AAC Clyde Space AB

Hello, Luis. Such a nice pleasure to see you again. Good morning. Good morning. So yet another hectic quarter. Please take us through your presentation.

Good morning. Good morning, everyone. And thank you for attending this brief. For those that are new to the company, we are a space technology company. We are delivering products and satellites into space, but we are also delivering data. And we have been on this growth journey for the past few years. And this quarter is part of that. We showed again robust growth of our net sales. We are continuing our positive habitat, something that was for us quite important. And delivering also positive operational cash flow from operations. What are things that have actually been important for us? There are targets. We are sticking to our targets. and uh overall here on here we we are very confident that we can continue to deliver our plan of uh double digit uh net sales growth uh positive habitat and positive operational cash flow um we have been also uh uh continue to expand and grow our business we have done some structural changes through it over the last quarter. We have seen a stabilization to some extent of our order backlog. into the numbers that we usually consider to be positive and safe for our company, where we want to be. Of course, this varies. We've got quite a strong pipeline in some areas. What might actually grow that backlog quite substantially? But mostly the story, I think, is that this continued growth that we are achieving, this ability to actually continue to to expand the company and grow healthily into a positive EBITDA environment. If we want to take a look at the next slide, please. There are a few... Things that we have focused very much over the past quarter, growing the visibility of the company, probably many of those that follow us as a company will have seen that we have been more present in the news, telling our story, explaining what we are doing a bit more. We have done quite a lot of interviews in newspapers, not just technical newspapers, not just space industry newspapers, but other publications that have a wider audience. It has been part of our reach out activity over the last quarter in particular. But also we have done, as I said, some structural change inside the company. We have merged our products and missions business lines into one business line that now handles most of what we call hardware. This is all the products that we do for other people, for other companies, to enable them to build their own satellites or the satellites that we deliver to third parties. This was done to actually bring together those capabilities across the group that handle with production of equipment, production of hardware. And this allowed us to streamline our management, streamline the way we produce, gaining some efficiency in terms of the way we produce our equipment, our hardware. And that is something that is pretty good for the company. It will be good for the future. We also increased our data on our data and services business line. The net sales increased by 86% year on year. This is a show and a demonstration of the potential growth and the real growth of this area of the business. We continue to see a huge appetite for the type of data and services that we are offering to the market. Our challenge, as always, is to have enough data, to have enough satellites in orbit to generate that data. But we are seeing that the appetite has not diminished. Quite the opposite, it is growing. And in that context, we expect in the next quarter to actually present towards the end of the quarter, to present where we expect to be, where we expect to go, updating our strategy and showing what new things we have been planning for the coming years. And particularly in the data and services side, but also on the defense side, how can we actually expand our business in that direction? And that is something that it's an exercise that we have been doing for some time, and we would like to present it to yourselves the next opportunity towards the end of this quarter. So. We also, in this context of growth and in this context of expanding, particularly our data and services part of the business, over this quarter, we did a directed share issue. We brought in one large new investor, Novo Capital, Global Fund, sorry. And this is important because this will allow us to accelerate our Virion constellation. That is our Earth observation constellation. We have always said we wanted to do four satellites. We are already building two. With this new direct issue, we can actually move on to the next two. So to build the full constellation of four satellites, and in that way actually answer the demand that we see on the market. So that is an extremely important thing that we achieved by doing that direct issue. We are also using part of that money to support our maritime intelligence business. Again, we are seeing quite a lot of interest in the type of data we are delivering. We are seeing a growth in that side of the business. And for that, we need more satellites. In the form of inflection, we actually have our first big user for our constellation of maritime services, the UK government and the European Space Agency, the inflection service. So we effectively were already able to finance a substantial part of our future constellation. But what we are doing now is helping with some of the money from issue, but also looking at contracts, advanced contracts with customers to actually finance the construction and the deployment of our new Maritimes constellation. And this is again an area where I see a huge amount of potential and we see quite a lot of demand for the type of data and services that we are delivering. And of course, ultimately, this funding will also help us in addressing the European defence environment. We are seeing a huge amount over the last few months, we have seen a huge amount of interest in Europe for space, for defence. And for that we need to invest, we need to actually create new products, many of which are based on what we already have. They have to be adapted, they have to actually They have to be able to actually supply the type of data in the environment that defense and security organizations demand. So those are areas that we are going to invest in. And that was the reason of this direct share issue. If we go on to the next slides, we'll be able to look a little bit at the objectives for the rest of the year, for the next 12 months. Some of you will see that Virion, the launch was delayed. This was due to a third party subsystem that we use on the satellite. The supplier found some issues. These have led us to have to redesign part of the satellite. forces us to actually delay the launch not something we like um now we had some we had some uh we had some margin on our launch in terms of delivering data to our customers um but of course we are eating into that margin we are compressing it so so that will put more pressure on our teams to actually deliver a satellite quicker once it is in orbit to leave it operational Not a situation we like, but it is a situation that we find ourselves in through someone else's problem. But we will handle it. We will manage it, as we always do. We continue to work on the EPS STERNA, so we have submitted our proposals. UMATSAT and the European Space Agency are analyzing those. UMATSAT is finalizing the agreements so that they can approve the project and move forward. We were very happy to see the progress that was achieved back in July. uh of course we i believe that we would all have liked to have had a 100 positive decision at that point to move forward uh but that these big international programs always have this all of these uh uh milestones that have to be achieved and negotiated. And so we are now waiting for UMETSAT to meet again in September. And then hopefully at that point, they will be able to reach a consensus and move forward with a full mission. But nevertheless, it was very encouraging to see that they decided to move with parts of the project. They decided to actually decided on some authorizations to proceed. And in parallel to that, the negotiations on on the contract are already ongoing, so any discussions, there are many much work is already being done to do that. And. we're also. Continuing with inflection phase one so that work is going well, we are. running towards the next phase. We are preparing to go on to the next phase. Again, in discussions with the agencies, showing the results, working with our partners, that's a very important part of inflection. So again, work that is in progress, but that it is going well, it is achieving its objectives. And on that point, inflection and the whole maritime intelligence, we also saw with some encouragement that back in May, the the international maritime organization as uh one of its committees as as finalized the draft for approval in 2026 of the introduction of as the alternative to AIS. So this will mean that in the future, ships can actually carry one or the other systems to deliver their obligations and their tracking and safety at sea. So we see that as an extremely positive objective that will make it possible for vessels to actually replace their current AIS systems with VDAS systems. And there are rules of the game and rules of engagement and rules of use for VDAS systems in the maritime domain. So that will come into force. It will be approved next year, this year or next year, to come into force on the 1st of January, 2028. So we look at that also with much encouragement. So, as you can see, this has been a busy quarter, as always for the company. We continue to expand our footprint, to grow into new markets, particularly on the data and services, but we continue to see a positive environment for our business and a growth environment. I will open the floor for any questions that there might be. I think there will be some questions, so I'll let you ask me.

Thank you, Louise. Yes, we received a lot of questions ahead of this presentation. Some of those I think you already run through. And as we speak, there are questions that are coming in and I will try to sort them into the same subject here in order to make it easier for you to reply and for anyone who's asking the questions to put it in the right space. I will start with referring to the direct share issue, and this is a writer question. You emphasized attracting long-term investments, and you mentioned one of the big investors there. However, with no lockup in place, some participants sold their shares shortly after allocation. What is your reflection on this? And I know that we did touch upon that on the latest or the last broadcast.