Q&A

Frequently Asked Questions

Questions and answers

Q:

Why does it take time to get orders?

A:

The underlying trend for us as well as for the industry is clear, there is a strong demand for data and services from space that is fueling good growth. However, the sales process is long, what is common in not yet fully developed growth industries. We have a healthy and growing pipeline with potential customers.

Q:

When do you expect to get orders for constellations?

A:

We have for some time delivered satellites to customers who intend to create larger constellations. We expect several of these customers to return with larger orders in the long run, but it is up to them to decide when it is time to take this step.

Q:

What funding opportunities do those who want to send up constellations into space have?

A:

The customers are very different, and therefore have different opportunities. There is everything from established and well-funded commercial companies to startups that need funding before they can move on. Our view is that it is possible to finance a good business plan on reasonable terms.

Q:

What is your main challenge right now?

A:

Our main focus is on scaling up the production. We are actively working on this and have recently strengthened the logistics function, quality assurance and delivery capacity.

Q:

What are the plans for expansion?

A:

We are focused on growing both organically and through acquisitions to fortify our leading position within small satellites.

Q:

You have said that you are looking for acquisitions. Why does it take such time?

A:

We are actively looking for suitable acquisition candidates and have evaluated several opportunities. For us, it is important to find a partner that really suits us, with our focus on the small satellite sector.

Q:

Is there a special market that is particularly interesting for acquisitions?

A:

We have said that we would like to establish more clearly in the US, which could be done through acquisitions. The United States is the world’s largest space market, so it is natural for us to have a proper establishment there.

Q:

What is your view on the increasing competition in the market where both China and the US are investing billions in small satellite development?

A:

This shows the strong interest in small satellites and will help to increase growth. AAC Clyde Space competes very well in today’s market and has a stronger “flight heritage” than most others. We will use this to maintain a very strong position. Our goal is to be leading in the market.

Q:

Do you think China can take over the market through very low prices? If not, why?

A:

Customers weigh a variety of factors when choosing partners in space, and do not solely focus on price. These factors include reliability, performance, flight heritage and, not least, data security. If you can deliver strongly on these factors and also offer a good price, you are standing on good ground.

Q:

Security seems to be increasingly important and there are many articles about satellites being easy to hack. Have any of your satellites been hacked? What does your security look like and what is the plan going forward?

A:

Most satellites, AAC Clyde Space included, have unique features in their design, which means that very specific knowledge about each satellite is needed to be able to access it. Such knowledge is not publicly available and only authorized people have access to it. This leads to the level of security today being judged to be satisfactory. At the same time, we are preparing for the stricter security requirements that come with larger constellations and an increased degree of standardization.

Q:

Are cube satellites really the way forward?

A:

Cube satellites will play a significant role in the small satellite market for several years to come. Through these, a technological development and standardization takes place which helps to reduce costs and thereby create a commercial market based on data from space.

Q:

How are ongoing projects developing?

A:

We share information when we win bigger projects, deliver ready-made satellites and most often when they are launched into orbit. In the interim reports we also share information on how the business is developing on an overall level and comment on any deviations. However, we do not normally comment on how individual projects develop on an ongoing basis, neither in interim reports or elsewhere.

IR Contact

Mats Thideman CFO and Deputy CEO
+46 70-556 09 73 mats.thideman@aac-clydespace.com

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