbike, small tCO2e 0.3 0.5 79% Bus local avg. tCO2e 2.8 3.1 1.2 -58% -62% Car, petrol (medium) tCO2e 56.2 57.7 44.1 -22% -24% Car, Hybrid Electric Vehicle (HEV) tCO2e 3.4 13.9 314% Total 3.07 Employee commuting tCO2e 235.8 228.6 209.0 -11% -9% 3.08 Upstream leased assets incl. in 3.01 n/a n/a 3.09 Downstream transportation and Distribution not material n/a n/a 3.10 Processing of sold products omitted n/a n/a 3.11 Use of sold products Argon (liquid), Europe tCO2e 3 029.9 Sodium hydrogen sulfite tCO2e 9.2 Electricity Asia avg. tCO2e - 11 042.1 Total 3.11 Use of sold products tCO2e - 14 081.2 2024 is base year 3.12 End-of-life treatment of sold products Metal aluminium waste, recycled tCO2e 0.3 Metal iron waste, recycled tCO2e - Metal stainl steel waste, recycled tCO2e 0.2 Metal copper waste, recycled tCO2e 0.1 Metal waste, recycled tCO2e 11.7 Wood waste, recycled tCO2e 0.1 EE waste, recycled tCO2e - Ceramic waste, recycled tCO2e - Plastic PVC waste, recycled tCO2e - Rubber waste, recycled tCO2e - Plastic waste, recycled tCO2e - Silicon waste, landfill tCO2e - Plastic PE/PP waste, recycled tCO2e - Mineral oil waste, recycled (H) tCO2e - Total 3.12 End-of-life treatment of sold products tCO2e 12.4 2024 is base year 3.13 Downstream leased assets not applicable n/a n/a 3.14 Franchises not applicable n/a n/a 3.15 Investments not applicable n/a n/a Total Scope 3 tCO2e 434.3 752.8 1 981.2 27 730.3 n/a n/a ADDITIONAL INFORMATION | 120 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Category Unit 2021 2022 2023 2024 ▲ to base year ▲ to 2023 Appendix V: Carbon Accounting (continued) Total Scope 3 tCO2e 434.3 752.8 1 981.2 27 730.3 n/a n/a Total (Scope 1 + 2) tCO2e 618.4 618.8 618.1 609.8 -1% -1% Total (Scope 1 + 2 + 3) tCO2e 1 052.7 1 371.6 2 599.2 28 340.1 n/a n/a Annual Market-Based GHG Emissions Electricity Total (Scope 2) with Market-based calculations tCO2e 40.6 27.4 55.1 6.1 Scope 2 Total with Market-based electricity calculations tCO2e 44.7 32.1 60.0 11.9 Scope 1+2+3 Total with Market-based electricity calculations tCO2e 1 055.6 1 370.0 2 630.2 28 338.1 ADDITIONAL INFORMATION | 121 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Appendix V: Carbon Accounting (continued) Key figures Energy Scope 1 Stationary combustion Natural gas MWh 3 125.9 3 182.6 2 882.1 2 914.4 Stationary combustion Total MWh 3 125.9 3 182.6 2 882.1 2 914.4 Scope 1 Total MWh 3 125.9 3 182.6 2 882.1 2 914.4 -7% 1% Scope 2 Electricity Electricity France MWh 593.6 521.3 424.8 92.0 Electricity China MWh 8.0 3.0 2.5 2.0 Electricity Korea MWh 1.1 1.1 1.0 0.4 Electricity USA MWh 2.2 Electricity Total MWh 602.7 525.4 428.3 96.6 Electricity general Hydropower, Quebec MWh 6 832.6 7 800.1 8 242.9 9 739.1 Electricity general Total MWh 6 832.6 7 800.1 8 242.9 9 739.1 Scope 2 Total MWh 7 435.4 8 325.5 8 671.2 9 835.7 32% 13% TOTAL MWh 10 561.2 11 508.1 11 553.2 12 750.1 21% 10% GJ 38 020.4 41 429.3 41 591.6 45 900.2 Percentage change % 9% 0.4% 10.4% Scope 1 renewable energy MWh - - - - Scope 1 renewable energy share % 0% 0% 0% 0% - - Scope 2 renewable energy (Location-based) MWh 6 964.5 7 932.2 8 345.6 9 764.2 Scope 2 renewable energy share (Location-based) % 93.7% 95.3% 96.2% 99.3% 106% 103% Total renewable energy (Location-based) MWh 6 964.5 7 932.2 8 345.6 9 764.2 Total renewable energy share (Location-based) % 65.9% 68.9% 72.2% 76.6% 111% 104% Scope 2 renewable energy (Market-based) MWh 6 832.6 7 800.1 8 242.9 9 739.1 Scope 2 renewable energy share (Market-based) % 91.9% 93.7% 95.1% 99% 107% 104% Total renewable energy (Market-based) MWh 6 832.6 7 800.1 8 242.9 9 739.1 Total renewable energy share (Market-based) % 64.7% 67.8% 71.3% 76.4% 112% 105% Category Unit 2021 2022 2023 2024 ▲ to base year ▲ to 2023 ADDITIONAL INFORMATION | 122 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Scope 1 Stationary combustion Natural gas m3 283 396.0 288 018.0 286 774.0 288 840.7 2% 1% Scope 2 Electricity Electricity France kWh 593 646.0 521 288.0 424 822.0 91 987.0 -85% -78% Electricity China kWh 7 950.0 3 033.6 2 470.0 1 955.0 -75% -21% Electricity Korea kWh 1 132.0 1 110.7 981.0 395.0 -65% -60% Electricity USA kWh 2 241.0 Electricity general Hydropower, Quebec kWh 6832 642.0 7800 094.0 8242 881.0 9739 073.0 43% 18% Scope 3 3.01 Purchased goods and services Architectural and engineering services CAD 114 716.4 Building, repair and maintenance CAD 680 110.3 Business Support Services CAD 235 744.7 Chemicals, general CAD 1107 307.1 Cloud & facility management services CAD 627 560.8 Compressed gases CAD 1959 237.1 Computer-related hardware CAD 371 880.2 Dry-cleaning and laundry CAD 128 510.9 Electronic components CAD 985 177.0 Electronic components CAD 261 078.4 Facility services CAD 234 025.1 Insurance and brokerage CAD 324 604.9 Laboratory instruments CAD 273 114.6 Legal services CAD 1182 147.1 Machine tool manufacturing CAD 516 412.7 Machinery, equipment, and supplies CAD 716 644.6 Machinery, repair and maintenance CAD 625 620.1 Measuring and Controlling Devices CAD 91 791.0 Mechanical power trans.equipment CAD 43 806.4 Metal structural products CAD 71 830.9 Other electrical equipment CAD 213 346.8 Pipes and pipe fittings CAD 772 016.5 Plastic products CAD 379 209.4 Postal service CAD 193 749.9 Pumps and pumping equipment CAD 281 650.0 Screws, nuts, and bolts CAD 314 677.4 Spend based estimation started in 2024, detail spend in CAD not disclosed. Appendix V: Carbon Accounting (continued) Key figures Energy Consumption Category Unit 2021 2022 2023 2024 ▲ to base year ▲ to 2023 ADDITIONAL INFORMATION | 123 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Category Unit 2021 2022 2023 2024 ▲ to base year ▲ to 2023 Appendix V: Carbon Accounting (continued) Software CAD 228 510.6 Technical consulting services CAD 178 025.6 Telecommunications CAD 65 609.2 Waste management CAD 94 092.6 Advertising and PR CAD 370 321.5 Aluminium kg 85 000.0 Titanium kg 157 000.0 3.02 Capital goods Building, repair and maintenance CAD 45 784.8 Machinery, equipment, and supplies CAD 1649 788.5 Computer-related hardware CAD 9 055.3 Office furniture CAD 21 880.6 3.03 Fuel-and-energy-related activities Natural gas (WTT) m3 283 396.0 288 018.0 286 774.0 288 841.0 Electricity Canada (upstream) kWh 6832 642.0 7800 094.0 8242 881.0 9739 073.0 Electricity France (upstream) kWh 593 646.0 521 288.0 424 822.0 91 987.0 Electricity China (upstream) kWh 7 950.0 3 033.6 2 470.0 1 956.0 Electricity Korea (upstream) kWh 1 132.0 1 110.7 981.0 395.0 Electricity USA (upstream) kWh 2 241.0 3.04 Upstream transportation and distribution Truck avg. (WTW) tkm 81.9 Truck avg. (WTW) tCO2e 104.5 39.6 Air freight avg. (WTT) tkm 294 168.2 Air transportation (WTW) tCO2e 846.1 1 180.0 Rail freight tCO2e 3.2 Sea ship avg. (WTW) tkm 16 112.5 Sea ship avg. (WTW) tCO2e 182.1 48.9 Transportation tCO2e 7.6 2.6 3.05 Waste Hazardous waste, landfill kg 12 976.0 11 457.0 17 586.0 4 135.0 -64% -76% Hazardous waste, treated kg 1 636.0 46 441.0 3 735.0 4 590.0 -90% 23% Hazardous waste, recycled kg 364.0 240.0 61 009.0 76 869.0 31929% 26% Hazardous waste, re-used kg 948.0 2 882.0 1 854.0 96% -36% Paper waste, recycled m3 16.0 18.0 Paper waste, recycled kg 431.0 Cardboard waste, recycled kg - 13 207.0 16 414.6 14 078.0 7% -14% EE waste, recycled m3 2.0 2.0 2.0 0% Plastic waste, recycled m3 5.0 9.0 Plastic waste, recycled kg 775.5 277.0 -64% Metal waste, recycled kg 6 563.0 7 197.0 11 666.0 78% 62% Spend based estimation started in 2024, detail spend in CAD not disclosed. ADDITIONAL INFORMATION | 124 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Category Unit 2021 2022 2023 2024 ▲ to base year ▲ to 2023 Appendix V: Carbon Accounting (continued) Wood waste, recycled kg 2 400.0 11 500.0 19 600.0 12 320.0 7% -37% Mineral oil waste, incinerated (H) liters 1 000.0 600.0 1 000.0 0% 67% Glass waste, recycled kg 11.0 Organic waste, recycled kg 276.0 Organic waste, composting kg 1 139.0 2 254.0 1 424.0 25% -37% Sorted waste, recycled kg 7 200.0 7 200.0 8 098.0 12% 12% Residual waste, incinerated kg 414.0 Residual waste, landfill m3 22.0 14.5 Residual waste, landfill kg 28 620.0 32 738.4 28 620.0 0% -13% 3.06 Business travel Hotel nights, world nights 137.0 1 067.0 1 025.0 348.0 -67% -66% Train International pkm 3 035.0 29 886.0 23 829.0 7 752.0 -74% -67% Mileage all. avg. car km 67 103.0 125 445.0 96 339.0 57 838.0 -54% -40% Flights tCO2e 22.8 51.7 64.9 41.3 -20% -36% Mileage all. el car EU27 km 3 381.0 3.07 Employee commuting Car, petrol (avg.) km 998 903.0 940 160.0 815 289.0 -18% -13% Electric car EU27 km 171 880.0 226 749.0 322 879.0 88% 42% Motorbike, small km 3 337.0 5 977.0 79% Bus local avg. pkm 28 790.0 29 904.0 10 803.0 -62% -64% Car, petrol (medium) km 304 423.0 323 795.0 248 537.0 -18% -23% Car, Hybrid Electric Vehicle (HEV) km 28 471.0 110 175.0 287% 3.11 Use of sold products Argon (liquid), Europe kg 2504 010.0 Sodium hydrogen sulfite kg 10 398.0 Electricity Asia avg. kWh - 16980 000.0 3.12 End-of-life treatment of sold products Metal waste, recycled kg 240 163.2 Metal waste, recycled m3 12 854.0 Wood waste, recycled kg 13 646.8 EE waste, recycled kg 1 131.4 Ceramic waste, recycled kg 337.3 Plastic PVC waste, recycled kg 83.2 Rubber waste, recycled kg 117.4 Plastic waste, recycled kg 2 203.6 Silicon waste, landfill kg 136.4 Plastic PE/PP waste, recycled kg 24.1 Mineral oil waste, recycled (H) kg 88.6 ADDITIONAL INFORMATION | 125 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Appendix VI: EU Taxonomy The EU Taxonomy aims to scale up sustainable investments and avoid greenwashing by defining a common language and understanding of sus- tainable activities. As part of the Eu- ropean Union’s Green Deal, the EU Taxonomy is a classification system for sustainable economic activities, consisting of the following six envi- ronmental objectives: 1. Climate change mitigation (CCM) 2. Climate change adaptation (CCA) 3. The sustainable use and protec- tion of water and marine re- sources (W&A) 4. The transition to a circular econo- my (CE) 5. Pollution prevention and control (PP) 6. The protection and restoration of biodiversity and ecosystems (B&E) Objectives 3-6 were adopted in June 2023 via Com- mission Delegated Regulations (EU) 2023/2486 and (EU) 2023/2485, along with amendments to Regula- tions 1 and 2. In February 2024, Norway's Ministry of Finance required reporting on all six objectives for the 2024 financial year. Contents 1. Introduction ........................... 125 2. Results ................................... 126 3. Scope ...................................... 126 4. Process ................................... 126 5. Assessments .......................... 127 6. Minimum Social Safeguards ......................... 130 7. Future work ........................... 130 8. EU Taxonomy Statements.. 131 Accounting policies and contextual information about the KPIs .................... 131 Statements.......................... 132 1. Introduction Economic activity in the EU Taxonomy Business activity Assessment of technical screening criteria 3.6. Manufacture of other low carbon technologies (Climate Change Mitigation (CCM)) Production of additive material pow- ders 1 Activities considered Eligible, not aligned This activity is aligned once an independent study, 3rd party verified, confirming our assessment be- comes available. Production of PlasmaSonic wind tun- nels 1 Activities considered Eligible, not aligned This activity is aligned once an independent study, 3rd party verified, confirming our assessment be- comes available. (Development and) production of na- nomaterials for MLCC 1 Activities considered Eligible, not aligned Production of turnkey plasma systems (manufactured components and equip- ment applied in Tekna’s plasma sys- tems, as well as auxiliary equipment 1 Activities considered Eligible, not aligned Systems spare parts, R&D revenue Activities considered not eligible Figure 1: Summarized overview of EU Taxonomy activity assessments 1: Activities that have the potential to be enabling, however are not classified as such since the technical screening criteria are not considered met. ADDITIONAL INFORMATION | 126 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents 2. Results Tekna contributes to the environmental objective of Climate Change Mitigation (“CCM”). Further, we rec- ognize that one of Tekna’s main contributions going forward may be through enabling others in the tran- sition. Throughout 2024, Tekna, together with its main shareholder Arendals Fossekompani, has developed its reporting on the EU Taxonomy in line with the developments and new guidance from the European Commission regarding the EU Taxonomy Regulation. This has also led to strengthened understanding of the EU Taxonomy’s definitions of the KPIs. The key performance indicators (KPIs) show notable changes from 2023 to 2024 as additive manufactur- ing materials did not fully meet the technical screen- ing criteria. Aligned turnover decreased from 64% to 0%, while eligible turnover increased significantly from 36% to 99%. In capital expenditures, aligned CapEx fell sharply from 82% to 0%, but eligible CapEx rose dramatically from 18% to 63%. For operational ex- penditures, aligned OpEx decreased from 42% to 0%, and eligible OpEx surged from 58% to 100%. These shifts reflect an updated screening process and assessment of the technical screening criteria. This process is further elaborated in section 4. The high percentage of eligible activities reflects the great potential of the company and the challenge for medium sized companies in niche, high-tech industries to comply with the screening criteria as per the current requirements. It is likely that Tekna will not be able to afford the 3rd party research re- quired to prove alignment. • Tekna’s economic activities are eligible under Climate Change Mitigation and not under any of the other five environmental objectives. • Additive Manufacturing and Plasmasonic wind tunnels are believed to be aligned. However, the substantial contribution criteria are not considered met due to the lack of documentation verified by a third party demonstrating life-cycle GHG emission savings. • All Tekna revenues are eligible except for its R&D revenue (~1% in 2024). Total eligible revenue: CAD 36.8m. • 63% of Tekna’s CapEx is invested in eligible activ- ities, totaling CAD 2.4m. • Tekna does not yet have a CapEx plan aimed at increasing the percentage of aligned activities. • 100% of Tekna’s OpEx is spend on eligible activi- ties, totaling CAD 2.5m. 3. Scope All companies of the Tekna group have been con- sidered for reporting on the EU Taxonomy for 2024. Tekna evaluated its four core activities for eligibility and did not assess its Systems service revenues (spare parts and maintenance) or R&D revenues We have not included the joint ventures Imphytek Pow- ders, as they are not consolidated in the group’s financial statements (consolidation by equity meth- od). We have assessed the business activities with regards to the EU Taxonomy economic activities within the scope of the six environmental objectives. 4. Process The process for assessing economic activities have been performed in accordance with the structure of the EU Taxonomy, starting with assessment of eligi- ble activities before assessing compliance with the technical screening criteria for substantial contribu- tion and do no significant harm (“DNSH”). Tekna performed the minimum safeguards assessment based on its own policies and procedures Eligibility was assessed by comparing the business activities against the economic activities defined in the EU Taxonomy across all six environmental objec- tives. Relevant NACE codes and activity descriptions for each economic activity were identified and thor- oughly examined. In 2023, Tekna reported activity 3.6 Manufacture of other low carbon technologies for their production of additive powders as an aligned activity. After re-evaluating the documenta- tion used for assessing the activity, it has been changed to eligible, not aligned for 2024’s reporting. 1: Activities that have the potential to be enabling, however are not classified as such since the technical screening criteria are not considered met. 2: Sample-audited on behalf of main shareholder Arendals Fossekompani ASA. 3. The 3rd party verification to support alignment of additive man- ufacturing was not specific enough to Tekna products. Figure 2: EU taxonomy KPI’s as per the EU Taxonomy Statements baseline (year) 1 Revenue eligible and aligned - ( 0%) 25.7 ( 64%) - (2024) 2 Revenue eligible 36.8 ( 99%) 14.7 ( 36%) 99% (2024) 3 Revenue not eligible, nor aligned 0.4 ( 1%) - ( 0%) 1% (2024) 4 CapEx eligible and aligned - ( 0%) 6.7 ( 82%) - (2024) 5 CapEx eligible 2.4 ( 63%) 1.5 ( 18%) 63% (2024) 6 CapEx not eligible, nor aligned 1.4 ( 37%) - ( 0%) 37% (2024) 7 OpEx eligible and aligned - ( 0%) 1.2 ( 11%) - (2024) 8 OpEx eligible 2.5 (100%) 1.6 ( 58%) 100% (2024) 9 OpEx not eligible, nor aligned - ( 0%) - ( 0%) - (2024) Measurement KPI CCM | in M CAD 2024 (% of total | audited 2 ) 2023 (% of total | unaudited 3 ) Appendix VI: EU Taxonomy Statements (continued) ADDITIONAL INFORMATION | 127 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents See activity assessment in section 5. (Assessment for further explanation). Tekna has assessed potential eligibility of activities to all relevant environmental objectives, as required by the standard. Climate Change Adaptation and Cli- mate Change Mitigation were assessed and Tekna’s activities are eligible only under the latter, ie CCM. The alignment process involves evaluating the crite- ria for substantial contribution, do no significant harm (DNSH), and minimum safeguards. During the assessment of the technical screening criteria, we encountered challenges related to interpretations and best practices. 5. Assessments List of abbreviations: Production of additive material powders Environmental Objective: Climate Change Mitigation Economic Activity: 3.6 Manufacture of other low car- bon technologies Assessment Eligibility: “Production of additive material powders” involves the development and operation of proprietary plas- ma processes to produce and sell spherical powders for application in Additive Manufacturing, Metal In- jection Molding and Binder Jetting. The systems do not release constituents other than the powder itself and the plasma gases which con- sists of Argon, together with a secondary gas like helium, nitrogen, hydrogen or oxygen. None of these gases are considered critical for the GHG emissions. The Additive Manufacturing powders aim to increase resource efficiency along the value chain reducing GHG emissions related to those resources (materials, manufacturing, warehousing, transporta- tion and the utilization of the finished product). Substantial Contribution: Additive Manufacturing (AM) can significantly reduce GHG emissions compared to traditional manufactur- ing methods by cutting carbon emissions in four key areas: materials, manufacturing, warehousing, and transportation. Materials: AM uses only the material necessary to create the finished product. It does not generate any significant amount of scrap. For instance, Airbus claims an average fly-to-buy ratio of 10:1 1 , while a ratio close to 1:1 is achievable with AM, especially if the unused powder can be recycled. Manufacturing: AM enable engineers to design parts that are lighter, stronger, and more efficient than their traditional counterparts. This makes products manufactured using AM technologies more efficient in its intended application, e.g. less fuel consumption and associated emissions for any vehicle as it is light- er than its traditional counterpart. This applies espe- cially for small production runs and custom-made parts, provided that design optimization for AM has been achieved. Warehousing: On-demand production with 3D printing reduces the need for storage space and the associated energy for temperature, humidity, and lighting control, lowering the carbon footprint of logistics, which accounts for 5.5% to 13% of global GHG emissions. Transportation: Localized production with 3D print- ers reduces the need for long-distance transporta- tion, significantly impacting GHG emissions, as the transport sector accounts for over 23% of global CO2 emissions. Laser powder bed fusion, metal injection molding, electron-beam powder bed fusion and direct energy deposition are considered as equivalent in terms of GHG footprint. These AM technologies are consid- ered as the counterpart of conventional machining. When considering the entire manufacturing chain, AM processes are found to be up to 87 % less ener- Abbreviation Definition CCM Climate change mitigation CCA Climate change adaptation W&M Sustainable use and protection of Water and marine resources CE The transition to a circular economy P&C Pollution prevention and control regarding use and presence of chemicals B&E Protection and restoration of biodiversity and ecosystems DNSH Do no significant harm Figure 3: EU taxonomy in a nutshell Appendix VI: EU Taxonomy Statements (continued) 1 Metals and composites: finding the right material for each application | Airbus ADDITIONAL INFORMATION | 128 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents gy consuming, CO2 polluting and cheaper in respect to environmental cost compared to conventional machining. It must also be noted that AM can produce parts that conventional machining often cannot, which is accounted for in the comparison. While AM can re- duce buy-to-fly ratio by more than 75%, design op- timization for AM can reduce parts weight by anoth- er 65%. Currently, Tekna does not have a life-cycle GHG emission savings analysis available. Therefore, the additive powders segment is not considered compli- ant with the substantial contribution requirement. Do no significant harm: CCA: A Physical climate risk assessment has been conducted in accordance with the requirements in Appendix A. The assessment was performed in 2024, and the physical risks listed in appendix A were ana- lyzed at economic activity level. W&M: A water impact assessment, conducted per Appendix B, ensures that water is filtered before re- turning to the sewers. Annual quality checks on wastewater from Tekna Advanced Materials Inc's powder production facilities confirm compliance with Sherbrooke's wastewater standards. CE: Tekna evaluates availability and employs tech- niques for reusing secondary raw materials, design- ing for durability, recyclability, disassembly, and adaptability, and managing waste and traceability of substances throughout product lifecycles. Metals, particularly aluminum alloys, have high recyclability, with ingots containing 6% recycled materials. Tekna's next step is to conduct quality tests on recycled feedstock to ensure it meets client standards. P&C: An assessment per Appendix C confirms that all substances and chemicals used in Tekna’s opera- tions comply with regulations. Tekna has compiled a list of controlled and banned substances and verified compliance with the laboratory team and building manager. B&E: An assessment has been conducted in accord- ance with Appendix D. This assessment shows that none of Tekna’s operation sites are in or near biodi- versity-sensitive areas. Conclusion: Activity is eligible, not aligned. Production of turnkey plasma systems Environmental Objective: Climate Change Mitigation Economic Activity: 3.6 Manufacture of other low car- bon technologies Assessment Eligibility: “Production of turnkey plasma systems” involves pro- duction of Inductively Coupled Plasma systems, in- cluding auxiliary equipment such as power feeders, probes and powder washing systems. The turnkey plasma systems are used to develop new materials and optimize material characteristics (spheroidization). The systems do not release con- stituents other than the material itself and the plas- ma gases which consist of Argon, together with a secondary gas like helium, nitrogen, hydrogen, or oxygen. None of these gases are considered critical for the GHG emissions. It is an efficient way of devel- oping advanced materials compared to alternative chemical processes that usually generate byprod- ucts. Advanced materials aim to improve the effi- ciency of the finished product. Substantial Contribution: Induction plasma units sold to customers are de- signed for different powder-related applications that fall into two categories, i.e. nano powder synthesis or powder spheroidization, and are available in differ- ent power levels depending on the throughput re- quired. In all cases, the systems do not release con- stituents other than the powder itself and the plasma gases which consist of Argon, together with a sec- ondary gas like helium, nitrogen, hydrogen or oxy- gen. None of these gases are considered critical for the GHG emissions. As an electricity-intensive tech- nology, the energy mix used to power induction plasma units will have a significant impact on carbon footprint of this technology which is otherwise a clean technology. There are no other technologies on the market that can perform the same functions as induction plasma for nano powder synthesis or powder spheroidization. This is confirmed in tender calls, where Tekna are not facing competing tech- nologies but only competitors offering an induction plasma solution similar to ours. As of today, Tekna does not have a life-cycle GHG emission savings analysis available. Therefore, the plasma systems segment is not considered compli- ant with the substantial contribution requirement. Do no significant harm: Since the economic activity does not fulfill the criteria for substantial contribution, a complete assessment of the DNSH criteria has not yet been carried out. Conclusion: Activity is eligible, not aligned. Production of PlasmaSonic wind tunnels Environmental Objective: Climate Change Mitigation Economic Activity: 3.6 Manufacture of other low car- bon technologies Assessment Eligibility: With “Production of PlasmaSonic wind tunnels”, Tekna designs, manufactures, and sells the Plasma- Sonic Product line, which is a wind tunnel that simu- lates hypersonic conditions to enable scientific re- search, for instance space tourism and hypersonic flight. These wind tunnels allow for material testing in a controlled environment, significantly reducing emissions compared to space testing by avoiding fuel combustion and atmospheric contamination (metal particles creating a greenhouse effect). Substantial Contribution: Ground testing facilities, combined with computa- tional models, simulate space re-entry conditions. Their purpose is to develop heat shields made of specialized materials. Different ground testing tech- nologies exist, each with specific operational ranges Appendix VI: EU Taxonomy Statements (continued) ADDITIONAL INFORMATION | 129 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents (temperature, velocity, heat flux, test duration, gas composition, etc.) and minimum overlaps between them (see figure 4). Considering their differences in operational ranges, they can hardly be compared in terms of GHG emissions. Therefore, flight testing is the counterpart of Tekna’s Plasmasonic technology in terms of GHG emissions for developing superson- ic vehicles. Flight testing involve launching sounding rockets at very high altitude or even in space. While data on large rockets emissions are available in the literature, sounding rockets are rather niche and very little has been published. Depending on the fuel used, com- bustion by-products like CO2, soot, NOx and water vapor are generated in various concentrations, along with unburnt fuel expelled. The fact that important amounts of combustion by- products are released in a short period of time and in a concentrated area up to >15km altitude (in op- position with commercial aircraft making 1000s km flight at <10km altitude) can severely impact wet- lands and habitat nearby launching pads. Further- more, spaceflight is the only direct human cause of pollution above about 20 km altitude. Scientists re- cently found the stratosphere is peppered with parti- cles containing metals vaporized from the re-entry of satellites and rocket boosters. Also, water vapor released in the stratosphere can act as a greenhouse gas while black soot particles can linger for years, acting like an umbrella, absorbing solar radiation. Plasmasonic wind tunnels are believed to provide substantial life-cycle GHG emission savings com- pared to the best performing alternative. However, the substantial contribution criteria are not consid- ered met due to the lack of documentation verified by a third party demonstrating life-cycle GHG emis- sion savings. Do no significant harm: CCA: A Physical climate risk assessment has been conducted in accordance with the requirements in Appendix A. The assessment was performed in 2024, and the physical risks listed in appendix A were ana- lyzed at economic activity level. W&M: A water impact assessment has been con- ducted in accordance with Appendix B. Water is fil- tered before going back to wastewater in the sew- ers. Annual quality checks on wastewater from Tekna Plasma Systems facility confirm compliance with Sherbrooke’s wastewater standards. CE: Tekna assesses the availability and adopts tech- niques that support reuse and use of secondary raw materials, design for high durability, recyclability, disassembly and adaptability of products, waste management and traceability of substances of con- cern throughout the lifecycle of the manufactured products. PlasmaSonic wind tunnels is a new prod- uct, with expected lifespan of more than 25 years. Further, it is estimated that more than 90% of the components can be recycled. P&C: An assessment per Appendix C confirms that all substances and chemicals used in Tekna’s opera- tions comply with regulations. Tekna has compiled a list of controlled and banned substances and verified compliance with the laboratory team and building manager. B&E: An assessment has been conducted in accord- ance with Appendix D. This assessment shows that none of Tekna’s operation sites are in or near biodi- versity-sensitive areas. Conclusion: Activity is eligible, not aligned. (Development and) Production of nano materials for Multi- Layer Ceramic Capacitors (MLCC) Environmental Objective: Climate Change Mitigation Economic Activity: 3.6 Manufacture of other low car- bon technologies Assessment Eligibility: With “development and production of nano materi- als for Multi-Layer Ceramic Capacitors (MLCC)”, Tekna develops and operates its own proprietary plasma to produce and sell nano-sized metal pow- ders for application in MLCC. The systems do not release constituents other than the powder itself (typically the same material as the feedstock or pre- cursor introduced in the system) and the plasma gases which consists of Argon, together with a sec- ondary gas like helium, nitrogen, hydrogen or oxy- gen. None of these gases are considered critical for the GHG emissions. With its nano-sized materials Tekna enables electrification through MLCC (downsizing electrical components), thereby ena- bling GHG emission reductions. Substantial Contribution: The documentation requirement regarding life-cycle GHG emissions calculation has not been fulfilled, hence the substantial contribution criteria is consid- ered not met. Do no significant harm: Since the economic activity does not fulfill the criteria for substantial contribution, a complete assessment of the DNSH criteria has not yet been carried out. Conclusion: Activity is eligible, not aligned. Figure 4: Vehicle trajectories vs PWT technologies, Plasma wind tunnel typical operating range by source. ICPT: Induction Coupled Plasma (=Tekna); HPT: Huels Plasma; SPT: Segmented Arc Plasma Appendix VI: EU Taxonomy Statements (continued) ADDITIONAL INFORMATION | 130 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Additional assessment against Environmental Objective Cli- mate Change Adaptation (CCA) Environmental Objective: Climate Change Adapta- tion Economic Activity: 3.6 Manufacture of other low car- bon technologies Assessment Eligibility: See description of the activities “Production of addi- tive material powders”, “Production of turnkey plasma systems”, “Production of PlasmaSonic wind tunnels” and “development and production of nano materials for Multi-Layer Ceramic Capacitors (MLCC)” related to activity 3.6 regarding CCM above. A climate risk assessment and roadmap has been carried out, but an expenditure plan that complies with the require- ments of Appendix a is currently not in place. As such, the economic activities are not considered eli- gible under climate change adaptation. Substantial Contribution & Do no significant harm: Since the economic activity is not considered eligible for the environmental objective Climate Change Ad- aptation, no further assessment of technical screen- ing criteria has been carried out. Conclusion: Activity is not eligible under the Environmental Ob- jective CCA 6. Minimum Social Safeguards Minimum safeguard requirements are defined in article 18 of the EU Taxonomy regulation. According to which, an undertaking shall implement proce- dures to ensure the alignment with: • The OECD Guidelines for Multinational Enterpris- es (OECD Guidelines for MNE) • The UN Guiding Principles on Business and Hu- man Rights (UNGPs), including the principles and rights set out in the eight fundamental conven- tions identified in the Declaration of the Interna- tional Labour Organisation on Fundamental Prin- ciples and Rights at Work • The International Bill of Human Rights The minimum safeguards establish social and gov- ernance criteria to ensure that environmentally ben- eficial activities do not negatively impact broader objectives. Key factors considered in these safe- guards include human rights (including labor rights), tax compliance, anti-bribery and corruption measures, and fair business practices. We are unaware of any significant breaches of busi- ness conduct principles and have not faced court convictions or allegations from the OECD National Contact Points or the Business and Human Rights Resource Center. Our assessment indicates that the Group Compliance Handbook and policies meet minimum social safeguards, establishing adequate human rights due diligence processes as per UNGPs and OECD Guidelines. Therefore, we believe to be compliant with the requirements for minimum safe- guards. The Compliance Handbook mandates company- wide risk assessments on Responsible Business Con- duct, addressing social matters, human rights, anti- bribery, tax, consumer rights, and competition. Tekna’s policies are accessible to employees (in Iso- vision, the company document management sys- tem) and stakeholders (www.tekna.com/esg), with onboarding training and whistleblowing channels. Under the Norwegian Transparency Act Tekna also conduct risk assessments and reports on potential adverse impacts. Tekna's activities adhere to minimum safeguards, respecting human rights and maintaining a zero- tolerance policy for corruption, with no known cases in 2024. The company is committed to fair competi- tion and has not faced significant disputes related to competition law. The Group’s policies, such as the Code of Conduct, the Business Partner Code of Conduct and Human Rights policy can be found on our website. For fur- ther details refer to the Human Rights and Transpar- ency section in the Annual report 2024 7. Future work As we look to increase the share of aligned activities, we will endeavor to find clever, low-cost solutions to obtain the comparative independent studies, which are required to validate our alignment with Climate Change Mitigation. We will continue retrieving and improving relevant documentation and assessing the technical screen- ing criteria adopted by the EU in June 2023. We recognize that the EU Taxonomy is continually evolving, and future FAQs and publications from the European Commission may provide new insights that could influence this year's assessment. Appendix VI: EU Taxonomy Statements (continued) ADDITIONAL INFORMATION | 131 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents 8. Statements Accounting policies Intro Our accounting methodology for calculating and determining the financial key performance indicators (KPIs) disclosed by the EU Taxonomy Regulation follows the requirements in the EU Commission Del- egated Regulation 2178/2021. In line with the regula- tion, Tekna reports on turnover, CapEx and OpEx for eligible, not-aligned economic activities. The majority of Tekna’s economic activities contrib- ute to an environmental objective and alignment has been assessed against each. For the purpose of allo- cating financial KPIs to a respective environmental objective, activity-specific considerations have been evaluated, in addition to Tekna’s overall ESG strate- gy. Aligned with Tekna’s strategy, Climate Change Mitigation (“CCM”) is applicable to our activities. Double counting Tekna only qualifies under CCM and has allocated all its eligibility to this objective. No further preventative measures (such as allocation keys) have been deemed necessary to avoid any dual allocation of the numerator of turnover, CapEx, and OpEx, i.e. avoiding double counting. During 2024, Tekna has not issued new or distribut- ed previously issued green bonds with the purpose of financing Taxonomy-aligned economic activities. Hence, Tekna believes that there is no need for an adjusted turnover KPI to avoid double counting. Calculation of turnover The share of eligible, not aligned turnover is calcu- lated as the net turnover derived from products and services associated with eligible, not aligned turno- ver, divided by the Group's total net turnover, as defined in the EU Commission Delegated Act 2178/2021. Turnover is defined by IAS 1 paragraph 82(a). For Tekna group and its portfolio companies, IFRS 15 Revenues from contracts with customers constitutes the EU Taxonomy turnover. See the Consolidated Income Statement and note 3 of the Financial State- ments and the note Turnover for the related line items in the non-financial statement. All intercompany transactions have been identified and eliminated from the turnover KPI. Governmental grants and revenue from non-current assets held for sale are also eliminated. Calculation of CapEx The share of Tekna’s eligible, not aligned CapEx is calculated as CapEx associated with eligible, not aligned economic activities divided by Tekna’s total CapEx, as defined in the EU Commission Delegated Act 2178/2021. CapEx covers additions to tangible and intangible assets during the financial year considered before depreciation, amortization and any re-measurement, including those resulted from revaluations and im- pairments. As such, CapEx covers costs accounted in the following IFRS-standards: IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets. These standards have served as basis for Tekna’s allocation of CapEx to the denominator/numerator. Purchase of PPE and intangible assets are included. Goodwill is not included. See note 10, and note 11 for the re- lated line items in the financial statements and the note CapEx for the related line items in the non- financial statement. The numerator of the CapEx KPI mostly consists of capital expenditure directly associated with relevant projects (processes and assets) of Taxonomy- eligible/aligned economic activities as defined by letter (a) in the EU Commission Delegated Act 2178, section 1.1.2.2. Currently, Tekna does not have any material capital expenditures related to a CapEx plan (b) as part of a plan to expand Taxonomy-aligned economic activi- ties or to allow Taxonomy-eligible economic activi- ties to become Taxonomy-aligned under conditions specified in the Delegated Act, nor does it purchase output from Taxonomy-eligible/aligned economic activities (CapEx c). Calculation of OpEx The share of Tekna’s eligible, not aligned OpEx is calculated as OpEx associated with eligible, not aligned economic activities divided by Tekna’s total OpEx, as defined in the EU Commission Delegated Act 2178/2021. OpEx is defined as direct non-capitalized costs that relate to research and development, building reno- vation measures, short term lease, maintenance and repair and other direct expenditures relating to the day-to-day servicing of assets to property, plant and equipment by the undertaking or third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such assets. OpEx was determined using specific general ledger accounts related to maintenance and R&D. Alloca- tions were as follow: For maintenance costs allocation keys were needed to segregate expenses for Materials for Microelec- tronics (ME) and Additive Manufacturing (AM). Tekna production systems are dedicated either to AM or ME. Allocation was based on hours worked by specific system in 2024, 98.5% to AM and 1.5% to ME. For R&D: No allocation key used as we apply Project accounting. Maintenance cost is included in Operating expenses in the Consolidated Statement of Income of the Financial Statements. The numerator of the OpEx KPI mostly consists of costs directly associated with processes and assets of Taxonomy-eligible/aligned economic activities, as well as purchase of output from Taxonomy-eligible/ aligned economic activities, as defined by letter (a) and (c) in the EU Commission Delegated Act 2178, section 1.1.3.2. Currently, Tekna do not have any ma- terial operational expenditures related to a CapEx plan. Appendix VI: EU Taxonomy Statements (continued) ADDITIONAL INFORMATION | 132 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Appendix VI: EU Taxonomy Statements (continued) Turnover Financial year 2024 Economic Activities (1) Code (2) Turnover (3) Proportion of Turnover {2024} (4) Climate Change Mitigation (5) Climate Change Adaptation (6) Water (7) Pollution (8) Circular Economy (9) Biodiversity (10) Climate Change Mitigation (11) Climate Change Adaptation (12) Water (13) Pollution (14) Circular Economy (15) Biodiversity (16) CAD % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y E 0 0.0% 0.0% Y Y Y Y Y Y Y T EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL Manufacture of other low carbon technologies CCM 3.6 36 786 108 89.9% EL EL N/EL N/EL N/EL N/EL 36 786 108 89.9% 89.9% 0.0% 0.0% 0.0% 0.0% 0.0% 36 786 108 89.9% 89.9% 0.0% 0.0% 0.0% 0.0% 0.0% 4 138 827 10.1% 40 924 935 100% A. Turnover of Taxonomy-eligible activities (A.1. + A.2.) B. TAXONOMY-NON-ELIGIBLE ACTIVITIES Turnover of Taxonomy-non-eligible activities TOTAL Of which enabling Of which transitional A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) Category (enabling activity) (19) Category (transitional activity) (20) A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned) Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) Year Substantial Contribution Criteria DNSH criteria ("Does Not Significantly Harm") Minimum Safeguards (17) Proportion of Taxonomy- aligned (A.1.) or - eligible (A.2.) turnover, year 2024 (18) Contextual information about the KPIs (notes) Note Turnover As the activities match our definition of business lines, no assumptions nor allocation keys are needed to determine the KPI’s. Revenue from contracts with customers: CAD 36 .8 M. R&D Income is excluded. No turnover is used for internal consumption, and all is relevant for the EU taxonomy assessment. Ojective Taxonomy-aligned per objective Taxonomy-eligible per objective CCM 0.0% 99.0% CCA 0.0% 0.0% WTR 0.0% 0.0% PPC 0.0% 0.0% CE 0.0% 0.0% BIO 0.0% 0.0% Turnover per objective Proportion of turnover / Total turnover Figure 5: Qualification per Environmental objective ADDITIONAL INFORMATION | 133 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents CapEx Financial year 2024 Economic Activities (1) Code (2) CapEx (3) Proportion of CapEx {2024} (4) Climate Change Mitigation (5) Climate Change Adaptation (6) Water (7) Pollution (8) Circular Economy (9) Biodiversity (10) Climate Change Mitigation (11) Climate Change Adaptation (12) Water (13) Pollution (14) Circular Economy (15) Biodiversity (16) CAD % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y E 0 0.0% 0.0% Y Y Y Y Y Y Y T EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL Manufacture of other low carbon technologies CCM 3.6 2 377 240 63.1% EL EL N/EL N/EL N/EL N/EL 2 377 240 63.1% 63.1% 0.0% 0.0% 0.0% 0.0% 0.0% 2 377 240 63.1% 63.1% 0.0% 0.0% 0.0% 0.0% 0.0% 1 392 257 36.9% 3 769 497 100% Category (enabling activity) (19) Category (transitional activity) (20) A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned) CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) Year Substantial Contribution Criteria DNSH criteria ("Does Not Significantly Harm") Minimum Safeguards (17) Proportion of Taxonomy- aligned (A.1.) or - eligible (A.2.) capex, year 2024 (18) Of which enabling Of which transitional A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) A. CapEx of Taxonomy-eligible activities (A.1. + A.2.) B. TAXONOMY-NON-ELIGIBLE ACTIVITIES CapEx of Taxonomy-non-eligible activities TOTAL Contextual information about the KPIs (notes) Note CapEx All capital expenditure is considered eligible, ie CAD 2.9 M. The eligible/not aligned CapEx for 2024 is broken down as follows: Property, Plant & Equipment: CapEx considered eli- gible: CAD 2.4M (excluding ROU). Intangible assets: Capitalized patents and develop- ment fees: CAD 0.5M. Ojective Taxonomy-aligned per objective Taxonomy-eligible per objective CCM 0.0% 63.1% CCA 0.0% 0.0% WTR 0.0% 0.0% PPC 0.0% 0.0% CE 0.0% 0.0% BIO 0.0% 0.0% CapEx per objective Proportion of CapEx / Total CapEx Figure 6: Qualification per Environmental objective Appendix VI: EU Taxonomy Statements (continued) ADDITIONAL INFORMATION | 134 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents OpEx Financial year 2024 Economic Activities (1) Code (2) OpEx (3) Proportion of OpEx {2024} (4) Climate Change Mitigation (5) Climate Change Adaptation (6) Water (7) Pollution (8) Circular Economy (9) Biodiversity (10) Climate Change Mitigation (11) Climate Change Adaptation (12) Water (13) Pollution (14) Circular Economy (15) Biodiversity (16) CAD % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y E 0 0.0% 0.0% Y Y Y Y Y Y Y T EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL Manufacture of other low carbon technologies CCM 3.6 2 539 214 100.0% EL EL N/EL N/EL N/EL N/EL 2 539 214 100.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2 539 214 100.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0 0.0% 2 539 214 100% A. OpEx of Taxonomy-eligible activities (A.1. + A.2.) B. TAXONOMY-NON-ELIGIBLE ACTIVITIES OpEx of Taxonomy-non-eligible activities TOTAL Of which enabling Of which transitional A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) Category (enabling activity) (19) Category (transitional activity) (20) A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned) OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) Year Substantial Contribution Criteria DNSH criteria ("Does Not Significantly Harm") Minimum Safeguards (17) Proportion of Taxonomy- aligned (A.1.) or - eligible (A.2.) opex, year 2024 (18) Contextual information about the KPIs (notes) Note OpEx OpEx was determined using specific general ledger accounts related to maintenance and R&D. Alloca- tions were as follow: For maintenance costs: allocation were needed to segregate expenses for Materials for Microelectron- ics (ME) and Additive Manufacturing (AM). Tekna production systems are dedicated either to AM or ME. Allocation was based on hours worked by spe- cific system in 2024: 98.5% to AM and 1.5% to ME. For R&D: No allocation key used as we apply Project accounting. The total eligible/not aligned OpEx for 2024 of CAD 2.5M is broken down as follows: Additive Manufac- turing: CAD 1.2M, Systems: CAD 0.7M, PlasmaSonic: CAD 0.2M and Microelectronics: CAD 0.4M. Ojective Taxonomy-aligned per objective Taxonomy-eligible per objective CCM 0.0% 100.0% CCA 0.0% 0.0% WTR 0.0% 0.0% PPC 0.0% 0.0% CE 0.0% 0.0% BIO 0.0% 0.0% OpEx per objective Proportion of OpEx / Total OpEx Figure 7: Qualification per Environmental objective Appendix VI: EU Taxonomy Statements (continued) ADDITIONAL INFORMATION | 135 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Appendix VII: Human Rights and Transparency | Workers in the value chain [ESRS S2] | Business Conduct [ESRS G1] Tekna Group (“Tekna” or “Group”) is subject to the two following legal frameworks, both having the objec- tive of improving respect for funda- mental human rights in supply chains and increasing transparency on the topic. • 1 January 2024, the Canadian Fighting Against Forced Labour and Child Labour in Supply Chains Act came into effect. • 1 July 2022, the Norwegian Transparency Act came into effect. Tekna has reported annually on Hu- man Rights and Transparency since 2022. Tekna is a world-leading provider of advanced ma- terials, headquartered in Sherbrooke, Canada. Tekna produces high-purity metal powders for applications such as 3D printing serving the aerospace, medical and consumer electronics industries, as well as opti- mized induction plasma systems for industrial re- search and production. With its unique, IP-protected plasma technology, the company is well-positioned in the growing market for advanced nanomaterials within microelectronics. Building on 30 years of de- livering excellence, Tekna is a global player recog- nized for its quality products and its commitment to over 200 customers including multinational blue- chip customers. Tekna Holding ASA and its subsidiaries (“Tekna”) consists of ten legal entities, of which three are in Europe (“EU”; including one joint venture in process of dissolution; 18 employees), four are in North America (“NA”; 162 employees) and three are in Asia (5 employees). Manufacturing takes place in Canada, whereas the other entities are sales offices. Refer to the appendix for a full overview of entities and an organisation chart. Tekna’s value chain In our sustainability journey, we have focused our attention on understanding the impacts of our own operations. However, Tekna has a diversity of inter- actions across the value chain: suppliers, customers, our own operations and interactions related to the end user and end-of-life process. Our supply chain and geographical footprint are examples of factors that affect the value chain and our impacts, risks and opportunities. Tekna can have a positive or negative impact on the value chain. An example of a positive impact is the enabling strength of our high-quality additive manufacturing (“AM”) materials converting more customers to resource efficient AM methods. As a global business, the need for business travel and the related greenhouse gas emissions (GHG) is an example of a negative impact. Raw materials for the manufacturing of metal powders is the area with the highest risk for negative impact in our supply chain. Contents 1. Introduction.......................... 135 Tekna’s value chain ............... 135 2. Guidelines and routines .... 137 Code of Conduct and training...................................... 137 Business Partner Code of Conduct .................................... 137 Whistleblowing ....................... 138 Requests of information ........ 138 Subjects for the Board ......... 138 3. Risks of negative consequences ............................. 139 Performance and KPI ........... 139 Process to remediate negative impacts ..................................... 139 4. Measures and Action plan 140 5. Signatures ............................ 140 Community impact Labor conditions • Freedom of expression • Digital security/privacy • Access to water and sanitation • Displacement and loss of liveli- hoods • Environmental degradation • Conflict minerals in the supply chain • Gender equality and women’s right • Minority rights • Rights of Indigenous People • Rights of refugees and migrants • Land rights • Security forces • Freedom of association and the effective recognition of the right to collective bargain- ing • Forced labor • Child labor • Non-discrimination in respect of employment and occupa- tion • Safe and healthy working environment • Working conditions (wages, working hours) 1. Introduction Figure 1: Potential human rights impacts relevant to Tekna ADDITIONAL INFORMATION | 136 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Potential risk and impact areas in our value chain Notwithstanding our commitment to respecting all human rights, the human rights issues most relevant to our business operations are figure 1 on the previ- ous page. In figure 2 is a simplified overview of the Tekna value chain for the two business units. We have indicated in red the part with the highest potential for negative impact, which materials are on the Critical raw mate- rial list, and which are potential conflict materials. Own operations To manufacture Tekna’s products the following busi- ness-specific resources are required for Materials: • Production equipment: plasma systems and peripherals, sieves, blenders, containers, fork- lifts, storage racking, recycling bins • Production enablers: metals (titanium alloy, aluminum alloys, tungsten, tantalum), process gases (argon, helium), cooling water, packag- ing (plastic curtec containers, aluminum bot- tles, pallets, straps, labels), laboratory (test chemicals), OHS (GVP masks, gloves, boots) And for Systems: • Production equipment: tools, welding equip- ment, storage racking, recycling bins, specific software • Production enablers: metals, composites, elec- trical wiring, tubes, pipes, hardware, software, packaging (wooden crates) Upstream value-chain (based on unverified assumptions) To obtain the mentioned “production enablers” the following processes are likely required upstream for Materials: • Metal feedstock (titanium alloy, aluminum al- loys, tungsten, tantalum): ore extraction (mining and beneficiation resources) > refin- ing and chemical processing > reduction and metal processing > melting and casting re- sources > transformation to feedstock (processing (casting and wire drawing or powder production) and packaging resources. Systems: • Stainless steel: From ore to stainless steel sheet, this process involves mining and ore beneficiation, smelting and alloying, rolling and shaping, and finishing. We have a general understanding of the potential impacts and risks associated with the upstream value chain and the highest risk is likely to be found in raw material extraction and refining. This may include child labor, forced labor, pollution of land, soil, water and air, perilous working conditions, hazardous workplaces, exposure to hazardous chemicals, con- flict and disputes in local communities and GHG emissions. As a medium sized company we have access to our business partners and are able to inform ourselves about their practices, associated risks and potential impacts. The suppliers of our business partners have proven to be more difficult to assess. Much work remains to be done to complete the understanding. Risk mitigation 80 per cent of Tekna’s global spend comes from suppliers based in the EU or NA, which we deem well-governed by legal standards. The remaining 20 per cent, approximately, is spent on a key raw mate- rial, i.e. titanium, supplied by two regularly audited manufacturers in China. Both are well-established and qualified suppliers to major western industrial conglomerates. REACH, RoHS and potential conflict minerals Our procurement team has delivered third-party verification guaranteeing our powder products are meeting REACH (toxic chemicals) and RoHS (hazardous substances) requirements. Tekna is following the Responsible minerals initiative (Conflict minerals reporting) for tungsten and tanta- lum. Both are sourced exclusively from Conflict-Free material based on OECD due diligence and Dodd- Frank requirements. Tekna has the declaration on conflict-free material, which is made with all the in- formation from partners in the entire supply-chain from smelters up to Tekna. 1: Critical raw material list. 2: Potential conflict material Tekna’s supplier guaranteed material purchased non-conflict. Figure 2: simplified over- view of the Tekna value chain for the two businesses. Appendix VII: Human Rights and Transparency (continued) Value chain (VC) Upstream value chain Own Operations (OO) Downstream value chain (VC) Business unit: Raw materials and supply chain Production, distribu- tion, marketing Customers End-users (& End-of-life-stage) Materials: Mining and sourcing of raw materials Production of: Utilization: for additive manufacturing industry Aluminum, Tantalum 1,2, , Titanium 1 , Tungsten 1,2 Production of micron-sized materials (A, Ti, W, Ta). Tier 1 and Tier 2 Metal part manufacturers Aerospace, medical implants, consumer electronics, 3D Machine Manufacturers for micro- electronics industry Nickel Production of nano-sized materials (Ni). Multi-Layer Ceramic Capaci- tors (MLCC) Original Equip- ment Manufacturers Electronics in devices, EVs, Systems Production of hardware (Parts and subassemblies) Production and develop- ment of plasma technology (Materials) Research insti- tutes and companies Research and small production of (new) materials General Transportation associated with above activities. Sourc- ing of parts, electricity, water Storage, packaging, transportation and logistics Sales and Marketing, personnel and office Disposal and end-of-life handling ADDITIONAL INFORMATION | 137 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents 2. Guidelines and routines Several guidelines and routines have been created and communicated for handling actual and potential negative consequences for basic human rights and decent working conditions. For any concerns about business conduct, or advice regarding the policies and practices for responsible business conduct, the first point of contact internally is the HR department, externally it is the CFO and, alternatively the whistleblowing channel is available if the informant wishes to remain anonymous. Any interaction will be taken into consideration on a con- tinuous basis. Tekna has established an Ethics and Compliance Committee (“ECC”) to ensure we operate fairly across all business operations and engage to not use prohibited practices. This showcases our commit- ment to do business with diligence. The ECC reports to the Audit Committee and consists of key execu- tives and managers. One of its roles is to ensure adequate up-to-date guidelines and routines are in place and properly implemented and followed. Code of Conduct Tekna has embedded responsible business conduct of its employees and officers in its Code of Conduct (“CoC”) since 2021. The CoC was updated and ap- proved by the Board of Directors on December 15, 2023. It is available in both English and French to ensure a good understanding with the employees and enable them to use good judgment, and in the case of uncertainty, seek guidance. At March 31, 2024, 100% of the global employees had signed 3 the CoC. It is also compulsory for new employees to read and sign the CoC as part of their onboarding. The CoC is available on www.Tekna.com/esg . Employee training A CoC training for employees has been developed internally and participation before March 31, 2025 is mandatory for all Tekna employees worldwide. The training addresses Human Rights including forced and child labour, right to occupational health and safety, harassment protection, civility. It also explains the whistleblowing tool and protection as well as the key information on anti corruption and compliance. The training duration is one hour and includes an exam of 20 multiple choice questions that must be completed with 80% score. The CoC is available in the Document Management System "Isovision" and on the website. It is part of the introduction program of every employee as well as compulsory (re-)lecture when significant updates are done. Business Partner Code of Con- duct Tekna has embedded responsible business conduct for suppliers in its Supplier Code of Conduct since 2021. It has now been updated to a Business Partner Code of Conduct (“BPCoC”), which was approved by the Board of Directors on November 5, 2024. It is available in both English and French to ensure a good understanding with our supply base. The BPCoC is available on www.Tekna.com/esg . Human rights Tekna’s Business Partners shall respect human rights, and always act in line with the rules and principles laid out in the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International La- bour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights, and the OECD Guidelines for Multinational Enterprises. Tekna has implemented a Human Rights policy, approved by its Board of Directors since No- vember 5, 2024. Prohibition of child labour Tekna does not accept any form of child labour or that children below the lawful minimum age for ad- mission to employment are engaged in our or our Business Partners’ business. If persons below the age of 18 are involved, Tekna demands special precau- tions to safeguard their health, security and rights. Persons below the age of 18 shall not perform dan- gerous or night-time labour, and their work shall not inflict damage on their education or development. Tekna and its Business Partners fully support, and will act in accordance with, the UN Convention on the Rights of the Child. Labour rights, health and safety Tekna does not accept any involuntary labour and expects all its Business Partners to comply with all fundamental labour rights and applicable laws and regulations. Business Partners shall ensure fair sala- ries, safe working conditions (including necessary supervision and protection from fire and other dan- gers), the right to organize, a good workplace envi- ronment, and have in place a whistleblowing proce- dure for the reporting concerns by employees. Hazardous substances and conflict resources Tekna and its Business Partners shall comply with applicable laws and regulations regarding the use, prohibition and restriction of hazardous substances and shall avoid the use of conflict materials, i.e. ma- terials that originate from conflict areas and contrib- ute to fund governments and movements which violate fundamental human rights. Discrimination and harassment Any kind of discrimination due to gender, ethnicity, national origin, descent, skin colour, language, reli- gion, sexual orientation, family situation or disability is not accepted in Tekna or any of its Business Part- ners. All people shall at any time be treated with respect and dignity. 3: Signing includes online acceptance on our Document Management System ISOVISION. Appendix VII: Human Rights and Transparency (continued) ADDITIONAL INFORMATION | 138 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Whistleblowing Tekna encourages transparency and Business Part- ners and their employees are expected to report any concerns about potential violations of the CoC and BPCoC or applicable laws and regulations to the Chief Financial Officer without delay. If our employees suspect any unethical conduct in breach of this Code or other policies and applicable laws, they shall immediately report this to the corpo- rate or local HR department following the internal complaint procedure. The first point of contact is the HR department, but reports can be made to one of the people listed in the CoC, depending on the nature and content of the report. Violations involving a member of the executive team should be reported directly to a Board member. If an employee reporting a violation wishes to re- main anonymous, all reasonable steps will be taken to keep their identity confidential. Anyone who re- ports such matters, in accordance with the internal complaint form, will be protected from retaliation. As such, no employee shall be discriminated or retaliat- ed for reporting in good faith a violation of Tekna’s policies. However, any employee who intentionally has made a false claim of violation may receive disci- plinary actions up to and including, when appropri- ate, termination of employment. Tekna will endeavour to protect whistleblowers against retaliation. Tekna may, however, disclose information to competent authorities to the extent appropriate. In 2023, Tekna established a partnership with Whis- tleblower Software, enabling us to introduce an anonymous whistleblowing platform to our valued employees and stakeholders. This collaboration marked a significant milestone in our journey to- wards fostering a culture of transparency, accounta- bility, and ethical conduct. By providing a secure, anonymous and confidential channel for individuals to report concerns, we have strengthened our com- mitment to maintaining the highest standards of integrity within our organization. Our aim for this new channel is that it will act as a constructive feed- back loop within our organization and supply chain, thus helping in identifying, mitigating, and address- ing issues. Handling requests of information Tekna has published the Routine for processing re- quests on information according, which solidifies our dedication to transparency by outlining a systematic approach to managing and responding to infor- mation requests. The routine follows the legal re- quirements of the Norwegian law and is deemed adequate and applicable to any information request on the topic. By establishing clear guidelines for in- formation disclosure, we aim to bolster trust among our stakeholders and contribute to a more informed and engaged community. Upon receipt of a written request for information Tekna will reply within three weeks. Depending on the complexity of the request this will either be the answer to the questions or a request for extension of the time limit with reason of the extension and an expected completion and reply date. The contact person for questions related to this re- port, human rights and transparency is disclosed on the website (Tekna.com/esg). At publication of this report Ms. Arina van Oost can be contacted at [email protected]. Subjects for the Board The overall management of the Company is vested in the Board and the Executive Leadership Team. In accordance with Norwegian law, the Board of Direc- tors is responsible for, among other things, supervis- ing the general and day-to-day management of the Company’s business, ensuring proper organization and allocation of responsibilities and duties, prepar- ing plans and budgets for its activities, ensuring that the Company’s activities, accounts, and assets man- agement are subject to adequate controls and un- dertaking investigations necessary to perform its duties. Since 2022, the Board of Directors approves all ESG policies. Important policies publicly available: • (Employee) Code of Conduct and Ethics (2023) • Corporate Governance policy (2022) • Business Partner Code of Conduct (2024) • Human Rights Policy (2024) • Routine - Transparency Act (2023) • Anti-Corruption policy (2023) • Competition law compliance policy (2023) Relevant internal policies approved by the CEO: • Donations and Sponsorships Policy • Work Harassment policy • Workers’ compensation equity system • Occupational Health & Safety policy Appendix VII: Human Rights and Transparency (continued) ADDITIONAL INFORMATION | 139 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents 3. Risk of negative consequences Risks of negative consequences resulting from our value chain are identified through a sustainability due diligence process. Performance Tekna’s first experience with supply-chain due dili- gence stems from its 2022/23 effort to engage with the top 25 suppliers ranked on the basis of risk of location, location of their supply-chain and or spend. We used a professional tool developed for this pur- pose, Factlines.com, and after numerous follow-ups we managed to get 9 completed assessments. For results refer to the 2023 report. 80 per cent of Tekna’s global spend comes from suppliers based in the EU or NA, which we deem well-governed by legal standards. The highest risk supplier (rank 1/25), based on significance for Tekna for (titanium feedstock), spend (approx. 20 percent of total company spend), and location (China classi- fied as a country with high risk because there is no guarantee of workers’ rights), completed the self- assessment, signed the SCoC and was audited on site. They are well-established and a qualified suppli- er to major western industrial conglomerates. Therefore, the Ethics and Compliance Committee has decided to use 2024 for implementing the new policies approved in Q4 2023 and 2024 (see Sub- jects for the Board). In 2025, we will initiate a second due diligence round to identify, measure and understand the most im- portant risks in our supply chain. We aim to cover topics such as supply chain, risk assessment, man- agement systems, working conditions, social respon- sibility, environment, anti-corruption, and conflict minerals. In order to make the most out of the resources we have, we will first focus our efforts on the suppliers with the most improvement potential. We will pay particular attention to those suppliers that disclose not having a policy against the use of child labour and / or forced labour in line with the UN Global Compact principle 5. KPI In 2024, there were no reported incidents of discrim- ination, anti-corruption or breaches of the BPCoC or CoC. Tekna received three whistleblowing reports involving two (internal) incidents. See figure 3 for further key performance indicators. Process to remediate negative impacts To date, Tekna has not detected or been informed of any negative impact to remediate. In line with our 2024 Human Rights Policy and com- mitment, Tekna: • Provides an accessible complaint mechanism provided by Whistleblower Software, which enables Representatives, Business partners and other relevant stakeholders to raise con- cerns or grievances related to our activities, securely and anonymously; • Ensures that complaints are handled prompt- ly, impartially, and according to applicable laws and regulations. Our grievance handling team conducts thorough investigations, tak- ing action, and ensuring transparency throughout the remediation process; • Provides or cooperates in providing prompt and appropriate remediation to address and prevent activities that have caused or contrib- uted to adverse impacts and its recurrence, such as corrective actions, compensation, or changes to our policies. Figure 3: Key performance indicators 2024 2023 Percentage of new suppliers that were screened using social criteria priority focus on risk suppliers Number of suppliers assessed for social impacts 9 (+3 in progress) Focus on implementing policies, Due diligence to re-start in 2025 Number of suppliers identified as having significant actual and potential negative social impacts 0 Percentage of suppliers identified as having significant actual and potential negative social impacts with which improvements were agreed upon as a result of assessment 0 (high risk) Percentage of suppliers identified as having significant actual and potential negative social impacts with which relationships were terminated as a result of assessment, and why 0 Appendix VII: Human Rights and Transparency (continued) ADDITIONAL INFORMATION | 140 ANNUAL REPORT 2024 Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Progress on Action plan 2024 Supplier audit standard agenda to include E,S,G and climate risk topics Completed Increase Supplier SCoC signatories - simplify process Ongoing Employee training in CoC— including focus on child and forced labour Training developed, roll out Q1 Employee training in Anti-Corruption and Compliance Training developed, roll out Q1 Update and adjust SCoC to specifically address all Business Partners Completed Board approval for CoC for Business Partners Completed Create Human Rights Policy Completed Board approval Human Rights Policy Completed ECC to follow due diligence on 25 most critical suppliers Ongoing Actions 2025 Employee training in CoC— including focus on child and forced labour, Anti-Corruption and Compliance Q1 Increase BPCoC signatories - simplify process Ongoing Reinitiate Due diligence on 25 most critical suppliers, ECC to track Q2-Q4 4. Measures Tekna will ensure that all new employees sign the Code of Conduct and undergo training on the most important policies, including the Code of Conduct, Human Rights policy and Anti-Corruption and Com- petition Law Compliance. Tekna will renew its efforts with its supply base to • Improve the percentage of signatories of its up- dated Business Partner Code of Conduct • Improve participation in its due diligence process and act on any “high risk” assessments • Ensure supplier audits include E, S, G topics and climate risk mitigation as standard in the agenda • Improve its understanding of climate-related risk and support the development of a mitigation plan. All these measures will reduce the risk of negative consequences and halt present activities that have negative impact. Arendal, 9 April 2025 The Board of Directors and CEO of Tekna Holding ASA This document was electronically signed. Anne Lise Meyer Member of the Board Kristin Skau Åbyholm Member of the Board Luc Dionne CEO Dag Teigland Chair of the Board Torkil Sigurd Mogstad Member of the Board Barbara Thierart-Perrin Member of the Board Ann-Kari Amundsen Heier Member of the Board Lars Magnus Eldrup Fagernes Member of the Board 5. Signatures Board of Directors and CEO Appendix VII: Human Rights and Transparency (continued) Sustainability Report Appendix Contact Information Corporate Governance Report Introduction Financial Statements Auditors Report Board of Directors’ Report 2024 Contents Tekna Holding ASA Langbryggen 9 4841 Arendal Norway Headquarter: 2935 Boul. Industriel Sherbrooke, Québec J1L 2T9 Canada +1-819-820-2204 [email protected] www.tekna.com/investors [email protected] www.tekna.com/esg request We encourage you to read the document on a device instead of printing it.

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