Teradyne Robotics A/S

Ledelsesberetning

Key activities As in prior years, the Group's main activity is the development, manufacturing and sale of flexible, easily programmable and collaborative robots as well as development, manufacturing and sale of autonomous mobile robots. Development in the year The Group reported a loss before tax for 2024 of DKK -193m, and equity amounts to DKK 1,62m on 31 December 2024. The result is not considered satisfactory and is seen as a consequence of the tough market conditions for collaborative and mobile robots. Furthermore, the macroeconomic situation throughout the year has proven challenging for many industries, considering the war in Ukraine, dispute in the middle east and the negative development of inflation and interest rates. As a result, revenue decreased by 2.1 % compared to last year.During the year of 2024, Universal Robots and Mobile Industrial Robots moved together in a newly constructed building, which was the first steps of an overall plan to increase collaboration between the two Teradyne owned companies, and in the late 2024 this legal merger of the two companies was conducted. The expectations for 2024 presented respectively in the last year's annual reports were revenue growth within the Group and a net profit for the Group in line with or slightly better than 2023. Both was unfortunately not possible to achieve as the global growth in robotics was lower than anticipated due to the macroeconomic circumstances, high inflation in the world and negative development in interest rates impacting heavily customers and partners cancelling or postponing investments.The Group has distribution channels in approximately 50 countries around the world and has subsidiaries, branches, or group-related companies in these countries: USA, Mexico, Germany, Spain, Italy, France, Czech Republic, Sweden, United Kingdom, China, Singapore, India, Japan, Thailand, Taiwan and South Korea. Expected development of the company, including specific prerequisites and uncertainties The current macroeconomic environment after a couple of years with unusual high inflation resulting in high interest rates across the world, as well as war in Ukraine and dispute in the Middle east, makes it a difficult environment to operate in and predict. Despite this, the Group has an ambition and will continue to execute its strategy to deliver revenue growth in 2025, however Management remains mindful of the uncertain macroeconomic environment.Teradyne Robotics has executed a cost saving restructure, which included targeted lay-offs that took place in the beginning of the new year. This was a necessary action in order to meet expectations of profitability and to start chasing synergies after having the two companies legally merged. Revenue growth is expected to be driven by new products and channel transformation improvements, which together with a continued execution of the strategy and investments in innovation and R&D, will secure Teradyne Robotics’ position as market leader. Management expects a net profit before tax for the Group in 2025 to be in the range of DKK 100m to 150m. Uncertainties associated with the expected development of the company The Group's most significant operating risks are related to the ability to maintain the present strong position in the market. The risk is mitigated through significant investments in innovation, user experience improvements and general R&D. Currency risk The Group has a natural currency exposure, primarily in EUR, USD and CNY (Renminbi), and the Group is therefore to some extent exposed to developments in exchange rates. It is the Group's foreign exchange policy not to hedge such exposures. *Credit risk* The credit risk is controlled by performing ongoing credit ratings and credit insurance of customers and business partners.The Group has considerable focus on the credit risks in relation to the customers and management consider the current total credit risk to be low. *Prices on raw material* Changes in prices and delivery terms for purchase of raw materials and consumables for production is closely monitored ongoing and production demand is both forecasted and secured 6-12 months forward with vendors. The continued price developments and delivery issues, with respect to current macroeconomic situations around the world, and initiatives and regulations on import of goods can influence the production cost significantly. *Knowledge resources* The company is to a large extent a knowledge-based company. To retain and attract highly competent employees, there is a high focus on targeted competence development of all employees. The company's knowledge resources consist primarily of knowledge of employees and products. Knowledge resources among the employees play a major role in the continued development of the company's product range and the demand that comes from the company's customers. Research and development Teradyne Robotics A/S continues to invest many resources in the continuous development of the Company's products and markets. Consequently, the Company is dependent on being able to attract and retain the right human resources and skills. External environment The activities of the Group does not impact the external environment significantly; however, the Company strives and is proactively working on reducing the level of energy consumption and CO2 emission on a continuous basis, and has initiated several sustainability initiatives, aiming at becoming more sustainable over the coming years. Subsequent events No material events other than described above have occurred after the end of the financial year which could significantly affect the group´s financial position. Corporate social responsibility statement cf. section 99 a of the Danish Financial Statements Act CSR is an important focus point at Teradyne Robotics A/S, and corporate responsibility as a systematic basis for management decisions has always been and will continue to be an important and integral part of our strategies and daily work procedures.We have visions, policies and guidelines addressing several aspects of the CSR area, including e.g. employee Code of Conduct, anti-corruption, responsible sourcing, compliance with competition laws, whistle-blower scheme, environment, occupational health and safety, community relations, climate and human rights.As an integral part of management’s roles and responsibilities, our management team, and our Board of Directors ongoingly assess risks of relevant areas and decide on initiatives to be implemented.The full statements according to the above Act can be found in a separate report at our homepagehttps://www.universal-robots.com/about-us/social-responsibility or via this deep link:https://a.storyblok.com/f/230581/x/ba22a5154b/csr-2024.pdf Data ethics policy cf. section 99 d of the Danish Financial Statements Act Teradyne Robotics A/S ensures data ethics, which includes addressing and recommending concepts of right and wrong conduct, with transparency in and defensibility of actions and decisions in relation to data in general and personal data.Teradyne Robotics A/S as a part of the Teradyne’s Global Data Protection Program, ensures compliance with applicable data privacy laws, and gives individuals more overview over how their data is collected, used, and protected. Teradyne’s Global Data Protection Program includes the Privacy Policy, Data Classification Policy, Data Retention Policy, Data Security Incident Response Policy, Information Security Policy, and other internal processes and guidelines in place which details how we handle, classify and store data globally. In accordance with applicable laws and regulations, including GDPR, the EU Whistleblower Directive and Danish Whistleblower Act, Teradyne Robotics has a few channels, including Whistleblower Hotline, for report data breach, illegal or unethical conduct, suspected violations, complaints, concerns, or misconduct, including violations of internal policies.