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Annual report
2023
one particle at a time...
January
1
—December 31
Sustainability
Reporting
Financial Statements
Auditors report
Contact Information
Corporate Governance
Statement
CONTENTS
ANNUAL REPORT 2023
This is Tekna
Shareholder
information
Board of Directors
’
report 2023
CEO letter
Board and
Management
| 2
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 dam-
aged and in desperate 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 as well as
improving the characteristics
of a lithium-
ion battery that these tiny particles become
magical.
And so does the plasma technology that produces them.
mission
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
                
 
Sustainability
Reporting
Financial Statements
Auditors report
Contact Information
Corporate Governance
Statement
CONTENTS
ANNUAL REPORT 2023
This is Tekna
Shareholder
information
Board of Directors
’
report 2023
CEO letter
Board and
Management
| 3
Corporate Governance
Report
Contents
About Tekna
..................................
5
Key figures at a glance
...............
6
Highlights and important
milestones in 2023
.......................
7
Environment indicators
..............
8
Social and Governance
indicators
........................................
9
CEO letter
......................................
10
Governance and Risk
management
................................
13
Board of Directors and
Executive Leadership Team
.....
14
Shareholder Information
...........
17
Indicators supporting
Investor
’
s SFDR Principal
Adverse Impacts disclosure
......
18
Business and Location
..............
20
Analysis of the development
and performance of the under-
taking
’
s business and its position
Market sectors
..............................
21
Important events in 2023
..........
21
Financial review
...........................
22
Research and development
....
22
The undertakings likely future
developments
Subsequent events, Going
concern and Outlook
................
23
Description of the principal risks
and uncertainties
Risk factors and risk
management
...............................
25
Corporate Governance
Statement
...................................
26
Sustainability Statements
General information
..................
27
Environmental information
......
28
Social information
......................
30
Governance information
..........
32
Statement from the Board of
Directors
........................................
33
Index
..............................................
35
Consolidated
Income statement
......................
36
Other comprehensive Income .. 36
Balance sheet
..............................
37
Changes in equity
......................
38
Cash flow
......................................
39
Notes
.......................................
40-61
Parent company
Income statement
......................
62
Other comprehensive Income
62
Balance sheet
..............................
63
Changes in equity
......................
64
Cash flow
......................................
64
Notes
......................................
65-71
...
72
Implementation and reporting
on corporate governance
.......
76
The business
................................
76
Equity and dividends
................
76
Equal treatment of share-
holders and transactions with
close associates
.........................
77
Shares and negotiability
..........
77
General meetings
......................
77
The nomination committee
....
78
Board of Directors: composition
and independence
....................
78
Work of the Board of
Directors
.......................................
78
Risk Management and Internal
Control
..........................................
79
Board remuneration
.................
79
Remuneration for executive
personnel
.....................................
79
Information and
communication
...........................
80
Take-over situations
..................
80
Auditor
..........................................
80
Guidance on Tekna
’
s
sustainability reporting
.............
82
2023 Human Rights and
Transparency Act Report
.........
83
2023 Emissions Accounting
Report
..........................................
91
2023 EU Taxonomy report
.....
107
2023 GRI Report
.....
external link
Alternative Performance
Measures - definitions
.............
123
Abbreviations ESG
...................
124
This is Tekna
Board of Directors
’
report 2023
Financial Statements
Auditors report
Sustainability
Reporting
Other publications
Website
www.tekna.com | Presentation of
the groups profile and activities.
www.tekna.com/investors
Presentation of financial and
non-financial information (share,
financial reports, regulated in-
formation, analysts and inves-
tors, Annual General Meeting)
Other reporting
The following reports can be
downloaded at www.tekna.com/
investors/finreports
•
Remuneration report
•
GRI Report
Tip
If you want to return
to this index page,
press this icon on
the top left corner.
Appendix
THIS IS TEKNA
ANNUAL REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
| 4
About Tekna
..................................
5
Key figures at a glance
...............
6
Highlights and important
milestones in 2023
.......................
7
Environment indicators
...............
8
Social and Governance
indicators
........................................
9
CEO letter
.....................................
10
Governance and Risk
management
...............................
13
Board of Directors and
Executive Leadership Team
.....
14
Shareholder Information
..........
17
Indicators supporting
Investor
’
s SFDR Principal
Adverse Impacts disclosure
.....
18
| 4
Introducing
Tekna
This is Tekna
                                           
 
THIS IS TEKNA
ANNUAL REPORT 2023
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’
report 2023
| 5
About Tekna
Tekna is a global leader in the development,
manufacturing and sales of advanced micron
and nano powders as well as plasma process
solutions.
Since we started in 1990, Tekna has developed a unique and pro-
prietary plasma technology platform for manufacturing micro and
nano sized powders for a range of industries. Our business model
relies on two revenue streams, both with synergistic effects:
•
Development and sale of plasma systems: We develop and sell
plasma systems customized for the purpose of research and
development.
•
Development and sale of advanced powders: We develop and
operate our own proprietary plasma processes to produce and
sell 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 | PlasmaSonic:
In the systems business we
launched the PlasmaSonic Prod-
uct line. This wind tunnel simu-
lates hypersonic conditions to
enable research for instance for
space tourism.
We aim to sell at least 1 Plasma-
Sonic system in 2024.
Additive Manufacturing:
Tekna produces high quality
micron-sized,
spherical,
high-
purity metal powders. Its portfo-
lio includes titanium, aluminum,
nickel, tungsten and tantalum.
Currently our fastest growing
segment and this global market
is on track to outperform, in
terms of growth, traditional ma-
chining due to improved envi-
ronmental
efficiency,
for
in-
stance through resource effi-
ciency and speed of availability
of parts.
We guide to grow in line with the
market.
Microelectronics:
In close cooperation with select-
ed customers, Tekna is in the
final development stage nano
nickel powders for the microe-
lectronics industry. Nano pow-
ders below 100 nm are expected
to become the new industry
standard for high-end MLCC
devices, and Tekna is one of
only three producers that can
deliver this.
We aim to secure industrial scale
supply to global tier 1 customer.
Energy Storage:
Nano silicon can be used to
improve performance of re-
chargeable batteries. Tekna has
developed and patented its in-
dustrial
process
to
produce
spherical silicon nano powder.
This is an important part of
Tekna's IP portfolio. The compa-
ny maintains active dialogue
with developing partners within
the energy storage space.
Currently, resource priority is
given to the significant opportu-
nities in the other segments.
Founded
in 1990
Tekna Holding ASA
listed in OSLO 2022
Headquartered in
Sherbrooke, QC, Canada
222
employees
90 active
patents
3 manufacturing and
research centers
Global reach
Commitment
2030
50% reduction
Advanced Materials
Plasma Systems
Note: In India and Japan, Tekna has distri-
bution / sales representative agreements
1990
2014
advanced development stage
future potential
 
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ANNUAL REPORT 2023
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information
Board of Directors
’
report 2023
| 6
Revenues
40.9
M CAD
vs 26.9 M CAD in 2022.
52% organic growth
coming from both
Systems (+90%) and Materials (+36%).
This is Tekna (continued)
Revenue distribution
Business segments
Key financial figures
in CAD million
2023
2022
Revenues
40.9
26.9
Adjusted EBITDA
-4.1
-12.8
EBITDA
-8.2
-16.7
Net profit / loss
-15.0
-22.5
Cash balance
10.1
11.4
Employees
222
216
Additive Manufacturing: Micron-sized
powder mate-
rials including
titanium-, aluminum-, and nickel al-
loys, tungsten and tantalum.
Microelectronics: Nano-sized Nickel (sample sales)
Key figures at a glance
Global revenues
40.9
MCAD
37%
63%
Advanced Materials
Geography
Asia / Rest of world
Europe
48%
37%
15%
North America
Systems | PlasmaSonic
1
Plasma systems,
PlasmaSonic wind tunnel
After service and spare parts
Customer segments
7%
39%
Aerospace
3D Machine OEM
2
12%
37%
1: Includes after service and spare parts.
2: OEM stands for Original Equipment Manufacturer.
Order backlog
24.0
M CAD
vs 25.0 M CAD in 2022.
The backlog of 2022 included one order
of 9 M CAD for a PlasmaSonic system.
Adj. EBITDA
-4.1
M CAD
vs –
12.8
M CAD in 2022.
Improved by 8.7 M CAD
through growth,
margin improvement and cost control.
5%
Consumer
Electronics
Medical
Implants
Other:
Academic,
Industrial Research
and Distributors
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-12.8
-4.1
2022
2023
EBITDA adjusted
in CAD million
This is Tekna (continued)
Highlights and important milestones in 2023
Financing AFK and Government
Materials growth
+36%
Profitability
close to break-even
New financing from Arendals
Fossekompani
In April 2023, Tekna announced that addi-
tional financing had been secured from
Arendals Fossekompani, its main share-
holder. The agreement provides financing
of CAD 25 million through three tranches
of CAD 5, 10 and 10 million, where each
tranche is a loan with 3 years duration. A
tranche of CAD 5 million remained availa-
ble at the end of 2023.
Market entry Metal Injection Molding and Binder Jetting
Metal powder production processes naturally yield a wide distribution of particle siz-
es. For Tekna, the small and large sizes are byproducts having the same high quality
as the mean size, however, until recently there was a limited demand for the small
and large cut sizes.
In 2023, Tekna had a break-through in selling the smaller powder size fraction of
titanium to consumer electronics customers. Entry into this market allows Tekna to
sell a greater proportion of its powder yield - increasing total gross margin and re-
ducing inventory.
Tekna is also in collaboration with TriTech, where Tekna provides titanium powder
designed for the production of high-quality parts using binder jet 3D printing tech-
nology. TriTech is the very first company using titanium powders in production for
binder jetting applications which has the potential for large volume manufacturing.
Binder jet 3D printing also uses the smaller particle size and is used to produce com-
plex, lightweight, and durable parts with exceptional precision.
Several plasma
systems orders
During 2023, Tekna secured
in total 12 new plasma sys-
tems orders. Notably, one
order included the first sale of
the new PlasmaSonic ICPT-15
system,
a
lab-scale,
cost-
effective model designed for
materials testing and hyper-
sonic program development.
Several
TekSphero
systems
orders were also received
during the year.
PlasmaSonic system set up in Tekna factory
Systems growth +90%
Focus on Profitability
Adjusted EBITDA improved to
near-breakeven at the end of
the year and Tekna closed the
year at a total of minus CAD
4.1 million. This reflects our
relentless focus on improving
the contribution margin as
well as continued reduction
and control over our cost
structure.
This
turnaround,
improving adjusted EBITDA
by CAD 8.7 million from the
previous year, illustrates our
team's dedication to opera-
tional excellence and financial
discipline.
Extended CAD 20M Agreement with
Government Fund
In November, Tekna announced that the contribu-
tion agreement with the Canadian Federal Gov-
ernment's Strategic Innovation Fund (SIF) had
been amended and extended to March 31, 2027.
Under the terms of this amendment, the maxi-
mum amount to be disbursed by the Canadian
Federal Government remains unchanged at CAD
20 million. The SIF program aims to stimulate high
-quality business investments across various sec-
tors. It supports R&D initiatives that enhance tech-
nology transfer, commercialization of innovative
products, services, and processes, and encourages
the growth of innovative firms.
Advancing with major
MLCC manufacturers
Tekna
’
s Nickel nano powder
is a key material for the man-
ufacturing of high-end Multi-
Layer
Ceramic
Capacitors
(MLCC). The company
’
s stra-
tegic development initiatives
with customers continued in
2023. Tekna is developing the
high-tech material with vari-
ous key players and is in ad-
vanced stages with two of
them.
Business Development
                
 
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link
Carbon Accounting
Report 2023
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 32% since 2021 (baseline), while only increasing scope 1 emissions by 2%, and even reducing scope 2 emissions by 29%.
This is Tekna (continued)
246 757
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
Baseline estimations for
downstream emissions (scope 3)
expected in 2025.
-50 %
Target
2030
Reduce in absolute terms
compared to baseline year
under development
under development
Fuel–
and energy-related
activities
(scope 3)
391
377
FY23
FY21
baseline
-4%
(vs FY21)
Production
(scope 1 +
scope 2)
Employees
(business travel +
daily commute
-
scope 3)
Waste
(scope 3)
619
619
328
351
19
*new in 2022
FY23
FY23
FY23
FY21
FY22
FY22
baseline
baseline
0%
2
(vs FY21)
-7%
(vs FY22)
Upstream transportation
and distribution
(scope 3)
391
FY23
FY21
*new in 2023*
under development
21
baseline
+8%
(vs FY22)
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)
Baseline estimations for
upstream emissions (scope 3)
expected in 2024.
vs 66%
(+6 pp)
in 2021 (Location based).
Renewable energy share
72
%
vs 577
(+2%)
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
(-29%)
in 2021. Tekna continues to
im-
prove energy efficiency in its powder produc-
tion
2
. It reduced operating hours in France by
50% reducing electricity consumption.
The total emissions number will continue to
increase due to broader emissions mapping in
scope 3 and improved data quality. Within
subcategories reduction efforts have started.
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.
Scope 1
589
tCO2e
Scope 2
30
tCO2e
Scope 3
(incomplete)
248k
tCO2e
FY19:
16.3
kWh/kg
FY23:
12.4
kWh/kg
baseline
-24 %
(vs FY19)
FY22:
13.1
kWh/kg
-20%
(vs FY19)
-50%, linked to
scope 1 and 2
For a full breakdown of the
emissions
accounting,
scope 1, 2 and 3 and decar-
bonization plans, read the
2023 Emissions Accounting
Report (page 91).
THIS IS TEKNA
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| 9
Lost time injuries | LTIFR
3 | 8.1
Internal
Safety audits
252
This is Tekna (continued)
Social and Governance indicators at a glance
per 31 December 2023
EU taxonomy summary
2
3.6. Manufacture of other low carbon technologies
(Climate Change Mitigation)
47 %
% completion of all GRI standards
3
(GRI Standards 2021: 2, 3, 20x, 30x, 40x)
Start of reporting
19 %
FY22
FY21
71%
29%
29%
71%
43%
57%
Board of Directors
Management excl ELT
Executive Leadership Team
All employees
73%
27%
Gender diversity
Our people
17%
57%
27%
under 30
30-50 years
over 50
Age distribution
all employees excl Board of Directors
Nationalities
23
Total employees
222
Employees
absence rate
3%
Health & Safety
Reporting: Transparency Act | EU Taxonomy | GRI standards
Code of Conduct signed
(per 31.3.2024
4
)
100%
Governance
Fatalities
0
Compliance
incidents detected
0
1: Top 25 selected suppliers based on highest spend and / or greatest risk. Refer to Human Rights and Transparency Act Report 2023.
2: Refer to EU taxonomy report 2023. 3: Refer to GRI Report 2023. 4: This excludes employees on long-term absence.
20 %
Suppliers assessed for environmental, social
and governance impacts
1
due diligence in process
FY22
Unadjusted
Gender Pay Gap
2.95%
36 %
FY23
targeting 100%
in progress
OpEx
CapEx
Turnover
55 %
+16%
(vs FY22)
FY23
                   
CEO LETTER
ANNUAL REPORT 2023
| 10
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’
report 2023
As we reflect on the past year, I am filled with
pride and gratitude for what we have achieved
together at Tekna Holding ASA. Our 2023 has
been marked by remarkable growth, strategic
advancements, and steadfast commitment to-
wards clearly expressed goals. I am thrilled to
share these accomplishments as we now set the
stage for our continued success in 2024.
Tekna is strategically positioned to
leverage its advanced capabilities in
both plasma and material technolo-
gy, bolstered by a robust business
model to drive sustainable growth.
Dag Teigland
Chair of the Board of Directors
Our focus on profitability and positive cash,
our dedicated workforce, strategic priorities
and confidence in our long term ambitions are
driving the companies performance today and
tomorrow.
Luc Dionne
Chief Executive Officer
CEO letter 2023
We would like to thank you for your trust and
hope you enjoy reading this report.
CEO LETTER
ANNUAL REPORT 2023
| 11
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Moving forward
As we pivot to 2024, our focus sharpens on our strategic priorities:
enhance profitability, optimize cash flow, and reinforce our strong
market position. We remain committed to improving our operational
efficiencies, expanding our product offerings, and exploring new mar-
ket segments.
Our order backlog remains robust at $24 million, providing a solid
foundation for 2024. We are maintaining a strong opportunity pipe-
line with a number of potential new orders expected to be captured
in the first half of 2024, including new sales in the consumer electron-
ics industry
1
.
The long-term outlook of Tekna is very exciting with demand driven
by global megatrends such as digitalisation, electrification and sus-
tainable manufacturing. Over the years, we have introduced unique
Plasma system IP in the market, positioning Tekna as a leader in the
field of advanced materials.
We anticipate sustained demand for research and industrial pilot-
scale plasma units in segments which are not competing in Tekna
’
s
current material markets and foresee growth in larger PlasmaSonic
units, aligning with the expanding hypersonic and space industry.
We have experienced a steady growth trend in Advanced Materials
since we entered the market in 2014. The industry is still in an early
phase and poised for substantial growth in the coming years. We
have built a strong reputation as a trusted supplier of high-quality
materials and our goal is to at least match the industry growth.
Organic growth
In 2023, Tekna demonstrated exceptional performance, underscored
by our significant revenue growth of 52 per cent and improved oper-
ational profitability. This consistent operational and financial improve-
ment aligns with the initial guidance we set at the beginning of 2023.
We implemented a meticulously crafted strategy and have executed
on the plan right from the outset in January last year. With trust and
dedication from all of our team members, the strategy delivered out-
standing results and we have fulfilled the expectation on the guidance
we provided. So, congratulations to all, for the well-deserved results.
We closed the year with revenues of CAD 40.9 million, a testament to
the robust demand for our innovative products and the relevance of
our strategic initiatives. The Materials segment grew by 36%, benefit-
ing from our capacity enhancements and strategic market position-
ing.
Important milestones
Looking at our operational milestones, we successfully increased our
production capacity to meet the growing demand for our advanced
materials. The commissioning of a new atomizer and upgrades to
existing machinery have significantly expanded our manufacturing
capabilities, improved material availability, and reduced delivery
times. With another atomizer expected to be commissioned in the
first half of 2024, deliveries of materials are expected to accelerate
throughout the year.
Our go-to-market strategy to sell smaller fractions of titanium pow-
ders for industrial scale manufacturing of mobile phone and smart-
watch frames has shown to be successful. We have expanded our
market presence and boosted revenues for smaller titanium particle
sizes.
The strategic expansion of our Systems segment continued in 2023
with 12 new units ordered from global industrial research and aca-
demic clients during the year. This includes also the first sale of
Tekna
’
s innovative PlasmaSonic ICPT 15, a laboratory scale system
designed for materials testing and hypersonic program development.
The Systems business witnessed an astounding 90% revenue growth
in 2023, driven by the increased sales of our PlasmaSonic units and
R&D plasma systems.
Focus on Profitability
Adjusted EBITDA improved to near-breakeven at the end of the year
and we closed the year at a total of minus CAD 4.1 million. This re-
flects our relentless focus on improving the contribution margin as
well as continued reduction and control over our cost structure. This
remarkable turnaround, improving adjusted EBITDA by CAD 8.7 mil-
lion from the previous year, illustrates our team's dedication to opera-
tional excellence and financial discipline.
The result comes from the emphasis we have given to organizational
efficiency and on chasing operation excellence. We have turned the
business around in a very short period of time. In addition to the solid
revenue growth contributing to the EBITDA improvement, we have
implemented many cost-saving initiatives and managed inflationary
costs, especially on raw materials.
CEO letter (continued)
1: Consumer electronics for additive materials, not to be confused with Tekna
’
s developing business of Microelectronics.
CEO LETTER
ANNUAL REPORT 2023
| 12
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
On the verge of a break-through?
The long-term outlook for Microelectronics remains an important
upside for Tekna. With its unique capabilities in plasma and nano
technology, the company is well-positioned to enter this market. The
development with the major MLCC players, who foresee significant
growth in demand towards 2030, is ongoing. We have solid experi-
ence in this type of market development from our previous expansion
into the Additive Manufacturing business. This is a recognizable pro-
cess and we will utilize this experience in the further development of
this business.
Tekna started out as a project in the research department of the
Sherbrooke University. Now, we
’
re a professional, listed, industrial
materials technology company. We have taken significant steps also
in terms of corporate structure and governance. Our strategic priori-
ties are aligned with the overarching goal of delivering sustained
value to our shareholders while contributing positively to society.
Tekna remains steadfast in its commitment to environmental, social,
and governance (ESG) principles. Our dedication to sustainable prac-
tices is integrated in our new company vision
1
.
The ultimate partner
In 2023, we have developed a new company mission:
“
the ultimate
partner
”.
Tekna's value-added collaboration is crucial to our custom-
ers' success and one of our trademarks. By anchoring it in our Mission
we ensure its continuous presence at the forefront of our activities
and choices.
As we embark on another year, we do
so with a strong belief in the value-
generating potential of the industries
we are active in. The achievements of
2023 have set a high benchmark and I
am confident in our collective ability to
continue our positive development.
Our strategic vision, coupled with the
dedication of our talented team, posi-
tions us well to capitalize on the oppor-
tunities ahead and navigate the chal-
lenges that may arise.
In closing, I wish to express my
pro-
found appreciation to our
employ-
ees, customers, partners, and share-
holders. Your trust, support, and col-
laboration are the cornerstones of our
success. Together, we are not just
shaping the future of Tekna; we are
contributing to the advancement of
industries and technologies that have
the power to transform our world.
Sincerely,
Luc Dionne
CEO, Tekna Group
CEO letter (continued)
1: Our new vision is to advance the world with sustainable material solutions, one particle at a time. See page 2 of the annual report 2023.
We produce advanced
materials that act as
enablers for rapidly growing
industries that are driving
the green transition.
BOARD AND MANAGEMENT
ANNUAL REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
| 13
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 Commit-
tee. Reporting to them is the newly created Ethics
and Compliance Committee as well as External
Assurance, ie the Auditors.
Reporting to Executive Leadership are the Occu-
pational 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.
2023 key figures
Board of
Directors
Audit
Committee
Members
7
2
Meetings
14
5
Participation
95%
100%
Independence
43%
50%
Identification, appraisal, processing
and control of major risks is regular-
ly updated by Finance and reviewed
with the Audit Committee.
Risk relating to the Group
’
s
operating 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 2023 the external auditor was PWC. 2: Latest by 2025 an Internal Audit function should be instated.
                 
BOARD AND MANAGEMENT
ANNUAL REPORT 2023
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Reporting
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Corporate Governance
Statement
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CEO letter
Board and
Management
Financial Statements
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Shareholder
information
Board of Directors
’
report 2023
| 14
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 31.12.2023:
728 818
2
Shares per 31.12.2023:
52 125
3
Shares per 31.12.2023:
0
Shares per 31.12.2023:
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 battery storage
company Ampwell AS (Chair)
and the satellite communica-
tions
company
NSSLGlobal
Ltd. He holds a M.Sc. from
NTNU, a SM from MIT and an
MBA
from
the
Norwegian
School of Management (BI).
Barbara
Thierart-Perrin
is
President
of
Northvolt
Systems, a European suppli-
er
of
sustainable,
high-
quality
lithium-ion
battery
cells and systems with mini-
mal CO2 footprint. An engi-
neer by education, Ms Thier-
art-Perrin has two decades
of previous experience from
the
automotive
industry,
holding senior management
positions with Groupe Re-
nault and Nissan Motor Cor-
poration.
She
has
been
based
in
France, Japan and Sweden,
held business P&L responsi-
bility, led operational and
global teams and worked
extensively
in
corporate
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 sev-
eral 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 Norwegian School
of Management.
Attended board meetings:
14
Attended board meetings:
12
Attended board meetings:
13
Attended board meetings:
14
The
Board of Directors of Tekna Holding
ASA
(“
Tekna
”)
has welcomed three new,
two additional, members in 2023. Their
knowledge, network, independence and
diversity is raising Tekna
’
s governance to
a next level.
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.)
                
BOARD AND MANAGEMENT
ANNUAL REPORT 2023
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Reporting
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Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
| 15
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 31.12.2023:
3 686 745
1
Shares per 31.12.2023:
0
2
Shares per 31.12.2023:
0
2
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
1X technologies and Ocean
Sun. She has over a decade
experience in IT technology
organizations. 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 solutions for the Norwe-
gian financial 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 Business De-
veloper 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 was appoint-
ed as Executive Vice Presi-
dent of Arendals Fossekom-
pani ASA (AFK) in November
2023. She has previously
held several executive man-
agement positions in indus-
try sectors such as Oil&Gas,
Maritime, and Telecom. She
holds a M.Sc. degree in
Technical Cybernetics from
NTNU in Trondheim, Nor-
way. She started her career
as R&D engineer at CERN in
Geneva, and at Data Re-
spons in Norway, before
entering management posi-
tions. Ms. Heier is member
of the board of directors of
Space Norway AS and NHO
Agder. As part of her execu-
tive role in AFK, she will fol-
low up NSSLGlobal Ltd and
Tekna Holding ASA.
Attended board meetings:
9
Attended board meetings:
9
Attended board meetings:
1
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.
Board of Directors and Executive Leadership (continued)
Members of the Board of Directors
(continued)
                
BOARD AND MANAGEMENT
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Board of Directors
’
report 2023
| 16
Shares per 31.12.2023:
0
1
Rémy Pontone
VP Sales and Marketing
(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 31.12.2023:
0
1
Luc Dionne
Chief Executive Officer
(2014)
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 31.12.2023:
379.990
2
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 31.12.2023:
0
1
Shares per 31.12.2023:
0
1
Etienne Villeneuve
VP Operations
(2021)
Etienne Villeneuve currently
holds the position of Vice
President
Operations
at
Tekna. He has 19 years of
experience in several execu-
tive management positions,
including
Vice
President
Operations at Groupe Pari-
ma, Head of Operations and
Technical Services at Nep-
tune
Wellness
Solutions,
Operations and Continuous
Improvement
Director
at
Conagra
Foods.
He
has
experience
from
several
Quality Regulated Business-
es like Pharmaceutical and
Technologies. He currently
serves as a President of the
Board of Directors for Sher-
brooke Innopole.
Sophie
Burgaud
joined
Tekna in 2022 as VP Legal
Affairs and Corporate Secre-
tary. She has more than 20
years of experience in busi-
ness law in various jurisdic-
tions
around
the
globe.
Within her different roles,
Sophie has a wide variety of
experience in relation to
commercial, corporate and
litigation matters for public
companies and highly regu-
lated financial and insurance
companies. Prior to joining
Tekna, she worked for Co-
geco,
Desjardins,
Intact,
Gildan and BCF, a law firm.
Sophie holds a Master in
Contract Law and was ad-
mitted to the Paris and
Quebec Bar.
Sophie Burgaud
VP Legal Affairs and
Corporate Secretary
(2022)
Shares per 31.12.2023:
0
The Tekna group
Executive Leader-
ship Team
(“
ELT
”)
currently consists
of six executives
with extensive ex-
perience from rel-
evant industries.
Members
of
executive
leadership
team
own
shares in Tekna Holding
Canada Inc., a subsidiary
of Tekna Holding ASA.
Refer to the Prospectus
published in 2022, sec-
tion 11.3.3 and the 2023
Remuneration report for
more details.
1: Members of the ELT own shares in Tekna Holding Canada Inc., a subsidiary of Tekna Holding ASA,
2: 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
                  
 
ANNUAL REPORT 2023
SHAREHOLDER INFORMATION
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Reporting
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Corporate Governance
Statement
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CEO letter
Board and
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Financial Statements
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information
Board of Directors
’
report 2023
| 17
Tekna Holding
(“
Company
”)
aims to be an attrac-
tive investment for shareholders, delivering a
competitive
return
through
sustained
and
accelerated growth.
The Company's share capital as of 31 December 2023 was NOK
250,454,692 divided into 125,227,346 shares, each with a nominal
value of NOK 2.00, unchanged from its initial listing in 2021.
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 2023, Tekna had 4584 shareholders, down from
4825 at the end of 2022. Arendals Fossekompani ASA remained the
Company
’
s largest shareholder, owning 70.4 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 2023, the closing share price was NOK 8.30 per
share (+41%), corresponding to a market capitalization of NOK 1.04
billion. The closing share price on 31 December 2022 was NOK 5.90.
Option schemes
As of 31 December 2023, there were no outstanding options, war-
rants or loans giving the right to require the Company to issue
shares. Refer to note 24 of the Financial Statements regarding subse-
quent events.
Current Authorizations
During the 2023 Annual General Meeting
(“
AGM
”)
the Board of Direc-
tors of the Company received the authorization to increase the share
capital and to acquire shares of the company. The authorizations re-
main in force until the AGM of 2024, but in no event later than 30
June 2024.
Link to AGM minutes: www.tekna.com/investors
Investor Relations
Tekna wishes to maintain open communications with its shareholders
and other stakeholders. Shareholders and stakeholders are kept in-
formed 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 investors@tekna.com.
Upcoming events
15 May 2024
Annual General Meeting
15 May 2024
Report for Q1 2024
22 May 2024
Roadshow and market update
Photo credit: Oslo Børs
link
Tekna.com/investors
link
AGM minutes
Shareholder information
                        
ANNUAL REPORT 2023
SHAREHOLDER INFORMATION
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Statement
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information
Board of Directors
’
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| 18
Adverse sustainability indicator
Metric
(for issuers)
2023
2022
Greenhouse gas
emissions
1.
GHG Emissions
Scope 1
589 tCO2e
585 tCO2e
Scope 2
30 tCO2e
34 tCO2e
Scope 3
248k tCO2e
(incomplete)
755 tCO2e
(incomplete)
Total
Not available (scope 3 incomplete)
2.
Carbon Footprint
Not applicable to issuers
3.
GHG intensity
Revenue
40.9 M CAD
26.9 M CAD
tCO2e/M CAD
Not available (scope 3 incomplete)
4.
Active in fossil fuel sector
Not relevant
5.
Share of non-renewable energy
consumption and production
Consumption
28% (100%-72%)
31% (100%-69%)
Production
Not relevant
6.
Energy consumption intensity per
high impact climate sector
GWh / M CAD
Not relevant
NACE
Not active in high impact NACE
Plasma Systems: C28 | Additive Materi-
als C25 | (Microelectronics: C26 | Ener-
gy Storage: C27)
GWh
11.6 GWh
11.5 GWh
Biodiversity
7.
Activities negatively affecting biodi-
versity-sensitive areas
No Tekna sites in
“
biodiversity sensitive
areas
”
-
see GRI 304 in GRI report
Water
8.
Emissions to water
Tons of emissions
to water
0
0
Waste
9.
Hazardous waste ratio
Tons of hazardous
waste
85
59
Adverse sustainability indicator
Metric
(for issuers)
2023
2022
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 | Supplier Code of Con-
duct | Anti-Corruption policy | Competi-
tion Law Compliance policy | etc.
12.
Unadjusted gender pay gap
2.95%
9.16%
13.
Board gender diversity
M: 43% | F: 57%
M: 60% | F: 40%
14.
Exposure to controversial weapons
(anti-personnel mines, cluster muni-
tions, chemical weapons and bio-
logical weapons)
Not relevant
Climate and other environment-related indicators
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)
                
ANNUAL REPORT 2023
| 19
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
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Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Business and Location
..............
20
Analysis of the development
and performance of the under-
taking
’
s business and its position
Market sectors
.............................
21
Important events in 2023
.........
21
Financial review
...........................
22
Research and development
....
22
The undertakings likely future
developments
Subsequent events, Going
concern and Outlook
................
23
Description of the principal
risks and uncertainties
Risk factors and risk
management
...............................
25
Corporate Governance
Statement
...................................
26
Sustainability Statements
General information
..................
27
Environmental information
......
28
Social information
......................
30
Governance information
..........
32
Statement from the Board of
Directors
........................................
33
| 19
Board of Directors
’
report 2023
Board of Directors
’
report 2023
                                                  
ANNUAL REPORT 2023
| 20
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Board of Directors
’
report 2023
Tekna Holding ASA, a Norwegian public limited liability company, is
listed on Oslo Stock Exchange. The Group is headquartered in Sher-
brooke, 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, 2022 to December 31, 2023.
Introduction
Business and location
Tekna is a world-leading provider of advanced materials to industry.
Tekna produces high purity, micron and nano-sized metal powders
as well as optimized induction plasma systems for industrial research
and production. Micron-sized powders are used for applications such
as 3D printing in the aerospace, medical and consumer electronics
sectors while advanced nano-sized materials are applied in the man-
ufacturing of microelectronic devices (MLCCs) used in consumer elec-
tronics, autonomous vehicles, and 5G and Internet-of-Things (IoT)
communications equipment.
The Group currently engages in three main businesses: Systems (incl.
PlasmaSonic), Additive Manufacturing and Microelectronics. The
growth of these businesses is driven by megatrends having significant
impact on consumer behavior globally: Space Exploration and Space
Tourism, Deglobalization and Climate Change, Digitalisation & Con-
nectivity, as well as Demography & Health Care.
With its unique, IP-protected, clean plasma technology, the company
is well-positioned in these growing markets. The Group develops and
operates its own plasma systems and sells customized plasma sys-
tems for research applications. In the PlasmaSonic business, a part of
Systems, it sells 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 down-
stream value chain.
In 2023, Tekna Group
(“
Tekna
”, “
Group
”
or
“
company
”)
has taken an important step in the
right direction with a 52% increase in revenues to
CAD 40.9 million (26.9) and a CAD 8.7 million im-
provement in adjusted EBITDA to negative CAD
4.1 million (negative 12.8). The company secured
significant new orders during the year, for both
Systems and Additive Manufacturing, indicating
sustained demand for Tekna
’
s material solutions
in the market. This is reflected in the total order
backlog of CAD 24.0 million at the end of 2023.
ANNUAL REPORT 2023
| 21
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
fraction of titanium to consumer electronics customers. Entry into this
market allows Tekna to sell a greater proportion of its powder yield -
increasing total gross margin and reducing inventory.
Collaboration with TriTech to enable revolutionizing titani-
um part production
In June, Tekna announced a collaboration with TriTech Titanium Parts,
a pioneering additive manufacturing company. Tekna provides titani-
um powder designed for the production of high-quality parts using
binder jet 3D printing technology. TriTech is the very first company
using titanium powders in production for binder jetting applications
which has the potential for large volume manufacturing. Binder jet 3D
printing has revolutionized the manufacturing industry, allowing to
produce complex, lightweight, and durable parts with exceptional
precision. This technology promises to unlock new possibilities in the
production of titanium components for a wide range of industries,
including aerospace, automotive, consumer goods, and medical.
Several plasma systems orders
During 2023, Tekna secured in total 12 new plasma systems orders.
Notably, one order included the first sale of the new PlasmaSonic
ICPT-15 system, a lab-scale, cost-effective model designed for materi-
als testing and hypersonic program development.
Extended CAD 20M Agreement with Government Fund
In November, Tekna announced that the contribution agreement with
the Canadian Federal Government's Strategic Innovation Fund (SIF),
initially announced on June 28, 2018, had been amended and extend-
ed to March 31, 2027. Under the terms of this amendment, the maxi-
mum amount to be disbursed by the Canadian Federal Government
remains unchanged at CAD 20 million. The SIF program aims to stim-
ulate high-quality business investments across various sectors. It sup-
Market sectors
Tekna currently has two reporting lines:
•
Advanced Materials comprised of the business units for Additive
Manufacturing as well as the business development area Microe-
lectronics.
•
Systems comprised of PlasmaSonic, R&D/academic research
plasma systems and other systems related income.
Advanced Materials
In 2023, revenues in Advanced Materials increased by 36% per cent
to CAD 25.7 million (CAD 18.9 million in 2022). This represented 63
per cent of the Group
’
s revenues. Throughout 2023, Tekna continued
to experience rising demand for its materials for Additive Manufactur-
ing, further confirming the company
’
s position in this market. The
capacity increase completed early 2023 allowed sales to grow signifi-
cantly during the year. New orders have been signed in 2023, indicat-
ing that the market dynamics is shifting towards larger, open orders
(call-off orders), and long-term supply agreements.
In addition to the Additive Manufacturing unit, Tekna is developing its
Microelectronics unit. These business units follow global game chang-
ing megatrends and represent major growth opportunities.
Systems
Tekna has seen the Systems market rebound with 12 contracts award-
ed during the year. Revenues were mainly driven by the completion
of a large PlasmaSonic system, an order in excess of CAD 9 million,
with delivery planned for early 2024.
The year ended at CAD 13.7 million in revenues, compared to CAD
6.2 million in 2022 (excludes spare parts revenues). Contribution mar-
gins for systems for the year are at 63%, continuing the good margin
development over last year
’
s 45%.
The Systems segment is of importance to Tekna due to its high con-
tribution margin and cash generation, as well as the continued devel-
opment of the core technology applicable in the inhouse powder
production.
Important events in 2023
New CFO
In January, Espen Schie was appointed new CFO. Mr. Schie brings
long-term financial management experience and comes from the role
as Vice President of Finance & Controlling at Arendals Fossekompani
ASA, Tekna
’
s largest shareholder
.
New financing from Arendals Fossekompani
In April 2023, Tekna announced that additional financing had been
secured from Arendals Fossekompani, its main shareholder. The
agreement provides financing of CAD 25 million through three
tranches of CAD 5, 10 and 10 million, where each tranche is a loan
with 3 years duration. A tranche of CAD 5 million remained available
at the end of 2023.
Market entry Metal Injection Molding and Binder Jetting
Metal powder production processes naturally yield a wide distribution
of particle sizes. For Tekna, the small and large sizes are byproducts
having the same high quality as the mean size. However, until recent-
ly there was a limited demand for the small and large cut sizes. In
2023, Tekna had a break-through in selling the smaller powder size
Board of Directors
’
report (continued)
Analysis of the development and performance of the undertaking
’
s business and its position
ANNUAL REPORT 2023
| 22
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Total equity as of 31 December 2023 amounted to CAD 38.4 million.
The financial risk is moderated by a loan facility with Arendals Fossek-
ompani ASA
(“
AFK") and low number of other debts. The credit risk is
regarded as low, given that most customers are large multinational
companies.
According to section 3-3a of the Norwegian Accounting Act, we con-
firm that the consolidated financial statements and the financial state-
ments of the parent company have been prepared based on the go-
ing concern assumption, and that it is appropriate to make that as-
sumption.
Tekna Holding ASA
The parent company Tekna Holding ASA is a holding company, with
limited activity and a few corporate functions. Profit for the year was
CAD 2.0 million, compared to negative CAD 320.1 million in 2022.
The positive result of the year was due to interest income on in-
tragroup loans.
Research and development
Investments in research and development (R&D) have been an im-
portant part of Tekna
’
s strategy to develop new and innovative solu-
tions and is expected to remain an important part of the company
’
s
strategy going forward. Tekna has a long-term ambition to invest
significantly in R&D. The company
’
s investments in R&D are critical to
its near- and long-term goals and today represents 5.8 per cent of its
total revenue.
ports R&D initiatives that enhance technology transfer, commerciali-
zation of innovative products, services, and processes, and encour-
ages the growth of innovative firms.
Microelectronics nickel nano pilot line in operation
Tekna
’
s Nickel nano powder is a key material for the manufacturing of
high-end Multi-Layer Ceramic Capacitors (MLCCs) and the company
’
s
strategic development initiatives with customers continued in 2023.
Tekna
’
s nickel nano pilot line is in operation. The scale-up of produc-
tion will be phased to certification by and demand from customers.
Improved Governance
In 2023 Tekna reached a higher standard of governance. The compa-
ny added two board members (one independent), received board
approval
for
three
new
policies
(Environmental
policy,
Anti-
Corruption policy and Competition Law Compliance policy). Subse-
quent to the policies, it established the Ethics and Compliance Com-
mittee which reports to the Audit Committee. An online independent
whistleblowing system was also implemented.
Financial review
The Board of Directors believes that the annual financial 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 presented 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 40.9 million, a 52% increase from CAD 26.9 million
in 2022. EBITDA was negative CAD 8.2 million compared to negative
CAD 16.7 million in 2022. Adjusted EBITDA net of non-recurring
charges was negative CAD 4.1 million compared to negative CAD 12.8
million in 2022. Tekna had a loss for the period of CAD 15.0 million,
compared to a loss of CAD 22.5 million in 2022. Earnings per share
were negative CAD 0.12, compared to negative CAD 0.17 in 2022.
Cash flow
Net cash from operating activities was negative CAD 12.9 million,
compared to negative CAD 19.9 million in 2022, with improved profit-
ability being the main contributor. Net cash used for investing activi-
ties was CAD 8.1 million, compared to CAD 6.8 million in 2022. Net
cash from financing activities was CAD 19.9 million and is mainly relat-
ed to changes in debts and loans, in particular new CAD 20 million
loan and accrued interest of 1 million to Arendals Fossekompani ASA,
compared to negative CAD 0.4 million of net cash from financing
activities in 2022. Cash and cash equivalents at year-end were CAD
10.1 million, compared to CAD 11.4 at the end of 2022.
Financial position
Tekna
’
s financial position at the end of the year showed a long-term
debt/equity ratio of 0.69, compared to 0.10 at the end of 2022. Inter-
est-bearing debt was CAD 22.1 million at year-end, while the cash
position was CAD 10.1 million and total assets were CAD 76.3 million.
Board of Directors
’
report (continued)
ANNUAL REPORT 2023
| 23
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Going concern
The group announced additional financing in April 2023 and based
on the situation at the end of 2023 as well as the forecast going for-
ward the company is well-positioned to meet its obligations and con-
tinue its business for the foreseeable future. There have been no
events to date in 2024 which significantly affect the result for 2023 or
valuation of the company
’
s assets and liabilities at the balance sheet
date. The Board confirms that the conditions for the going concern
assumption have been satisfied and that the financial statements for
2023 have been prepared on the basis of this assumption.
Subsequent events
Employee Share Purchase Plan
On March 11th, 2024, the Board of Directors of Tekna Holding ASA
(the "Company") has resolved to increase the Company's share capi-
tal 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 has been settled by way of the employees transferring
the Class B Common shares in Tekna Holding Canada to Tekna Hold-
ing 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. Following the registration of
the share capital increase with the Norwegian Register of Business
Enterprises, the Company's share capital will be NOK 254 924 466
divided into 127 462 233 Shares, each with a nominal value of NOK 2.
Each share carries one vote at the Company's general meeting. The
new shares shall carry rights to dividends from March 5, 2024, the
date of registration of the capital increase with the Norwegian Regis-
ter of Business Enterprises. The settlement of the ESPP will trigger tax
for the relevant employees. To provide the employees with cash to
cover payable taxes resulting from the settlement of the ESPP, Aren-
dals Fossekompani ASA ("AFK") has agreed to purchase a total of 540
812 shares from the employees at the volume weighted average mar-
ket price the last five days prior to the expiration of the lock-up peri-
od, NOK 8,0453 per share.
Loan
In March 2024, Tekna received the third tranche of CAD 5 million
loan with Arendals Fossekompani ASA. This is the last tranche in the
loan facility agreement. Further details available in note 16.
Board of Directors
’
report (continued)
The undertakings likely future developments
ANNUAL REPORT 2023
| 24
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
tainable solutions. The company
’
s strategy, technology, and products
have gained significant relevance in this context, as its customers are
increasingly transitioning towards new technology, moving manufac-
turing closer to markets, and considering more sustainable produc-
tion processes. At the same time, economic uncertainty and high in-
terest rates may have a dampening effect on the short term industry
growth rate. Tekna expects any volatility in demand to be transitory
and remains committed to addressing the market needs as it is
poised for continued growth in the coming years.
Outlook
In 2024, Tekna continues to focus on improving margins by leverag-
ing increased revenue and further enhancement of organizational
productivity. The order backlog and available capacity supports reve-
nue growth in 2024. The company remains committed to expanding
in the additive manufacturing segment, which continues to be a fast-
growing market with significant revenue potential. Tekna will also
prioritize opportunities in microelectronics to secure a strong position
in this market.
Tekna will have stronger focus on cash flow going forward. After a
few investment-intensive years, the company plans to ease on capex
for a period. Tekna has established a dedicated task force to increase
sales of smaller and larger size powder fractions, which will improve
cash conversion of inventory. The company
’
s cash position remains
satisfactory and the measures taken are expected to have a positive
effect on cash flow.
Through R&D programs Tekna is continuously improving its machine
performance and increasing capacity. In addition, a new machine will
come online early 2024. With the expected increase in capacity, the
company will be better equipped to meet rising demand, shorten
delivery lead times, and boost sales.
Tekna has a strong pipeline of potential orders for Systems, namely
for Plasmasonic wind tunnel solutions that are pivotal to the develop-
ment of hypersonic flight and spacecraft.
In microelectronics, Tekna
’
s development efforts continue with the
industry leading customers. The company has also explored opportu-
nities within energy storage but will remain focused on its existing
operating segments for the time being.
Tekna's roadmap to profitability includes a focus on operational ex-
cellence, right sizing the organization, and prioritizing R&D efforts
towards PlasmaSonic systems, additive manufacturing and microelec-
tronics. The company will remain strategic in its approach to near-
term revenue opportunities.
Tekna has established itself as a technology leader in today
’
s global
markets. The current environment is characterized by economic un-
certainty, geopolitical instability, and an increasing demand for sus-
Board of Directors
’
report (continued)
In 2024, Tekna continues to focus on
improving margins by leveraging in-
creased revenue and further enhance-
ment of organizational productivity.
ANNUAL REPORT 2023
| 25
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
company considers establishing new production locations. A more
detailed description is to be found in the Sustainability report includ-
ed in that annual report and available on the company
’
s website from
11 April.
Risk factors and risk management
Tekna
’
s Enterprise Risk Management
(“
ERM
”)
aims to contribute to
the creation, optimization, and protection of enterprise value by man-
aging Tekna
’
s business risks as it creates value in the marketplace.
Tekna
’
s Board of Directors is ultimately responsible for the govern-
ance of risk management. Tekna's Executive Leadership Team is re-
sponsible 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 Leader-
ship 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 scenarios ranging from
controllable risks, such as raw material price fluctuation, currency fluc-
tuation, market changes, competition or fuel price volatility, to uncon-
trollable ones such as natural disasters. 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 un-
filled 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 additive
metal powders 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 pre-
sented, meanwhile there is a business risk given the uncertainty in
timing of market development and higher sales volumes of the full
production yield at attractive prices.
The Company's subsidiary and the operating company of the Group,
Tekna Plasma Systems Inc., is currently involved in a dispute with
AP&C Advanced Powders & Coatings Inc. regarding competing pa-
tent rights for producing titanium powder in Canada, and more pre-
cisely to a specific patent which is part of the same patent type as one
of the Group's significant patents. Court proceedings have taken
place in the fourth quarter of 2022 and the Company is still awaiting a
ruling. If the dispute is not resolved in favor of Tekna Plasma Systems
Inc., there is a risk that the Group's production and sales of titanium
powder in Canada may be restricted, which could have a negative
effect on the Group's business operations.
The Group's business is subject to price and exchange rate risk. There
is no guarantee that the Group will be able to obtain the expected
prices for its metal powders and plasma systems, and any change in
the market conditions, including in the global technology 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 medium 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 and nickel. Also, higher
temperatures put the health and safety of suppliers
’
workers in China
at risk. Physical climate risks might also impact goods transportation.
In the medium and long term, physical risks might impact where the
Board of Directors
’
report (continued)
Description of the principal risks and uncertainties
ANNUAL REPORT 2023
| 26
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Four Board members, including its Chair Dag Teigland elected in
2022, have an affiliation with Arendals Fossekompani ASA, Tekna
’
s
main shareholder. The Audit Committee consists of one dependent
and one independent Board member.
The Board members and the Executive Leadership Team are covered
by liability insurance. The policy has worldwide coverage, and in addi-
tion to financial loss, it provides cover for aggravated, punitive and
exemplary damages imposed on the insured, where these are insura-
ble by law.
The Company is subject to corporate governance reporting require-
ments 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 Corpo-
rate Governance Report, which is included in the annual report and
will be published on the company
’
s website on 11 April.
Tekna launched a new online independent whistleblowing system.
New compliance policies were approved by the board and are in im-
plementation, namely the Competition Laws Compliance Policy and
New Anti-Corruption policy in line with principle 10 of the UN Global
Compact
2
. These policies also included the creation of the Ethics and
Compliance Committee which reports to the Audit Committee. We
continued to train our employees in cyber security. In 2023 two addi-
tional board members joined Tekna for a total of seven directors at
year-end.
Tekna
’
s Board of Directors has the overall responsibility 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 corporate governance policy to safeguard
the interests of the company
’
s shareholders, employees and other
stakeholders. The policy describes the company
’
s main principles for
corporate governance and addresses the framework of guidelines
and principles regulating the interaction between the company
’
s
shareholders, the Board of Directors and the Executive Leadership
Team. These principles and associated rules and practices are intend-
ed to increase predictability and transparency, and thus reduce un-
certainties related to the business. The company follows the Norwe-
gian Code of Practice for Corporate Governance. The company
’
s
practice is largely in accordance with these recommendations.
Tekna Holding ASA is a public limited company and is organized un-
der Norwegian law with a governance structure based on Norwegian
corporate law and other regulatory requirements. The company
’
s
shares are freely transferable and are not subject to ownership re-
strictions pursuant to law, licensing conditions, articles of association
or similar restrictions.
Currently, Tekna has seven Board members, none of whom are mem-
bers of the company
’
s management. Three Board members are inde-
pendent of company management and significant business partners.
Board of Directors
’
report (continued)
Corporate Governance statement
2:
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Board members Dag Teigland and Ann Kari Heier visit the Sherbrooke manufacturing site,
posing in front of
a PlasmaSonic system set up for testing at Tekna plant together with Luc
Dionne (CEO), Espen Schie (CFO) and Sophie Burgaud (VP).
                
ANNUAL REPORT 2023
| 27
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
To ensure employees understand its importance, it is also anchored in
the company value
“
We strive for excellence
”
with the following sub-
text:
“
We aim for exceptional quality in everything. We are personally
committed to achieving our mission while caring for environmental
sustainability and regeneration, safety, and the well-being of our peo-
ple and the success of our customers.
”
Tekna strives to maintain an open dialogue with its stakeholders and
throughout the year engages with employees and other workers, cus-
tomers and end-users, suppliers, local communities and authorities
and investors. In 2023 Tekna held stakeholder interviews with custom-
ers, employee representatives, investors, a trade association and the
local government.
A double materiality analysis takes into account two perspectives: the
impact Tekna
’
s activities have on its surroundings (impact materiality)
and the impact climate change may have on the company (financial
materiality).
Tekna
’
s double materiality analysis dates back to 2021 and is available
in the GRI report 2023. In 2024 the Executive Leadership Team will
work with stakeholders to review and update it. Tekna has a good
understanding of its own positive and negative impacts. It is slowly
progressing to get a better grasp on the impacts in its value chain.
Tekna is a signatory of the United Nations Global Compact and an
active member of the Additive Manufacturing Green Trade Associa-
tion.
Please refer to the Sustainability Report included in the annual report
2023.
To prepare for the CSRD, or Corporate Sustainability Reporting Di-
rective, Tekna structured the sustainability reporting in accordance
with the European Sustainability Reporting Standard ahead of fully
complying with the requirements in the upcoming years. The sustain-
ability statements are consistent with the financial statements in terms
of undertaking (Tekna Holding ASA and its subsidiaries) and reporting
period (1 January to 31 December 2023).
This report is in accordance with Section 3-3c of the Norwegian Ac-
counting Act regarding corporate social responsibility and more ex-
tensive ESG reporting is available in the annual report and on the
company
’
s website from 11 April.
General requirements and disclosers [ESRS 1 &2]
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 parti-
cle at a time.
”
Subsequent to that Tekna has defined its Sustainability 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.
”
Board of Directors
’
report (continued)
Sustainability statements
link
ESG-related reports
Figure 1: extract of European Sustainability Reporting Standard
                  
ANNUAL REPORT 2023
| 28
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Environmental information
Tekna
’
s environmental impact is two-fold. Tekna has a positive envi-
ronmental impact through developing products which enable a green
transition in line with United Nations Global Compact principle 9
3
and
as substantiated per the EU taxonomy. Tekna produces metal pow-
ders for Additive Manufacturing
(“
AM
”)
that significantly reduces 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 aeroplanes and vehicles are usually lighter
and therefore more energy efficient (less weight, less fuel consump-
tion). On the other hand, the company also has an environmental
impact from internal business operations such as emissions from em-
ployee commutes, business travels, energy consumption at the com-
pany
’
s locations and waste generation.
Tekna started climate accounting in 2019 and continues to gain in-
sights 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 ac-
counting was updated in 2023 using CEMAsys
’
digital solution, and a
full overview can be found in the Emissions Accounting report on the
company
’
s website.
The activities covered by the environmental permit as delivered by
the Quebec Ministry of Environment, are metallic powders manufac-
turing and induction plasma systems and auxiliary manufacturing. The
manufacturing of both metallic powders and induction plasma sys-
tems has relatively low environmental risks. Hazardous waste, mostly
from R&D and limited in volume, is stored and treated according to
regulations, air emissions are purified when needed, and wastewater
is treated before being disposed of. There are low CO2 emissions in
our production process. The production of Nickel nano powder is in
the industrialization phase, and risk analyses and mitigating measures
are being put in place as the team proceeds in this project.
Climate change [ESRS E1]
Strategy
Tekna
’
s approach to environmental sustainability, within all aspects of
our business operations, is based on two main pillars:
•
Minimising our environmental footprint - Dedicated to avoid-
ing and minimising any adverse environmental impacts linked
to our business operations. This includes adverse impacts as a
result of Tekna
’
s business operations directly, as well as any
indirect impacts such as impacts related to business partners,
suppliers and other third parties. The ultimate goal is to be-
come 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 improv-
ing resource efficiency and sustainability across the value
chains we operate in. This includes developing new and im-
proving existing sustainable technologies and products that
are resource efficient, eco-friendly, recyclable, recoverable and
best in class in terms of environmental sustainability.
Tekna shall prioritise its efforts within environmental sustainability
based on the double materiality assessments.
Company value: We strive for excellence
Board of Directors
’
report (continued)
3:
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Operationalization
Guidelines:
Quantifiable targets:
Action plan
Environmental
policy
Sustainable
events policy
Employee
Handbook
Scope 1 and Scope
2: 50% absolute
reduction of CO2
emissions by 2030
compared to base-
line 2021. 100% Car-
bon neutral by 2050
Estimate scope 3 up-
stream and downstream
remaining categories and
set reduction targets
Ensure budget planning
to execute on decarboni-
zation plan
Update climate risk as-
sessment and
Quantify potential finan-
cial effects linked to sig-
nificant physical and tran-
sition risks and climate
related opportunities
Measurement
2023
2021 (baseline)
Scope 1
589 tCO2e (+2%)
577 tCO2e
Scope 2
30 tCO2e (-29%)
42 tCO2e
Scope 3 (incomplete)
248k tCO2e
n/a
Renewable energy share
(location-based)
72% (+6pp)
66%
Energy intensity per kg
of metal powder
12.4 kWh/kg (-24%)
16.3kWh/kg
(vs 2019 baseline)
                 
ANNUAL REPORT 2023
| 29
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Do no significant harm
For all activities the criteria for Climate Change Adaptation, Water and
Marine Resources, Circular Economy, Pollution Prevention and Con-
trol 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 im-
plement procedures to ensure the alignment with:
•
The OECD Guidelines for Multinational Enterprises (OECD Guide-
lines for MNE)
•
The UN Guiding Principles on Business and Human Rights
(UNGPs), including the principles and rights set out in the eight
fundamental conventions identified in the Declaration of the Inter-
national Labour Organisation on Fundamental Principles and
Rights at Work
•
The International Bill of Human Rights
These requirements are considered met.
For further information on the process, considerations and assess-
ment results, accounting policies, etc, please refer to the full EU tax-
onomy report for details.
Summary of Disclosures pursuant
EU Taxonomy regulation
(Article 8)
Refer to the EU taxonomy report which will be released on April 11.
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
Only climate change mitigation and climate change adaptation fol-
lowing
Commission Delegated Regulation (EU) 2020/852
are required
for the 2023 reporting in Norway.
Tekna
’
s activities are all deemed eligible under the economic activity:
3.6 Manufacture of other low carbon technologies (CCM). The pro-
duction of additive material powders meets all the criteria and is also
reported as aligned. PlasmaSonic is deemed aligned and supporting
documentation needs to be obtained in order to report it as such.
Activity assessment
Production of additive material powders: Eligible and aligned
Life-cycle GHG emission savings are based on an AMGTA report. As
such, the criteria related to savings being calculated in accordance
with Commission Recommendation 2013/179/EU and verified by an
independent third party are considered met.
Production of PlasmaSonic wind tunnels: Eligible, not aligned.
The Plasmasonic wind tunnels are believed to provide substantial life-
cycle GHG emission savings compared to the best performing alter-
native. 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 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 con-
sidered compliant 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 considered not met.
Since the economic activity is not considered eligible for the environ-
mental objective CCA, no further assessment of technical screening
criteria has been carried out.
Board of Directors
’
report (continued)
Figure 1: Distribution of
eligibility and alignment
out of the 100% Turnover,
CapEx and OpEx as per the
consolidated Financial
Statements
                 
ANNUAL REPORT 2023
| 30
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Social information
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
4
are fully adhered to
in its operations and its value-chain.
Own workforce [ESRS S1]
The competence of our employees represents a major asset and
competitive advantage for Tekna. At the end of 2023, the Group em-
ployed a total of 222 people.
The number of employees were divided across locations as follows:
Norway:
0
(0)
Canada:
186
(179)
France:
31
(31)
China:
4
(4)
South Korea:
1
(2)
USA:
0
(0)
Working conditions
Strategy
Tekna understands the value of its workforce and works in ongoing
dialogue to improve the corporate culture, the workplace and condi-
tions. 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 pro-
moting a culture that prioritizes health and safety in the workplace
through continuous improvement, involving all employees.
Company value: We strive for excellence
Refer to the GRI report 2023 on the website for further details on our
OHS approach and KPIs (www.tekna.com/esg | GRI 403).
Equal treatment and opportunities for all
(Activities on gender equality and non-discrimination)
The Executive Leadership Team has five male and two female mem-
bers. Out of 42 managers (non-executive managers with employees
reporting to them) 29 per cent (24%) were female
.
Tekna aspires to
substantially increase the share of female employees and is working
through the employee life cycle to see where measures could be im-
plemented to enhance diversity across the organization. Tekna
’
s
workforce comprises 25 different nationalities, of which 139 are Cana-
dian and 83 are non-Canadian employees.
Already in 2022 Tekna transitioned to a workers compensation sys-
tem that ensures equality, based on an objective job evaluation meth-
od 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 Quebec. 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 categories and years
of service, not because of gender. No gender-based differences exist
with regard to working hour regulations or the design of workplaces.
The Remuneration policy on determination of salary and other remu-
neration for leading persons was approved by the Extraordinary Gen-
eral 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.
Quebec (Canada) and France have strong legislation on discriminato-
ry harassment in the workplace. In 2021 Tekna implemented its Sup-
Board of Directors
’
report (continued)
Operationalization
Guidelines:
Quantifiable targets:
Action plan
Code of Conduct
and Ethics
Employee hand-
book
OHS policy
Zero tolerance
policy
OHS employee
training plan
OHS Manage-
ment Committee
OHS Committee
CORE employee
committee
Zero fatalities, zero
high consequence
injuries
10% reduction per
year on the Severity
index
95% of behaviour
audits completed
compared to annual
audit plan
90% of risk analyses
completed
Improve safety culture
maturity (Bradley curve)
Continuous training and
risk assessments
Root cause analyses of
any and all incidents
Encourage social dia-
logue through CORE
employee committee
Risk analysis of general
activities (ergonomics,
circulation, etc.)
Measurement
2023
2022
Fatalities
0
0
High consequence
injuries
5
1
0
Lost Time Injury Fre-
quency Rate (LTIFR)
6
8.1
2.7
Sick leave
3%
3%
5:
As per GRI 403-9 a high-consequence work-related injuries is defined as an
injury from which the worker cannot, does not, or is not expected to recover
fully to pre-injury health status within six months.| 6: LTIFR: shows the aver-
age number of injuries occurring over 1 million working hours. LTIFR is calcu-
lated as: ([Number of injuries from work situations in the reporting period] x
1,000,000) / (Total hours worked in the reporting period).
4:
The Ten Principles | UN Global Compact
|
                   
ANNUAL REPORT 2023
| 31
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
plier Code of Conduct and in 2022 the Employee Code of Conduct.
Both Codes clearly reject any form of discrimination and emphasize
the importance of respect and civility. It also includes a clear process
for reporting and dealing with inappropriate behavior.
Tekna is committed to ensuring that people with different back-
grounds, irrespective of ethnicity, gender, religion, sexual orientation
or age, have the same opportunities for work and career develop-
ment at Tekna.
Strategy
Tekna is committed to ensuring that people with different back-
grounds, irrespective of ethnicity, gender, religion, sexual orientation
or age, have the same opportunities for work and career develop-
ment at Tekna.
Ensuring diversity and inclusion starts with creating awareness and
fostering an open speak-up culture. A framework of guidelines, pro-
cesses and systems, as well as training for our leadership and employ-
ees enables continuous improvement. Unbiased skill-based recruit-
ment, addressing the gender pay gap, mentorships and work-life bal-
ance are part of our strategy.
Workers in the value chain [ESRS S2]
The Norwegian Transparency Act went into effect in July 2022. Tekna
is following the obligations related to this law and will report accord-
ingly. The 2023 Human Rights and Transparency Act report 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 pro-
grams. Both Employee and Supplier code of conduct addressing the
topic are in place. Tekna is working to ensure compliance with funda-
mental human rights and acceptable working conditions in our supply
chains and with their business partners. For our Supplier assessments
we continue our collaboration with Factlines AS.
With suppliers we mitigated (potential) adverse impacts. 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 material, i.e. titanium,
supplied by two regularly audited manufacturers in China. Both are
well-established and qualified suppliers to major western industrial
conglomerates. Early 2023, raw material suppliers in China were au-
dited and no human rights violations were observed, and both part-
ners were showing visible care for the well-being of their employees
(security equipment, safety reminders & practices).
We have addressed the issue of tantalum and tungsten, sometimes
conflict minerals, by asking our suppliers to certify the
“
non-conflict
”
provenance of the material.
Board of Directors
’
report (continued)
Operationalization
Guidelines:
Quantifiable targets:
Action plan
Code of Conduct and
Ethics
Employee handbook
Work Harassment policy
Workers
’
compensation
equity system
Remuneration policy on
determination of salary
and other remuneration
for leading persons
50% female Board
of Directors
50% female man-
agement
New performance
program
Develop under-
standable Human
Rights policy
Measurement
7
2023
2022
Women in Board
57%
40%
Women in workforce
27%
26%
Unadjusted gender pay
gap
8
2.95%
9.16%
7: Refer to the GRI report 2023 on the website for further statistical mapping
on gender equality (www.tekna.com/esg | GRI 405 - 406). | 8: 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.
                 
ANNUAL REPORT 2023
| 32
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Governance information
Tekna sets high ethical standards, and communication with the out-
side world is to be open, clear and honest.
Business Conduct [ESRS G1]
Strategy
Ensuring proper business conduct within Tekna is based on putting in
place guidelines, processes, systems 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
Board of Directors
’
report (continued)
Operationalization
Guidelines:
Quantifiable targets:
Action plan
Corporate
Governance policy
Code of Conduct
and Ethics
Supplier Code of
Conduct
Anti-Corruption
policy
Competition law
compliance policy
Donations and
Sponsorships Policy
Routine -
Transparency Act
Employee hand-
book
Zero compliance
incidents
Code of Conduct
and Ethics signed
by all employees
Complete due dili-
gence with top 25
highest-risk suppli-
ers
Further implement
Independent whistle-
blower solution
Ethics and Compliance
Committee
Employee Training on
CoC and Compliance
policies
Update authorisation
matrix and 4-eye prin-
ciple
Evolve Supplier Code
of Conduct to a Busi-
ness partner Code of
Conduct
Complete due dili-
gence with top 25
highest-risk suppliers
Measurement
2023
2022
# of reported incidents/
breach CoC
0
1
CoC signed
78%
9
91%
# of corruption cases
0
0
Whistleblower reports
1
10
0
Completed supplier due
diligence
9
4
9: 100% by March 31, 2024 | 10: The Independent whistleblower solution
came online in December 2023. We received one submission related to the
nature of Tekna's business in relation to mining and the defense industry.
                
ANNUAL REPORT 2023
| 33
BOARD OF DIRECTORS
’
REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
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 2023 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, 10 April 2024
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: Torkil Mogstad (BoD), Arina van Oost (ELT), Espen Schie (ELT), Luc Dionne (ELT), Anne Lise Meyer
(BoD), Dag Teigland (Chair), Remy Pontone (ELT), Kristin Åbyholm (BoD), Lars Magnus Fagernes (BoD).
Note: the Executive Leadership Team (ELT) are not part of the Board of Directors
                
ANNUAL REPORT 2023
FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR
’
S REPORT
Sustainability
Reporting
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Corporate Governance
Statement
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CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
| 34
Index
...............................................
35
Consolidated
Income statement
......................
36
Other comprehensive Income...36
Balance sheet
..............................
37
Changes in equity
......................
38
Cash flow
......................................
39
Notes
........................................
40-61
Parent company
Income statement
......................
62
Other comprehensive Income
62
Balance sheet
..............................
63
Changes in equity
......................
64
Cash flow
......................................
64
Notes
......................................
65-71
...
72
| 34
Financial Statements
Financial Statements
Consolidated & Parent
Independent Auditor
’
s report
                                          
ANNUAL REPORT 2023
FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR
’
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CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
| 35
Consolidated Financial Statements
Income statement
.........................................................................................
36
Other comprehensive income
..................................................................
36
Balance sheet
.................................................................................................
37
Changes in equity
.........................................................................................
38
Cash flow
.........................................................................................................
39
Notes to the Consolidated Financial Statements
Organization and accounting principles
................................................
40
Note 1 Research and Development
.........................................................
46
Note 2 Revenue from contracts with customers
.................................
46
Note 3 Other income
.................................................................................
47
Note 4 Remuneration and employee benefits
.....................................
47
Note 5 Other operating expenses
...........................................................
47
Note 6 Income tax
........................................................................................
48
Note 7 Inventories
........................................................................................
49
Note 8 Trade and other receivables
.......................................................
49
Note 9 Cash and cash equivalents
..........................................................
50
Note 10 Property, plant and equipment
................................................
50
Note 11 Intangible assets
..............................................................................
51
Note 12 Non-current receivables
.............................................................
52
Note 13 Leases
...............................................................................................
52
Note 14 Trade payables and other current liabilities
.........................
52
Note 15 Financial risk and financial instruments
..................................
53
Note 16 Borrowings
......................................................................................
55
Note 17 Finance items
.................................................................................
56
Note 18 Share information
.........................................................................
56
Note 19 Earnings per share
.........................................................................
57
Note 20 Investment in joint ventures
......................................................
57
Note 21 Subsidiaries
.....................................................................................
59
Note 22 Related parties
..............................................................................
59
Note 23 Contingent liabilities
.....................................................................
61
Note 24 Subsequent events
......................................................................
61
Index
Parent Financial Statements
Income statement
..........................................................................................
62
Other comprehensive income
...................................................................
62
Balance sheet
..................................................................................................
63
Changes in equity
..........................................................................................
64
Cash flow
..........................................................................................................
64
Notes to the Parent Financial Statements
Accounting principles
...................................................................................
65
Note 1 Remuneration and employee benefits
......................................
66
Note 2 Other expenses
..............................................................................
66
Note 3 Tax
.......................................................................................................
67
Note 4 Investments in subsidiaries
...........................................................
68
Note 5 Cash and cash equivalents
...........................................................
68
Note 6 Intercompany balances and transactions
................................
68
Note 7 Financial items
..................................................................................
69
Note 8 Financial risk
......................................................................................
69
Note 9 Share capital and shareholder information
.............................
70
Note 10 Subsequent events
........................................................................
71
Index
Tip
If you want to return to
this financial index page,
press this icon at the cen-
ter bottom of a financial
the page.
Independent Auditor
’
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.........................................
72
                                                                                                                                        
 
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’
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Board and
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’
report 2023
| 36
Consolidated Financial Statements
Income Statement
Other Comprehensive Income
Amounts in CAD 1000
Note
FY2023
FY 2022
Items that may be reclassified to statement of income
Exchange differences on translation of foreign operations
-49
-178
Items that may be reclassified to statement of
income
-49
-178
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
-49
-178
Total comprehensive income/(loss) for the period
-15,058
-22,696
Attributable to equity holders of the company
-14,470
-21,876
Attributable to non-controlling interests
-589
-820
Amounts in CAD 1000
Note
FY2023
FY 2022
Revenues
2
40,888
26,889
Other income
3
991
767
Materials and consumables used
22,658
17,540
Employee benefit expenses
4
17,143
16,009
Other operating expenses
5
10,248
10,835
EBITDA
-8,170
-16,727
Depreciation and amortisation
10, 11
4,222
3,978
Net operating income/(loss)
-12,391
-20,706
Share of net income (loss) from associated companies and
joint ventures
-608
-1,510
Finance income
17
233
144
Finance costs
17
777
332
Profit/(loss) before income tax
-13,543
-22,404
Income tax expense
6
1,467
114
Profit/(loss) for the period
-15,009
-22,517
Attributable to equity holders of the company
-14,422
-21,688
Attributable to non-controlling interests
-587
-829
Basic earnings per share
-0.12
-0.17
Diluted earnings per share
-0.12
-0.17
 
ANNUAL REPORT 2023
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’
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’
report 2023
| 37
Consolidated Financial Statements (continued)
Balance sheet
Arendal, 10 April 2024
The Board of Directors and CEO of Tekna Holding ASA
This document was electronically signed.
Amounts in CAD 1000
Note
31.12.2023 31.12.2022
Non-current assets
Property, plant and equipment
10
23,894
19,240
Intangible assets
11
7,785
8,537
Associated companies and joint ventures
20
0
579
Non-current receivables
12
4,531
5,339
Deferred tax assets
6
-
-
Total non-current assets
36,210
33,696
Current assets
Inventories
7
17,607
20,592
Contract assets
2
3,905
167
Trade and other receivables
8
8,394
7,880
Cash and cash equivalents
9
10,148
11,364
Total current assets
40,054
40,003
Total assets
76,264
73,699
Amounts in CAD 1000
Note
31.12.2023 31.12.2022
Equity
Share capital and share premium
18
494,956
494,956
Share premium
-
-
Other reserves
-455,405
-440,934
Capital and reserves attributable to holders of the
company
39,552
54,022
Non-controlling interests
-1,197
-609
Total equity
38,354
53,413
Non-current liabilities
Borrowings
16
24,662
4,119
Lease liabilities
13
773
1,161
Deferred tax liabilities
6
1,163
-
Total non-current liabilities
26,598
5,280
Current liabilities
Bank loan
15
-0
1,197
Lease liabilities
13
595
459
Trade and other payables
14
4,875
7,852
Provision for warranties
137
130
Contract liabilities
2
2,442
2,647
Other current liabilities
14
2,860
2,189
Borrowings short-term portion
16
402
532
Total current liabilities
11,311
15,006
Total liabilities and equity
76,264
73,699
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
                 
 
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Changes in Equity
Consolidated Financial Statements (continued)
Share capital
and share
premium
Other
reserves
Total
Balance at 1 January 2022
494,956
-419,058
75,899
211
76,109
Profit/(loss) for the period
-
-21,688
-21,688
-829
-22,517
Other comprehensive income/(loss)
-
-187
-187
9
-178
Balance at 31 December 2022
494,956
-440,934
54,022
-609
53,413
Balance at 1 January 2023
494,956
-440,934
54,022
-609
53,413
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
Amounts in CAD 1000
Non-
controlling
interests
Total equity
Note
Attributable to equity holders of the
Company
 
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Cash flow
Consolidated Financial Statements (continued)
Amounts in CAD 1000
Note
FY2023
FY 2022
Cash flow from financing activities
Proceeds from issue of shares
-
-
Proceeds from issue of shares in THC
-
-42
Increase (decrease) of bank loan
16
-1,197
-2,536
New loan
16
22,484
3,317
Repayment of loan
16
-839
-263
Repayment of lease liabilities
16
-596
-874
Net cash flow from financing activities
19,853
-398
Net increase in cash and cash equivalents
-1,139
-27,105
Cash and cash equivalents at the beginning of the period
11,364
38,649
Effects of exchange rate changes on cash and cash
equivalents
-77
-180
Cash and cash equivalents at end of the period
10,148
11,364
Amounts in CAD 1000
Note
FY2023
FY 2022
Cash flow from operating activities
Net profit/(loss)
-15,009
-22,517
Depreciation, amortization and impairment
10, 11
4,222
3,978
Variation in deferred taxes
6
1,163
-
Interest accretion on LT debt
16
345
290
Discounted value of long-term loan
16
-1,234
-640
(Gain)/Loss from sales of assets
9
-
Share of results from associated companies and joint
ventures
608
1,510
Total after adjustments to profit before income tax
-9,896
-17,379
Change in Inventories
7
2,985
-6,177
Change in other assets
-3,443
-1,070
Change in other liabilities
-2,504
4,699
Total after adjustments to net assets
-12,859
-19,927
Net cash from operating activities
-12,859
-19,927
Cash flow from investing activities
Proceeds from the sales of PPE
-
-
Purchase of PPE and intangible assets
10, 11
-8,133
-5,965
Other investing activities
-
-816
Purchase of shares in subsidiaries
-
-
Net cash flow from investing activities
-8,133
-6,781
 
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Notes to the Consolidated Financial Statements
Organization and accounting principles
Organization
Tekna Holding ASA
(“
Company
”)
is domiciled in Norway, and with the Group
’
s headquarters located in Sher-
brooke, Canada. It manufactures products from thermal plasma processes and produces thermal plasma
systems. The consolidated financial statements for financial year 2023 include the company and its subsidiar-
ies (as a whole, referred to as the "Group").
The Company was incorporated on 30 June 2020. The Company's audited financial statements for 2023 have
been prepared in accordance with International Financial Reporting Standards (IFRS). Following the admission
to trading on Euronext Growth Oslo in 2021 and Oslo Stock Exchange per 1 July 2022, the Group has report-
ed consolidated financial statements in accordance with IFRS, with the Company as the parent company, in-
cluding quarterly financial statements.
Significant accounting policies
This note provides a list of the significant accounting policies adopted in the preparation of these consolidat-
ed financial statements. These policies have been consistently applied to the previous year presented, unless
otherwise stated.
Basis for preparation
The consolidated financial statements have been prepared in accordance with International Financial Report-
ing Standards (IFRS) adopted by the European Union and associated interpretations, as well as Norwegian
disclosure requirements pursuant to the Norwegian Accounting Act applicable as of 31 December 2023. The
consolidated financial statements were approved by the board of directors on 10 April 2024. The company
was incorporated on 30 June 2020 but did not have any activity before Arendals Fossekompani ASA
(“
AFK
”)
increased the share capital by contribution in kind in form of shares in Tekna Holding AS on 11 March 2021.
The transaction represents a capital reorganization and is not in scope of IFRS 3 Business combinations.
Management has determined that predecessor accounting best reflects the economic substance of the trans-
action, since AFK
’
s ownership and control is not changed as a result of the transaction. The financial state-
ments are based on predecessor values from Tekna Holdings Canada Inc.
‘
s consolidated financial statements.
To be able to provide relevant historical financial information, predecessor accounting is applied retrospec-
tively, and the financial statements are therefore presented based on the assumption that the transaction was
completed 1 January 2019 (opening balance for these financial statements). The financial statements have
been prepared using the historical cost principle, except for financial instruments at fair value through profit
or loss. 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 other comprehensive income.
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 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.
Accounting policies
The accounting policies applied in the preparation of the consolidated financial statements are described
below. In case that subsidiaries have used other principles to prepare their separate annual financial state-
ments, adjustments have been made so the consolidated financial statements are prepared according to
common policies.
Principles of consolidation
Business combinations
The acquisition method of accounting is used to account for the acquisition of shares that lead to control
over another company. The Group's consideration is allocated to identifiable assets and liabilities. These are
recognized in the consolidated financial statements at fair value at the date when control is obtained. Good-
will is calculated when the consideration exceeds identifiable assets and liabilities:
•
The consideration transferred; plus
•
Any non-controlling interest in the acquired entity; plus, any gradual acquisition, the fair value of existing
shareholdings in the acquired entity; less
•
Net value (normally fair value) of identifiable net assets included in the transaction
If those amounts are less than the fair value of the net identifiable assets of the business acquired, the differ-
ence is recognized directly in profit or loss as a bargain purchase. If the business combination is achieved in
stages, the investment changes classification from associated company to subsidiary, the upward adjustment
of the existing shareholding at fair value is recognized as a gain in the income statement. A buyout of non-
controlling interests is considered a transaction with owners and does not require a calculation of goodwill.
Non-controlling interests for such transactions are adjusted based on a proportionate share of the subsidi-
ary's equity.
                 
 
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Losses in the parent company
’
s financial statements
When an investment is reclassified from fair value through other comprehensive income to subsidiary or as-
sociated company, the investment
’
s carrying amount at the time control or significant influence is obtained is
used as recognized cost.
Subsidiaries
Subsidiaries are all entities over which the Group has control. Control exists when the investor is exposed or
has rights to variable returns from its investment in the company and when it has the ability to influence the
return through its power over the company. To determine the level of control, the potential voting rights that
can be exercised or converted must be considered. Subsidiaries are fully consolidated from the date on
which control is transferred to the group. They are deconsolidated from the date that control ceases.
Associated companies
Associated companies are entities where the company and/or the Group has significant influence, but not
control over financial and operational management. Significant influence is assumed to exist when the Group
has between 20 per cent to 50 per cent of the voting rights in a company. The consolidated financial state-
ments include the Group's share of the profits/losses from associated companies are accounted for using the
equity method, from the date significant influence was achieved until it ceases.
Elimination of intercompany transactions
Intercompany transactions, balances and unrealized gains and losses on transactions between group compa-
nies are eliminated.
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. With effect from 1 January 2022, the parent com-
pany changed its functional currency from NOK to CAD to reflect the Group
’
s current financing, underlying
operations and reduced ties to AFK.
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
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.
Group companies
The results and financial position of foreign operations that have a functional currency different from the
presentation currency are translated into the presentation currency as follows:
•
assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that
balance sheet,
•
income and expenses for each statement of profit or loss and statement of comprehensive income are
translated at average exchange rates, and
•
all resulting exchange differences are recognized in other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities,
and of borrowings and other financial instruments designated as hedges of such investments, are recognized
in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net
investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the
gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are
treated as assets and liabilities of the foreign operation and translated at the closing rate.
Notes to the Consolidated Financial Statements (- Note Organization and accounting principles—continued)
                 
 
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Revenue recognition
Revenues from contracts with customers
Under IFRS 15, Tekna recognizes as revenue the agreed transaction price in a contract with a customer at the
time when the Group transfers the control of a distinct product or service to the customer at an amount that
reflects the consideration to which the Group expects to be entitled in exchange for those goods and ser-
vices. For each performance obligation identified at the inception of the contract, it is separately determined
if those performance obligations are satisfied at a point in time or on an over-time basis. Revenue regarding
each performance obligation is recognized when that performance obligation is satisfied. Consequently, rev-
enue is recognized in full upon completion of a contract if it includes only one performance obligation or
more than one performance obligations that are satisfied at the same time. The Group
’
s main revenues come
from the sale of metal powders and delivers plasma systems for powder production of advanced materials.
There are several types of customer contracts depending on what the customer needs. Some contracts may
include only one type of service while other contracts include two or more types of services, hence the trans-
action price will be allocated between different types of revenue depending on the performance obligation.
Transaction price - Sale of metal powders
The Group determines the transaction price to be the amount of consideration which it expects to be entitled
in exchange for transferring the promised goods and services to the customer, net of discounts and sales
related taxes. Sales related taxes are regarded as collected on behalf of the authorities. The Group considers
whether there are other promises in the contract that are separate performance obligations to which a por-
tion of the transaction price needs to be allocated.
Fixed price contracts - Sale of plasma systems for powder production of advanced materials
The Group transfers control of plasma systems over time, and therefore, satisfies a performance obligation
and recognizes revenue over time. The asset has no alternative use and the entity has enforceable right to
payment for performance completed to date. Revenue from manufacturing and distribution of thermal plas-
ma systems are recorded under the percentage-of-completion method. Under this method, contract income
and profits are recognized proportionally with the degree of completion of work when persuasive evidence
of an arrangement exists, the sales price is fixed or determinable and collection is reasonably assured. The
degree of completion is determined using the cost-to-cost method, which consists in comparing the actual
costs incurred with the total expected costs.
Contract balances
Contract balances consist of client-related assets and liabilities. Contract assets relate to consideration for
work complete, but not yet invoiced at the reporting date. The contract assets are transferred to trade receiv-
ables 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 contractu-
ally before transferring of the license or service, then the amount received in advance presented as a liability.
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.
Income tax
Income tax on the profit for the period consists of current and deferred tax. Income tax is recognized in the
income statement with the exception of tax on items that are recognized directly in equity or in other com-
prehensive income. The tax effect of the latter items is recognized directly in equity or in other comprehen-
sive income. Current tax is the forecast tax payable on the year's taxable income at current tax rates at the
balance sheet date, and any adjustments of tax payable for previous years less tax paid in advance. Deferred
tax liabilities are calculated based on the balance sheet-oriented liability method taking into account tempo-
rary differences between the carrying amount of assets and liabilities for financial reporting and tax values.
The following temporary differences are not considered: goodwill not deductible for income tax purposes,
the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences
relating to investments in subsidiaries that are not expected to reverse in the foreseeable future. The provi-
sion for deferred tax is based on the expected manner of realization or settlement of the carrying amount of
assets and liabilities, measured at the tax rates in force at the balance sheet date. Deferred tax assets are rec-
ognized only to the extent that it is probable that the asset can be utilized against future taxable results. De-
ferred tax assets are reduced to the extent that it is no longer probable that the related tax asset will be real-
ized. Tax assets that can only be utilized via group contributions from the parent company are not recog-
nized until the contribution has actually been paid and is recognized in the individual companies.
Notes to the Consolidated Financial Statements (- Note Organization and accounting principles—continued)
                 
 
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Leases
The company's and the group's leases consist mainly of office space, machines, cars, IT equipment and other
office machines. Assets and liabilities arising from a lease are initially measured on a present value basis.
Right-of-use assets are measured at cost comprising the following:
•
the amount of the initial measurement of lease liability
•
any lease payments made at or before the commencement date less any lease incentives received
•
any initial direct costs, and restoration costs.
Lease liabilities include the net present value of the following lease payments:
•
fixed payments (including in-substance fixed payments), less any lease incentives receivable
•
variable lease payment that are based on an index or a rate, initially measured using the index or rate as
at the commencement date
•
amounts expected to be payable by the group under residual value guarantees
•
the exercise price of a purchase option if the group is reasonably certain to exercise that option,
•
and payments of penalties for terminating the lease, if the lease term reflects the group exercising that
option.
Lease payments to be made under reasonably certain extension options are also included in the measure-
ment of the liability. The lease payments are discounted using the lessee
’
s incremental borrowing rate, being
the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of sim-
ilar value to the right-of-use asset in a similar economic environment with similar terms, security and condi-
tions.
Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are test-
ed annually for impairment, or more frequently if events or changes in circumstances indicate that they might
be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which
the asset
’
s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an as-
set
’
s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash inflows which are largely inde-
pendent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial as-
sets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at
the end of each reporting period.
Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand and deposits held at call with financial institutions.
Trade receivables
Trade receivables are recognized initially at the amount of consideration that is unconditional, unless they
contain significant financing components when they are recognized at fair value. They are subsequently
measured at amortized cost using the effective interest method, less loss allowance. See note 8 for further
information about the group
’
s accounting for trade receivables.
Inventories
Raw materials and stores, work in progress and finished goods are recognized at the lower of cost and net
realizable value. Net realizable value is the estimated sales price in ordinary operations, less the estimated
costs for completion and sales costs. Cost is based on an average historical cost for raw material and includes
costs incurred upon procurement of goods and the costs of bringing them to their present condition and
location. For finished goods and work in progress, cost is calculated as a share of the indirect costs based on
normal utilization of capacity.
Financial instruments
Non-derivative financial instruments
Non-derivative financial instruments consist of investments in debt and equity instruments, trade and other
receivables, cash and loans, trade payables and other debts.
Trade and other receivables that fall due in less than three months are not discounted. Non-derivative finan-
cial instruments are measured on initial recognition at fair value plus any directly attributable transaction
costs. After initial recognition, the instruments are measured as described below.
Notes to the Consolidated Financial Statements (- Note Organization and accounting principles—continued)
                 
 
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Interest-bearing loans are valued at fair value less transaction costs on initial recognition in the balance sheet.
Instruments are subsequently measured at amortized cost, with any differences between cost and redemp-
tion value recognized over the term of the loan as part of the effective interest rate.
Financial assets are derecognized when the contractual rights to the cash flows from an asset expire, or when
the Group has transferred the contractual rights in a transaction where the risk and return of ownership of
the financial asset have substantively been transferred.
Financial assets classified as held for trading
A financial instrument is classified at fair value through profit or loss if it is held for trading. The instrument is
measured at fair value and the changes in fair value are recognized in the income statement.
Other
Other non-derivative financial instruments are measured at amortized cost less any impairment losses.
Property, plant and equipment
The depreciation methods and periods used by the group are disclosed in note 10. The assets
’
residual values
and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset
’
s carrying amount is written down immediately to its recoverable amount if the asset
’
s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are in-
cluded in profit or loss. When revalued assets are sold, it is group policy to transfer any amounts included in
other reserves in respect of those assets to retained earnings.
Intangible assets
Other intangible assets and development
Development costs that are directly attributable to the design and testing of identifiable and unique software
products controlled by the group are recognized as intangible assets where the following criteria are met:
•
it is technically feasible to complete the product so that it will be available for use
•
management intends to complete the product and use or sell it
•
there is an ability to use or sell the product
•
it can be demonstrated how the product will generate probable future economic benefits
•
adequate technical, financial and other resources to complete the development and to use or sell the
product are available, and
•
the expenditure attributable to the product during its development can be reliably measured.
Directly attributable costs that are capitalized as part of the product include employee costs and an appropri-
ate portion of relevant overheads. Capitalized development costs are recorded as intangible assets and
amortized from the point at which the asset is ready for use.
Development expenditure that does not meet the criteria above are recognized as an expense as incurred.
Development costs previously recognized as an expense are not recognized as an asset in a subsequent pe-
riod.
Amortizations methods and periods Refer to note 11 for details about amortization methods and periods
used by the group for intangible assets.
Trade and other payables
These amounts represent liabilities for goods and services provided to the group prior to the end of the fi-
nancial year which are unpaid. The amounts are unsecured and are usually paid within 60 days of recogni-
tion. Trade and other payables are presented as current liabilities unless payment is not due within 12 months
after the reporting period. They are recognized initially at their fair value and subsequently measured at
amortized cost using the effective interest method.
Notes to the Consolidated Financial Statements (- Note Organization and accounting principles—continued)
                 
 
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Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequent-
ly measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the re-
demption amount is recognized in profit or loss over the period of the borrowings using the effective interest
method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to
the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is de-
ferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of
the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized
over the period of the facility to which it relates.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting period.
Pensions
For defined contribution plans, the group pays contributions to publicly or privately administered pension
plans. The group has no further payment obligations once the contributions have been paid. The contribu-
tions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized
as an asset to the extent that a cash refund or a reduction in the future payments is available.
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.
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are recognized as a deduction, net of tax, from the proceeds. On the repurchase of treasury shares,
the purchase amount including directly attributable costs are recognized as a change in equity. Purchased
shares are classified as treasury shares and reduce total equity. When treasury shares are sold, the received
amount is recorded as an increase in equity, and the subsequent gain on the transaction is recognized in
share premium.
Dividends
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at
the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the
reporting period.
Earnings per share
Basic earnings per share is calculated by dividing:
•
the profit attributable to owners of the company, excluding any costs of servicing equity other than ordi-
nary shares by
•
the weighted average number of ordinary shares outstanding during the financial year, adjusted for bo-
nus elements in ordinary shares issued during the year and excluding treasury shares (note 19).
•
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account:
•
the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares, and
•
the weighted average number of additional ordinary shares that would have been outstanding assuming
the conversion of all dilutive potential ordinary shares.
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.
Notes to the Consolidated Financial Statements (- Note Organization and accounting principles—continued)
                 
 
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Note 1 Research and development
Note 2 Revenue from contracts with customers
Accounting principles and information related to external customers are described in the Organization and
accounting principles. There was one customer that represented 17.7 per cent or more of the Group's total
revenues on an annual basis in 2023.
Disaggregation of revenue from contracts with customers
Notes to the Consolidated Financial Statements (continued)
2023
Amounts in CAD 1000
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
Systems &
Equipment
Materials
Spare parts
Other
Total
2022
Amounts in CAD 1000
Revenue recognized at a point in time
-
18,909
1,521
222
20,652
Revenue recognized over time
6,238
-
-
-
6,238
Revenue from external customers
6,238
18,909
1,521
222
26,889
Contribution margin
2,794
5,677
657
222
9,350
Contribution margin %
44.8%
30.0%
43.2%
100.0%
34.8%
Revenue from external customers specified per geographical area:
North America
1,608
7,204
760
111
9,684
Europe
-
9,827
760
111
10,698
Asia
4,629
1,878
-
-
6,507
Total
6,238
18,909
1,521
222
26,889
Systems &
Equipment
Materials
Spare parts
Other
Total
Amounts in CAD 1000
2023
2022
Salaries
1,711
1,850
Materials and other costs
836
1,135
R & D Tax credits
-161
-253
Research and Development costs
2,386
2,732
Less: development capitalized
-428
-532
Research expensed
1,958
2,200
                
 
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Notes to the Consolidated Financial Statements (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
2023
2022
Grant
1,001
755
Gain/loss disposals
-9
12
Other
-
-
Other Income
991
767
Note 4 Remuneration and employee benefits
Amounts in CAD 1000
2023
2022
Salaries
16,853
16,903
Social security contributions
2,857
2,721
Pension costs
504
438
Other benefits
641
738
Capitalized as development, inventories etc.
-3,712
-4,791
Total employee benefit expenses
17,143
16,009
Average number of full time employees
218
219
Note 5
Other operating expenses
Amounts in CAD 1000
2023
2022
Maintenance equipment & buildings
807
831
Marketing, travel and representation costs
1,439
1,616
Consultants and professional fees
1,071
5,717
IT costs
1,217
1,482
Bad debts
4,033
33
Manufacturing overhead costs
1,680
1,156
Total operating expenses
10,248
10,835
Remuneration to auditor
Amounts in CAD 1000
2023
2022
Statutory audit
356
374
Other assurance services
38
261
Tax advisory
20
30
Other non-audit services
5
22
Total remuneration to auditor
420
687
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Notes to the Consolidated Financial Statements (continued)
Note 6 Income tax
Amounts in CAD 1000
2023
2022
Tax payable on ordinary income
303
114
Adjustment for previous years
-
-
Current tax expense
303
114
Deferred tax expense
1,163
-
Total tax expense in the income statement
1,467
114
Reconciliation of effective tax rate
Profit / (loss) before income tax
-13,543
-22,404
Tax based on current ordinary tax rate
-3,589
-5,937
Effect of non-deductible expenses
357
29
Effect of unrecognised tax loss carryforward
4,725
5,908
Effect of changed tax assessments for previous years
-26
114
Total tax expense
1,467
114
Effective tax rate
-10.83%
-0.51%
  
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
Amounts in CAD 1000
2022
Assets
Liabilities
Net assets
Property, plant and equipment
-
-208
-208
Intangible assets
-
-1,216
-1,216
Other items
719
-
719
Tax loss carryforward
25,254
-
25,254
Unrecognised tax assets
-24,549
-
-24,549
Recognised tax loss carryforward
705
-
705
Deferred tax asset/liability
1,424
-1,424
0
Offsetting of assets and liabilities
Net deferred tax asset/liability
1,424
-1,424
0
 
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Notes to the Consolidated Financial Statements (continued)
Note 7 Inventories
Inventory stock
2023
2022
Amounts in CAD 1000
Raw materials
10,336
10,840
Work in progress
386
712
Finished goods
6,886
9,039
Total inventories (net after provision for obsolescence)
17,607
20,592
Provision for obsolescence related to finished goods
2023
2022
Amounts in CAD 1000
Balance at 1 january
4,996
3,648
New provisions recognised during the year
3,055
2,218
Provisions reversed
-3,313
-871
Balance at 31 December
4,737
4,996
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, de-
pending 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 his-
toric performance of sales.
Note 8
Trade and other receivables
Trade receivables
2023
2022
Amounts in CAD 1000
Trade receivables from contracts with customers
9,930
5,676
Loss allowance
-4,075
-42
Total
5,855
5,634
ooooo
Write-down *
Amounts in CAD 1000
2023
2022
Balance at 1 january
-42
-26
New write-downs recognised during the year
-4,033
-38
Write-downs reversed
-
22
Balance at 31 December
-4,075
-42
*For more information about credit risk and write-downs, see note 15.
Tekna made a provision of CAD 4.0 million in the fourth quarter 2023 related to one joint venture. This provi-
sion 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 antici-
pated due to the market conditions, and the joint venture has been loss making since the inception. The loss-
es have been funded by the joint venture partners. Tekna has reported its share of these losses, an accumu-
lated total of CAD 5.6 million, as loss on associated company. Even though no formal decision has been
made by the joint venture partners, Tekna considers it unlikely that the business activities of the joint venture
will continue unchanged. Tekna expects that the contemplated changes will have a positive impact on cash
flow going forward.
Other receivables
Amounts in CAD 1000
2023
2022
Indirect Tax Receivable
363
599
Refundable deposit on Raw material
489
703
Grant and Investment tax credit receivable
167
440
Loan to employees
934
-
Prepaid Expenses
585
505
Total
2,538
2,246
Total trade and other receivables
8,394
7,880
| 49
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Notes to the Consolidated Financial Statements (continued)
Note 9 Cash and cash equivalents
Amounts in CAD 1000
2023
2022
Total cash at bank
10,148
11,364
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
Amounts in CAD 1000
2023
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
Additions, net of tax credits &
Translation adjustments
7,549
880
356
8,785
Grants
-799
-195
-
-994
Disposal
-41
-
-
-41
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
6
1
35
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
Amounts in CAD 1000
2022
Vehicles,
machinery
and
equipment
Buildings
and land
RoU assets
Total
Year ended 31 December 2022
Cost at 1 January 2022
18,429
11,811
1,132
31,372
Additions, net of tax credits &
Translation adjustments
3,830
758
1,983
6,571
Grants
-1,059
-109
-
-1,168
Disposal
-
-
-
-
Cost at 31 December 2022
21,200
12,460
3,115
36,775
Accumulated depreciation at 1 January 2022
9,735
4,363
701
14,799
Depreciation
1,414
569
823
2,806
Translation adjustments
-43
-28
1
-70
Accumulated depreciation at 31 December 2022
11,106
4,904
1,525
17,535
Carrying amount at 31 December 2022
10,094
7,556
1,590
19,240
                 
 
Notes to the Consolidated Financial Statements (continued)
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Note 11
Intangible assets
Amounts in CAD 1000
2023
Technologies
IP and licenses
Development
Total
Year ended 31 December 2023
Cost at 1 January 2023
10,767
4,978
2,466
18,211
Additions, net of tax credits
-
235
193
428
Grants
-
-1
-49
-50
Cost at 31 December 2023
10,767
5,212
2,610
18,589
Accumulated amortization at 1 January 2023
6,820
2,507
347
9,674
Amortization
718
278
134
1,130
Disposal
-
-
-
-
Accumulated amortzation and impairment at
31 December 2023
7,538
2,785
481
10,804
Carrying amount at 31 December 2023
3,230
2,427
2,129
7,785
Amounts in CAD 1000
2022
Technologies
IP and licenses
Development
Total
Year ended 31 December 2022
Cost at 1 January 2022
10,767
4,689
2,268
17,724
Additions, net of tax credits
-
311
221
532
Grants
-
-22
-23
-45
Cost at 31 December 2022
10,767
4,978
2,466
18,211
Accumulated amortization at 1 January 2022
6,102
2,248
157
8,507
Amortization
718
259
190
1,167
Disposal
-
-
-
-
Accumulated amortzation and impairment at
31 December 2022
6,820
2,507
347
9,674
Carrying amount at 31 December 2022
3,948
2,471
2,119
8,537
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 2023, 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.
                 
 
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Note 12
Non-current receivables
2023
2022
Amounts in CAD 1000
Loan to employees
-
933
R&D Tax Credit Receivable
4,531
4,406
Total non-current receivables
4,531
5,339
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
2023
2022
Total right-of-use assets
1,340
1,590
Current lease liabilities
595
459
Non-current lease liabilities
773
1,161
Total lease liabilities
1,369
1,620
Amounts recognised in the statement of income
The statement of income shows the following amounts relating to leases:
Amounts in CAD 1000
2023
2022
Total depreciation charge right-of-use assets
605
823
Interest expense
68
77
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
2023
2022
Trade payables
4,875
7,852
Other current liabilities
2,860
2,189
Total
7,735
10,041
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
2023
2022
Accrued expenses and other current liabilities
2,860
2,059
Total
2,860
2,059
| 52
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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 and South Korea.
Climate risk
The most material climate risks in the short and medium 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 abil-
ity to supply Tekna with titanium and nickel. Also, higher temperatures put the health and safety of workers in
China at risk. Physical climate risks might also impact goods transportation. In the medium and long term,
physical risks might impact where the company considers establishing new production locations.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk:
currency risk, interest rate risk and other
price risk.
Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. Currency risk arises when financial assets or financial liabilities are de-
nominated in a currency other than the Company's functional currency. The foreign exchange rate risk for
the Group relates to the fact that the Group's business transactions, operations and sales are made in several
currencies, including Canadian dollar (CAD), U.S dollar, euro, Chinese Yuan, Indian rupee, South Korean won.
Unfavourable fluctuations in exchange rates could have an adverse effect on the Group's business, financial
positions and profits.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate be-
cause of changes in market interest rates. The Company is exposed to interest rate risk on its fixed and float-
ing interest rate financial instruments. Fixed interest rate instruments subject the Company to fair value risk,
while floating rate instruments subject it to cash flow risk.
As at December 31, 2023, the Company's exposure to interest rate risk is as follows:
Cash:
Floating rate
Accounts receivable:
Non-interest bearing
Bank loan:
Floating rate
Accounts payable and accrued liabilities: Non-interest bearing
Obligations under capital leases:
fixed rate of 8,99%
Long-term debt:
Floating rate on loans totalling CAD 22m and
non-interest bearing on other loans
Price risk
The Group's business is subject to price risk. There is no guarantee that the Group will be able to obtain the
expected prices for its metal powders and plasma systems, and any change in the market conditions, includ-
ing in the global technology 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. If expected
prices for products and systems are not obtained or the Group experiences lower sales volumes, this may
adversely impact the Group's business, financial position and profits.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with its finan-
cial liabilities. The Company is exposed to liquidity risk mainly in respect of its accounts payable and accrued
liabilities, and long-term debt.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the avail-
ability of funding through an adequate amount of committed credit facilities to meet obligations when due
and to close out market positions. The group maintains flexibility in funding by maintaining availability under
committed credit lines.
Management monitors rolling forecasts of the group
’
s liquidity reserve (comprising the undrawn borrowing
facilities) and cash and cash equivalents on the basis of expected cash flows.
Notes to the Consolidated Financial Statements (continued)
                 
 
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Notes to the Consolidated Financial Statements (- Note 15 continued)
The committed credit facilities may be drawn at any time, subject to a limit of USD $0.75 million and
CAD $4 million and may be terminated by the bank without notice.
The group
’
s main interest rate risk arises from the bank credit facilities, which expose the group to cash flow
interest rate risk.
At year end all bank credit facilities are using base rate +2% as fixed rate. The amounts are
carried at amortised cost.
2023
Carrying
Contractual
6 months or
6 to 12
1 to 2
2 to 5
Over 5
Amounts in CAD
amount
cash flows
less
months
years
years
years
1000
Lease liabilities
1,369
1,508
343
256
406
498
5
Trade and
4,875
4,875
4,875
-
-
-
-
other payables
Bank loan
-0
-
-
-
-
-
-
Borrowings
25,064
34,245
443
401
739
27,432
5,230
2022
Carrying
Contractual
6 months or
6 to 12
1 to 2
2 to 5
Over 5
Amounts in CAD
amount
cash flows
less
months
years
years
years
1000
Lease liabilities
1,620
1,838
337
320
526
655
-
Trade and
7,852
7,852
7,852
-
-
-
-
other payables
Bank loan
1,197
1,197
1,197
-
-
-
-
Borrowings
4,651
8,050
462
461
790
2,607
3,730
Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation. Financial instruments which potentially subject the Company to credit risk
consist principally of cash and accounts receivable. The Company's cash is maintained at major financial insti-
tutions; therefore, the Company considers the risk of non-performance of this instrument to be remote. In
addition, the Company has provided for this risk through the allowance it has taken on its accounts receiva-
ble. No trade receivables mature beyond one year. To mitigate the credit risk on trade receivables, the group
is following up credit risk on a regular basis and require down payments and letters of credit to cover the
value of the systems contracts signed with its customers. Historically, the group has not experienced signifi-
cant adverse impacts in relation to trade receivable collection.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing
to engage in a repayment plan with the company. Where loans or receivables have been written off, the
company continues to engage in enforcement activity to attempt to recover the receivable due. Where
recoveries are made, these are recognised in profit or loss.
Trade receivables
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
2023
Outstanding trade
3,179
1,556
1,069
514
3,612
9,930
receivables
Provision for losses
-
-
-264
-380
-3,431
-4,075
2022
Outstanding trade
2,276
1,218
833
463
885
5,676
receivables
Provision for losses
-
-
-
-42
-
-42
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.
| 54
FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR
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Notes to the Consolidated Financial Statements (continued)
Note 16 Borrowings
This note provides information on the contrac-
tual terms of the Group
’
s interest-bearing loans
and borrowings. For more information on the
Group
’
s interest rate risk and foreign 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 Fosse-
kompani 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 CDOR.
As of December 31st, 2023, Tekna had drawn
CAD 20 million under this loan agreement with
Arendals Fossekompani ASA.
Tekna Holding ASA has complied with the
financial covenants of its borrowing facilities at
year end 2023. The credit limit on the bank
credit facilities is CAD 4 million and USD 0.75
million.
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
2023
2022
2023
2022
2023
2022
2023
2022
Balance at 1 January
4,651
3,978
1,620
462
1,197
3,733
7,468
8,173
New loan
22,140
1,286
351
2,031
-
-
22,492
3,317
Cash Flow - repayment
-839
-263
-565
-873
-1,197
-2,536
-2,601
-3,672
Non cash changes
FX variation loss (gain)
-
-
-38
-
-
-
-38
-
Conversion to equity
-
-
-
-
-
-
-
-
Amortization
-1,234
-640
-
-
-
-
-1,234
-640
Debt accretion on long-term debt
345
290
-
-
-
-
345
290
Total debt
25,064
4,651
1,369
1,620
-
1,197
26,433
7,468
Short-term portion
-402
-532
-595
-459
-1,197
-997
-2,188
Balance long-term portion at 31
December
24,662
4,119
773
1,161
-
-
25,435
5,280
Amounts in CAD 1000
2023
2022
Loans secured by pledged assets
Building and land
1,075
1,144
Machinery and equipment
-
-
Universality of movable and immovable property, tangible and
intangible, current and future
983
1,218
Total non-current borrowings secured by pledged assets
2,058
2,362
| 55
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Notes to the Consolidated Financial Statements (continued)
Note 17 Finance items
Amounts in CAD 1000
2023
2022
Interest income
21
20
Currency exchange income
212
124
Total Finance income
233
144
IFRS 16 interest
68
77
Interest expense
709
255
Total finance cost
777
332
Net finance items
-544
-188
Note 18 Share information
Amounts in CAD 1000
2023
2022
Share capital
37,277
37,277
Share premium
451,473
451,473
Count in 1000
Ordinary shares
125,227
125,22
7
At 31 December 2023 there were 125.227.346 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.
There were no paid out dividends in 2023.
Major shareholders at year-end 2023
Number of
shares
% of total
Country
Arendals Fossekompani ASA
87,989,644
70.26%
NOR
Ulfoss Invest AS
2,941,975
2.35%
NOR
Havfonn AS
2,913,580
2.33%
NOR
Must Invest AS
2,821,245
2.25%
NOR
Kvantia AS
2,354,862
1.88%
NOR
Victoria India Fund AS
1,331,883
1.06%
NOR
Skandinaviska Enskilda Banken AB
1,290,237
1.03%
LUX
Alpine Capital AS
1,080,029
0.86%
NOR
Carucel Finance AS
1,073,791
0.86%
NOR
Other
21,430,100
17.11%
Various
Total number of shares
125,227,346
100.00%
 
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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
2023
2022
Net profit for the year
-15,009
-22,517
Attributable to non-controlling interests
-587
-829
Attributable to ordinary shares
-14,422
-21,688
Weighted number of ordinary
shares, basic and diluted
125,227,346
125,227,346
Number of shares end of period
125,227,346
125,227,346
Basic and diluted
earnings per share
-0.12
-0.17
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
50%
of powders
Based on an overall assessment where the size and complexity is taken into consideration Imphytek Powders S.A.S.
is considered to be significant joint ventures. Further information regarding this company is disclosed below.
Amounts in CAD 1000
Imphytek Powders S.A.S.
1,231
Book value 31.12.2021
1,231
Book value as at 01.01.2022
-1,509
Share of profit after tax 2022
680
Investment during the period
177
FX variations
579
Book value 31.12.2022
579
Book value as at 01.01.2023
-608
Share of profit after tax 2023
29
Investment during the period
-
FX variations
-
Book value 31.12.2023
The company has no observable market value in form of market price or similar.
| 57
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ANNUAL REPORT 2023
                 
 
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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. The company is a strategically important company in the business segment
Advanced Materials.
Imphytek Powders S.A.S. has no contingent liabilities or capital commitments as of 31.12.2023. 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.
The table on the right shows the condensed financial information of the joint venture, based on 100% owner-
ship.
The values are tested annually for impairment. In this testing each segment/subgroup is assessed as a cash
generating unit. The recoverable amount is estimated based on value in use. Estimated value in use is based
on discounted future cash flows. This measures the cash flows based on market requirements of return and
risk. Value in use for 2023 has been calculated in the same way as in 2022. Impairment tests are made based
on budgets and long-term strategic plans, as approved by the Board, or otherwise with the best estimate
using the information available at the time. In addition, a growth rate of 3.1% is applied in line with 10-year
government bond yields, and a terminal value is applied based on the same growth rate. A size premium of
3.7 % was used in the calculations.
The Required Rate of Return (WACC before tax) for the investment in the joint venture has been set to 13%.
The risk-free rate of return has been set to 3.1%. When calculating the WACC consideration is given to the
fact that the company's earnings are mainly in EUR.
The cash-generating unit in the impairment testing suggests impairment of all the intangible assets in its en-
tirety by 1 163 thousand, due to lack of profitability and low probability of future profits with excess cash gen-
eration. A sensitivity analysis based on a unilateral change in estimated future EBITDA does thus not change
the conclusion. Reasonable changes in the assumptions will not result in additional impairment losses.
Imphytek Powders S.A.S.
The joint venture has the same reporting period as the Group.
Amounts in CAD 1000
2023
2022
Total revenue
1,645
1,447
Depreciations
-1,347
-174
Interest income
-
-
Interest expenses
-51
-41
Tax expenses
-
-
Profit
-5,085
-3,110
Other income and expenses
-
-
Comprehensive income
-
-
The Groups share of comprehensive income
50%
50%
Current assets
5,339
4,228
whereof cash and cash equivalents
1,658
995
Non-current assets
1
-
Current liabilities
8,178
2,966
Long-term liabilities
4,397
4,374
Equity
-7,235
-1,166
                 
 
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Note 21 Subsidiaries
Note 22 Related parties
At year end Arendals Fossekompani ASA (AFK) owned 87,989,644 shares, representing 70.26 % of the total
number of shares in Tekna.
See table on the next page.
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
On February 18, 2021, the Board of Directors of the Company resolved to establish a share incentive program
for key employees of the Company. The share incentive program is based on a structure in which certain
members of the Company's Management and management of the Portfolio Companies are offered the op-
portunity to subscribe for Shares in Tekna Holdings Canada Inc., and where the Company will provide partial
financing of their subscription of Shares under the share incentive program. The total number of Shares in-
cluded in the share incentive program of Tekna Holdings Canada Inc is 3,482,408. As part of the share incen-
tive program, the key employees purchased Shares subject to a lock-up undertaking of 36 months following
the date of the purchase of the Shares. The company has originally provided full loan financing of the pur-
chase price of the Shares under the share incentive program, for a total of CAD $1.3 million. As of December
31, 2023, the loan financing balance is CAD $0.93 million. The share incentive program is based on a struc-
ture in which certain members of the management within the Group were offered the opportunity to sub-
scribe for Shares in Tekna Holdings Canada at fair value less a discount reflecting the lock-up period. The
vested portion of the discount is reflected in as share-based compensation with an amount totalling
CAD $ 63 thousand for the executive team for 2023 as disclosed above.
Notes to the Consolidated Financial Statements (continued)
Company
Ownership
held by
the group
Ownership
held by
the non-
controlling
interests
Domicile
Tekna Holdings Canada Inc.
96.54%
3.46%
Canada
Tekna Plasma Systems Inc.
96.54%
3.46%
Canada
Tekna Advanced Materials Inc.
96.54%
3.46%
Canada
Tekna Plasma Europe S.A.S.
96.54%
3.46%
France
Tekna Plasma Systems Suzhou Co. Ltd.
96.54%
3.46%
China
Tekna Plasma India Pr. Ltd.
96.54%
3.46%
India
Tekna Inc.
96.54%
3.46%
USA
Tekna Plasma Korea Co. Ltd.
96.54%
3.46%
South Korea
                 
 
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Notes to the Consolidated Financial Statements (- Note 22 continued)
Board of Directors compensation 2023 and number of shares owned 31 December 2023
Name
Title
Board of
Directors
remunera-
ted
Remunera-
tion
provision
Own
Holdings
Related
Parties
Number of
shares in
Tekna
Holding ASA
Dag Teigland
1,2
Chair
45,483
55,482
728,818
728,818
Torkil Sigurd Mogstad
2
Member of Board
52,125
52,125
Ann-Kari Amundsen Heier
2
Member of Board
Lars Magnus Eldrup Fagernes
2
Member of Board
Anne-Lise Meyer
3
Member of Board
75,210
50,294
Barbara Thierart Perrin
4
Member of Board
64,323
40,622
Kristin Skau Åbyholm
5
Member of Board
40,622
3,686,745
3,686,745
Total
185,016
187,021
-
-
-
-
-
-
4,467,688
4,467,688
Name
Title
Fixed salary
Paid bonus
Pension
Share-based
compensa-
tion
Other
benefits
Number of
shares in
Tekna
Holdings
Canada Inc
Loan from
Tekna
Plasma
Systems Inc.
Own
Holdings
Related
Parties
Number of
shares in
Tekna
Holding ASA
Luc Dionne
CEO
335
3
21
38
588,576
169,859
Espen Schie
CFO
284
11
34
379,990
379,990
Other executive management
1,055
25
50
42
44
1,177,152
395,493
Board of Directors remunerated corresponds to fees paid in the period, as elected. For Dag Teigland the fees
paid were for the period October 2022 until April 2023, for Anne Lise Meyer for the period May 2022 until
April 2023 and for Barbara Thierart Perrin for the period April 2022 until April 2023.
Board of Directors remuneration provision corresponds to accrued provisions for fees, for the period May
2023 until December 2023.
*1 Dag Teigland elected from October 2022, representing Tibidabo Industrier AS with 52,000 shares and
Tibidabo 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 Fossekompani ASA, with a 20% discount against
a lock-up period of 3 years.
*2 Representing Arendals Fossekompani ASA with 87,989,644 shares. Lars Magnus Eldrup Fagernes elected
from May 2023. Ann-Kari Amundsen Heier from December 2023. Morten Henriksen resigned from the Board
January 2023.
*3 Anne-Lise Meyer elected from May 2022.
*4 Barbara Thierart Perrin elected from April 2022.
*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.
 
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Note 23 Contingent liabilities
The Company's subsidiary and the operating company of the Group, Tekna Plasma Systems Inc., is currently
involved in a dispute with AP&C Advanced Powders & Coatings Inc. regarding competing patent rights for
the production of titanium powder in Canada, and more precisely to a specific patent which is part of the
same patent type as one of the Group's significant patents. Proceedings were conducted and parties are
waiting for the court decision. If the dispute is not resolved in favor of Tekna Plasma Systems Inc., the Group's
production and sales of titanium powder in Canada may be restricted, which could have a negative effect on
the Group's business operations.
Note 24 Subsequent events
Employee Share Purchase Plan
On March 11th, 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 settlement of the
Company's employee share purchase plan (the "ESPP"). Under the ESPP, which was established on 18 Febru-
ary 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. Following this transaction, Tekna Holding
Canada is a wholly owned subsidiary of Tekna Holding ASA. Following the registration of the share capital
increase with the Norwegian Register of Business Enterprises, the Company's share capital will be NOK 254
924 466 divided into 127 462 233 Shares, each with a nominal value of NOK 2. Each share carries one vote at
the Company's general meeting. The new shares shall carry rights to dividends from the date on which the
capital increase is registered with the Norwegian Register of Business Enterprises. The settlement of the ESPP
will trigger tax for the relevant employees. To provide the employees with cash to cover payable taxes result-
ing from the settlement of the ESPP, Arendals Fossekompani ASA ("AFK") has agreed to purchase a total of
540 812 shares from the employees at the volume weighted average market price the last five days prior to
the expiration of the lock-up period, NOK 8,0453 per share.
Loan
In March 2024, Tekna received the third tranche of CAD 5 million loan with Arendals Fossekompani ASA. This
is the last tranche in the loan facility agreement. Further details available in note 16.
Notes to the Consolidated Financial Statements
                 
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Parent Financial Statements
Income Statement
Amounts in CAD 1000
Note
FY 2023
FY 2022
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
1,970
-320,100
Attributable to equity holders of the company
1,970
-320,100
Attributable to non-controlling interests
-
-
Other Comprehensive Income
Amounts in CAD 1000
Note
FY 2023
FY 2022
Employee benefit expenses
1
371
103
Other operating expenses
2
1,190
1,536
Net operating income/(loss)
-1,561
-1,639
Finance income
7
5,155
2,513
Finance costs
7
132
320,974
Profit/(loss) before income tax
3,463
-320,100
Income tax expense
3
1,493
-
Profit/(loss) for the period
1,970
-320,100
Attributable to equity holders of the company
1,970
-320,100
Attributable to non-controlling interests
-
-
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Balance Sheet
Parent Financial Statements (continued)
Arendal, 10 April 2024 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
31.12.2023 31.12.2022
Non-current assets
Property, plant and equipment
-
-
Intangible assets
-
-
Associated companies and joint ventures
-
-
Investment in subsidiaries
4
97,500
97,500
Intercompany loans
6
74,113
67,535
Non-current receivables
-
-
Deferred tax assets
-
-
Total non-current assets
171,613
165,035
Current assets
Inventories
-
-
Contract assets
-
-
Trade and other receivables
6
270
77
Cash and cash equivalents
5
1,419
3,975
Total current assets
1,689
4,052
Total assets
173,302
169,087
Amounts in CAD 1000
Note
31.12.2023 31.12.2022
Equity
Share capital and share premium
494,956
494,956
Other reserves
-324,058
-326,028
Capital and reserves attributable to holders of the
company
170,898
168,928
Non-controlling interests
-
-
Total equity
170,898
168,928
Non-current liabilities
Borrowings
-
-
Lease liabilities
-
-
Deferred tax liabilities
3
1,163
-
Total non-current liabilities
1,163
-
Current liabilities
Bank loan
-
-
Lease liabilities
-
-
Trade and other payables
6
625
51
Payable income tax
3
330
-
Contract liabilities
-
-
Other current liabilities
286
108
Borrowings short-term portion
-
-
Total current liabilities
1,241
159
Total liabilities and equity
173,302
169,087
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Changes in Equity
Parent Financial Statements (continued)
Cash flow
Share
capital and
share
premium
Other
reserves
Total
Balance at 1 January 2022
494,956
-5,928
489,028
-
489,028
Profit/(loss) for the period
-
-320,100
-320,100
-
-320,100
Other comprehensive income/(loss)
-
-
-
-
-
Adjustment
-
-
-
-
-
Balance at 31 December 2022
494,956
-326,028
168,928
-
168,928
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)
-
-
-
-
-
Adjustment
-
-
-
-
-
Balance at 31 December 2023
494,956
-324,058
170,898
-
170,898
Attributable to equity holders of
the Company
Amounts in CAD 1000
Non-
controlling
interests
Total
equity
Amounts in CAD 1000
FY 2023
FY 2022
Cash flow from operating activities
Net profit/(loss)
1,970
-320,100
Variation in deferred taxes
1,163
-
Impairment loss
-
320,968
Capitalized interest on intercompany loans
-4,578
-2,284
Total after adjustments to profit before income tax
-1,445
-1,416
Change in trade and other receivables
-193
-53
Change in trade and other payables
1,082
93
Total after adjustments to net assets
-556
-1,375
Net cash from operating activities
-556
-1,375
Cash flow from investing activities
Cash Flow from Internal Loans and Borrowings
-2,000
-28,000
Net cash flow from investing activities
-2,000
-28,000
Cash flow from financing activities
Proceeds from issue of shares
-
-
Net cash flow from financing activities
-
-
Net increase in cash and cash equivalents
-2,556
-29,375
Cash and cash equivalents at the beginning of financial year
3,975
33,351
Cash and cash equivalents at end of the period
1,419
3,975
 
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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.
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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
2023
2022
Salaries
339
103
Social security contributions
32
-
Pension costs
-
-
Other benefits
-
-
Capitalized as development, inventories etc.
-
-
Total employee benefit expenses
371
103
Amounts in CAD 1000
2023
2022
Audit and other fees
169
1,432
Marketing, travel and representation costs
66
11
ICT expenses
-
-
Other expenses
220
4
Intercompany expenses
734
88
Total operating expenses
1,190
1,536
Amounts in CAD 1000
2023
2022
Statutory audit
139
133
Other assurance services
19
209
Tax advisory
-
-
Other non-audit services
-
10
Total remuneration to auditor
158
352
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Notes to Parent Financial Statements (continued)
Note 3 Tax
Income tax - current year
Effective tax rate
43.11%
0.00%
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
2023
2022
Income tax expense:
Tax Payable
330
-
Change in deferred tax asset/liability
1,163
-
Income tax expense in the Income Statement
1,493
-
Taxable income:
Ordinary profit before tax
3,463
-320,100
Unrecognized tax loss carried forward
-5,421
-868
Permanent differences
3,457
320,968
Taxable income
1,498
-
Tax payable:
Taxable income
1,498
-
Statutory tax rate
22.00%
22.00%
Payable Income Tax
330
-
Calculation of effective tax rate
Ordinary profit before tax
3,463
-320,100
Tax at the applicable tax rate
762
-70,422
Unrecognized tax loss carried forward
-1,193
-191
Tax effect of permanent differences
760
70,613
Change in deferred tax asset/liability
1,163
-
Total tax expense
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 2022.
The 22% tax rate was used to calculate Deferred tax assets and liabilities as at 31 December 2023.
Amounts in CAD 1000
2023
2022
Accumulated loss carryforward
-
-5,421
Not included in basis for calculation of deferred tax
-
5,421
Change in deferred tax liability
1,163
-
Deferred tax asset/liability
1,163
-
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Notes to Parent Financial Statements (continued)
Note 4 Investments in Subsidiaries
Consolidated accounts for Tekna Holdings Canada Inc for 2023 reported a net loss of CAD 17 030 646 and
booked equity of CAD -17 093 809.
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
CEO Luc Dionne and other management of Tekna Holdings Canada Inc. own the remaining 3.46% of the
shares in Tekna Holdings Canada Inc.
Note 5 Cash and cash equivalents
Tax deduction deposits (restricted deposits) amounts to 7 CAD.
Unused credit facilities as of 31 December 2023 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
2023.
Note 6 Intercompany balances
Loans to group companies consists of one loan in CAD and one loan in EUR.
The CAD 66 352 945 loan is to the subsidiary Tekna Holdings Canada Inc. The loan will be repaid with CAD
500,000 every quarter from 15 June 2025. Interest on the loan is calculated at a rate corresponding to the
Canadian 3 month Interbank rate (CDOR) + 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 2025. Interest on the loan is calculated with EURIBOR 3 months + 2% on
an annual basis.
Amounts in CAD 1000
2023
2022
Total cash at bank
1,419
3,975
Restricted cash
-
-
Amounts in CAD 1000
2023
2022
Intercompany loans to group companies
74,113
67,535
Trade accounts receivables from group companies
270
77
Total intercompany receivables
74,383
67,611
Amounts in CAD 1000
2023
2022
Trade accounts payables to group companies
613
4
Total intercompany payables
613
4
Ownership held by the
group
Ownership held by the
non-controlling interests
Value in Tekna Holding
ASA balance sheet
Company
Domicile
2023
2022
2023
2022
2023
2022
Tekna
Holding
Canada
Inc.
Canada
96.54%
96.54%
3.46%
3.46%
97,500,000
97,500,000
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Notes to Parent Financial Statements (continued)
Note 7 Financial items
There was no impairment loss in 2023.
An impairment loss of CAD 320 968 thousand was recorded in 2022. The investment in the subsidiary Tekna
Holdings Canada Inc was impaired to the market value of Tekna Holding ASA, as quoted on the Oslo Stock
Exchange as of Dec 31st 2022, to CAD 97.5 million. The stock had limited trading volume before this date.
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
CDOR; 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
2023
2022
Interest income
21
20
Currency exchange income (net)
246
50
Interest Income, IC
4,888
2,443
Total financial income
5,155
2,513
Amounts in CAD 1000
2023
2022
Interest expense
-
5
Currency exchange expense (net)
126
-
Other finance cost
6
1
Interest expense, IC
-
-
Impairment loss
-
320,968
Total financial expense
132
320,974
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Notes to Parent Financial Statements (- note 9 continued)
Note 9 Share Capital and Shareholder Information
At 31 December 2023 there were 125,227,346 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.
There were no paid out dividends in 2023.
At year end Arendals Fossekompani ASA (AFK) owned 87,989,644 shares, representing 70.26 % of the total
number of shares in Tekna.
Board of Directors remunerated corresponds to fees paid in the period, as elected. For Dag Teigland the fees
paid were for the period October 2022 until April 2023, for Anne Lise Meyer for the period May 2022 until
April 2023 and for Barbara Thierart Perrin for the period April 2022 until April 2023.
Board of Directors remuneration provision corresponds to accrued provisions for fees, for the period May
2023 until December 2023.
*1 Dag Teigland elected from October 2022, representing Tibidabo Industrier AS with 52,000 shares and
Tibidabo 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 Fossekompani ASA, with a 20% discount against
a lock-up period of 3 years.
*2 Representing Arendals Fossekompani ASA with 87,989,644 shares. Lars Magnus Eldrup Fagernes elected
from May 2023. Ann-Kari Amundsen Heier from December 2023. Morten Henriksen resigned from the Board
January 2023.
*3 Anne-Lise Meyer elected from May 2022.
*4 Barbara Thierart Perrin elected from April 2022.
*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.
The CEO does not own shares in the company per 31 December 2023.
Major shareholders at year-end 2023
Number of
shares
% of total
Country
Arendals Fossekompani ASA
87,989,644
70.26%
NOR
Ulfoss Invest AS
2,941,975
2.35%
NOR
Havfonn AS
2,913,580
2.33%
NOR
Must Invest AS
2,821,245
2.25%
NOR
Kvantia AS
2,354,862
1.88%
NOR
Victoria India Fund AS
1,331,883
1.06%
NOR
Skandinaviska Enskilda Banken AB
1,290,237
1.03%
LUX
Alpine Capital AS
1,080,029
0.86%
NOR
Carucel Finance AS
1,073,791
0.86%
NOR
Other
21,430,100
17.11%
Various
Total number of shares
125,227,346
100.00%
Board of Directors compensation 2023 and number of shares owned 31 December 2023
Name
Title
Board of
Directors
remunera-
ted
Remunera-
tion
provision
Own
Holdings
Related
Parties
Number of
shares in
Tekna
Holding ASA
Dag Teigland
1,2
Chair
45,483
55,482
728,818
728,818
Torkil Sigurd Mogstad
2
Member of Board
52,125
52,125
Ann-Kari Amundsen Heier
2
Member of Board
Lars Magnus Eldrup Fagernes
2
Member of Board
Anne-Lise Meyer
3
Member of Board
75,210
50,294
Barbara Thierart Perrin
4
Member of Board
64,323
40,622
Kristin Skau Åbyholm
5
Member of Board
40,622
3,686,745
3,686,745
Total
185,016
187,021
-
4,467,688
4,467,688
Amounts in CAD 1000
2023
2022
Share capital
37,277
37,277
Share premium
451,473
451,473
Count in 1000
Ordinary shares
125,227
125,227
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Notes to Parent Financial Statements
10 Subsequent Events
Employee Share Purchase Plan
On March 11th 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 settlement of the
Company's employee share purchase plan (the "ESPP"). Under the ESPP, which was established on 18 Febru-
ary 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. Following this transaction, Tekna Holding
Canada is a wholly owned subsidiary of Tekna Holding ASA. Following the registration of the share capital
increase with the Norwegian Register of Business Enterprises, the Company's share capital will be NOK 254
924 466 divided into 127 462 233 Shares, each with a nominal value of NOK 2. Each share carries one vote at
the Company's general meeting. The new shares shall carry rights to dividends from the date on which the
capital increase is registered with the Norwegian Register of Business Enterprises. The settlement of the ESPP
will trigger tax for the relevant employees. To provide the employees with cash to cover payable taxes result-
ing from the settlement of the ESPP, Arendals Fossekompani ASA ("AFK") has agreed to purchase a total of
540 812 shares from the employees at the volume weighted average market price the last five days prior to
the expiration of the lock-up period, NOK 8,0453 per share.
Loan
In March 2024, Tekna received the third tranche of CAD 5 million loan with Arendals Fossekompani ASA. This
is the last tranche in the loan facility agreement.
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Independent auditor
’
s report
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Independent auditor
’
s report (continued)
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Independent auditor
’
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CORPORATE GOVERNANCE STATEMENT
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Implementation and reporting
on corporate governance
........
76
The business
................................
76
Equity and dividends
.................
76
Equal treatment of share-
holders and transactions with
close associates
.........................
77
Shares and negotiability
...........
77
General meetings
.......................
77
The nomination committee
.....
78
Board of Directors: composition
and independence
.....................
78
Work of the Board of
Directors
........................................
78
Risk Management and Internal
Control
...........................................
79
Board remuneration
..................
79
Remuneration for executive
personnel
......................................
79
Information and
communication
...........................
80
Take-over situations
..................
80
Auditor
...........................................
80
| 75
Corporate
Governance Report
Corporate Governance
Report 2023
(part of
Annual Report
Tekna Group
)
January
1
—December 31
Tekna Holding ASA
CORPORATE GOVERNANCE STATEMENT
ANNUAL REPORT 2023
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Corporate Governance report
The employee code of conduct was signed off at the most senior
level by the Board of Directors of Tekna on February 8, 2022 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 development, 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 applications such as 3D
printing in the aerospace, medical and automotive sectors, as well as
optimized induction 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 society at large into its value creation for shareholders
in a sustainable manner. The ESG –
Environmental, Social, Govern-
ance - 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 2023 was CAD 38.4 mil-
lion, corresponding to a long-term debt/equity ratio of 0.69. Consid-
ering the nature and scope of Tekna
’
s business, the Board considers
Tekna aims to maintain high standards for corpo-
rate 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 require-
ments 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 Directors
’
Statement
of Corporate Governance follows the structure of the Code.
This report provides an overview of how Tekna follows the 15 points
set out in the Code and the deviations from the Code in Tekna
’
s op-
erations. This report should be viewed in conjunction with all the
measures relating to corporate governance detailed in the Compa-
ny
’
s annual report 2023.
1. Implementation and reporting on
corporate governance
Our governance structure
The Board has the overall responsibility for ensuring that the Compa-
ny has a high standard of corporate governance. The Board has
adopted a corporate governance policy document (the
“
Policy
”).
This
Policy describes the Company
’
s main principles for corporate govern-
ance and addresses the framework of guidelines and principles regu-
lating 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 company, and the operations of the Tekna
group of Companies are carried out through the operating subsidiar-
ies of the Company (the
“
Tekna Group
”).
The Policy is based on the
Code, the Company
’
s goal is to act in accordance with every recom-
mendation in the Code.
The Board and Executive Leadership Team perform an annual assess-
ment of its principles for corporate governance.
The Board members and the Executive Leadership Team are request-
ed once a year to complete a Directors and Officers compliance
questionnaire, disclosing any conflicts of interest.
Code of Conduct for suppliers and for employees
In 2021 Tekna has developed the supplier code of conduct
(“
sCoC
”)
and the employee code of conduct
(“
eCoC
”).
The sCoC, signed off by
the CEO in August 2021, gives clear guidance to our employees and
business partners that we expect clean, transparent and fair business
dealings.
CORPORATE GOVERNANCE STATEMENT
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Corporate Governance report (continued)
make a statement and vote at the General Meeting as long as they
are recorded in the Company
’
s share register no later than two busi-
ness days before the date of the general meeting. The General Meet-
ing deals with such matters as required by Norwegian law.
The notice of the meeting, the agenda and detailed and comprehen-
sive 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 15 May 2024.
Shareholders who cannot attend the meeting in person can vote by
proxy and voting instructions can be given on each item on the agen-
da. 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. Normal-
ly, 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 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 sec-
tion:
1) ”
the members of the Board of Directors and the Chair of the nomi-
nation committee attend the general meeting
”:
The Company does
not have a Nomination Committee. All members of Board of Direc-
that the Company has adequate equity and capital structure. 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 favourable to its
shareholders. The amount of any dividend 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 require-
ments and maintaining the appropriate strategic flexibility.
The Company has not distributed any dividends since the date of its
incorporation.
Capital increase and Repurchase of shares
Existing mandates granted to the Board, to issue shares and to pur-
chase its own shares, are presented in the shareholder information
section of the annual 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 2024.
Deviations from the Code of Practice: None
4. Equal treatment of shareholders 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 2023 there were 125,227,346 ordinary shares
each with a par value of NOK 2.00. They entitle the holder to partici-
pate 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 association place no restriction on voting
rights. Shareholders do not have pre-emption rights upon any
change of ownership of shares in the company.
Largest shareholder
Arendals Fossekompani ASA
(“
AFK
”)
is the Company
’
s largest share-
holder, owning 70.3% of the Company
’
s shares at 31 December 2023.
The Company
’
s guidelines require that AFK acts in a manner conduc-
tive to equal treatment of Company
’
s shareholders.
Transaction with close associates
All transactions with close associates are disclosed in the notes to the
annual accounts. All business activities are based on arm
’
s length
terms. In the event of transactions with insiders or close associates,
procedures 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 exercise the highest
authority in the Company. All shareholders have a right to attend,
CORPORATE GOVERNANCE STATEMENT
ANNUAL REPORT 2023
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| 78
Corporate Governance report (continued)
sidered to be independent.
The Board members are requested once a year to complete a Direc-
tors and Officers compliance questionnaire, 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
23 Related Parties of Tekna
’
s consolidated financial statements.
Deviations from the Code of Practice: None
9. Work of the Board of Directors
Duties of the Board of Directors
The Board of Directors has adopted Rules of Procedures for the
Board, which indicate rules as to the work and administrative proce-
dures of the Board and as to the functions and duties of the CEO
towards 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 Directors is responsible for, among other things, super-
vising the general and day-to-day management of the Company
’
s
business, ensuring proper organization and allocation of responsibili-
ties and duties, preparing plans and budgets for its activities, ensuring
that the Company
’
s activities, accounts, and assets management are
subject to adequate controls and undertaking investigations neces-
sary 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,
tors have normally not participated in the general meeting. Matters
under consideration at the general meeting of shareholders have not
previously required 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 independent 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 inde-
pendent Chair for the General Meeting if any of the matters to be
considered 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 estab-
lished a nomination committee. The function and responsibilities of a
nomination committee are considered by the Company to have been
sufficiently handled by the Board of Directors in close dialog with the
major shareholders.
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 2024, the
Board consisted of seven members. Four of the seven Board mem-
bers are women. The Public Limited Companies Act states that there
should be at least 40 per cent of each gender on the Board of Direc-
tors.
None of the Board members are executive personnel. 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 elected on October 3, 2022
•
Torkil Sigurd Mogstad, re-elected on May 3, 2023
•
Barbara Thierart-Perrin, elected on April 1, 2022
•
Anne Lise Meyer, elected on May 30, 2022
•
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 inde-
pendently of any special interest. The current Board meets the re-
quirement set forth in the Code that the majority of board members
should be independent of the Group
’
s executive personnel and mate-
rial business contacts, and that at least two of the seven board mem-
bers 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 sharehold-
ers due to their respective positions in, and engagement by AFK, the
Company
’
s majority shareholder. All other Board members are con-
CORPORATE GOVERNANCE STATEMENT
ANNUAL REPORT 2023
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| 79
Corporate Governance report (continued)
day follow- up by Executive Leadership Team, and supervision by the
Audit Committee.
Deviations from the Code of Practice: None
11. Board remuneration
The General Meeting determines the Board
’
s remuneration annually.
Remuneration of Board members is reasonable and based on the
Board
’
s responsibilities, work, time invested and the complexity of the
enterprise. The remuneration of the Board members is not perfor-
mance-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 23 of the financial statements for
2023.
Deviations from the Code of Practice: None
12. Salary and other remuneration for
executive personnel
The Board has resolved guidelines to the CEO for remuneration to
the Executive Leadership Team, including performance-related remu-
neration. The Guidelines can be found in the Corporate Governance
Policy of the Company.
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 necessary to perform its duties. ESG, including climate-
related risks and opportunities are subject to an annual review with
the Board. Top risks and emerging risks are reported in the compa-
ny
’
s Enterprise Risk Management..
The Board had 14 meetings during 2023 with 96 per cent participa-
tion.
The Board has evaluated its performance in 2023.
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 parties. These Guidelines stipule that Members of the Board
and the Executive Leadership Team must notify the Board if they have
any material direct or indirect 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 2023, no Related Party Agreements were executed.
The Audit Committee
In light of the company
’
s conversion to public limited company
Tekna
’
s Board established an Audit Committee in 2022 (the
“
Audit
Committee
”)
and adopted Guidelines for the Audit Committee. The
Audit Committee is a subcommittee of the Board and acts as a pre-
paratory and advisory body for the Board and supports the Board in
the exercise of its responsibility for financial reporting, internal control,
and risk management. The Audit Committee also reviews and moni-
tors 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 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 perfor-
mance 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 Commit-
tee has two members, 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 sys-
tems also encompass the Company
’
s corporate values and ethical
guidelines.
The objective of the risk management and internal control is to man-
age 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 Company
’
s most
important areas of exposure to risk and the Board and the Executive
Leadership Team conduct risk assessments related to various dimen-
sions and aspects of operations to verify that adequate risk manage-
ment systems are in place.
The Board provides an account in the annual report of the main
features of the Company
’
s internal control and risk management
systems as they relate to the Company
’
s financial reporting.
Internal control of financial reporting is conducted through day-to-
CORPORATE GOVERNANCE STATEMENT
ANNUAL REPORT 2023
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Corporate Governance report (continued)
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 standards with the level of care, competence
and integrity required by law and such standards. The Auditor partici-
pates 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 2023 Annual financial
results.
Use of the Auditor for services other than the audit.
The Audit Committee reviews and monitors the independence of the
Company's auditor, including the extent to which services other than
auditing provided by the auditor or the audit firm represent a threat
to the independence of the auditor.
The Auditor provides the Board with an
annual written confirmation
that it continues to satisfy the requirements for independence.
The Auditor annually provides the Board with a summary of all ser-
vices in addition to audit work that have been undertaken for the
Company. The fees paid for audit work and fees paid for other specif-
ic assignments are specified in the notes to the financial statements.
Deviations from the Code of Practice: None
The salary and other remuneration of the CEO are decided by the
Board.
The Company
’
s senior executive remuneration policy is based primar-
ily on the principle that executive pay should be competitive and mo-
tivating, in order to attract and retain key personnel with the neces-
sary competence, in order to ensure the long terms interest of the
Company.
The performance-related remuneration portion is limited in the varia-
ble compensation plan.
Details relating to the salary and benefits payable to the CEO and
other subsidiaries
’
senior executives are available in note 23 to the
financial statements and the Remuneration Report 2023.
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, compre-
hensive and timely information to form a good basis for making
decisions related to valuation and trade of the Company share. The
Company's communication 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 General Meeting, the
publication of interim reports and public presentations are published
on the Company
’
s website: www.tekna.com/investors/calendar and at
https://newsweb.oslobors.no.
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 shareholders
and will seek to ensure that the Company
’
s business activities are not
disrupted unnecessarily. The Board will strive to ensure that share-
holders 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 accord-
ance 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 asso-
ciates 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.
SUSTAINABILITY STATEMENTS
ANNUAL REPORT 2023
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Reporting
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Corporate Governance
Statement
This is Tekna
CEO letter
Board and
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Financial Statements
Auditors report
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Board of Directors
’
report 2023
| 81
Sustainability Report
2023
(part of
Annual Report
Tekna Group
)
January
1
—December 31
Guidance on Tekna
’
s
sustainability reporting
.............
82
2023 Human Rights and
Transparency Act Report
.........
83
2023 Emissions Accounting
Report
..........................................
91
2023 EU Taxonomy report
....
107
2023 GRI Report
.....
external link
Appendix
.....................................
122
Abbreviations ESG
...................
123
Every year Tekna employees embark on a spring cleaning of the Sherbrooke industrial park, every particle
removed from the environment
counts
| 81
Sustainability
Reporting
Every particle counts...
Tekna Holding ASA
SUSTAINABILITY STATEMENTS
ANNUAL REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
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CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
| 82
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: Global Reporting Initia-
tive. 3: UN Strategic Development Goals. 4: Environment, Social, Governance. 5 Corporate Sustainability reporting Directive (EU)
This year we have started to include sustaina-
bility in the Board of Directors
’
report following
the European Sustainability Reporting Directive.
In this sustainability report we include a num-
ber of topic-specific in-depth reports for exter-
nal frameworks.
On the right we present an overview of the
prepared reports available for download from
our website.
The relation between Tekna
’
s material topics,
our focus areas, UN Sustainable Development
Goals and the GRI requirements are below.
We also included direct links to the documents.
In-depth Report
(with link)
Content description
GRI Report 2023
Sustainability information provided in the structure of the GRI General Disclosures 2021. This also includes metrics from 2019-
2023 per GRI definition.
Emissions Accounting Report 2023
Quantitative and Qualitative information on the Carbon and Air emissions as well as Decarbonization efforts of the Company
Human Rights and Transparency Act Report 2023
Reporting on Supply Chain governance following the Norwegian Transparency Act
Corporate Governance Report 2023
Reporting on the Company
’
s Governance structure following the Norwegian Code of practice for Corporate Governance
EU taxonomy Report 2023
Full report on alignment of Tekna
’
s economic activities with environmental objectives of the EU taxonomy
TCFD progress Report 2021
Progress report on preparations following the structure of the Task Force on Climate-Related Financial Disclosures (TCFD).
Keep an eye out for the update in 2024.
UN Global Compact CoP
United Nations Global Compact communication on progress. This is an online reporting in the UN system due in June 2023
Annual Report 2023
Tekna
’
s annual report containing the Board of Directors
’
report and consolidated and audited financial statements among
other
Guidance on Tekna
’
s Sustainability reporting
Material topics
1
Focus area
SDG
2
ESG
3
in GRI
4
Report, item:
See also this Report
CSRD
5
Enable customers to reach their ESG targets [4.O]
Producing more with less materials [8.O]
Sustainability:
Enabling customers
’
positive impact
SDG 9
S
201, 202, 203, 416, 417, 418
EU Taxonomy Report 2023
ESRS E1,
E5
Increased demand for circular economy innovation and solutions [1.O]
Growing demand for green technology drives demand for certain raw materials [5.R]
Achieve climate-friendly production [2.O]
Rising resource scarcity worsening the increasing costs [12.R]
Circularity:
Strive for circular and sustainable
production
SDG
12
E, G
2-6, 2-13, 2-25, 3-1, 3-2 ,204,
301, 302, 303, 304, 305, 306, 308
410, 411, 413, 414
Emissions Accounting Re-
port 2023
Human Rights and Trans-
parency Act Report 2023
TCFD progress Report 2021
ESRS E1,
E5
Hygiene area (minimum safeguard)
Society:
Great place to work
SDG 8
S
2-7, 2-8, 2-16, 2-17, 2-26, 2-30, 401, 402,
403, 404, 405, 406, 407, 408, 409
GRI Report 2023
Remuneration Report 2023
ESRS S1-
S4
Hygiene area (minimum safeguard)
Governance:
Ethical business conduct
SDG
16
G
2-1, 2-2, 2-3, 2-4, 2-5, 2-9, 2-10, 2-11, 2-12, 2
-14, 2-15, 2-18, 2-19, 2-20, 2-21, 2-22, 2-23,
2-24, 2-27, 2-28, 2-29, 205, 206, 207, 415
Corporate Governance
Report 2023
ESRS G1
HUMAN RIGHTS AND TRANSPARENCY ACT REPORT 2023
-
Introduction
...............................
84
Tekna
’
s value chain
.................
84
Guidelines and routines
...........
86
Code of Conduct
.....................
86
Supplier Code of Conduct
....
86
Whistleblowing
.........................
87
Handling requests of information
–
The Transparency Act
.........
87
Subjects for the Board
...........
88
Risks of negative
consequences
...............................
88
Performance
.............................
88
KPI
................................................
89
Process to remediate negative
impacts
.......................................
89
Measures
....................................
90
Action plan
................................
90
Index
ANNUAL REPORT 2023
| 83
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Human Rights and
Transparency Act
Report
(part of
Annual Report
Tekna Group
)
2023
January
1
—December 31
Tekna Holding ASA
 
HUMAN RIGHTS AND TRANSPARENCY ACT REPORT 2023
-
Introduction
...............................
84
Tekna
’
s value chain
.................
84
Guidelines and routines
...........
86
Code of Conduct
.....................
86
Supplier Code of Conduct
....
86
Whistleblowing
.........................
87
Handling requests of information
–
The Transparency Act
.........
87
Subjects for the Board
...........
88
Risks of negative
consequences
...............................
88
Performance
.............................
88
KPI
................................................
89
Process to remediate negative
impacts
.......................................
89
Measures
....................................
90
Action plan
................................
90
Index
ANNUAL REPORT 2023
| 84
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Introduction
Tekna
’
s value chain
Tekna is a world-leading provider of advanced materi-
als, headquartered in Sherbrooke, Canada. Tekna pro-
duces high-purity metal powders for applications such
as 3D printing serving the aerospace, medical and con-
sumer electronics industries, as well as optimized induc-
tion plasma systems for industrial research and produc-
tion.
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 delivering excellence, Tekna is a
global player recognized for its quality products and its
commitment to over 200 customers including multina-
tional blue-chip customers.
Tekna Holding ASA and its subsidiaries
(“
Tekna
”)
con-
sists of ten legal entities (including one joint venture), of
which three are in Europe
(“
EU
”) (31
employees), four
are in North America
(“
NA
”) (186
employees) and three
are in Asia (5 employees). Manufacturing takes place in
Canada and France, whereas the other entities are sales
offices.
In our sustainability journey, we have focused our atten-
tion on understanding the impacts of our own opera-
tions. However, Tekna has a diversity of interactions
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. Examples of a positive impact is the enabling
On 1 July 2022, the Norwegian Trans-
parency Act came into effect. The Act
promotes enterprises
’
respect for hu-
man rights and decent working condi-
tions in connection with the production
of goods and the provision of services.
It also ensures the general public
’
s ac-
cess to information regarding how en-
terprises address adverse impacts on
fundamental human rights and decent
working conditions.
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 emis-
sions (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.
Potential risk and impact areas in our value chain
Notwithstanding our commitment to respecting all hu-
man rights, the human rights issues most relevant to our
business operations are:
Community impact
Labor conditions
•
Freedom of expression
•
Digital security/privacy
•
Access to water and
sanitation
•
Displacement and loss of
livelihoods
•
Environmental
degradation
•
Land rights
•
Security forces
•
Gender equality and wom-
en
’
s right
•
Minority rights
•
Rights of Indigenous People
•
Rights of refugees and mi-
grants
•
Conflict minerals in the
supply chain
•
Freedom of association
and the effective
recognition of the right to
collective bargaining
•
Forced labor
•
Child labor
•
Non-discrimination in re-
spect of employment and
occupation
•
Safe and healthy working
environment
•
Working conditions
(wages, working hours)
HUMAN RIGHTS AND TRANSPARENCY ACT REPORT 2023
-
Introduction
...............................
84
Tekna
’
s value chain
.................
84
Guidelines and routines
...........
86
Code of Conduct
.....................
86
Supplier Code of Conduct
....
86
Whistleblowing
.........................
87
Handling requests of information
–
The Transparency Act
.........
87
Subjects for the Board
...........
88
Risks of negative
consequences
...............................
88
Performance
.............................
88
KPI
................................................
89
Process to remediate negative
impacts
.......................................
89
Measures
....................................
90
Action plan
................................
90
Index
ANNUAL REPORT 2023
| 85
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Statement
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CEO letter
Board and
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Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
REACH, RoHS and potential conflict minerals
Our procurement team has delivered third-party verifi-
cation guaranteeing our powder products are meeting
REACH (toxic chemicals) and RoHS (hazardous sub-
stances) requirements.
Tekna is following the Responsible minerals initiative
(Conflict minerals reporting) for tungsten and tantalum.
Both are sourced exclusively from Conflict-Free material
based on OECD due diligence and Dodd-Frank require-
ments. Tekna has the declaration on conflict-free mate-
rial, which is made with all the information from partners
in the entire supply-chain from smelters up to Tekna.
We have a general understanding of the potential im-
pacts and risks associated with raw material extraction
and refining in our supply chain. This may include child
labor, forced labor, pollution of land, soil, water and air,
perilous working conditions, hazardous workplaces, ex-
posure to hazardous chemicals, conflict and disputes in
local communities and GHG emissions.
We need to
study the impacts specifically for the feedstock materials
we use, from extraction to delivery at Tekna. Only this
way can we mitigate negative impacts. In 2023 we have
started to focus our attention to upstream impacts and
much work remains to be done to complete the under-
standing. Afterwards we will shift and continue down-
stream.
Below is a simplified overview of the Tekna value chain
for the two business segments. We have indicated in
red the part with highest negative impact, which materi-
als are on the Critical raw material list, and which are
potential conflict material.
Risk mitigation
80 per cent of Tekna
’
s global spend comes from suppli-
ers 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 material, i.e.
titanium, supplied by two regularly audited manufactur-
ers 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 businesses.
Value chain
Business Segments
Suppliers &
Resources
Tekna Operations
Customers
End-users (& End-of-life-stage)
Advanced Materials BU
’
s:
Raw materials to
feedstock:
Production of:
Utilization:
Processing feedstock by
plasma atomization: heat-
ing the metals until they
turn into liquids or vapor
and subsequently develop
the liquids or vapor into
micro- and nanoscale ad-
vanced materials.
Additive Manufacturing
Aluminum Alloys
Nickel alloys
Tantalum
1,2
Titanium
1
Tungsten
1,2
Tier 1 and Tier 2 Metal part
manufacturers
Aerospace, medical implants, automo-
tive and consumers
(enabling additive manufacturing)
Microelectronics
Nickel
Multi-Layer Ceramic Capaci-
tors (MLCC) Original Equip-
ment Manufacturers
for Electronics (devices, EVs, enabling
miniaturization and electrification)
Systems
Parts and subassembly
producers
Manufacturing, commis-
sioning and servicing of
Plasma systems
Research institutes and com-
panies
Research and small production of (new)
materials (enabling electrification)
Introduction (continued)
 
HUMAN RIGHTS AND TRANSPARENCY ACT REPORT 2023
-
Introduction
...............................
84
Tekna
’
s value chain
.................
84
Guidelines and routines
...........
86
Code of Conduct
.....................
86
Supplier Code of Conduct
....
86
Whistleblowing
.........................
87
Handling requests of information
–
The Transparency Act
.........
87
Subjects for the Board
...........
88
Risks of negative
consequences
...............................
88
Performance
.............................
88
KPI
................................................
89
Process to remediate negative
impacts
.......................................
89
Measures
....................................
90
Action plan
................................
90
Index
ANNUAL REPORT 2023
| 86
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Implementation began in 2022 and an updated version
was released in December 2023. At March 31, 2024,
100% of the global employees have signed
3
the CoC. It
is also compulsory for new employees to read and sign
the CoC as part of their onboarding. A CoC training
with employees will take place in 2024.
The CoC is available on www.Tekna.com/esg .
Supplier Code of Conduct
Tekna has embedded responsible business conduct for
suppliers in its Supplier Code of Conduct
(“
SCoC
”)
put in
place in 2021. The SCoC was approved by the Chief
Executive Officer on August 16, 2021. It is available in
both English and French to ensure a good understand-
ing with our supply base.
The Suppliers Code of Conduct and Supplier self-
assessment were rolled out to our medium and large
suppliers (starting with > CAD 100 thousand spend in
2021). An unchanged number of suppliers have submit-
ted a signed SCoC to us (20).
To further enhance our Supplier due diligence, early
2023 we
signed a collaboration with Factlines AS, who
provide a systematic digital approach to supplier due
diligences.
We will also expand the scope of the SCoC to include
and address Business Partners, rather than just suppliers
(action carried from 2023).
The SCoC is available on www.Tekna.com/esg .
Several guidelines and routines have been created and
communicated for handling actual and potential nega-
tive 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, alterna-
tively the whistleblowing channel is available if the in-
formant wishes to remain anonymous. Any interaction
will be taken into consideration on a continuous basis.
Tekna has established an Ethics and Compliance Com-
mittee
(“
ECC
”)
to ensure we operate fairly across all
business operations and engage to not use prohibited
practices. This showcases our commitment to do busi-
ness with diligence.
The newly formed ECC reports to the Audit Committee
and consists of key executives 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 in
its Code of Conduct
(“
CoC
”).
The CoC was approved by
the Board of Directors as part of the Corporate Govern-
ance Code on February 8, 2022. It is available in both
English and French to ensure a good understanding
with the employees and enable them to use good judg-
ment, and in the case of uncertainty, seek guidance.
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 Hu-
man Rights, including the principles and rights set out in
the eight fundamental conventions identified in the
Declaration of the International Labour Organisation on
Fundamental Principles and Rights at Work and the In-
ternational Bill of Human Rights, and the OECD Guide-
lines for Multinational Enterprises
Prohibition of child labour
Tekna does not accept any form of child labour or that
children below the lawful minimum age for admission to
employment are engaged in our or our Business Part-
ners
’
business. If persons below the age of 18 are in-
volved, Tekna demands special precautions to safe-
guard their health, security and rights. Persons below
the age of 18 shall not perform dangerous or night-time
labour, and their work shall not inflict damage on their
education or development. Tekna and its Business Part-
ners 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 ex-
pects all its Business Partners to comply with all funda-
mental labour rights and applicable laws and regula-
tions. Business Partners shall ensure fair salaries, safe
working conditions (including necessary supervision and
protection from fire and other dangers), the right to
organize, a good workplace environment, and have in
place a whistleblowing procedure for the reporting con-
cerns by employees.
3: Signing includes online acceptance on our Document Management System
ISOVISION.
Guidelines and routines
HUMAN RIGHTS AND TRANSPARENCY ACT REPORT 2023
-
Introduction
...............................
84
Tekna
’
s value chain
.................
84
Guidelines and routines
...........
86
Code of Conduct
.....................
86
Supplier Code of Conduct
....
86
Whistleblowing
.........................
87
Handling requests of information
–
The Transparency Act
.........
87
Subjects for the Board
...........
88
Risks of negative
consequences
...............................
88
Performance
.............................
88
KPI
................................................
89
Process to remediate negative
impacts
.......................................
89
Measures
....................................
90
Action plan
................................
90
Index
ANNUAL REPORT 2023
| 87
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Guidelines and routines (continued)
The first point of contact is the HR department, but re-
ports can be made to one of the people listed in the
CoC, depending on the nature and content of the re-
port. Violations involving a member of the executive
team should be reported directly to a Board member.
If an employee reporting a violation wishes to remain
anonymous, all reasonable steps will be taken to keep
their identity confidential. Anyone who reports such
matters, in accordance with the internal complaint form,
will be protected from retaliation. As such, no employee
shall be discriminated or retaliated for reporting in good
faith a violation of Tekna
’
s policies. However, any em-
ployee who intentionally has made a false claim of vio-
lation may receive disciplinary actions up to and includ-
ing, when appropriate, 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 Whistle-
blower Software, enabling us to introduce an anony-
mous whistleblowing platform to our valued employees
and stakeholders. This collaboration marks a significant
milestone in our journey towards fostering a culture of
transparency, accountability, and ethical conduct. By
providing a secure, anonymous and confidential chan-
nel for individuals to report concerns, we have strength-
ened our commitment to maintaining the highest
standards of integrity within our organization. Our aim
for this new channel is that it will act as a constructive
feedback loop within our organization and supply chain,
Hazardous substances and conflict
resources
Tekna and its Business Partners shall comply with appli-
cable laws and regulations regarding the use, prohibi-
tion and restriction of hazardous substances and shall
avoid the use of conflict materials, i.e. materials that
originate from conflict areas and contribute to fund
governments and movements which violate fundamen-
tal human rights.
Discrimination and harassment
Any kind of discrimination due to gender, ethnicity, na-
tional origin, descent, skin colour, language, religion,
sexual orientation, family situation or disability is not
accepted in Tekna or any of its Business Partners. All
people shall at any time be treated with respect and
dignity.
Whistleblowing
Tekna encourages transparency and Business Partners
and their employees are expected to report any con-
cerns about potential violations of the (S)CoC or appli-
cable 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 corporate
or local HR department following the internal complaint
procedure.
thus helping in identifying, mitigating, and addressing
issues.
Handling requests of information
–
The Transparency Act
Tekna has published the Routine for processing re-
quests on information according to the Transparency
Act which solidifies our dedication to transparency by
outlining a systematic approach to managing and re-
sponding to information requests according to the Nor-
wegian law. By establishing clear guidelines for infor-
mation disclosure, we aim to bolster trust among our
stakeholders and contribute to a more informed and
engaged community.
The routine follows the legal requirements, ie: 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 ques-
tions 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 the Transparency Act is dis-
closed specifically on the website (Tekna.com/esg).
HUMAN RIGHTS AND TRANSPARENCY ACT REPORT 2023
-
Introduction
...............................
84
Tekna
’
s value chain
.................
84
Guidelines and routines
...........
86
Code of Conduct
.....................
86
Supplier Code of Conduct
....
86
Whistleblowing
.........................
87
Handling requests of information
–
The Transparency Act
.........
87
Subjects for the Board
...........
88
Risks of negative
consequences
...............................
88
Performance
.............................
88
KPI
................................................
89
Process to remediate negative
impacts
.......................................
89
Measures
....................................
90
Action plan
................................
90
Index
ANNUAL REPORT 2023
| 88
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Guidelines and routines (continued)
Risks of negative consequences resulting from our value
chain are identified through a sustainability due dili-
gence process.
Tekna continues its process of performing the due dili-
gence to identify, measure and understand the most
important risks in our supply chain. This is conducted
with assistance from Factlines, a company that provides
a corporate social responsibility self-reporting form
based on the ten principles of UN Global Compact,
OECDs guidelines for responsible business conduct, and
the Transparency Act law. The form covers topics such
as supply chain, risk assessment, management systems,
working conditions, social responsibility, environment,
anti-corruption, and conflict minerals.
Subjects for the Board
The overall management of the Company is vested in
the Board and the Executive Management. In accord-
ance with Norwegian law, the Board of Directors is re-
sponsible for, among other things, supervising the gen-
eral and day-to-day management of the Company
’
s
business, ensuring proper organization and allocation of
responsibilities and duties, preparing plans and budgets
for its activities, ensuring that the Company
’
s activities,
accounts, and assets management are subject to ade-
quate controls and undertaking investigations necessary
to perform its duties.
The Code of Conduct was approved by the Board of
Directors in 2022.
In 2023, we have published four essential board-
approved policies that exemplify our unwavering dedi-
cation to sustainability and responsible business practic-
es. Our Anti-corruption policy stands as a testament to
our refusal to tolerate any form of unethical behavior,
reinforcing our stance against corruption in all its forms.
Our Environmental policy highlights our commitment to
environmental stewardship, outlining a comprehensive
framework for minimizing our ecological footprint and
championing sustainable practices. The introduction of
the Competition Laws Compliance Policy serves as a
demonstration of our commitment to fair business prac-
tices and adherence to legal standards, ensuring that
we operate in a competitive and ethical manner. Finally,
we have published the aforementioned Routine for pro-
cessing requests on information according to the Trans-
parency Act.
Performance
In 2023, we launched a campaign starting with the 25
suppliers with highest spend and / or greatest risk. Our
largest suppliers include raw material suppliers in China
(approx. 20 percent of total company spend), classified
as a country with high risk because there is no guaran-
tee of workers
’
rights. Furthermore, we included suppli-
ers that we expect to have a supply chain in potential
risk areas. It has proven to be challenging to achieve
participation and we will continue to encourage our
Business Partners to participate. The Ethics and Compli-
ance Committee is working on corrective measures to
improve the response and commitment from our busi-
ness partners.
Risks of negative consequences
Figure 2: Dashboard Factlines Supplier Due Diligence
HUMAN RIGHTS AND TRANSPARENCY ACT REPORT 2023
-
Introduction
...............................
84
Tekna
’
s value chain
.................
84
Guidelines and routines
...........
86
Code of Conduct
.....................
86
Supplier Code of Conduct
....
86
Whistleblowing
.........................
87
Handling requests of information
–
The Transparency Act
.........
87
Subjects for the Board
...........
88
Risks of negative
consequences
...............................
88
Performance
.............................
88
KPI
................................................
89
Process to remediate negative
impacts
.......................................
89
Measures
....................................
90
Action plan
................................
90
Index
ANNUAL REPORT 2023
| 89
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Process to remediate negative
impacts
Early 2023, raw material suppliers in China were audited
and no human rights violations were observed. and
both partners were showing visible care for the well
being of their employees (security equipment, safety
reminders & practices).
We will obtain more responses and expand the supplier
base that we ask to respond to the assessment. 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.
Risks of negative consequences
In the dashboard in figure 2, the colour coded risk level
shows a summary of the overall score on four axes: Cli-
mate & Environment, Country risk, Corporate Social
Responsibility & Ethics and Occupation Health & Safety.
To date we have not received a response classified as
“
High Risk
”.
However, response rate is low, particularly
amongst the suppliers with highest estimated risk. For
2024 the focus will be on gathering data.
KPI
In 2023, there were no reported incidents of discrimina-
tion, anti-corruption or breaches of the SCoC or CoC.
See figure 3 for further key performance indicators.
Figure 3: Key performance indicators 2023
2023
2022
Percentage of new suppliers that were screened using
social criteria
not started nor
planned, priority focus
on risk suppliers
Number of suppliers assessed for social impacts
9
(+3 in
progress)
4
(+1 in
progress)
Number of suppliers identified as having significant
actual and potential negative social impacts
0
0
Percentage of suppliers identified as having significant
actual and potential negative social impacts with which
improvements were agreed upon as a result of assess-
ment
0
(high risk)
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
0
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.
HUMAN RIGHTS AND TRANSPARENCY ACT REPORT 2023
-
Introduction
...............................
84
Tekna
’
s value chain
.................
84
Guidelines and routines
...........
86
Code of Conduct
.....................
86
Supplier Code of Conduct
....
86
Whistleblowing
.........................
87
Handling requests of information
–
The Transparency Act
.........
87
Subjects for the Board
...........
88
Risks of negative
consequences
...............................
88
Performance
.............................
88
KPI
................................................
89
Process to remediate negative
impacts
.......................................
89
Measures
....................................
90
Action plan
................................
90
Index
ANNUAL REPORT 2023
| 90
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Progress on Action plan 2023
Tekna will ensure that all new employees sign the Code
of Conduct.
•
Tekna will train its employees to ensure policies are
well understood and adhered to.
Tekna will renew its efforts with its supply base to
•
Improve the percentage of signatories of its 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 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 con-
sequences and halt present activities that have negative
impact.
Supplier audits
Ongoing
Increase Supplier SCoC signatories
Ongoing
Complete routine for request for information related to Transparency Act
Completed
Complete Factlines due diligence on 25 most critical suppliers
Continue in 2024
Employee CoC 100% signature
and training
Completed, training in 2024
Adjust SCoC to specifically address all Business Partners
Continue in 2024
Develop and implement Anti-corruption policy
and training
Completed, training in 2024
Board approval for Anti Corruption policy
Completed
External whistleblowing system
Completed
Creation and board approval for Competition Law Compliance Policy
Unplanned, Completed
Actions 2024
Supplier audit standard agenda to include E,S,G and climate risk topics
Q2
Increase Supplier SCoC signatories - simplify process
Q2
Employee training in CoC
Q2
Employee training in Anti-Corruption and Compliance
Q2
Update and adjust SCoC to specifically address all Business Partners
Q3
Board approval for CoC for Business Partners
Q3
Create Human Rights Policy
Q2
Board approval Human Rights Policy
Q3
ECC to follow due diligence on 25 most critical suppliers
Q4
Measures
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 91
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Emissions Accounting
Report
(part of
Annual Report
Tekna Group
)
(Carbon and non-GHG)
2023
January
1
—December 31
Tekna Holding ASA
 
SUSTAINABILITY STATEMENTS
ANNUAL REPORT 2023
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
| 92
vs 66%
(+6 pp)
in 2021 (Location based).
Renewable energy share
72
%
246 757
Tekna
’
s climate footprint at a glance
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
Baseline estimations for
downstream emissions (scope 3)
expected in 2025.
-50 %
Target
2030
Reduce in absolute terms
compared to baseline year
under development
under development
Fuel–
and energy-related
activities
(scope 3)
391
377
FY23
FY21
baseline
-4%
(vs FY21)
-50%, linked to
scope 1 and 2
Production
(scope 1 +
scope 2)
Employees
(business travel +
daily commute
-
scope 3)
Waste
(scope 3)
619
619
328
351
19
*new in 2022
FY23
FY23
FY23
FY21
FY22
FY22
baseline
baseline
0%
2
(vs FY21)
-7%
(vs FY22)
EMISSIONS ACCOUNTING REPORT 2023
-
1: Historical data should not change, but we always revise historical figures if data quality or science has
improved. 2: Tekna increased its production output by 32% since 2021 (baseline), while only increasing scope
1 emissions by 2%, and even reducing scope 2 emissions by 29%.
Upstream transportation
and distribution
(scope 3)
391
FY23
FY21
*new in 2023*
vs 577
(+2%)
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
(-29%)
in 2021. Tekna continues to
im-
prove energy efficiency in its powder produc-
tion
2
. It reduced operating hours in France by
50% reducing electricity consumption.
The total emissions number will continue to
increase due to broader emissions mapping in
scope 3 and improved data quality. Within
subcategories reduction efforts have started.
under development
21
baseline
+8%
(vs FY22)
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)
Baseline estimations for
upstream emissions (scope 3)
expected in 2024.
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.
Scope 1
589
tCO2e
Scope 2
30
tCO2e
Scope 3
(incomplete)
248k
tCO2e
FY19:
16.3
kWh/kg
FY23:
12.4
kWh/kg
baseline
-24 %
(vs FY19)
FY22:
13.1
kWh/kg
-20 %
(vs FY19)
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 93
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Introduction
This report provides an overview of the
organization
’
s greenhouse gas (GHG)
emissions, which is an integrated part of
the organization
’
s climate strategy.
Carbon accounting is a fundamental
tool in identifying tangible measures to
reduce GHG emissions. The annual
carbon accounting report enables the
organization
to
benchmark
perfor-
mance indicators and evaluate progress
over time.
This report comprises the following organisational
units:
Comment
Staff in 2023
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, system production
133
Tekna Advanced Materials Inc [TAM], Canada
powder production
53
Tekna Microelectronics Unit [TMC], Canada
activity started end of 2021
0
Tekna Plasma Europe SAS [TPE], France
powder production, European sales office
31
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 Q1 2022
1
Tekna Inc [TCU], USA
no staff, activity started end of 2022
0
Only when specifically mentioned:
Imphytek Powders SAS [Imphytek], France, JV
JV, activity started in 2020
1
Restatements
In 2022, for a leased building in Canada,
Tekna (TMC) was incorrectly allocated an
electricity
meter.
The
consumption
of
~75.000 kWh has been deducted from the
energy consumption reported in 2022. No
material impact on emissions as it concerns
hydropower.
For 2022, the treatment of hazardous waste
in Canada was reclassified due to new infor-
mation. This has also not lead to a change
in total emissions in the category.
External Assurances
Internally the Audit Committee approves
the Emissions Accounting report. This re-
port was not externally assured on its publi-
cation date; Note that the CO2 metrics in
scope 1 and scope 2 were assured for our
main shareholder Arendals Fossekompani
ASA
(“
AFK
”).
Tekna aims to implement as-
surance for its next reporting period.
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, devel-
oped by the
Greenhouse Gas Protocol 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.
 
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 94
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Non GHG air emissions
Tekna
’
s standard process does not produce a significant
amount of any of the common air pollutants, which in-
cludes NOx, SOx, volatile organic compounds (VOCs),
hazardous air pollutants (HAPs), particulate matter
(PM10), and persistent organic pollutants (POPs). We do
not consider Non GHG air emissions to be a material
topic for Tekna, but will report when we do emit air pol-
lutants. As part of a nonstandard system test for a client,
argon and air were combined in a research plasma sys-
tem and produced an estimated 250g/h of NOx, for a
total of 3750g.
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 so-
lidify the decision for the best alternative with lower
emissions, which we plan to budget for before 2030.
Scope 2 emissions are down by 29%. We are approach-
ing scope 2 in the two obvious ways, ie a) by moving
consumption to renewable energy sources, and b) re-
ducing consumption. The renewable energy share (a) is
up by 6 percentage points since 2021 baseline (2023:
72%).
In reduction (b) we are focusing on increasing the
productivity of our powder production. Compared to
2019 we have reduced by 24% the kWh required to
produce 1 kg of powder (2023: 12.4 kWh/kg).
By the partial emissions information we have gathered
for scope 3 up to 2023, it is clear that this is where the
most significant emissions are. Tekna has yet to com-
municate reduction targets for the scope 3 categories.
Nonetheless, as you can read in the Carbon Emission
section of this report, we have started taking actions to
reduce those 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 titani-
um powder in metallic bottles of 2.5kg each. Unfortu-
nately, once they have been used, the single-use pack-
aging are left with small quantities of residual metal
powder making them not easily reusable nor recyclable.
As the volumes of AM materials are increasing, the busi-
ness case for returning the powder to Tekna for recon-
ditioning will become stronger.
In order to reduce single-use packaging, Tekna has de-
veloped a Universal and Reusable CONTAINER for Ad-
ditive Materials together with industry partners (see im-
age). 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 re-
turn degraded material back to Tekna
•
Eliminating the use of single-use packaging and dis-
posal activities
Decarbonization
Organization chart
per 31.12.2023
Introduction (continued)
 
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 95
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Reporting
Contact Information
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CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
•
Allowing for safer handling both during transporta-
tion and at the point of use. This means 1) reducing
the risk of exposure to powder, 2) since the contain-
er has wheels, eliminating the risk of drops and lift-
ing related injuries, and 3) based on the plug-and-
play nature of the container solution, increasing user
-friendliness and reducing the risk of handling mis-
takes
•
Increasing efficiency as more material is loaded to
the machine per packaging unit
The container is ready to be put into operation. Given
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 catego-
ry 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 and with
246.7k tCO2e it is substantially higher than any of our
other categories. Initial meetings have taken place with
the logistics team to identify which part we can influ-
ence and reduction opportunities worth pursuing.
High level thoughts:
•
Reduce air transport in favor of boat or train
•
Divert transport to carriers with a
“
green
”
fleet
•
Consolidate shipments
•
Improve packaging to reduce shipping
“
air
”
Carbon Emissions
Scope 1 and scope 2
status
baseline
2030 commitment
2050 ambition
Scope 1
included worldwide per entity
2021
-50% vs baseline
carbon
neutral
1
Scope 2
included worldwide per entity
2021
-50% vs baseline
Actions taken in 2023:
•
Optimization of temperature in the offices.
•
Firming up decarbonization plan
1 Carbon neutrality is achieved by reducing our carbon footprint to zero through a combina-
tion of efficiency measures in-house and supporting external emission reduction projects.
Decarbonization (continued)
Scope 1 and scope 2
Scope 1 includes all direct emission sources. This includes
all use of fossil fuels for stationary combustion or trans-
portation, in owned and, depending on the consolidation
approach selected, leased, or rented assets.
Scope 2 includes indirect emissions related to purchased
energy; electricity and heating/cooling where the organi-
sation has operational control.
Baseline 2021 was chosen as it was the first year we col-
lected data of our worldwide emissions instead of just
Canada.
At Tekna, natural gas is only used for heating the build-
ings in Canada and Korea.
At the end of 2021 and throughout 2023 Tekna has
added Additive Manufacturing production equipment in
Canada increasing electricity consumption. It reduced
operating hours in TPE by 50% reducing electricity con-
sumption 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 refrigerants
we consider the consumption non material for this re-
port (~20lbs in TPS).
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 96
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Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
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 category.
The scope 3 emissions compared to 2022 increased due
to broader emissions mapping in scope 3 and improved
data quality.
This report is incomplete in scope 3. Multiple categories
up-and downstream have still to be assessed. Only cat-
egories which we can substantiate with data have been
included.
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 re-
ports received from transportation and distribution
companies Tekna has contracted in the past year. Most
reports directly provided the estimated CO2 emissions.
The reports from two service providers only included
departure and arrival location and cargo mass. There-
fore those emissions were calculated via cemasys by
using the tkm unit (cargo mass * distance in km). The
distances were estimated based on information provid-
The Greenhouse Gas Protocol considers 15 categories in
scope 3 emissions. The table below includes an over-
view of the categories. Categories 8, 13, 14 and 15 are
not relevant for Tekna.
Scope 3 Upstream
Fuel and energy related activities Not Included
in Scope 1 or Scope 2 [3]
This category includes emissions related to the produc-
tion 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 reported
in scope 1 and 2.
Scope 3 categories in GHG protocol:
status
baseline
2030 commitment
2050 ambition
1: Purchased Goods and Services
In progress, to be completed in 2024
2: Capital Goods
In progress, to be completed in 2024
3: Fuel- and Energy-Related Activities Not Included in
Scope 1 or Scope 2
Included upstream emissions of scope 1 and 2 consoli-
dated per country
2021
50%
(as scope 1 and 2)
carbon
neutral
4: Upstream Transportation and Distribution
included consolidated worldwide
2023 *new*
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
Planned for 2024
10: Processing of Sold Products
planned for 2024
11: Use of Sold Products
planned for 2024
12: End-of-Life Treatment of Sold Products
planned for 2024
13: Downstream Leased Assets
not relevant for Tekna
14: Franchises
not relevant for Tekna
15: Investments
not relevant for Tekna
Carbon Emissions (continued)
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 97
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Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
ed. Inbound transportation not paid by Tekna is not yet
included.
Actions taken in 2023:
•
Global data collection and consolidation to establish
the baseline of emissions
•
Scheduled first meeting with logistics team to start
creating a reduction plan
Scope 3 @Tekna
Waste Generated in Operations [5]
Includes emissions from third-party disposal and treat-
ment of waste generated in the reporting company
’
s
owned or controlled operations in the reporting year.
This category includes emissions from disposal 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 emissions. 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 description to it, in es-
sence "Residual waste, landfill". The emissions are ex-
pected to be in the same range.
Composition of hazardous waste: (flammable) metallic
powder, rags, acids, coolants and non-chlorine solvents
and single-use protective equipment from the nano
sector and the detail of how it is being processed was
obtained and corrected for 2022 and 2023.
Manufacturing sites only, waste from sales offices is not
included.
Waste collected during the annual Sherbrooke industrial
park cleaning included in Canada.
Actions taken in 2023:
•
Paper handtowels are now collected separately and
disposed of via compost
•
Residual waste bins have been removed from indi-
vidual offices to encourage central collection points
to improve correct separation.
•
Improved communication of what to recycle where.
•
Annual spring cleaning of the industrial park in Sher-
brooke (CA) by employees. The waste collected is
included in scope 3 of Tekna, even though this was
not a direct emission by Tekna.
Business Travel [6]
Transportation of employees for business-related activi-
ties in vehicles owned or operated by third parties, such
as aircraft, trains, buses, and passenger cars.
An increase of 6% was measured. Increased business
development activity in Asia is driving this increase.
Employees were requested to complete a form per
business trip, including km travelled by car (incl taxi) and
train, flights (using ICAO Carbon Emissions Calculator )
and hotel nights. We created this form by using the
ICAO tool and recommendations from Microsoft Sus-
tainability Calculator.
Actions taken in 2023:
•
Decision to relocate Business development manager
for Asia Pacific to Japan.
Employee Commute [7]
Transportation of employees between their homes and
their worksites during the reporting year (in vehicles not
owned or operated by the reporting company).
A reduction of 13% was measured. The use of electrical
and hybrid cars has increased amongst our employees.
Tekna has offered its employees the possibility to
charge for free at its Canadian facilities since 2020.
Employees were requested to complete a form detailing
how many days per week they are in the office on aver-
age and what their commute is like on average. Adjust-
ments were made upon indication of employees around
"significantly greener summer commutes" and carpool-
ing. We obtained 151 answers out of 221 (68%), which
we considered a sufficient bases to extrapolate to 100%.
We created this form based on the recommendations of
the Greenhouse Gas Protocol and Cemasys categories.
Actions taken in 2023:
•
Establishment of an employee carpooling platform
(reduction at source posters)
Carbon Emissions (continued)
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 98
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Key figures
GHG Emissions
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 99
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Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Key figures (continued)
GHG Emissions
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 100
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Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Key figures (continued)
GHG Emissions
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 101
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Key figures
Energy
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 102
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Key figures
Energy consumption
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 103
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Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Key figures (continued)
Energy consumption
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 104
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’
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Methodology
(CEMASYS reporting system)
The Greenhouse Gas Protocol initiative (GHG Protocol)
was developed by the World Resources Institute (WRI)
and World Business Council for Sustainable Develop-
ment (WBCSD). This analysis is done according to A
Corporate Accounting and Reporting Standard Revised
edition, currently one of four GHG Protocol accounting
standards on calculating and reporting GHG emissions.
The reporting considers the following greenhouse gas-
es, all converted into CO2-equivalents: CO2, CH4
(methane), N2O (laughing gas), SF6, 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 approach, 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 in-
cludes all use of fossil fuels for stationary combustion or
transportation, in owned and, depending on the consol-
idation approach selected, leased, or rented 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 electricity
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 assumptions
-emissions. These emissions are reflected in the location
-based emission factor.
The market-based method: The choice of emission fac-
tors 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 renewable sources, which has
an emission factor of 0 grams CO2e per kWh. However,
for electricity without the GoO or REC, the emission fac-
tor 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 example,
the market-based Norwegian residual mix factor is ap-
proximately 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 con-
sumers. In a
market perspective, this implies that Norwegian hydro-
power is largely substituted with an electricity mix in-
cluding 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 infor-
mation 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 relation-
ships.
in the IEA methodological framework. Factors for district
heating/cooling are either based on actual (local) pro-
duction mixes, or average IEA statistics.
In January 2015, the GHG Protocol published new
guidelines for calculating emissions from electricity con-
sumption. 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 loca-
tion-based and the market-based methods. The loca-
tion-based method reflects the average emission inten-
sity of the grids on which energy consumption occurs,
while the market-based method reflects emissions from
electricity that companies have purposefully chosen (or
not chosen).
Organisations 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 Renewable Energy
Certificates (RECs).
The purpose of this amendment in the reporting meth-
odology is on the one hand to show the impact of ener-
gy efficiency measures, and on the other hand to dis-
play how the acquisition of GoOs or RECs affect the
GHG emissions. Using both methods in the emission
reporting highlights the effect of all measures regarding
electricity consumption.
The location-based method: The location-based meth-
od 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 different energy
producers utilize a mix of energy resources, where the
use of fossil fuels (coal, oil, and gas) result in direct GHG
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 105
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Sources
(CEMASYS reporting system)
Department for Business, Energy & Industrial Strategy
(2022). Government emission conversion factors for
IEA (2022). Emission Factors database, International
Energy Agency (IEA), Paris.
WBCSD/WRI (2004). The greenhouse gas protocol. A
corporate accounting and reporting standard (revised
WBCSD/WRI (2011). Corporate value chain (Scope 3)
accounting and reporting standard: Supplement to
the
Development
(WBCSD),
Geneva,
Switzer-
land /World Resource Institute (WRI), Washington DC,
USA, 149 pp.
standard. World Business Council on Sustainable
Development (WBCSD), Geneva, Switzerland /World
 
EMISSIONS ACCOUNTING REPORT 2023
-
Climate footprint at a glance
.. 92
Introduction
.................................
93
Restatements
.......................
93
External assurances
............
93
Non GHG air emissions
....
94
Organisation chart
.............
94
Decarbonization
.........................
94
Carbon Emissions
.......................
95
Scope 1 and Scope 2
.........
95
Scope 3
.................................
96
Key figures
GHG emissions
....................
98
Energy
...................................
101
Energy consumption
.........
102
Methodology
.............................
104
Sources
................................
105
Abbreviations
....................
106
Index
ANNUAL REPORT 2023
| 106
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Abbreviations
Legal entities
per 31.12.2023
THASA
Tekna Holding ASA [THASA], Norway
THC
Tekna Holding Canada Inc [THC], Canada
TPS
Tekna Plasma Systems Inc [TPS], Canada, HQ
TAM
Tekna Advanced Materials Inc [TAM], Canada
TMC
Tekna Microelectronics Unit [TMC], Canada
TPE
Tekna Plasma Europe SAS [TPE], France
Imphytek
Imphytek Powders SAS [Imphytek], France, JV
TPZ
Tekna Plasma Suzhou Co Ltd [TPZ], China
TPK
Tekna Plasma Korea Co Ltd [TPK], Korea
TCU
Tekna Inc [TCU], USA
Technical terms
AU
Australia - the CEMAsys carbon accounting system - has a Nordic origin.
It does not include many codes for the territories Tekna is in yet.
GHG
Greenhouse gases: The main greenhouse gases whose concentrations
are rising are carbon dioxide, methane, nitrous oxide, hydrochlorofluoro-
carbons (HCFCs), hydrofluorocarbons (HFCs) and ozone in the lower
atmosphere.
EE waste
EE waste describes all discarded electrical and electronic devices and
components.
TTW
TTW stands for Tank-to-wheel, which are the emissions from actual usage
of the fossil fuels, which is the input in Scope 1 and scope 2.
WTT
WTT stands for Well-to-tank. Well-to-tank emissions for Scope 1 input
(fossil fuels such as diesel, petrol, natural gas) is relating to the production
of the fossil fuel and transportation to the gas station. Well-to-tank emis-
sion for Scope 2 input (electricity, district heating/cooling, etc) is relating
to the production of the electricity and the transportation and distribution
of the electricity until it is used in your locations (transmission losses in-
cluded).
Units
tCO
2
e
tCO2e stands for tonnes (t) of carbon dioxide (CO2) equivalent (e).
"Tonne" is a fancy way of writing metric ton, or 2,200 pounds.
“
Carbon
dioxide equivalent
”
is a standard unit for counting greenhouse gas (GHG)
emissions regardless of whether they're from carbon dioxide or another
gas, such as methane.
avg.
average
GJ
A gigajoule, abbreviated as GJ, is a unit of measurement of energy con-
sumption: a gigajoule is equal to one thousand million joules.
kWh
A kilowatt-hour is a unit of energy: one kilowatt of power for one hour.
km
kilometer, a metric unit of length equal to 1000 meters.
m
3
The cubic meter is the unit of volume in the International System of Units
(SI). Its symbol is m
3
.
MWh
Megawatt-hour: A unit of energy, especially of electrical energy, equal to
that done by one megawatt acting for one hour.
pkm
A passenger-kilometre, abbreviated as pkm, is the unit of measurement
representing the transport of one passenger by a defined mode of
transport (road, rail, air, sea, inland waterways etc.) over one kilometre.
tonne
A tonne is a metric unit of weight that is equal to 1000 kilograms.
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 107
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
EU Taxonomy
Report
(part of
Annual Report
Tekna Group
)
2023
January
1
—December 31
Tekna Holding ASA
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 108
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
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
The EU Taxonomy aims to scale up
sustainable
investments
and
avoid
greenwashing by defining a common
language and understanding of sustain-
able activities. 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:
The environmental objectives 3-6 were adopted in the
EU in June 2023, through the
Commission Delegated
Regulations of June 2023, (EU) 2023/2486
and
(EU)
2023/2485
. In addition, amendments to
Delegated Regu-
lation (EU) 2021/2139
for the environmental objectives 1
and 2 were also adopted as of June 2023. Due to delays
in the legislative process in the European Economic Ar-
ea, the June 2023 regulations did not enter into force in
Norway in 2023. The Norwegian Ministry of Finance has
communicated that Norwegian undertakings are en-
couraged, but not required, to report on the environ-
mental objectives 3-6 for the financial year of 2023. On-
ly climate change mitigation and climate change adap-
tation following
Commission Delegated Regulation (EU)
2020/852
are required for the 2023 reporting in Norway.
Introduction
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 109
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Figure 2: Distribution of eligibility and alignment out of the 100% Turnover, CapEx and OpEx as per the consolidated Financial Statements
•
All Tekna
’
s economic activities are eligible
under Climate Change Mitigation and not
under any of the other five environmental
objectives.
•
Additive materials is the only activity meet-
ing the requirements under CCM and is
reported Aligned with
revenues of CAD
25.7m, CapEx of CAD 6.7m and OpEx of
CAD 1.2m.
•
The 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 2023).
Total eligible
revenue: CAD 40.4m.
•
All Tekna CapEx is invested in eligible activi-
ties, ie 100% eligible, totaling CAD 8.1m.
•
Tekna does not yet have a CapEx plan
aimed at increasing the percentage of
aligned activities.
•
The definition of OpEx in the financial state-
ments is very different from OpEx under EU
Taxonomy. A large part is not eligible
for
the reason that it does not qualify for EU
Taxonomy, rather than Tekna
’
s economic
activities. CAD 2.7m out of CAD 10.2m is
eligible, or 26.7%.
Results
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 powders.
Activities considered
Enabling
and
Aligned
Production of PlasmaSonic wind tunnels
Activities considered
Enabling
and
Eligible
, not aligned
This activity is aligned once an independent study, 3rd
party verified, confirming our assessment becomes
available.
(Development and) production of nanomateri-
als for MLCC
Activities considered
Enabling
and
Eligible
, not aligned
Production of turnkey plasma systems
(manufactured components and equipment
applied in Tekna
’
s plasma systems, as well as
auxiliary equipment
Activities considered
Enabling
and
Eligible
, not aligned
Figure 1: Summarized overview of EU Taxonomy activity assessments
EU TAXONOMY REPORT 2023
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Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 110
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Assessments have been performed in accordance with
the structure of the EU Taxonomy, starting with eligibility
assessments before assessing compliance with the crite-
ria for substantial contribution and do no significant
harm
(“
DNSH
”).
The minimum safeguards assessment
has been conducted by Tekna on group level, based on
policies and procedures covering the group. Eligible
activities that meet the criteria for substantial contribu-
tion and DNSH, as well as the minimum safeguards, are
reported as aligned.
In 2023 we performed a re-evaluation of the eligible
activities considering activities for the four remaining
environmental objectives adopted by the EU and FAQs
published by the European Commission. Eligibility was
All companies of the Tekna group have been consid-
ered for reporting on the EU Taxonomy for 2023. Tekna
evaluated its 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 Powders, as they are not
consolidated
in
the
group
’
s
financial
statements
(consolidation by equity method). We have assessed the
business activities with regards to the EU Taxonomy
economic activities within the scope of the six environ-
mental objectives. As previously noted, for the 2023
reporting, the companies will not report on alignment
for the activities adopted by the EU in June 2023.
assessed considering the business activities against the
economic activities defined in the EU Taxonomy. Rele-
vant NACE-codes and activity descriptions for each eco-
nomic activity were identified and examined.
The alignment process consists of assessing the criteria
for substantial contribution and do no significant harm,
as well as minimum safeguards. When assessing the
technical screening criteria, we have experienced uncer-
tainties within interpretations and best practice. Some of
the criteria refer to EU-directives, that may not be, or is
only partially adopted and implemented in Norway.
Subsequently this may lead to requirements and thresh-
olds not being provided.
Scope
Process
2. Do no significant
harm
+
3. Minimum
safeguards
1. Substantially
contribute
+
Substantial contribution
to the environmental
objectives
Do no significant harm
to the remaining envi-
ronmental objectives
Comply with minimum
social and governance
safeguards (e.g. OECD
guidelines)
Taxonomy Scope
Criteria
Eligible activities
Aligned activities
All company activities
Figure 3: EU taxonomy in a nutshell
EU TAXONOMY REPORT 2023
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Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 111
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
The systems do not release constituents other than the
powder itself and the plasma gases which consists of
Argon, together with a secondary gas like helium, nitro-
gen, hydrogen or oxygen. None of these gases are con-
sidered critical for the GHG emissions. The Additive
Manufacturing powders aim to increase resource effi-
ciency along the value chain reducing GHG emissions
related to those resources (materials, manufacturing,
warehousing, transportation and the utilization of the
finished product).
Substantial Contribution:
Additive materials (AM) have the capacity to manufac-
ture products with less GHG emissions than traditional
manufacturing methods. Specifically, the additive manu-
facturing technologies can cut carbon emissions in four
areas:
materials,
manufacturing,
warehousing,
and
transportation.
Materials: AM uses only the material necessary to create
the finished product. It does not generate any signifi-
cant amount of scrap. For instance, Airbus claims an
average fly-to-buy ratio of 10:1
1
, while a ratio closer to
one is achievable with AM, especially if the unused pow-
der can be recycled.
Manufacturing: AM enable engineers to design parts
that are lighter, stronger, and more efficient than their
traditional counterparts. This makes products manufac-
tured using AM technologies more efficient in its in-
tended application, e.g. less fuel consumption and asso-
ciated emissions for any vehicle as it is lighter than its
traditional counterpart. This applies especially for small
List of abbreviations
Production of additive material
powders
Environmental Objective: Climate Change Mitigation
Economic Activity: 3.6 Manufacture of other low carbon
technologies
Assessment Eligibility:
“
Production of additive material powders
”
involves the
development and operation of proprietary plasma pro-
cesses to produce and sell spherical powders for appli-
cation in Additive Manufacturing, Metal Injection Mold-
ing and Binder Jetting.
production runs and custom-made parts, provided that
design optimization for AM has been achieved.
Warehousing: Because 3D printing enables on-demand
production of parts and products, it can help reducing
the need for storage space and, consequently, the ener-
gy once required to control temperature, humidity, and
lighting of larger warehouses. This leads to a lower
overall carbon footprint considering that between 5.5%
and 13% of the global GHG emissions are caused by
logistic activities in supply chains.
Transportation: Locations with a 3D printer can become
factories that makes products closer to end users. It dra-
matically reduces the need to move finished products
over great distances. The impact on GHG emission can
be significant since transport sector accounts for over
23% of all CO2 emissions globally.
Laser powder bed fusion, metal injection molding, elec-
tron-beam powder bed fusion and direct energy depo-
sition are considered as equivalent in terms of GHG
footprint. These AM technologies are considered as the
counterpart of conventional machining. When consider-
ing the entire manufacturing chain, AM processes are
found to be up to 87 % less energy 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 account-
ed for in the comparison. While AM can reduce buy-to-
Assessments
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 re-
garding use and presence of chemicals
B&E
Protection and restoration of biodiver-
sity and ecosystems
DNSH
Do no significant harm
1 Metals and composites: finding the right material for each application | Airbus
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 112
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
clability potential and aluminum alloys in the production
of ingots contain 6% of recycled materials. Tekna
’
s next
step is to work with its supply-chain and customers to
develop and
test recycled feedstock and ensure it
meets the quality requirements of clients.
P&C: An assessment has been conducted in accordance
with Appendix C. Tekna has compiled a list of the con-
trolled and banned substances and chemicals in the
regulations and directives named in Appendix C and
inquired the laboratory team and building management
to confirm that all substances and chemicals used in
Tekna
’
s operations are conform with the laws.
B&E: An assessment has been conducted in accordance
with Appendix D. None of Tekna
’
s sites are located in or
near biodiversity-sensitive areas. Tekna performed a
biodiversity assessment in its operations and its top 25
suppliers in 2023. The assessment found that Tekna
’
s
facilities in France are near 4 critically endangered spe-
cies and Tekna
’
s suppliers are near 41 critically endan-
gered species. In the upcoming years, Tekna will con-
duct an investigation to assess impact on those species.
For more information, refer to Tekna
’
s 2023 GRI report
(GRI 304).
Conclusion:
Activity is eligible and aligned.
fly ratio by more than 75%, design optimization for AM
can reduce parts weight by another 65%.
Life-cycle GHG emission savings are based on an AMG-
TA report. As such, the criteria related to savings being
calculated in accordance with Commission Recommen-
dation 2013/179/EU and verified by an independent
third party are considered met.
Do no significant harm:
CCA: Climate risk assessment is performed in accord-
ance with appendix A. The assessment is based on a
TCFD-structured analysis conducted in 2021, performed
at company level. A roadmap has been developed and
Tekna is currently quantifying the financial impact and
developing a mitigation plan.
W&M: A water impact assessment has been conducted
in accordance with Appendix B. Water is filtered before
going back to wastewater in the sewers. Each year,
quality checks are performed on the wastewater coming
from Tekna Advanced Materials Inc, its powder produc-
tion facilities, to confirm that the quality of the filtered
water meets the requirements for wastewater of the city
of Sherbrooke.
CE: Tekna assess the availability and adopts techniques
that support reuse and use of secondary raw materials,
design for high durability, recyclability, disassembly and
adaptability of products, waste management and trace-
ability of substances of concern throughout the lifecycle
of the manufactured products. Metals have a high recy-
Production of turnkey plasma
systems
Environmental Objective: Climate Change Mitigation
Economic Activity: 3.6 Manufacture of other low carbon
technologies
Assessment Eligibility:
“
Production of turnkey plasma systems
”
involves
produc-
tion of Inductively Coupled Plasma systems, including
auxiliary equipment such as power feeders, probes and
powder washing systems. The turnkey plasma systems
are used to develop new materials and optimize materi-
al characteristics (spheroidization). The systems do not
release constituents other than the material itself and
the plasma gases which consists of Argon, together with
a secondary gas like helium, nitrogen, hydrogen, or ox-
ygen. None of these gases are considered critical for the
GHG emissions. It is an efficient way of developing ad-
vanced materials compared to alternative chemical pro-
cesses that usually generate byproducts. Advanced ma-
terials aim to improve the efficiency of the finished
product.
Substantial Contribution:
Induction plasma units sold to customers are designed
for different powder-related applications that fall into
two categories, i.e. nano powder synthesis or powder
spheroidization, and are available in different power
levels depending on the throughput required. In all cas-
es, the systems do not release constituents other than
the powder itself and the plasma gases which consists
of Argon, together with a secondary gas like helium,
nitrogen, hydrogen or oxygen. None of these gases are
considered critical for the GHG emissions. As an elec-
Assessments (continued)
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 113
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Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
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information
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’
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Assessment Eligibility:
With
“
Production of PlasmaSonic wind tunnels
”,
Tekna
designs, manufactures, and sells the PlasmaSonic Prod-
uct line, which is a wind tunnel that simulates hypersonic
conditions to enable scientific research, for instance
space tourism and hypersonic flight. Providing the op-
portunity to test materials developed for space in a con-
trolled environment with precise instruments, signifi-
cantly reduces emissions compared to testing these
materials in space, by avoiding combustion of fuel and
contamination in the atmosphere (metal particles creat-
ing Greenhouse effect).
Substantial Contribution:
Ground testing facilities, combined with computational
models, simulate space re-entry conditions. Their pur-
pose is to develop heat shields made of specialized ma-
terials. Different ground testing technologies exist, each
with specific operational ranges (temperature, velocity,
heat flux, test duration, gas composition, etc.) and mini-
mum overlaps between them (see figure 3). 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
supersonic vehicles.
Flight testing involve launching sounding rockets at very
high altitude or even in space. While data on large rock-
ets emissions are available in the literature, sounding
rockets are rather niche and very little has been pub-
lished. Depending on the fuel used, combustion by-
products like CO2, soot, NOx and water vapor are gen-
erated in various concentrations, along with unburnt
tricity-intensive technology, the energy mix used to
power induction plasma units will have a significant im-
pact on carbon footprint of this technology which is
otherwise a clean technology. There are no other tech-
nologies on the market that can perform the same
functions as induction plasma for nano powder synthe-
sis or powder spheroidization. This is confirmed in ten-
der 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 plas-
ma systems segment is not considered compliant 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 carbon
technologies
fuel expelled. The fact that important amounts of com-
bustion by-products are released in a short period of
time and in a concentrated area up to >15km altitude
(in opposition with commercial aircraft making 1000s km
flight at <10km altitude) can severely impact wetlands
and habitat nearby launching pads. Furthermore, space-
flight is the only direct human cause of pollution above
about 20 km altitude. Scientists recently found the strat-
osphere is peppered with particles 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.
As such, the Plasmasonic wind tunnels are 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.
Assessments (continued)
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
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 114
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
B&E: An assessment has been conducted in accordance
with Appendix D. None of Tekna
’
s sites are located in or
near biodiversity-sensitive areas.
Tekna performed a
biodiversity assessment in its operations and its top 25
suppliers in 2023. The assessment found that Tekna
’
s
facilities in France are near 4 critically endangered spe-
cies and Tekna
’
s suppliers are near 41 critically endan-
gered species. In the upcoming years, Tekna will carry
out an assessment to analyze the impact on those spe-
cies. For more information, refer to Tekna
’
s 2023 GRI
report (GRI 304).
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 carbon
technologies
Assessment Eligibility:
With
“
development and production of nano materials
for Multi-Layer Ceramic Capacitors (MLCC)
”,
Tekna de-
velops and operates their own proprietary plasma to
produce and sell nano-sized metal powders for applica-
tion in MLCC. The systems do not release constituents
other than the powder itself (typically the same material
Do no significant harm:
CCA: Climate risk assessment is performed in accord-
ance with appendix A. The assessment is based on a
TCFD-structured analysis conducted in 2021, performed
at company level. A roadmap has been developed and
Tekna is currently quantifying the financial impact and
developing a mitigation plan.
W&M: A water impact assessment has been conducted
in accordance with Appendix B. Water is filtered before
going back to wastewater in the sewers. Each year, a
quality check is performed on the wastewater coming
from the Tekna Plasma Systems facility to confirm that
the quality of the filtered water meets the requirements
for wastewater of the city of Sherbrooke.
CE: Tekna assess the availability and adopts techniques
that support reuse and use of secondary raw materials,
design for high durability, recyclability, disassembly and
adaptability of products, waste management and trace-
ability of substances of concern throughout the lifecycle
of the manufactured products. PlasmaSonic wind tun-
nels is a new product, 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 has been conducted in accordance
with Appendix C. Tekna has compiled a list of the con-
trolled and banned substances and chemicals in the
regulations and directives named in Appendix C and
inquired the laboratory team and building management
to confirm that all substances and chemicals used in
Tekna
’
s operations are conform with the laws.
as the feedstock or precursor introduced in the system)
and the plasma gases which consists of Argon, together
with a secondary gas like helium, nitrogen, hydrogen or
oxygen. None of these gases are considered critical for
the GHG emissions. With its nano-sized materials Tekna
enables electrification through MLCC (downsizing elec-
trical components), thereby enabling GHG emission
reductions.
Substantial Contribution:
The documentation requirement regarding life-cycle
GHG emissions calculation has not been fulfilled, hence
the substantial contribution criteria is considered 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.
Assessments (continued)
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 115
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
Minimum safeguard requirements are defined in article
18 of the EU Taxonomy regulation. According to which,
an undertaking shall implement procedures to ensure
the alignment with:
•
The OECD Guidelines for Multinational Enterprises
(OECD Guidelines for MNE)
•
The UN Guiding Principles on Business and Human
Rights (UNGPs), including the principles and rights
set out in the eight fundamental conventions identi-
fied in the Declaration of the International Labour
Organisation on Fundamental Principles and Rights
at Work
•
The International Bill of Human Rights
When assessing compliance, the Platform on Sustaina-
ble Finance
’
s final report on minimum safeguards was
also considered.
The Compliance documentation incorporates the OECD
Guidelines for MNE and the OECD Due Diligence Guid-
ance for Responsible Business Conduct (OECD DD
Guidance), which are in line with the UNGPs. The
Group
’
s policies, such as the Code of Conduct and the
Supplier Code of Conduct which can be found on our
website, includes our policy on the internationally rec-
ognized human rights, that includes the International Bill
of Human Rights and the ILO core conventions on Fun-
damental Principles and Rights at Work.
The Enterprise Risk Management covers Responsible
Business Conduct Principles as defined and interpreted
Additional assessment against
Environmental Objective Climate
Change Adaptation (CCA)
Environmental Objective: Climate Change Adaptation
Economic Activity: 3.6 Manufacture of other low carbon
technologies
Assessment Eligibility:
See description of the activities
“
Production of additive
material powders
”, “
Production of turnkey plasma sys-
tems
”, “
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 requirements of Appendix a
is currently not in place. As such, the economic activities
are not considered eligible under climate change adap-
tation.
Substantial Contribution & Do no significant
harm:
Since the economic activity is not considered eligible for
the environmental objective Climate Change Adapta-
tion, no further assessment of technical screening crite-
ria has been carried out.
Conclusion:
Activity is not eligible under the Environmental Objec-
tive CCA
by the OECD Guidelines for MNE. Due diligence on Re-
sponsible Business Conduct Principles shall be per-
formed according to the OECD DD Guidance. Our due
diligence process covers topics such as social and em-
ployee matters, human rights, anti-bribery and anti-
corruption, tax, consumer rights and competition. To
ensure that the procedure is incorporated, Tekna poli-
cies and procedures are easily available to employees
(in Isovision, the company document management sys-
tem)
and
other
relevant
stakeholders
(on
www.tekna.com/esg). Furthermore, all employees re-
ceive training, which includes relevant topics addressed
in the Code of Conduct and Ethics and the Compliance
policies, and information about the whistleblowing
channel. In addition to company-wide risk assessments,
the company is subject to the Transparency Act and
performs risk assessments in line with the regulatory
requirement. This includes requirements such as provid-
ing information about adverse impacts and implement-
ed or planned measures to cease or mitigate these im-
pacts (refer the the Human Rights and Transparency Act
report 2023).
We are not aware of any breaches of the business con-
duct principles, as defined in the CoC. Further, we have
not been convicted in court nor contacted by the OECD
National Contact Points or the Business and Human
Rights Resource Center with allegations on any of the
topics covered by minimum safeguards.
Based on our assessment, we believe that the Groups
documentation, processes and policies meet the re-
quirements of the minimum social safeguards and that
we have established adequate human rights due dili-
Minimum Social Safeguards
Assessments (continued)
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 116
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
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 re-
quired to validate our alignment with Climate Change
Mitigation.
We will continue retrieving and improving relevant doc-
umentation and assessing the technical screening crite-
ria adopted by the EU in June 2023.
gence processes as outlined in the UNGPs and OECD
Guidelines for MNE. As such, we believe the Tekna
Group complies with the minimum social safeguards
requirement. For further details, please refer to our
statements on Ethical Business Conduct in the sustaina-
bility report.
Further, we acknowledge that the EU Taxonomy is still
evolving, where future FAQs and publications from the
European Commission may shed new light on the inter-
pretations substantiating this year
’
s assessment. Having
assessed eligibility for all environmental objectives for
2023, we are well-positioned to expand our reporting to
alignment for new activities and objectives in 2024.
Future work
Tekna employees with a Powered Air Purifying Respirator Unit, personal protective equipment
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 117
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
the numerator of turnover, CapEx, and OpEx, i.e. avoid-
ing double counting.
During 2023, Tekna has not issued new or distributed
previously issued green bonds with the purpose of fi-
nancing 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 aligned and eligible, not aligned turnover
is calculated as the net turnover derived from products
and
services
associated
with
aligned/eligible,
not
aligned turnover, divided by the Group's total net turn-
over, 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 Taxon-
omy turnover. See the Consolidated Income Statement
and note 2 of the Financial Statements and the note
Turnover for the related line items in the non-financial
statement.
Accounting policies
Intro
Our accounting methodology for calculating and deter-
mining the financial key performance indicators (KPIs)
disclosed by the EU Taxonomy Regulation follows the
requirements in the EU Commission Delegated Regula-
tion 2178/2021. In line with the regulation, Tekna reports
on turnover, CapEx and OpEx for aligned and eligible,
not-aligned economic activities.
The majority of Tekna
’
s economic activities contribute to
multiple environmental objectives and alignment has
been assessed against each. For the purpose of allocat-
ing financial KPIs to a respective environmental objec-
tive, activity-specific considerations have been evaluat-
ed, in addition to Tekna
’
s overall ESG strategy. 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 and alignment to this objective. No further
preventative measures (such as allocation keys) have
been deemed necessary to avoid any dual allocation of
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 aligned and eligible, not aligned
CapEx is calculated as CapEx associated with aligned/
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 deprecia-
tion, amortisation and any re-measurement, including
those resulted from revaluations and impairments. As
such, CapEx covers costs accounted in the following
IFRS-standards: IAS 16
Property, Plant and Equipment
,
IAS 38
Intangible Assets
and IFRS 16
Leases
. 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 in-
cluded. See the Consolidated Cash Flow Statement and
note 10, note 11 and note 13 for the related line items in
the financial statements and the note CapEx for the re-
EU Taxonomy Statements
Figure 5: Qualification per Environmental objective
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 118
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
tive Materials (AM). Tekna production systems are dedi-
cated either to AM or ME.
Allocation was based on
hours worked by specific system in 2023.
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 Taxono-
my-eligible/aligned economic activities, as well as pur-
chase of output from Taxonomy-eligible/aligned eco-
nomic activities, as defined by letter (a) and (c) in the EU
Commission Delegated Act 2178, section 1.1.3.2. Cur-
rently, Tekna do not have any material operational ex-
penditures related to a CapEx plan.
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 de-
termine the KPI
’
s.
Revenue from contracts with customers: CAD 40 399 489.
R&D Income is excluded.
No turnover is used for internal consumption, and all is
relevant for the EU taxonomy assessment.
Compared to 2022 EU taxonomy progress report the
definition of activities has been narrowed resulting in
four assessed activities in 2023 compared to two in
2022.
lated line items in the non-financial statement.
The numerator of the CapEx KPI mostly consists of capi-
tal 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 ex-
penditures related to a CapEx plan (b) as part of a plan
to expand Taxonomy-aligned economic activities or to
allow Taxonomy-eligible economic activities to become
Taxonomy-aligned under conditions specified in the
Delegated Act, nor does it purchase output from Taxon-
omy-eligible/aligned economic activities (CapEx c).
Calculation of OpEx
The share of Tekna
’
s aligned and eligible, not aligned
OpEx is calculated as OpEx associated with aligned/
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 re-
late to research and development, building renovation
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 ac-
counts related to maintenance and R&D. Allocations
were as follow:
For maintenance costs allocation keys were needed to
segregate expenses for Microelectronics (ME) and Addi-
Note CapEx
All
capital
expenditure
is
considered
eligible,
ie
CAD 8 132 779.
Property, Plant & Equipment: CapEx considered eligible:
CAD 7 401 606 (excluding ROU).
Intangible assets: Capitalized patents and development
fees: CAD 372 812.
Investment properties: no change
Right-of-Use assets: additions: CAD 385 361.
Note OpEx
OpEx was determined using specific general ledger ac-
counts related to maintenance and R&D. Allocations
were as follow:
For maintenance costs: allocation were needed to seg-
regate expenses for Microelectronics (ME) and Additive
Materials (AM). Tekna production systems are dedicated
either to AM or ME.
Allocation was based on hours
worked by specific system in 2023. 98% to AM and 2%
to ME.
For R&D:
No allocation key used as we apply Project
accounting.
OpEx: CAD 2 736 899
Change of definition from all OpEx in FY22 to direct
expenditures related to the continuation and effective-
ness of functioning of assets in FY23.
EU Taxonomy Statements (continued)
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 119
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
EU Taxonomy Statements (continued)
Revenue
Financial year 2023
Economic Activities (1)
Code (2)
Turnover (3)
Proportion of Turnover
{2023} (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
Manufacture of other low
carbon technologies
CCM 3.6
25 691 644
62.8%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
25 691 644
62.8%
62.8%
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
14 707 845
36.0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
14 707 845
36.0%
36.0%
0.0%
0.0%
0.0%
0.0%
0.0%
40 399 489
98.8%
98.8%
0.0%
0.0%
0.0%
0.0%
0.0%
488 913
1.2%
40 888 402
100%
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
2022 (18)
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)
A. Turnover of Taxonomy-eligible
activities (A.1. + A.2.)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities
TOTAL
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 120
Sustainability
Reporting
Contact Information
Corporate Governance
Statement
This is Tekna
CEO letter
Board and
Management
Financial Statements
Auditors report
Shareholder
information
Board of Directors
’
report 2023
EU Taxonomy Statements (continued)
CapEx
Financial year 2023
Economic Activities (1)
Code (2)
CapEx (3)
Proportion of CapEx {2023}
(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
Manufacture of other low
carbon technologies
CCM 3.6
6 668 436
82.0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
6 668 436
82.0%
82.0%
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
1 464 343
18.0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1 464 343
18.0%
18.0%
0.0%
0.0%
0.0%
0.0%
0.0%
8 132 779
100.0%
100.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0
0.0%
8 132 779
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 2022
(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
EU TAXONOMY REPORT 2023
-
Introduction
...............................
108
Results
........................................
109
Scope
............................................
110
Process
.........................................
110
Assessments
.................................
111
Minimum Social Safeguards .. 115
Future work
.................................
116
EU Taxonomy Statements
......
117
Accounting policies
..............
117
Contextual information
about the KPIs
........................
118
Statements
................................
19
Index
ANNUAL REPORT 2023
| 121
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Statement
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CEO letter
Board and
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Financial Statements
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report 2023
EU Taxonomy Statements (continued)
OpEx
Financial year 2023
Economic Activities (1)
Code (2)
OpEx (3)
Proportion of OpEx {2023}
(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
Manufacture of other low
carbon technologies
CCM 3.6
1 160 351
11.3%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
1 160 351
11.3%
11.3%
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%
E
0
0.0%
0.0%
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
1 576 548
15.4%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1 576 548
15.4%
15.4%
0.0%
0.0%
0.0%
0.0%
0.0%
2 736 899
26.7%
26.7%
0.0%
0.0%
0.0%
0.0%
0.0%
7 510 869
73.3%
10 247 768
100%
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 2022
(18)
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)
A. OpEx of Taxonomy-eligible activities
(A.1. + A.2.)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
TOTAL
 
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This is Tekna
Shareholder
information
Board of Directors
’
report 2023
CEO letter
Board and
Management
 
Alternative Performance
Measures—definitions
............
123
Abbreviations ESG
...................
124
Appendix
Appendix
 
ANNUAL REPORT 2023
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’
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Appendix
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:
Backlog:
Sales order intake awaiting completion or awaiting call off
by customer (release) in case of
blanket orders.
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
special operating items include, but not limited to, listing costs, adjustments for expenses related to
cloud-based software previously recorded in the balance sheet (retrospective implementation ac-
counting for cloud-based services for the years 2021, 2020 and 2019) and litigation fees.
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 special operating items include, but not
limited to, listing costs, adjustments for expenses related to cloud-based software previously recorded
in the balance sheet (retrospective implementation accounting for cloud-based services for the years
2021, 2020 and 2019), and litigation fees.
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.
SUSTAINABILITY STATEMENTS
ANNUAL REPORT 2023
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Abbreviation
Clarification
Useful link
Abbreviation
Clarification
Useful link
AFK
Arendals Fossekompani ASA
Home - Arendals Fossekompani
IR
Injury Rate
AM
Additive Manufacturing
ISO
International Organisation for Standardisation
ISO - International Organization for Standardization
AMGTA
Additive Manufacturer Green Trade Association
Home - AMGTA
IT
Information Technology
AR
Absentee Rate
KPI
Key Performance Indicator
BoD
Board of Directors
investors/governance (tekna.com)
LCA
Life Cycle Assessment
Life-cycle assessment - Wikipedia
CoC
Code of Conduct
LDA
Lost Day Rate
CoP
Communication on Progress (Re: UN Global Compact)
LiB
Lithium-ion Battery
CSR
Corporate Social Responsibility
LTI | LTIFR
Lost Time Injury Rate | Lost Time Injury Frequency Rate
CSRD
Corporate Sustainability Reporting Directive (EU)
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-
opment
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 |
TCFD) (fsb-tcfd.org)
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
IPCC
Intergovernmental Panel on Climate Change
IPCC —
Intergovernmental Panel on Climate
Change
Appendix
Abbreviations
 
 
 
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Tekna Holding ASA
Langbryggen 9
4841 Arendal
Norway
Headquarter:
2935 Boul. Industriel
Sherbrooke, Québec
J1L 2T9 Canada
+1-819-820-2204
investors@tekna.com
www.tekna.com/investors
esg@tekna.com
www.tekna.com/esg
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