ANNUAL REPORT 2010KONGSBERG SATELLITE SERVICES

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President’s Message

A century ago, in 1911, Roald Amundsen planted the Norwegian flag at the South Pole. The impossible isn’t a showstopper, it’s just takes a bit longer.

Pole to Pole once characterized Kongsberg Satellite Services (KSAT). No more. Well, almost. We’re still at the Poles, now even better rigged. But in 2010, we augmented our stations in the Arctic and the Antarctic with four stations at mid-latitudes, in South Africa, Singapore, India and Dubai. They will enable satellite owners and operators to communicate with and receive data faster and more often than ever before. For some appli-cations, rapid access to data outdoes a lean ground segment in which one station serves all orbits of polar-orbiting Earth Observations satellites.

That’s particularly so at sea, not least because the oceans cover more than seven-tenths of the globe. So KSAT’s Marine Situational Awareness service is significant. Local reception of data may open for even faster service provision. The KSAT-developed supply of data in less than 30 minutes has become an industry standard. With synthetic aperture radar (SAR) data from satellites received at an antenna in Dubai, the entire Middle East can be covered. Oil spill, ship detection and related applications will be available to local users. As concluded in KSAT’s prime contracting for the European Maritime Security Agency (EMSA) oil spill detection service, timeliness and cove-rage go hand in hand. The service now is going global.

Other applications are on the way. In 2010 the KSAT staff con-tinued refining the nascent ice detection service. Applications abound, such as tracking icebergs, which will be increasingly important when oil drilling starts in the Arctic in a couple of years, as in the Beaufort Sea north of Alaska. In January 2011, NOAA reported that the extent of sea ice in the Arctic was the smallest ever measured. This augurs accelerated global warming and environmental impact. It also brings visions of new possibilities. The Northern sea routes to Asia soon will be in everyday use. In turn, this forewarns a greater need for effi-cient satellite surveillance to guide vessels through the ice. The Multi-mission service developed by KSAT will be an indispen-sible tool for such services.

KSAT now operates 47 antennas at its ground stations. In De-cember 2010, 10.300 contacts were made to the more than 70 satellites served daily. Agreements with key customers and part-ners empowered the launch of the DirectImage multi-mission near real time data service. During the blow-out in the Gulf of Mexico, KSAT continually provided multi-satellite imagery to the responsible parties. Within minutes, data received form several satellites were analyzed and presented in Houston.

The year 2010 was successful, with progress in all areas. Twenty was the magic number, with growth in revenue, earnings, em-ployees and number of passes all about 20 %. I have the pleasure to be in charge of an organization focusing on the opportunities we see at every corner. The team is always focusing on customer satisfaction and requirements. Building a high tech enterprise in northern Norway entails, however, a collage of challenges.

We must build a local base, establish a regional focus with nati-onal support and then act globally. Something new? Hardly. I’m just following the example set by famed Norwegian ex-plorers. A century ago, in 1911, Roald Amundsen planted the Norwegian flag at the South Pole. The impossible isn’t a show- stopper, it just takes a bit longer.

That said, I occasionally have difficulty explaining what we do in terms meaningful to the general public. Our principal pro-ducts are satellite images in great quantity. Most belong to and are credited to our clients. For example, the much published image of the Deepwater Horizon oil spill shown on the next page might be one of many MODIS images that KSAT down-loaded in 2010. But it might also not have been, because as for packets on the Internet, it might have taken another route to get to NASA. Indeed, KSAT is the silent servant: like the postman, always there but seldom named. Yet with the expansion of services in 2010, I believe that we have ever more cause to an-ticipate unabated progress for KSAT, as our staff responds to the challenges of new opportunities as they arise. That might call for a celebration, or at least a virtual one. For that I suggest “The Restaurant at the End of the Universe” (the sequel to “The Hitchhiker’s Guide to the Galaxy” in the sci-fi comedy series by Douglas C Adams), as it’s an extraordinary place to chat about how far you can go. See you there next year.

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KONGSBERG SATELLITE SERVICESKONGSBERG SATELLITE SERVICES

President’s messageEvents 2010KSAT Network Augmentation

Maritime Situational AwarenessKongsberg Satellite Services Annual Report 2010Numbers and figures

TABLE OF CONTENTS

Rolf SkatteboePresident

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JANUARY• Service for the JAXA Hinode satellite starts from Dubai and

Troll• ESA Galileo operational at SvalSat• Kick-off – SG25, the third 13 meter antenna installed at

Svalbard

FEBRUARY• Recertification of KSAT’s quality system by Norske Veritas

(DNV), ISO 9001:2008• Successful participation in 13 nation NATO inter exercise

“Cold Response 2010”• Satellite-based AIS included in KSAT’s operational Maritime

Situational Awareness service• KSAT successfully supports the launch and LEOP of

CryoSat-2• Presentation of KSAT’s activity given to the Norwegian

Parliament’s Arctic Committee

MARCH • Operational readiness revue on SG40 (AISAT-1)• Galileo GSS site survey conducted on Jan Mayen• Education: at a career fair at the Norwegian University of

Science and Technology (NTNU), four students win a trip to Svalbard, sponsored by KONGSBERG.

• EXPO 2010 in Shanghai. KSAT co-organizes environmental seminar together with the Norwegian Ministry of the Environment

Events 2010

APRIL• KSAT’s starts the Iridium face II, including construction of

three new antennas• Ice-tracking with CSM in Beafort Sea• Communication capacity to TrollSat doubled to 140 Mbit/s• Satellite tracking of the Eyjafjallajökull volcano eruption on

Iceland • KSAT staff on four continents at the same time• KSAT part of the official industry delegations that accom-

pany HRM Crown Prince Haakon of Norway’s visit to UAE

MAY• Spring barbeque party at SvalSat station• Deepwater Horizon disaster: Multiple-mission service to BP

in the Gulf of Mexico initiated• KSAT company sports team runs in the annual Holmen-

kollen relays in Oslo• Co-organization of “The Oslo EO workshop” with the

Norwegian Space Centre • GCOM-W1 operational preparation contract with NOAA/

NRS/JAXA JUNE• GEO-picture kick off of the EU Fp-7 Project• Iridium Phase 2 installation SAT at Svalsat concluded• KSAT successfully supports Tandem-X LEOP• KSAT Stand and presentation of KSATs oil service on the

ESA Living Planet-symposium, Bergen• PROBA 2 Operational Readiness Review (ORR)

JULY• CARTOSAT-2B launch supported successfully• All time high in EU services; 1100 scenes produced in one

month• Presentation of KSATs activities to politicians from the

Nordic Countries AUGUST• KSAT activities presented to American Ambassador to

Norway• NASA Senior Executives visit KSAT Svalbard• Reindeer hunting on Svalbard • Barentswatch activities initiated-Monitoring of the

Northern Areas• EMSA Clean SeaNet 2 awarded SEPTEMBER• NOAA Senior Executives visit SvalSat• Annual KSAT QA seminar 2010• NASA Ka band site survey at Svalbard • The North Atlantic Coastguard Forum – 60 persons from

around the world visits KSAT HQ in Tromsø• KSAT staff numbers more than 100

OCTOBER• The Norwegian Search and Rescue coordination center

visits Svalbard• Exact Earth CEO visits SvalSat• LDCM MOR in Washington (Mission Operation Readiness)

• Operational Readiness Review SG21 Exact Earth operations initiated

• District governor of Svalbard site inspection• SG1 experiences a mechanical failure. Operations are

diverted to other resources. • KSAT participates in EXPO 2010 Shanghai• KSAT simulator – GCOM W-1 Satellite RF compatibility test

completed successfully in Tsukuba, Japan• KSAT part of the Norwegian delegation to Pemex Inter-

national Forum in Vera Cruz, Mexico

NOVEMBER• KSAT stand and presentation on Asian Conference on

remote sensing• Prepare Ka-band NASA propagation study at SvalSat• GEO Forest Carbon Tracking project concluded• SvalSat annual Christmas dinner• KSAT support for NASA FastSat launch

DECEMBER• Icemar contract signed • SG25 Site Acceptance Test completed• 10.000 satellite contacts per month from KSAT antenna

installations• Walter Qvam, CEO of KONGSBERG visits KSAT Tromsø• First contract for KSAT mid-latitude network signed• TR2 installed at TrollSat

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In late 2010, KSAT confirmed its strategic decision to respond to user requirements and customer demand by establishing four new ground stations. Located at latitudes within 30° north and south of the equator, the new stations offer reduced latency and increase ground capacity, both increasingly important vari- ables in space operations. The KSAT network now covers the high latitude SvalSat station, the TrollSat station in Antarctica and from 2011, the four new stations at mid-latitudes.

The Mid-Latitude network is owned and operated by KSAT, which initiated procurements of infrastructures, antennas and telemetry equipment to implement the four stations. All four stations are scheduled to be fully operational by the third quarter of 2011. The stations and the KSATs partner organi-zations involved in them are described below.

KSAT Hartebeestoek StationKSAT selected South African National Space Agency (SANSA) and its ground station facility at Hartebeestoek outside Johan-nesburg as the KSAT partner in southern Africa. The South African and Norwegian requirements for space data services are similar, which strengthens our cooperation. In the first half of 2011 KSAT will install a high performance multi-mission S-band and X-band 7m antenna system in Hartebeestoek. The system is capable of supporting dual polarization downlinks and is configurable to support any mission operating in the S or X-bands.

KSAT Dubai StationFor several years, KSAT and EIAST (Emirates Institution of Advanced Science and Technology) have collaborated to provide station services to KSAT customers from the existing Dubai station.

KSAT Network Augmentation

The KSAT Dubai station now will provide additional capacity from a new 7.3m multi-mission S-band and X-band system. The KSAT Dubai Station coverage is ideal for near real-time operations for both land and maritime applications in the region. The KSAT global maritime services also will be pro-vided from this new station.

KSAT Singapore StationSingapore is an ideal location, both as a data dump station for land masses in western Asia and as a near real-time station for maritime applications in Indonesian, south China and Indian waters. KSAT’s partner in Singapore, SingTel, will host the KSAT 9m multi-mission S-band and X-band system at the Seletar Earth Station in Singapore. The earth station provides excellent hosting and communication services to KSAT and its users.

KSAT Bangalore Station The Indian Space Agency ISRO has become an important partner of KSAT through the ISTRAC (ISRO S-band Tracking Network). Joint ground operations at SvalSat and in Banga-lore have been performed to support several missions. Now the partnership will operate the new KSAT Bangalore Station, which was designed for deep space support but now also will provide generic ground station services for earth obser- vation satellites. In mid 2011 KSAT will install the 7.3m multi- mission S-band and X-band antenna system with support from ISTRAC. Operations are expected to start in the third quarter of 2011.

Operations ConceptsMid Latitude network operations are fully integrated into the KSAT ground network. Scheduling is performed according to existing concepts, so current customers will experience

Located at latitudes within 30° north and south of the equator, the new stations offer reduced latency and increase ground capacity, both increasingly important variables in space operations.

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Troll system 2Mid Latitude Sites

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World-map showing the locations for the initial four KSAT Mid Latitude stations. Shown together with KSAT polar network.

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no change in receiving services from SvalSat, TrollSat or any of the Mid Latitude stations. Service management, including pass requests, pass confirmations and real-time connectivity, are routed through the Tromsø Network Operations Centre (TNOC) as for all other stations in the KSAT network.

Data Repatriation (Backhaul Communication)One of the purposes of the Mid Latitude Stations is to meet data latency requirements for near real-time (NRT) applications. The Mid Latitude sites will have high bandwidth network capa-bility in the 1 Gbps range with an initial configuration in 2011 at 150-200Mbps. All sites are served by major global commu-nication providers with redundant paths to stations.

TrollSat 2TrollSat is a key station in the KSAT network. It also is the only commercial station in Antarctica providing excellent coverage through reliable operations, with the capability of high band-width communication back to Europe and the USA or both. In January 2011, KSAT installed the second 7.3m general purpose X/S-band LEO antenna at Trollsat, for increased capacity and reduced operational risk.

The new TrollSat-12 system is identical to TrollSat-11 and will be used for existing and new missions served from Antarctica. In conjunction with this capacity extension, KSAT also up-graded the communication capacity to TrollSat.

Future Network EvolutionCustomer demand for increased space-to-ground link capacity precipitates a need for continuous network evolution. One of the key areas for development entails finding alternative bands other than X-band for payload data downlinks. The Ka-band is one of the most promising, as it is a less busy frequency band and affords options for higher information rates. In view of this and to support future missions, KSAT expects install Ka- band terminals both at SvalSat and at TrollSat in the near future, along with a continuous expansion of the Mid Latitude network to other regions.

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The monitoring of vessel traffic on the oceans of the world for environmental, safety and security reasons has become a requirement and in which satellite technology plays a more and more important role.

©RAW DATA ESA 2006, PROCESSED BY KSAT ©NOAA image

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In 2010, there was a marked upswing in international interest in Maritime Situational Awareness (MSA). The monitoring of vessel traffic on the oceans of the world for environmental, safety and security reasons has become a requirement and in which satellite technology plays a more and more important role. During the year, KSAT used its ground station network and operational service capabilities to show how satellite radar and optical images can be used together with the satellite Auto-matic Identification System (AIS) for near real-time global de-tection, tracking and identification of vessels, and for discrimi-nation between vessels and other surface objects like icebergs.Satellite radar images have long been used for near real-time maritime services. Newer radar missions are becoming opera-tional, and the operational access to optical data has improved. Moreover, satellite AIS information now is widely available, which has extended the capabilities for target detection and identification from the coastal regions to the oceans of the world. In 2010, KSAT signed agreements that give us improved access to new radar missions, to optical data and to satellite AIS information. In addition, we are involved in development activities funded nationally, through ESA or through the EU, where improved and next generation MSA services are being developed. These developments have been demonstrated in operational environments in cooperation with the operational

Maritime Situational AwarenessGreater coverage, more detail

end-users. The needs for updated and reliable information to support MSA are crucial. Commercial activities, such as fish-eries, offshore oil and gas and shipping in ice-infested waters are increasing, and piracy has grown to become a treat for the commercial shipping.

In 2009, the first commercial ships sailed through the once im-passable Northeast Passage with no significant hindrances due to ice conditions. Moreover, as summertime ice dwindles, ship traffic in the passage between Europe and Asia is expected to increase. That said, the prevailing weather and ice conditions may change rapidly. Hence there’s a need for frequently updated information about weather and ice. KSAT now supplies satel-lite data to ice and weather information providers, and itself is developing an iceberg service. Our ground stations in Tromsø and Svalbard are ideally located for providing frequent access to satellite data and information from the Northern areas. So we anticpate an increasing demand for our data and services, provided that shipping activities continue to increase. In ad-dition to delivering data to other providers, we also will be responsible for establishing a new Global Monitoring for Envi-ronment and Security (GMES) service that will provide access to ice information for vessels operating in ice infested waters in the North and in the Baltic. This represents an important

step towards bringing today’s existing ice information to the navigation systems on board user vessels.

The alarming upswing in piracy in the Gulf of Aden and now also in the Indian Ocean create an increasing threat to civilian shipping. Naval forces now are deployed in the areas to protect civilian vessels. But traditional technologies are inadequate to maintain updated information about the vessel traffic in these large ocean areas. Use of satellite based services as an addition-al source of information has therefore been evaluated through dedicated campaigns like the PIRASAT campaigns in the Gulf of Aden under the responsibility of the European Maritime Safety Agency (EMSA), located in Lisbon. The aim was to evaluate whether satellite technology could be used to identify small vessels that likely could be pirates. KSAT is the prime partner for the European service industry and coordinated the service operations towards EMSA. The outcomes of these cam-paigns are now being evaluated in cooperation with the naval forces, and there are plans for conducting new campaigns in 2011. KSAT will have a lead role also in the new campaigns, in which we expect that our new mid-latitude network of ground stations will play in increasing role.

Example on integration of satellite AIS data into the KSAT MSA service. The white symbols in lower right show vessels identified from integration of AISSAT-1 data.

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Our MSA service elements have been established in coop-eration and with commitment from European users, includ-ing coast guards, defence, offshore oil and gas industry. Their involvement and validation of our service has provided valu-able feedback for continually improving the services. Our first versions used the correlation between satellite imagery and non-imagery information, such as AIS, to identify vessels in the coastal zone out to 60–80 kilometrer off the coast. However, end users also should be able to identify vessels in open oceans and in areas with no operational AIS chains. Hence, Satellite AIS has become an important additional source of informa-tion to extend our service to those areas. In July 2010, Norway launched its first AIS satellite, AISSAT-1. KSAT is providing operational support to this satellite in all areas, Telemetry, Tracking and Control (TT&C), Data Reception and Mission Control Centre functions. At the same time our maritime services has been brought another step forward by the avail-ability of satellite AIS data from this satellite and from a few other demonstrational AIS missions. Through our cooperation with the Norwegian Coastal Directorate and the Norwegian Defence Research Institute (FFI), we have demonstrated how satellite AIS data could be used to identify hijacked vessels off the coast of Africa. These examples have found global inter-

est, and we are now in a dialogue with global end-users to start demonstrating our global capacity in the integrated use of sat-ellite images and non-imagery including satellite AIS.

The availability of higher resolution optical and Synthetic Aperture Radar (SAR) data, the development of the methods to integrate the multi-mission data and apply the data for in-formation extraction, and the availability of satellite AIS data allowing target identification at a global scale represent the main developments for use of satellite technology for maritime situational awareness information services. At the same time there are events like hijacking and operations in icy waters that generate burgeoning user needs for this type of information. The pilot demonstrations like PIRASAT and bilateral pilot deliveries for operational users have documented that the inte-grated satellite technology today can meet several of the impor-tant user requirements. The illustrations show how the higher resolution of data, from a few hundred metres to a kilometre for the National Oceanic and Atmospheric Administration (NOAA) and Moderate Resolution Imaging Spectroradiometer (MODIS) satellites, to resolutions of less than a metre for the QuickBird high-resolution satellite, has contributed to improv-ing the MSA information content from large scale ice edge and

extension mapping into studying details of individual vessels.However, there’s still a need for improving this service, in enhancing its information content and reliability, as well as in increasing its global timely availability. KSAT invests in both aspects. We are involved in projects funded by the EU Framework programs, the GMES bureau, The European Space Agency (ESA) and national sources which all focus on establishing an improved next generation service in close co-operation with operational end-users. Cooperation with R&D institutes and other service providers are also important ele-ments of our strategy. Our expanding ground network assures fast and reliable access to global data including both satellite imagery and AIS data. In the years to come, this unique multi-mission global approach will help strengthen our position as a global MSA service provider. The MSA service developed for and now provided to our home and near markets in Europe now is recognized globally as one of the few really operational satellite technology services and accordingly now comprises a baseline for our global expansion.

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Kongsberg Satellite Services provides satellite ground station and earth observation services to clients round the globe. As a rapidly growing company that now has a staff of more than 100, it’s sometimes easy to forget that KSAT is a part of a global en-terprise, The Kongsberg Group with more than 5.600 employees in 25 countries. The Kongsberg Group market place is the word, and KONGSBERG products are well known in their sectors.

The company slogan, World class through people, technology and dedication, defines the corporate culture. It’s easy for Kongsberg Satellite Services to relate to that slogan and the values that underlie it. They are explicit and identify the ways in which KSAT prefers to be perceived by its customers.

Being a part of KONGSBERG also gives us invaluable support in conducting our business. KSAT has a clear set of Values that govern its everyday affairs, as set forth in its Code of Ethics and Code of Compliance.

KSAT now is globalizing its services. In this effort, we meet new business associates from across the globe. So learning about and understanding new cultures and new ways of doing business is essential. The learning process is unfailingly inte- resting though occasionally challenging. In January 2011, KSAT personnel had business meetings on four continents, including Antarctica. We met with 10–15 new customers and expanded relationship with the ones we already know, all within a couple of weeks. Our marked place is everywhere, so our values must prepare us for it.

Kongsberg Satellite Services Values and the Kongsberg Corporate Story

Values are corporate focal points in 2010. KSAT operation shall be in accordance with our set of standards, which may be de-scribed in four words: determined, innovative, collaborative and reliable.

DeterminedWe are known for our drive and persistence. We continually strive to meet our customers’ expectations. We set ambitious goals for ourselves, and we are driven toward them with a clear and constant focus. What we start, we finish. We do not give in.

InnovativeAlways performing better is an essential part of who we are. We constantly innovate and implement improvements in all parts of our business — from our products, through our processes, to our customers’ experiences. We relentlessly pursue improve-ments, new ideas and new solutions.

CollaborativeCollaboration is fundamental to our business. We exchange ideas among ourselves, with our suppliers and partners, and we cooperate with our customers. We work in teams, we share knowledge and we value team success — to the benefit of our customers and our own competitiveness. We collaborate as in-dividuals and as an organization.

ReliableOur customers and partners can trust KONGSBERG to deliver, always. Dealing with KONGSBERG means dealing with

reliable people, a reliable corporation and reliable products. KONGSBERG is a responsible Organization characterized by integrity and concern for health, safety and the environment. We are reliable people. We are responsible citizens.

KSAT is developing its own corporate story. Innovative solu-tions to optimize the cost benefit of our services are being launched. Taking advantage of the global coverage nature of the satellites we serve, the KSAT market place is expanding and services are being provided round the globe. The KONGSBERG Corporate story is joining us on this journey. It has been devel-oped from the business itself.

KONGSBERGExtreme performance for extreme conditions –

KONGSBERG creates and delivers high-technological solutions for people that operate under very challenging conditions – on the oceans, in the deep subsea, in the defence, in space.

KONGSBERG contributes to improving the safety, security and performance of demanding, complex missions. We achieve this through an in-depth knowledge of our customers’ objec-tives and the needs of operators, and by meeting the relevant challenges with the right systems, services and technological solutions.

KONGSBERG is an international corporation with strong Norwegian roots. Collaboration with our customers, partners

and suppliers, and a commitment to understand the context, in which our technology is applied, are important driving forces behind the corporation’s international development and growth.

KONGSBERG is a worldwide knowledge environment and a performance culture. We share knowledge and drive improve-ments throughout our business, and seek to add value to every customer and in every sector in which we operate. All our activities are characterized by integrity and concern for health, safety and the environment.

KONGSBERG’s systems, services and products are in the in-ternational top league. We have gained this position through more than 200 years of innovation, hard work and determina-tion. Our solutions increase performance and optimize results in areas that are strategically important worldwide – maritime industries, defence and security, exploration of natural re-sources, such as oil, natural gas, fish stocks, and now the explo-ration of space.

KSAT is walking-the-talk. When the enthusiastic KSAT men and women travel the globe in search for new opportunities as well as cultivating existing relationships, our customers and partners can be assured that the quality and the values that we advocate are in according with Norwegian traditions. Our Cor-porate story sets the standards for our operations world wide.

DETERMINED

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About KSATKongsberg Satellite Services AS (KSAT) provides services and products for operation and acquisition of data from satellites in polar orbits. KSAT has two business segments, Ground Station Services and Earth Observation Services. The activities of these two seg-ments comprise operation of ground network facilities includ-ing ground stations for reception of data from and control of satellites, data reception processing and near real time services based on satellite data. The provision of near real time satellite information used for Marine Situational Awareness services is a prime activity. KSAT works continually to develop new offerings based on its main business areas. Extension of the ground station network to non-polar locations as well as globalization of the services are examples of newer developments. KSAT’s com-petitive advantage is its extensive operating experience and capability as well as its cost-effective infrastructure and unique geographic locations. The company has a head office in Tromsø, Norway and activities at stations in Tromsø, on Svalbard (SvalSat), in Grim-stad and at Troll (TrollSat) in Antarctica. The Tromsø Network Operations Center (TNOC) remotely operates the Grimstad and TrolllSat stations. The Tromsø Network Operation center (TNOC) coordinates operations.

At the end of 2010, KSAT had a staff of 101, twelve more than in January 2010.

KSAT is owned 50/50 by Norsk Romsenter Eiendom AS (NRSE), a governmental company, and Kongsberg Defence & Aerospace AS (KDA), part of the Kongsberg Group.

Status Company growth continued in 2010. The business expanded both in numbers of clients and in their geographical spread. KSAT is the only company that routinely supplies operative, near real-time maritime services and products associated with ships, ice(bergs) and oil spill detection. Through the combi-nation of SvalSat – TrollSat, KSAT now is the only company that can supply ground station services in both polar regions, a capability advantageous for effective satellite control and data acquisition. In 2010, KSAT decided to expand its ground station coverage with four new mid-Latitude stations to offer increased coverage in the expanding market for Earth Observa-tion services. KSAT has long-term station services contracts with most leading space agencies, as well as with several private sector actors. This stable client base ensures a long-term operational ability. In turn, this enables the company to work continuously to develop new business offerings and to implement opera-tional improvements. KSAT supplies ground station services for Galileo, the European satellite navigation system. In turn, the Galileo ser-

KONGSBERG SATELLITE SERVICES AS

Annual Report 2010

vices triggered expansion of the stations on Svalbard, and a new station will be established on Jan Mayen island in the Arctic. At the Svalbard Ground station, support for NASA (USA), Jaxa (Japan) and others is increasing. KSAT is the foremost supplier of ground-station services, with more than 10.000 satellite con-tacts per month in 2010. Services in the Earth Observation (EO) business segment has experienced slower growth due to delayed start-up of some projects. National initiatives, such as SatHav, still are impor-tant for continued development of KSAT oil- and ship detec-tion services. KSAT is actively pursuing globalization of these services and has prioritized activities related to monitoring of the Northern areas and initiatives such as BarentsWatch. KSAT contributes to national and international environ-mental monitoring. Long-term operation contracts with the European Space Agency (ESA) and the European Maritime Security Agency (EMSA), an EU organ, ensure development of these activities. For example, in 2010 KSAT was prime contrac-tor for a consortium delivering Pan-European oil spill services to EMSA. The EMSA contract confirms KSAT’s leading posi-tion in oil spill detection and is essential for developing real-time ship detection services. In 2010 Automatic Identification System (AIS) information was used operationally in KSAT ship detection service. Among others, this is used for anti-piracy services. Through its participation in national and inter- national development programmes, KSAT has ensured further development in and improvement of its services. Work continues to improve the accessibility of data from KSAT stations and from ground stations operated by joint venture partners. The increased focus on the High North in general and on environmental monitoring in particular is sup-ported by KSAT, and the company’s deliveries include monitor-ing services for ongoing exploratory drilling in the Barents Sea. Moreover, KSAT has a joint venture agreement with UnoSat, the United Nations satellite agency, to streamline the use of satellite data in disaster and emergency aid activities.

Financial risk A significant part of KSAT’s revenue is in US Dollars and in Euros, which incurs exposure to exchange risk in ordinary business activities. The company aims to minimize risk expo-sure. Safeguarding contracted turnover is used together with contractual forward exchange agreements. KSAT has little interest risk, as the greater part of company debt is non-interest bearing and because it has a corporate account arrangement that incurs only net interest for the company. This affords considerable liquidity flexibility. The company evaluates the credit rating of each new client and takes precautions if necessary. The credit risk is small for KSAT’s larger clients, many of which are funded by governmen-tal appropriations. Insurance is taken out in some special cases.

Operational risk KSAT is a service provider dependent on accessible, operational

satellites. Failed launches or other satellite malfunctions may affect company progress. The operational costs of TrollSat in the Antarctic are vulnerable to system error or the like.

Business risk Business risk is associated with escalating competition and with access to data from national satellite programmes.

Continued operation Continued operation of the company is a presupposition for the Annual Accounts.

Evaluation of cash flowThe company cash flow is good.

The BoardIn 2010, the Board of Directors held five meetings.

Research and developmentAbout 10 % of annual turnover is invested in internally and externally-financed product and services development.

Future development The demand for KSAT services is on the upswing. In 2010, the growth in the Stations service business segment was signi-ficant. Development in Earth Observation Services depends on access to satellite data and on delivery reliability. The growth rate in this area was therefore somewhat lower than previous years. The company strives to secure existing and new data sources and to expand access to its own ground stations and to other ground stations. The Board anticipates continued growth and focus will be on global services. Moreover, near real-time services based on rapid access to and processing of optical and radar satellite information are considered to comprise a considerable business potential. It is an increasing competition for the larger Euro-pean companies.

Working environment The company working environment is deemed good. Manage-ment and staff are represented on the Working Environment Committee, which held three meetings in 2010. There as been no work related injuries in 2010. In 2010, sick leave, including long-term, was 2.0 %; exclusive long-term, it was 1.7 %.

Gender equality Company management comprises six men. There are five men and one woman in the Board. The employees have two repre-sentative on the Board. The Board and management are aware of the social expectations and measures for furthering gender equality within the company and on the Board.

The company wishes to be seen as an attractive workplace and accordingly aims for arrangements that increase the proportion

of women in technical positions and in management. There has been progress toward that goal, and in 2010, 23 % of the KSAT employees were women.

Support of disabled personsThe company’s premises are adjusted to support disabled people.

External environment The company’s activities have no environmental impact.

Statement of annual accounts The Board believes that the Annual Accounts satisfactorily describe the company position as at 31 December 2010. The company financial position is sound, and the Board assesses company equity to be satisfactory.

The Board is not aware of any situations not included in the Annual Accounts that may affect appraisal of company position.

Application of profitIn 2010, the company profit after tax was NOK 60 255 (all figures in NOK 1000)

The Board recommends the following allocation of the profit for KSAT AS:

Dividend to the owners (30 %): NOK 18 000To other equity: NOK 42 255Total allocation of profit: NOK 60 255

Company distributable equity as at 31 December 2010: (all figures in 1000 NOK)

Earnings after Taxation: NOK 60 255Other equity: NOK 184 643Deffered Tax Assets: NOK (19 190)Total Current Assets: NOK 225 708

Total Current Assets. 10% limitation NOK 212 977

The Board of Directors of KONGSBERG SATELLITE SERVICES AS

Harald ÅnnestadChairperson

Bo N AndersenDeputy chairperson

Bjørn Arne Kanck Member

Rolf SkatteboePresident

Anne BreibyMember

Trond KnutsenMember

Tony BaunaMember

KONGSBERG SATELLITE SERVICES ANNUAL REPORT 2010

16 17

Numbers and Figures

Income statement 1 January - 31 december 2010 Equity and Liabilities

Balance sheet at 31 December 2010

1000 NOK 1000 NOK Exch. rate 5,84 1000 USD Exch. rate 5,84 1000 USD

2010 2009 2010 2009

Operating revenue 301 426 253 410 $51 614 $43 392

Raw materials and consumables 14 248 15 620 $2 440 $2 675

Personnel expenses 67 718 60 858 $11 596 $10 421

Other operating expences 109 328 92 984 $18 721 $15 922

Depreciations 35 052 32 965 $6 002 $5 645

Operating profit 75 080 50 983 $12 856 $8 730

Net financial items -58 1 516 -$ 10 $ 260

Earnings before tax 75 022 52 499 $12 846 $8 990

Tax expense 14 767 9 707 $2 529 $1 662

Net profit for the year 60 255 42 792 $10 318 $7 327

Statement of cash flow2010 2009 2010 2009

Earnings before tax 75 022 52 499 $12 846 $8 990

Taxes paid -12 433 -6 527 -$2 129 -$1 118

Profitt/loss sale of fixed assets -13 0 -$ 2 $ 0

Depreciation and amortisation 35 052 32 965 $6 002 $5 645

Change in accounts payable/receivables -26 015 10 255 -$4 455 $1 756

Change in pension plan liabilities -2 951 2 334 -$ 505 $ 400

Change in other accrual items 15 982 9 333 $2 737 $1 598

Net cash flow from operations 84 644 100 859 $14 494 $17 270

Payments for aquisition of fixed assets -45 416 -57 736 -$7 777 -$9 886

Net increase/decrease in interest bearing debt -30 039 6 687 -$5 144 $1 145

$ 0 $ 0

Cash and cash equivalents at 1 January 64 317 14 506 $11 013 $2 484

Cash and cash equivalents at 31 December 73 507 64 317 $12 587 $11 013

2010 2009 2010 2009

Share capital 2 000 2 000 $ 342 $ 342

Other equity 247 790 205 535 $42 430 $35 194

Total equity 249 790 207 535 $42 772 $35 537

Deffered tax liabilities $ 0 $ 0

Long-term interest bearing liabilities $ 0 $ 0

Other long-term liabilities 22 856 31 698 $3 914 $5 428

Other short term liabilities 99 110 93 261 $16 971 $15 969

Total liablities 121 966 124 959 $20 885 $21 397

Total equity and liablities 371 756 332 494 $63 657 $56 934

Assets 2010 2009 2010 2009Deffered tax asset 11 703 10 068 $2 004 $1 724Goodwill 0 0 $ 0 $ 0Tangible fixed assets 7 487 8 734 $1 282 $1 495Operating Assets 215 762 203 823 $36 946 $34 901Total fixed assets 234 952 222 625 $40 232 $38 121Receivables 63 297 45 553 $10 839 $7 800Bank deposits and cash equivalents 73 507 64 317 $12 587 $11 013Total current assets 136 804 109 870 $23 425 $18 813Total assets 371 756 332 494 $63 657 $56 934

Key Figures, KSAT

25

50

75

100

125

150

175

200

225

250

275

300

0

2000 2008 2009 20102001 2002 2003 2004 2005 2006 2007

10

20

30

40

50

60

70

80

90

100

0

Operating revenue Operating profit Earnings before tax Employees

Rev

enu

e/P

rofi

t M

NO

K

Nu

mb

er o

f em

ploy

ees

Revenue Distribution Business Areas 2010

Revenue GeographicalDistribution 2010

Employees by level of education 2010

GroundstationServices77 %

EarthObservationServices23 %

Europe47 %

North America37 %

Asia7 %

Norway9 %

Bachelor66 %

Others8 %

Master of Science26 %

KONGSBERG SATELLITE SERVICES ANNUAL REPORT 2010

18 19

Kongsberg Satellite Services AS

Head Office

Visitors address: Prestvannveien 38, 9011 Tromsø, Norway

Postal address: PO. Box 6180, NO-9291 Tromsø, Norway

Phone: +47 776 002 50 / Fax: +47 776 002 99

Svalbard Office

P.O. Box 458, NO-9171 Longyearbyen, Norway

Phone: +47 790 225 55 / Fax: +47 790 237 81/84