Ovzon — Interim / Quarterly Report 2022

Apr 28, 2022

Interim report January-March 2022

www.ovzon.com

Interim report, January–March 2022

Record revenue but with continued unsatisfying profitability

January–March 2022

• Revenue increased to TSEK 99,887 (37,131). Revenue for the period include compensation for divested production stock of TSEK 3,367 (-)
• Operating profit amounted to TSEK -17,508 (-30,658)
• Profit after tax amounted to TSEK -11,780 (-11,254). The result includes currency conversions and financial transaction costs of TSEK 6,393 (19,399)
• Earnings per share amounted to -0,21 (-0,24)

Significant events during the quarter

• Announcement that Ovzon 3 satellite launch will be slightly delayed and launched during late 2022.

Significant events after the quarter

• On April 1, delivery of Ovzon SATCOM-as-a-Service on steerable satellite antennas to the Italian Fire and Rescue Service started.
• On April 21, the company held its Annual General Meeting.

Outlook

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

Key figures

	jan-mar	jan-mar	jan-dec
TSEK	2022	2021	2021
Revenue	99 887	37 131	191 378
Operating profit/loss	-17 508	-30 658	-113 383
Profit/loss for the period after tax	-11 780	-11 254	-83 854
Earnings per share, SEK	-0,21	-0,24	-1,78
Total cash flow	-95 568	-94 402	208 880
Equity ratio, %	79	95	78
Order book, SATCOM services, MUSD	22,4	11,5	29,1
Share price end of period, SEK	50,7	71,6	62,8

Record revenue but with continued unsatisfying profitability

Revenue during the first quarter of 2022 have never been higher in any quarter before for Ovzon. We continue our focus on driving profitability in our core business, Ovzon SATCOM-as-a-Service. It is worth noting that we continue to carry the costs of the strategically important investments we have made in high-performing satellite capacity, in order to be able to offer our customers global coverage and to be ready when our own satellite Ovzon 3 is in operational position.

During the first quarter, Ovzon has of course focused on delivering on the strong order intake of almost MSEK 250 that we received during the second half of 2021. The increased order intake is a clear evidence that our SATCOM-as-a-Service offering is unique and world-leading, and our reputation is beginning to have an impact beyond our previously prioritized customer segments. An increasing number of both existing and potential customers are attracted by our premium value proposition and solutions, as we continue to work closely with and deepen our understanding of the customer's environment and operations. We are agile and disciplined in our delivery of mobile satellite communications with high quality and exceptional transmission and reception capacity.

Increased production volumes

Through the large order we received from the Italian Fire and Rescue Service at the end of 2021, we now have two strong customer segments: Government & Defense and Emergency & Rescue Services. On April 1, we started delivering the Ovzon SATCOM-as-a-Service to our new large customer in Italy. The customer will be an important reference for us going forward.

In parallel, we have scaled up the production of our latest mobile satellite terminal, Ovzon T6, considerably, with increased delivery volumes primarily to the U.S. DOD. We initiated a comprehensive industrialization initiative during 2021, to make the business more process and delivery capable, in order to be able to quickly ramp-up the production pace, deliver the highest quality, on time and globally. It paid off during the first quarter in terms of production and deliveries of terminals at volumes higher than ever before.

Ovzon's On-Board Processor (OBP) delivered for integration on Ovzon 3

Preparations for the launch of our own satellite in 2022 continues to progress together with our satellite manufacturing partner Maxar. Our proprietary developed communications platform, the Ovzon On-Board Processor, has undergone meticulous tests and has been tuned during the quarter. It has now been delivered to Maxar for installation and integration on the satellite. Ovzon 3 will be an important milestone to further enhance the value of our unique SATCOM-as-a-Service offering, as it allows us to offer increased capacity, flexibility, security and the possibility of increased data speeds and new applications for customers. However, in the short term, Ovzon 3 has no direct impact on our current business and delivery capacity, as we have previously strategically secured leased satellite capacity. Most important is the finalization of Ovzon 3, in order to bring the capability and performance that makes it unique, which will enable us to deliver the next generation of SATCOM-as-a-Service to existing and new customers.

Increased investment and activities in the satellite industry

Another important event during the first quarter, for us and the satellite communications industry, was the annual industry show, Satellite 2022, in Washington DC at the end of March - an event that was extra well attended this year due to lower pandemic restrictions. There is a significant appetite for investments and activity in the satellite industry right now, with increased interest from investors and a large inflow of capital in the GEO, MEO and LEO segments. It benefits the pace of innovation and the development of new technologies and business models throughout the industry and thus sheds light on companies such as Ovzon, with a modern business model and leading-edge technology. A couple of transactions, such as Viasat's acquisition of Inmarsat and SES 'acquisition of Leonardo DRS Global Enterprise Solutions, have further increased interest and the temperature in the industry.

An important 2022

2022 will be an important year in Ovzon's history. We have ambitious growth targets to achieve. We will launch our first own satellite Ovzon 3, which includes our unique communications platform – the Ovzon On-Board-Processor.

The year has started well, and we have a solid foundation to be able to deliver on the orders we won in 2021, while we continue to focus on sales to both existing and new customers. Our assessment of higher sales in 2022 compared with 2021 remains unchanged.

We follow and, of course, deplore the appalling situation in Ukraine and the security concerns in Europe and in the rest of the world that follow. The situation may impact our operations as Ovzon's services can deliver a solution fast in situations where traditional communication channels are non-functional or unavailable. We are involved in a number of strategic discussions regarding SATCOM-as-a-Service. Having reference customers and available capacity is of course an advantage in these challenging situations.

Per Norén, CEO Ovzon

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

About Ovzon

Ovzon provides mobile broadband satellite service through its own and leased satellite capacity to customers in various parts of the world.

Vision

To revolutionize mobile broadband via satellite by offering global coverage of the highest bandwidth through the smallest mobile satellite terminals.

Business idea

The Group provides mobile satellite broadband services in areas without functioning infrastructure.

Financial targets

Ovzon's financial target is to continue to develop and expand its current service offering in the coming years, at the same time as the company prepares the launch of its first self-developed satellite.

Ovzon at a glance

Costumer segments Key trends Sales, MSEK

Defense Government Emergency services NGOs Media

Increased demand for:

• Integrated solutions
• Bandwidth
• Mobility

Financial overview

Development during the period

	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Okt-Dec	Jul-Sep	Apr-Jun
TSEK	2022	2021	2021	2021	2021	2020	2020	2020
Revenue	99 887	73 209	47 823	33 216	37 131	33 633	32 285	34 983
Operating profit/loss	-17 508	-29 030	-22 785	-30 910	-30 658	-19 326	-17 000	-17 313
Profit/loss for the period after tax	-11 708	-21 723	-12 339	-38 538	-11 254	-55 683	-30 180	-51 891
Earnings per share, SEK	-0,21	-0,42	-0,26	-0,84	-0,24	-1,20	-0,55	-1,42
Total cash flow	-95 568	-59 266	144 516	218 032	-94 402	-288 789	-70 368	290 405
Equity ratio, %	79	78	80	78	95	97	88	94

Revenue and order intake

Revenue for the first quarter increased to TSEK 99,887 (37,131).

The increased revenue compared to the comparable quarter last year is driven by the new important orders signed with US DOD, UK MoD and the Italian Fire and Rescue Service during 2021. Together with the company's SATCOM-as-a-Service, the revenue for the quarter also include sold satellite terminals of TSEK 38,593 (-) and compensation of TSEK 3,367 for the production stock sold to the company's new production partner Syntronic. In addition, revenues were positively affected by the higher average exchange rate for USD, which during the year was 9.34 (8.40) SEK.

The order intake regarding SATCOM services (excluding terminals) for the year amounted to MUSD 0.1 (0.5) and the order book for undelivered SATCOM services (excluding terminals) at the end of the year amounted to MUSD 22.4 (11.5) (excluding sold capacity of Ovzon 3).

Operating profit

Operating profit for the first quarter amounted to TSEK -17,508 (-30,658).

Operating profit has been affected positively by the new orders as well the deliveries of terminals during the quarter. During the first quarter of 2021, operating profit included costs of TSEK 2,282 linked to the move to the regulated market Nasdaq Stockholm.

The operating profit was affected negatively by lower capacity utilization of contracted satellite capacity. One of the steerable antennas on IS-39 and satellite capacity on IS-37 was unsold during the quarter, affecting operating profit by TSEK -15,858. The unsold capacity has to a large extent been used for tests and customer demonstrations of the company's satellite service. Capacity utilization will improve from 1 April 2022, when OHO-13 (IS-37) will begin to be delivered to the Italian Fire and Rescue service.

The capacity agreement with Intelsat regarding capacity on IS-39 and IS-37 extends over a total of 48 months from November 1, 2020.

Profit/loss after financial items

Net financial items for the first quarter amounted to TSEK 6,255 (19,396) with a loss after financial items of TSEK -11,253 (-11,262). Net financial items include currency effects of TSEK 6,393 (19,399) on the part of the company's liquidity and group balances that are held in US dollars.

Profit/loss after tax

Loss after tax for the fourth quarter amounted to TSEK -11,780 (-11,254).

Cash flow

Cash flow from operating activities for the first quarter amounted to TSEK -66,807 (-19,080). Along with operating profit, cash flow was affected by a less optimal composition of working capital.

Cash flow from investing activities for the quarter amounted to TSEK -28,761 (-75,322). The investments were mainly attributable to the development of new terminals as well as the company's first own satellite Ovzon 3, a project estimated to be completed during 2022 (see also Note 8).

Cash flow from financing activities for the first quarter amounted to TSEK 0 (0). During the first quarter, the company paid loan expenses totaling TSEK 9,536 (0). These have been capitalized as part of the investment activities and are included in the year's accrued costs and advances paid.

Financial position

The Group's cash and cash equivalents at the balance sheet date amounted to TSEK 315,944 compared with TSEK 406,084 at the beginning of the year. Equity amounted to TSEK 1,435,343, compared to TSEK 1,450,268 at the beginning of the year. The equity ratio is 79 percent (95).

Options outstanding

In connection with the raising of a subordinated loan facility of TSEK 200,000 on July 3, 2019, 1,500,000 warrants were issued to the subordinated lenders. Following the rights issue in June 2020, the terms of the warrants have been recalculated. Each option entitles the holder to subscribe for 1.02 new shares in the company at a price of SEK 98.16 per share. The warrants run over a maximum of 5 years and may be exercised for subscription of shares up to and including 3 July 2024.

An Extraordinary General Meeting on May 18, 2020, resolved to issue a maximum of 900,000 warrants under Warrant Program 2020/2023. The company's management team has subscribed for the maximum number of warrants granted a total of 500,000 and other personnel have subscribed for a total of 200,000 options. Each warrant entitles the holder to subscribe for one new share in the company at a price of SEK 102.10 per share. If all granted warrants and options in the programs are used, a dilution of 1.4 percent of the shares and votes in the company will occur. The exercise period for the warrants runs from 18 June 2023 to 18 July 2023.

The Annual General Meeting on April 13, 2021, resolved to issue a maximum of 1,100,000 warrants under Warrant Program 2021/2024. The company's management team has subscribed for a total of 410,000 options and other personnel have subscribed for a total of 186,000 options. Each warrant entitles the holder to subscribe for one new share in the company at a price of SEK 145.6 per share. If all

granted warrants and options in the program are used, a dilution of 1.2 percent of the shares and votes in the company will occur. The exercise period for the warrants runs from 15 May 2024 to 15 June 2024.

Management and organization

The number of employees in the Group at the end of the period was 36 (33).

Significant risks and uncertainties

Risks associated with the Group's operations can generally be divided into strategical and operational risks related to business activities and risk related to financing activities. There was no major change to significant risks or uncertainties during the period. For a detailed description of Ovzon's risks and uncertainties and how they are managed, refer to Ovzon's 2021 Annual Report.

Parent company

Parent company operations comprise costs for parts of senior management and staff functions as well as other central costs. The Parent Company invoices the subsidiaries for these costs.

The parent company's revenue for the first quarter amounted to TSEK 4,956 (4,956) with a profit after financial items of TSEK 9,717 (21,630). Cash and cash equivalents at the balance sheet date are TSEK 295,466 compared with TSEK 380,551 at the beginning of the year. Investments during the quarter was TSEK – (–). Equity amounted to TSEK 1,833,839, compared with TSEK 1,824,122 at the beginning of the year. The number of employees is 2 (2).

The company's major shareholders

At the end of the reporting period the company's major shareholders were: Investment AB Öresund (11.9%), Bure Equity AB (11.4%), Futur Pension (9.6%), Handelsbanken Fonder (9.3%), Fjärde APfonden (9.1%), AFA Försäkring (7.7%), Nortal Investment AB (6.1%) and other shareholders (34.9%). At the end of the reporting period, the total number of shares was 51,270,876.

Covid-19 and the war in Ukraine

As a consequence of covid-19, the company sees an increased risk of potential disruptions in the supply chains as well as the financial stability of the company's customers and suppliers, which could affect the delivery time and the quality of components.

The war in Ukraine and the changed geopolitical situation have not yet affected Ovzon significantly, but the board and management are following developments to evaluate and manage potential risks.

Dividend

At the Annual General Meeting on April 21, 2022, it was decided that no dividend will be paid for the 2021 financial year.

Outlook

The company believes that the market for satellite communications services that require high mobility and performance will develop positively and that sales for 2022 will be higher than in 2021. The business outside of the US is increasing and the company expects to continue contracting new customers in 2021 who will also be interested in capacity on Ovzon 3.

Financial calendar

Interim report January-June 2022 August 18, 2022 Interim report January-September 2022 October 21, 2022 Full-year report January-December 2022 February 21, 2023

Review by auditors

The interim report has not been subject of review by the company's auditors.

Stockholm, April 28, 2022

Per Norén CEO

Contact information

Per Norén Johan Brandt Ovzon AB (publ) pno@ovzon.com jbr@ovzon.com SE-171 54 Solna

CEO CFO Anderstorpsvägen 10, +1 206 931 7232 +46 703 69 33 00 +46 8 508 600 60 www.ovzon.com Org nr 559079-2650

Group financial statements

Group income statements

	Jan-Mar	Jan-Mar	Jan-Dec
TSEK	2022	2021	2021
Revenue note 5	99 887	37 131	191 378
Other operating income	2 936	2 713	10 535
Purchased satellite capacity and other direct costs	-83 497	-34 709	-177 313
Other external costs	-13 716	-15 003	-58 867
Employee benefit expenses	-16 931	-17 157	-65 618
Depreciation/amortisation	-4 270	-1 733	-9 895
Other operating expenses	-1 917	-1 900	-3 602
Operating profit/loss	-17 508	-30 658	-113 383
Financial income	6 393	19 399	29 861
Financial expenses	-138	-3	-364
Profit/loss after financial items note 7	-11 253	-11 262	-83 886
Tax on the profit for the period	-528	7	32
NET PROFIT/LOSS FOR THE PERIOD	-11 780	-11 254	-83 854
Net profit/loss for the period attributable to:
Shareholders of the Parent Company	-11 780	-11 254	-83 854
Earnings per share attributable to shareholders of the Parent Company, SEK	-0,21	-0,24	-1,78
Earnings per share after dilution	-0,21	-0,24	-1,78
Average number of shares	51 270 876	46 244 688	47 023 823

Group statements over comprehensive income

	Jan-Mar	Jan-Mar	Jan-Dec
TSEK	2022	2021	2021
Profit/loss for the period	-11 780	-11 254	-83 854
the comprehensive income:
Items that can be subsequently reclassified to the income statement:
- Translation differences	-3 145	-5 083	-11 085
Other comprehensive income after tax	-3 145	-5 083	-11 085
Comprehensive income/loss for the period	-14 925	-16 337	-94 939
Comprehensive income/loss for the period attributable to:
Shareholders of the Parent Company	-14 925	-16 337	-94 939
Comprehensive income/loss for the period	-14 925	-16 337	-94 939

Consolidated condensed balance sheets

	31 Mar	31 Mar	31 Dec
TSEK	2022	2021	2021
ASSETS *
Intangible fixed assets	23 997	21 515	23 862
Property, plant and equipment 8)	1 376 155	1 068 227	1 345 303
Access rights Assets	8 849	8 184	6 653
Financial fixed assets	111	64	102
Inventory	24 474	39 591	25 259
Current receivables	67 879	106 656	46 055
Cash and cash equivalents	315 944	92 765	406 084
TOTAL ASSETS	1 817 410	1 337 002	1 853 318
EQUITY AND LIABILITIES*
Equity	1 435 343	1 276 341	1 450 268
Long-term liabilities, interest bearing 6)	324 243	–	316 530
Liabilities related to leasing, interest-bearing	9 378	8 487	7 139
Warranty provisions	1 400	-	-
Current liabilities, non-interest-bearing	47 045	52 174	79 382
TOTAL EQUITY AND LIABILITIES	1 817 410	1 337 002	1 853 318

*Reported values for financial assets and liabilities are either valued at fair value or constitute a good approximation of fair value.

Consolidated condensed statement of changes in equity

	31 Mar	31 Mar	31 Dec
TSEK	2022	2021	2021
Equity at the beginning of the year	1 450 268	1 292 611	1 292 611
Comprehensive income/loss for the period	-14 925	-16 337	-94 939
Share issue, net after transaction costs	–	–	250 212
Employee stock options (according to IFRS 2)	–	67	100
Issued warrants	–	–	2 283
EQUITY AT THE END OF THE PERIOD	1 435 343	1 276 341	1 450 268

Consolidated condensed cash flow statements

	Jan-Mar	Jan-Mar	Jan-Dec
TSEK	2022	2021	2021
Cash flow from operating activities before changes in working capital	-13 431	-25 773	-95 457
Total change in working capital	-53 376	6 693	18 087
Cash flow from operating activities	-66 807	-19 080	-77 370
Cash flow from investing activities	-28 761	-75 322	-273 814
Cash flow from financing activities	–	–	560 063
CASH FLOW FOR THE PERIOD	-95 568	-94 402	208 880
Cash and cash equivalents at the beginning of the period	406 084	185 025	185 025
Exchange-rate difference in cash and cash equivalents	5 428	2 142	12 179
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	315 944	92 765	406 084

Financial statements, Parent Company

	jan-mar	jan-mar	jan-dec
TSEK	2022	2021	2021
Revenue	4 956	4 956	24 818
Other operating income	212	384	1 260
Other external costs	-3 617	-3 222	-15 233
Personnel costs	-1 549	-2 432	-10 613
Operating profit/loss	2	-314	232
Financial revenues	19 251	21 944	175 925
Financial expenses	-9 536	–	-137 056
Profit/loss after financial items 7)	9 717	21 630	39 101
Tax	–	–	–
NET PROFIT/LOSS FOR THE PERIOD	9 717	21 630	39 101

Condensed parent company income statements

Parent company statements of comprehensive income

	jan-mar	jan-mar	jan-dec
TSEK	2022	2021	2021
Profit/loss for the period	9 717	21 630	39 101
Other comprehensive income:	–	–	–
Comprehensive income for the period	9 717	21 630	39 101

Condensed parent company balance sheet

	31 mar	31 mar	31 dec
TSEK	2022	2021	2021
ASSETS*
Shares in Group companies	1 395 491	1 033 491	1 395 491
Financial assets	–	–	–
Receivables from Group companies 12)	470 756	386 759	375 136
Current receivables	4 427	93 850	654
Cash and cash equivalents	295 466	43 504	380 551
TOTAL ASSETS	2 166 140	1 557 604	2 151 832
EQUITY AND LIABILITIES*)
Equity	1 833 839	1 554 156	1 824 122
Long-term liabilities, interest bearing 6)	324 243	–-	316 530
Current liabilities, non-interest bearing	8 058	3 448	11 180
TOTAL EQUITY AND LIABILITIES	2 166 140	1 557 604	2 151 832
* Reported values for financial assets and liabilities are either valued at fair value or constitute a good approximation of fair value.

Condensed parent company statement of changes in equity

	31 mar	31 mar	31 dec
TSEK	2022	2021	2021
Equity at the beginning of the year	1 824 122	1 532 525	1 532 525
Comprehensive income for the period	9 717	21 630	39 101
Share issue, net after transaction costs	–	–	250 212
Issued warrants	–	–	2 283
EQUITY AT THE END OF THE PERIOD	1 833 839	1 554 156	1 824 122

Notes

Note 1: Basis of preparation and accounting policies for the Group

Ovzon applies the International Financial Reporting Standards (IFRS) as adopted by the EU, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board RFR 1, Supplementary Accounting Rules for Groups. The Group's financial reports are prepared in accordance with the Swedish Annual Accounts Act and RFR 2, Accounting for Legal Entities. The interim report for the period January – March 2022 was prepared in accordance with IAS 34 Interim Reporting and the Swedish Annual Accounts Act. Disclosures in accordance with IAS 34 are provided in notes as well as elsewhere in the interim report. The same accounting principles and calculation methods are applied as in the latest Annual Report. New or revised IFRS and interpretations with application from 2022 are not considered to have any significant impact on Ovzon's financial reports.

Note 2: Business segment reporting

Segment information is not presented because the business activities comprise only one segment.

Note 3: Fair value of financial instrument

The Group has no derivative instruments or other financial instruments measured at fair value. The fair value of long-term and current interest-bearing liabilities is not considered to deviate materially from their carrying amount. For financial instruments measured at amortised cost (accounts receivable, other receivables, cash and cash equivalents, trade payables and other interest-free liabilities), their fair value is considered equal to their carrying amount.

Note 4: Leasing

According to IFRS 16 (Leasing agreements), an asset (relating to a right of use) and a financial liability (relating to an obligation to pay leasing fees) must be reported in the balance sheet. The lessee shall divide the cost of the leased asset into depreciation and interest payments.

The company's agreement with Intelsat regarding capacity on IS-39 and IS-37 amounts to MUSD 39.4 and runs over 4 years, starting November 1, 2020. Since the capacity leased on the antennas does not correspond to substantially the entire capacity of the antennas, the capacity parts leased are not identified assets and therefore the agreements are not deemed to meet the definition of a leasing agreement in accordance with IFRS 16.

Note 5: Net sales

	Group
	31 mar	31 mar	31 dec
Distribution of net sales	2022	2021	2021
Satellite services	58 157	37 131	169 798
Terminals	38 593	-	2 332
Other	3 137	-	19 248
Total	99 887	37 131	191 378

	Group
	31 mar	31 mar	31 dec
Net sales by geography	2022	2021	2021
Sweden	8 530	6 103	35 332
US	91 357	31 028	156 046
Total	99 887	37 131	191 378

Note 6: Financing

In 2019, the company signed a senior loan facility of MUSD 60 to secure the financing of its own satellite Ovzon 3. During 2021, MUSD 35 was drawn down and during the first quarter 2022 MUSD 5 of the unused part of the loan facility expired.. The loan runs over up to 6 years with an interest rate of USD 3m Libor + 10 percent.

Note 7: Net financial items

The Group's net financial items consist primarily of currency effects on the part of the company's liquidity and group balances held in US dollars. Aggregate currency effects are reported net, which means that individual quarters can present negative income or positive costs.

The Parent Company's net financial items include, in addition to the above items, debited loan expenses to Ovzon Sweden AB of TSEK 9,536 for the quarter.

Note 8: Current material fixed assets under construction and advance payments

Ongoing investment pertains to the company's proprietary satellite Ovzon 3, which is expected to be completed in 2022.

	31 mar	31 dec
Ongoing investment: Ovzon 3, TSEK	2022	2021
Opening balance accrued costs and advances paid	1 320 279	986 947
Costs and advances paid during the year	14 205	317 173
Translation difference	4 424	16 158
Closing balance accumulated capitalized costs 1)	1 338 907	1 320 279
Opening balance write-downs	-12 297	-12 297
Writed-downs for the year	-	-
Closing balance accumulated write-downs	-12 297	-12 297
Closing balance, reported value	1 326 610	1 307 982

1) Of the total capitalization TSEK 28,717 (19,359) relates to internal work.

As the loan facility has now been utilized, loan expenses of TSEK 9,536 were capitalized in the quarter. These are included in costs and advances paid during the year.

Note 9: Tax

Deferred tax assets on tax-loss carry forwards are not included on the balance sheet.

Note 10: Pledged assets and contingent liabilities

TSEK 7,035 (7,023) of the Group's cash and cash equivalents consist of blocked funds.

In connection with the utilization of the credit facility in April 2021, the company and its subsidiaries have pledged the following central assets under the loan agreement and associated collateral agreements: the shares in the company's subsidiaries, certain intellectual property rights, certain intra-group liabilities, central supplier contracts in the Ovzon 3 project (between some of the suppliers and the lenders) as well as certain bank balances and that the subsidiaries have acceded to the loan agreement and guarantee the loans under the loan agreement.

	Group			Parent Company
	31 mar	31 dec	31 mar	31 dec
Pledged assets	2022	2021	2022	2021
Shares in subsidiaries	1 024 055	1 048 753	1 395 491	1 395 491
Receivables from group companies	–	–	470 757	375 136
Pledged bank funds	7 035	7 023	-	-
Total	1 031 090	1 055 776	1 866 248	1 770 627

Note 11: Events after the balance sheet date

• On April 1, delivery of Ovzon SATCOM-as-a-Service on OHO-13 to the Italian Fire and Rescue Service started.
• On April 21, the company held its Annual General Meeting.

Note 12: Related-party transactions

	31 mar	31 dec
Total receivables from Group companies, TSEK	2022	2021
Ovzon Sweden AB	55 620	9 112
OverHorizon OHO 1 Limited	33 991	32 799
Ovzon LLC	380 210	332 379
Ovzon US LLC	935	845
Total	470 757	375 136

Ovzon AB (publ) is the parent company of the Group, which also consists of the subsidiaries Ovzon Sweden AB, OverHorizon OHO 1 Ltd, Ovzon US LLC and Ovzon LLC, a wholly owned subsidiary of Ovzon US LLC.

During the period, the Parent Company's loan facility for financing Ovzon 3 has been utilized, loan expenses of TSEK 9,536 have been debited to Ovzon Sweden AB.

Alternative performance measures

The company reports alternative key ratios in this interim report. The alternative key ratios provide valuable supplementary information to investors and other stakeholders as they enable evaluation of the company's performance. The alternative key ratios in this report may differ from the calculation method of similar measurements used by other companies.

Operating margin

Operating profit/loss in relation to revenue.

Earnings per share

Profit for the period in relation to the average number of shares. Average number of shares is calculated as the number of shares at the end of the period multiplied by the number of days that this number of shares has existed during the period, plus any other number of shares during the period multiplied by the number of days that this number of shares has existed during the period, divided by the total number of days in the period.

Equity/asset ratio

Equity in relation to total assets.