AAC Clyde Space AB (publ)

The second quarter was a very busy period for the company. We have several projects ongoing, getting ready for delivery later this year. We have satellites to launch, we have products to deliver to our customers. It was also a quarter where we won several new contracts and all of that made for a busy period for our teams across all our countries. Some of the key highlights of this quarter are the sales that we achieved, particularly our first EPIC 16U satellite. We are using that platform now on our own constellation, on the Cyclops satellite, but the first time that we sold a satellite, an EPIC 16U, was on this quarter. And that marks an important milestone for our technology. And parallel to that, we have also sold our first two CubeCat laser communication systems, showing a new technology to the market. And this is important not only by the product itself, but also by the fact that we will incorporate these on our own satellites, increasing the amount of data that we can download from the instruments that we fly on our satellites. And in parallel to that, we signed an agreement in the Netherlands to develop the next generation of the CubeCat, expanding the capability of these very important communication system. In the second quarter, we made very important progress in our Space Data as a Service agenda. We have not only delivered for launch our Sedna 1 satellites, the first one in a new generation of maritime tracking satellites, but we also progressed our build of Cyclops 1. So this is the first one in the Cyclops constellation of satellites, which is an expansion-enabled constellation of Earth observation satellites to monitor our environment. And after the quarter, we actually made our first sale of a service based on Cyclops data. So the Scottish Forestry will receive data and the service from us to highlight areas of stress in Scottish forests. And this is an extremely important achievement, but also something that's not only is important commercially for us, but also important in our agenda of supporting sustainability and monitoring of climate change. And it is something that we are now seeing a lot of interest from other quarters of the world. Our financial results on the second quarter were slightly subdued. We had some delays on some key projects, the results of some delays from our suppliers. We also had several projects that we signed later than what we expected originally. And then of course, has reduced our ability to recognize revenue in the quarter. We'll recover some of that. Some of that we'll just move to the right. But the result in this quarter is that our revenue was 53.6 million sec below the expectation and below our target for the quarter. Consequently, our EBITDA is also not performed as well as we wanted. It stands now at this point in the year at minus 3.8 million sec. We expect that to improve throughout the year, but at this stage with the results that we have on the second quarter, that's where we are. For the rest of the year, we are expecting to recover some of the revenue that we missed on the second quarter. Of course, there will be an impact of those delays in the financial performance for this year. So we reviewed our guidance for the year in terms of revenue. This is lower than what we had provided before in terms of guidance, but it's still a very strong growth from last year. When it comes to EBITDA, we are maintaining our guidance of between 5 and 10% positive EBITDA for the year. As we are in the second half of the year, we are looking forward to the launch of the Arctic Weather Satellite, a satellite in which our teams in Gothenburg designed a very good payload to monitor the weather. And our teams in Uppsala designed these amazing computers and power systems to support the mission. But we are also looking towards the launch of Sedna 1. This is our first next generation AIS satellite. It was built by our team in Fairfax. And it not only adds to our data offering, but we will also try some new technologies and some new techniques that we will use in future maritime monitoring satellites. Looking forward towards the end of this year, we have several new missions we are working on. We have two launches in October, November of maritime tracking satellites, one for one of our customers, one for ourselves. And not only they will be ship tracking missions, but they will also incorporate VDAS payloads. So we are looking forward to those. And of course, we have many other satellites that we are building for customers. We have continued work on the Cyclops constellation. And we have a very large range of products to deliver to our customers from here until the end of the year. So we have an exciting period ahead of us. We continue to have our teams very busy across all the companies in the group. And we look forward to actually continue to support our customers around the world and to provide them excellent space products.