Capitalised development costs, product rights
and/or tax assets may be written off
development would have a material adverse effect
on the Company’s activities, results of operations
and financial position. Furthermore, changes to
ESA’s geographical return principles or their
practical application could adversely affect the
Company’s earnings potential. In particular, if ESA
contracts were to become increasingly
concentrated among the larger contributing
member states, market conditions for Danish space
companies could become more challenging and
negatively affect the Company’s future
development.
In its annual report for 2025/26, Rovsing capitalised
development costs of DKK 1,2 million hereafter
totalling DKK 12,5 million. The deferred tax asset
has been reassessed during 2025/26 and reduced
with DKK 1,0 million to DKK 0 from previous year.
There is a risk that the products developed cannot
be sold to the extent expected and/or that the
Company does not generate a profit in the coming
financial years, and that the capitalised
development costs, product rights and/or tax asset
will be written off in connection with future
financial statements. Such a scenario will affect
Rovsing’s results and balance sheet.
25
Denmark continues to demonstrate strong support
for the European space sector through its
participation in ESA and through its national
Strategy for Space Research and Innovation 2025-
2035, which emphasizes increased engagement in
international space programmes, technology
development, innovation and commercialisation.
The strategy highlights the importance of
cooperation with ESA and the EU as key enablers of
Danish space research and industrial growth.
Exchange rate risk
In the space industry, the Company’s contracts are
primarily concluded in EUR or USD. As the Danish
krone is pegged to the Euro, the exchange rate risk
in this connection is low. However, exchange rate
risk occurs while the Company enters into contracts
in USD.
During the financial year, the Danish Government
maintained its focus on strengthening Denmark’s
position within the European space sector,
including through additional investments in
selected ESA programmes. Such initiatives are
expected to create further opportunities for Danish
space companies and support continued growth in
the national space ecosystem.
INDUSTRY SPECIFIC RISK
Competitors may drive the Company out of the
market
The Company is competing in an ever-changing
market with a large number of development
businesses in Europe, including a few in Denmark.
As the Company's customers increasingly use
standard products, there is a risk that one or more
competitors develop competing standard products
which become market leading. This and/or the
general competition from other development
businesses may entail a substantial reduction of the
Company’s revenue and may in that case materially
affect the Company’s results going forward.
In November 2025, ESA member states approved
the largest funding package in ESA’s history at the
ESA Council Meeting at Ministerial Level,
underlining the continued strategic importance of
space activities across Europe and providing
visibility for future programme activity and
procurement opportunities.
Accordingly, Rovsing currently sees continued
political support for ESA and the European space
sector. However, there can be no assurance that
future political priorities at either national or
European level will remain unchanged. Reductions
in ESA programme funding, amendments to
procurement rules or changes to geographical
return mechanisms could materially affect the
Company’s future revenue opportunities and have
an adverse impact on its results.
Aerospace market may be affected by ESA
membership
The Company’s market segment primarily consists
of the institutional European space and aerospace
market and is substantially linked to Denmark’s
membership of the European Space Agency (ESA).
Similarly, Rovsing’s access to contracts and funding
opportunities under European Union programmes
is dependent on Denmark’s membership of the EU
and participation in European defence and space-
related institutions and initiatives.
ESA contracts involve a process in which bidding
companies are evaluated and selected before a
formal contract is executed. Following approval at
a
kick-off meeting, project activities may
Should Denmark terminate its membership of ESA
or significantly reduce its participation and financial
commitments, a substantial part of Rovsing’s
accessible market would cease to exist. Such a
commence prior to signature of the final contract
documentation. This process involves a risk that a
contract is not ultimately signed or that only part of
