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28 August 2024

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28 August 2024

1.

Q:

If there was such major disruptions in the operations with supplier issues, delayed service start for in-orbit satellites, staffing problems etc. Why was it not communicated?

A:

There are two parts to this answer. First, the quarter was impacted by several negative factors, of which no single factor was of such importance that it prompted communications.

Second, basing assessments on shorter periods of time than 3 months is precarious, especially in our type of business with volatile development as a result of several projects ongoing in parallel where individual events can impact results. With the full Q2 figures at hand though, we did decide to lower our estimates for the full year in order to provide shareholders with relevant and diligent guidance.

2.

Q:

The lower end of your target has been reduced by 80M, and in total 150M. Why is the guidance lowered to such an extent after a single quarter?

A:

We don’t expect to be able to recover the delays we communicated in the Q2 report during the remainder of 2024. This results in lower turnover than previously forecasted.

3.

Q:

How confident are you in the new target for the year? You mentioned in the last Q&A that the order backlog gave you comfort to maintain the target, given the operational issues and poor accuracy of the last guidance why should investors trust you again?

A:

We provide the best assessment we can in order to provide shareholders with relevant and diligent guidance.

4.

Q:

You mentioned the Kelpie satellites being one of the reasons for the poor net sales. But the problems with both the Kelpie satellites have been announced several months ago. Where they still included in the previous guidance of 430 - 500 M?

A:

Revenue from these satellites were not included in the previous guidance.

5.

Q:

The sales target have been reduced by more than H1 sales, so how are you able to confidently maintain the EBITDA margin target? How is it possible that it is not affected by the lowered sales target?

A:

The EBITDA margin will be positively impacted by the license revenue recently communicated. This will have an off-setting effect.

6.

Q:

What is delaying the in-orbit satellites' services? Most of the satellites have been launched for almost a year now. Is there a risk that the satellites are not working properly?

A:

The satellites are just one part of the overall system to deliver a service to our customers. There are many steps that go beyond the testing and commissioning the satellites. We have to assess the quality and validate the data received, we have to prove we can do it repeatedly and in large volumes every day. All these activities have taken longer than planned and also have to be approved by our data customers. The satellites themselves are of a new class and required more testing than expected. You may see some images from the first satellite in the website and LinkedIn account of our customer for this data.

7.

Q:

Compared to last quarter we can see a substantial drop in the Data and Service segment, since they were substantially higher last quarter, is the revenue from same satellites dropping and if so why?

A:

We had one-off revenues in the Q1 report boosting the comparative number.

8.

Q:

How large share of the legacy mission remains? Once the legacy missions are completed, can we expect to see a positive EBITDA also for this segment?

A:

We expect to finalize these projects during Q4 2024.

9.

Q:

How are you addressing the supplier and staffing problems from this quarter, is it a one-off problem or continuing problem?

A:

Supplier problems occur from time to time in our business. We always put in place robust plans to mitigate these events, but sometimes this is not enough. That is what happened in the second quarter. We expect to solve these problems in the short term. 

Staffing is a recurring issue across the space industry and we expect that to pose a continued challenge, but we have made substantial progress on new hires and contractors in the last few months and will help to alleviate the immediate problem.

10.

Q:

The first order for the Cyclops satellites came in during the quarter, any comments on the order value vs cost of this constellation? Considering 100+ M has been spent and only 8 M in the first order.

A:

We have spent a lot less than 100 MSEK on Cyklops. The satellites in the constellation are expected to be operational for several years. This first order is a pre-commercial agreement which will focus on the analysis, including automation and integration, of image data into Scottish Forestry's Geospatial Information Systems (GIS) and operations, lasting until Q3 2026. The constellation will have capacity to take on more assignments and continue for several years further.

11.

Q:

Last year in a press release it was communicated: "A very attractive business opportunity has presented itself as some key older satellites are being retired and we see an increased use of this data by Digital Agriculture platforms and governments. With the xSPANCION project in its later stages, AAC Clyde Space is well positioned to take advantage of the situation for the benefit of both data users as well as the Group and its shareholders," says AAC Clyde Space CEO Luis Gomes. What happend to this very attractive business opportunity, was it referring to the 8 M order for the Cyclops constellation or are there still ongoing negotiations regarding this "very attractive business opportunity"?

A:

The opportunity is the one that is described in the text: as the legacy missions reach the end of life, the existing customers for those missions will be looking for replacement suppliers. We want to position ourselves to be that replacement supplier. For that we need to develop our satellites quickly to benefit fully from that opportunity. 

The pre-commercial agreement now entered into with Scotland will focus on the analysis, including automation and integration, of image data into Scottish Forestry's Geospatial Information Systems (GIS) and operations. This is a pre-commercial agreement, which does not reflect the potential of the field we target.

12.

Q:

After the Sedna-1 launch, are there any more satellites planned for launch during 2024?

A:

Yes.

13.

Q:

The launch for the first satellite in Cyclops has been contracted, when can we expect it to be launched?

A:

The first Cyclops satellite is expected to start delivering data in 2025, after launching in mid 2025.

14.

Q:

What is the useful life of the Cyclops satellites, how long will they be operational before needing replacement?

A:

The useful life is expected to be at least 4 years.

15.

Q:

You mentioned the Arctic Weather Satellite being the first satellite in a constellation for Eumetsat, has the additional satellites been ordered by Eumetsat and how many satellites are expected in the constellation?

A:

The Arctic Weather Satellite is an ESA project carried out on behalf of Eumetsat, as you state. Currently, it is a prototype mission that aims to demonstrate the usefulness of radiometric measurements to improve weather forecasts in the Arctic region and globally. Thereafter it is intended to involve a full constellation of satellites, but orders for further satellites have yet not been placed. It is standard practice though, to analyse the results of a prototype mission before proceeding further.

16.

Q:

The segment AAC Products has a substantial drop compared to last year, is there a lower interest in AAC products from the customers or was last year just a one off performance?

A:

Our assessment is that it is a temporary effect. We have suppliers who have not been able to deliver to us resulting in lower revenue recognition for us.

17.

Q:

Any progress on selling the remaining satellites from the XPANCION project, are negotiations under way or still looking for customers?

A:

When we have more information to share, we will do so.

18.

Q:

Why are we not getting an update regarding epic-hyper 2 and 3 in the report? Will you communicate when the whole constellation is operational and delivering revenue?

A:

We can only communicate news about the constellation when our data customer agrees to do so.

19.

Q:

Unfortunately, promises are repeatedly broken. In most cases, it is blamed on subcontractors. Do you include penalties when delivery times are not met by our subcontractors?

A:

Where it is relevant and possible, we have penalty clauses.

20.

Q:

Confidence in our stock is very low. Compared to Gomspace and Ovzon, we are far behind. You have previously said that we will start moving upwards due to our financial figures. Now we have faced yet another setback in the latest report. What is management doing to ensure our stock achieves a reasonable valuation?

A:

Our primary focus continues to be to run the business in the best possible way in order to achieve good financial performance. We are also spending time with shareholders, potential investors and the stock market in general to explain our investment case and attract interest in the share.

21.

Q:

Why don't we see more insider purchases when we are hit with blow after blow? Management is confident that this will improve in the future, so it would be appropriate to buy shares to show the way to us other shareholders.

A:

The company has no mandate to comment on the plans of private individuals, nor of those of its owners.

22.

Q:

By nature of the recent guidance adjustment for 2024, my conviction for the 2030 guidance is challenged. It comes to no surprise that the industry is subject to delays out of management's control. As such, I ask: do you remain confident in the guidance for 2030?

A:

The development during Q2 has not prompted us to revisit our longer term forecast.

23.

Q:

Earlier this year, when asked about guidance for profitability, Gomez answered that guidance for profitability might be provided later this year. Is profitability guidance still on the table for 2024?

A:

We have communicated that we target an EBITDA margin of 5-10%.

24.

Q:

What is the status in your recruitment for a senior communications position?

A:

Regrettably, we have recently had to restart this recruitment process due to issues that emerged when we were finalizing an agreement with a selected candidate.

25.

Q:

Witch other satellites will replace the data that Kelpie-1 and Kelpie-2 would deliver?

A:

This is commerciallly confidential information at this point and cannot be publicly disclosed.

26.

Q:

Does York's LX class also use AAC technology?

A:

We cannot comment on other company’s technical solutions.

27.

Q:

How many satellites are there today in the AAC group's own fleet?

A:

There are 11 satellites in total in the AAC’s fleet. Of these 8 are fully operational, 2 suffered payload losses  and 1 is in its pod awaiting deployment.

28.

Q:

How many satellites are you working on right now?

A:

20 satellites, including full missions (8) and platforms delivered to customers for they to  integrate with payloads (12). Of the full missions, three are for our own fleet.

29.

Q:

The new Amber Phoenix satellite that will replace the Amber IOD-3 is expected to be delivered during Q3 2024, is this still correct?

A:

This is confidential information and cannot be publicly disclosed.

30.

Q:

How about the other two Epic-6U satellites that Horizon placed an follow-up order on in 2021-06, what is the timetable for these two satellites?

A:

This is confidential information and cannot be publicly disclosed.

31.

Q:

Is Amber Phoenix a new design or same design as Amber IOD-3?

A:

This is confidential information and cannot be publicly disclosed.

32.

Q:

Any plans to move to a larger list in the future to become even more attractive to funds and larger investors?

A:

No, not at this time. We believe Nasdaq First North Premier is an adequate listing for the share at this point.

33.

Q:

In the Q2 report you wrote "EBIT totalled SEK -31.2 M (-10.9) including impairment of SEK -6.5 M (0) of a satellite not performing as expected". Which satellite are you referring to?

A:

We are referring to Kelpie-1, see press release dated 2024-03-28.

34.

Q:

At the end in the latest video "AAC Clyde Space - Q2 Results 2024" on Vimeo, Luis said: "We have many more satellites that we are building for our customers" "And we have a very large range of products that we are ready to deliver to our customers at the end of the year". Can you be more specific about which projects, customers and products he is referring to?

A:

Please refer to the answer to question 4 for the total number of satellites we are working on. The customers for those have been publicly announced through our press releases. The same for the products, which are publicly announced.

35.

Q:

Any news from AAC Africa?

A:

The company continues to develop, both by supporting other group companies in their projects and by running its own projects. The team is currently integrating its first two satellites and is working on a range of other smaller projects including developing new technology.

36.

Q:

Your largest shareholder is Avanza, i.e. small savers. And the number of owners at Avanza is falling steadily. What are you doing to find more long-term investors, and how do you see your valuation being so much lower than industry peers?

A:

For a company our size, we have quiet a large number of shareholders. Currently, entrepreneurs in the Group are large shareholders, with our largest shareholder being Dino Lorenzini who started SpaceQuest, as well as the former owners of Omnisys and Hyperion.

37.

Q:

The volume/price action of the stock is historically very low, what can you do to attract new stock owners and to get higher volumes?

A:

Our primary focus continues to be to run the business in the best possible way in order to achieve good financial performance. We are also spending time with shareholders, potential investors and the stock market in general to explain our investment case and attract interest in the share. We are also recruiting a senior communications officer to work with public affairs and investor relations. We recently had to restart this recruitment process.

38.

Q:

Speaking of risks, could you please elaborate on your take on the company’s current market cap, what it means to the business and what you intend to do about it (if anything)? Will you stick with previously announced measures or will you intensify that work; if yes, then how?

A:

The market capitalization does not have any direct impact on our business, but our aim is, as communicated, to grow and expand our operations in a financially good way, which would under normal circumstances translate into a higher market cap.

39.

Q:

Could you detail the major risks the company is facing for the coming quarters, what damage (sales, profitability) they’ll do if realized and what the company is doing to diminish them?

A:

The risks and their mitigations are outlined in our annual report on page 44. The annual report can be reached at the following link:

https://cdn.bequoted.com/media/1/37cfb174-5536-4b44-8ff9-62e83d209583/AAC-Clyde-Space-Annual-Report-2023.pdf

40.

Q:

Many competitors tend to favor a leaner organization with a smaller work force. You, on the other hand, keep increasing yours but the benefits remain absent. What are your thoughts on that?

A:

The growth of the workforce has been limited over the last few years, growing from 5 people 2022 to 2023, and another 6 people so far this year. This is a modest growth in relation to our revenue and investments and is very much driven by the need to staff specific projects. This said, we have several initiatives on going to support all of us to become more efficient and deliver more without dramatically having to grow the workforce.

41.

Q:

How have the Constellation project and the satellites been accounted for, are they expensed or are they accounted for as an investment? If so, when does depreciation begin? A large part of the cost has been covered by public funds, how have these costs been accounted for?

A:

Our own satellites are capitalized. The public funds are set off against our own costs, i.e. reducing the investment. The satellites are usually depreciated over 5 years and starts when the satellites are finalized.

24 May 2024

42.

Q:

Q: How many SDaaS satellites are currently operational and delivering revenue? And how many satellites are launched and about to deliver revenue? A: We currently have four satellites delivering data under SDaaS contracts, another five undergoing commissioning and plan to launch a further three in 2024 and early 2025. Question: How did this Change?

A:

Following the announcement regarding Kelpie-1, we now have four satellites undergoing commissioning and/or data validation.

43.

Q:

What is the reason for that xSPANCION delays? They Initially were planned for 2020 to 2023 and even when we address supply shortage, COVID and War these parameters should be known at Q4 23 and now only one Q later we have the next delay in this important Milestone project. Why another Delay in this project? What are your Lessons Learned? How will you proceed to avoid further delays in this and other projects that are coming?

A:

xSPANCION is a large and technically complex project on which we have several partners/suppliers - some of these partners faced their own delays and those propagated to the project. Furthermore, this is a match funded project, for which AAC also needs financial partners and that takes longer to secure. We have last year taken the decision to self finance the first four satellites as that was important for our Data & Services business, but for the other six we are negotiating with external partners.

44.

Q:

Will we see a negative impact to SdaaS trough the Solar Flare event this May? Are Satellites damaged or lifetime reduced?

A:

We place our fleet of satellites in safe mode when we see exceptionally high solar activity, particularly if a large coronal mass ejection is expected to hit Earth, like it happened in May. This said, as our satellites operate in low Earth orbit, the impact on the satellite’s equipment is statistically negligible, but we do see an increase in atmospheric drag what leads to faster decay of the satellites. This does not impact the nominal lifetime of the satellites as they were placed in orbits with enough margin to account for events of this type.

45.

Q:

Considering the net sales target of 430-500 MSEK for the year, the 71 MSEK net sales in Q1 was a bit disappointing. To reach the target the coming three quarters would need to average 120 MSEK. Already at the start of the year there was only 280 MSEK in the order backlog for 2024 meaning roughly 50% of the net sales target would need to be acquired in new orders. Quite challenging numbers... What would you say to investors doubting your ability to reach the targets?

A:

At the turn of the year the order backlog for 2024 stood as you said at SEK 280 M. Since then, we have press released orders at a total value of approx. SEK 143 M of which SEK 68 M will be delivered and recognized as revenue during 2024. We will start to recognise the balance as revenues during 2024. This brings us closer to the target range, providing us comfort in our ability to reach the target.

46.

Q:

Great increase in net sales and EBITDA for Data & Services, should we expect it to continue to grow quarter by quarter throughout the year?

A:

Over the next few months, more of our SDaaS services will come on line which will result in increased revenue from that business line. We don’t provide quarterly guidance though.

47.

Q:

Interesting comment by the CEO regarding legacy vs standardized missions within the Mission segment. a) Is 2024 the last year for legacy missions? b) Can you say anything about the difference in profitability between legacy and standardized missions?

A:

We have had a number of projects that have been delayed, often due to supply chain issues in the wake of the pandemic, which has coincided with general cost increases. This has resulted in substandard profitability for these projects. As these projects are finished, they are replaced by newer ones, which mainly are for our standardized platforms for which margins are better and production schedules are expected to be met.

48.

Q:

Your largest segment Products have declined a bit compared to last year, do you expect the Products segment to grow YoY?

A:

 We expect all segments to grow over the coming year. Revenue recognition vary from quarter to quarter which impacts revenue.

49.

Q:

Do you expect positive EBITDA for all segments this year?

A:

We don’t provide guidance on our segments but for the group we target an EBITDA at 5-10%.

50.

Q:

Was the net sales from the Kelpie satellites included in the 430-500 MSEK target?

A:

We have reiterated the target after the loss of the Kelpie satellites.

51.

Q:

What actions have been taken to avoid the issues that occurred with the Kelpie satellites?

A:

Our CTO lead an extensive review of what went wrong, and several recommendations were issued and implemented by AAC and by the antenna manufacturer. These were implemented for Ymir-1 and for our upcoming satellites based on a similar design and I am happy to report that the antenna on Ymir-1 deployed successfully.

52.

Q:

YoY Increases in Other receivables was mainly driven by royalty, does this mean that the majority of the royalty from last year has not been paid out yet?

A:

We receive royalty payments when projects are completed, but the claim occur when the licensee starts their production.

53.

Q:

Has the majority of the AWS order value been captured in 2023 or earlier, or should we expect it in 2024?

A:

The AWS instrument has been delivered and the majority of the revenue was recognized in 2023.

54.

Q:

Regarding your targets you chose to set targets by EBITDA, Net sales and cash flow. Why not EBIT? Assuming depreciations and financial cost does not exponentially increase, the upper range of your EBITDA target would be close to breakeven.

A:

We believe that EBITDA is a relevant measure for us as its provides a clearer picture of our ability to generate cash flow from operations, which is crucial for supporting rapid growth and financing acquisitions.

55.

Q:

Regarding the development of the next generation laser communication valued at 3,5 MEUR. A bit more than half (1,9 MSEK) is co-funded by NSO. In the press release it is also mentioned that this will be developed together with partners FSO Instruments and TNO who will together with you will fund the remaining 1,6 M EUR. Can you say anything about how the funding of the 1,6 MEUR is distributed, is it even, do you take the majority of the risk (and rewards I assume)?

A:

The partners will provide the remaining funding in equal parts.

56.

Q:

Congratulations on the first 16U order by the way! How is the customer sentiment in general now and do you see increased interest from existing or new customers now that you are offering also 16U satellites?

A:

Over the last year we have seen an increased interest from customers for constellations and higher performance cubesats, aligning with our strategy to deliver increased performance and higher quality. The development of 12U and 16U variants of our EPIC line of satellites follows that strategy, delivering larger payload capacity, what is of particular interest for many of our customers, several of whom have shown interest in the new size.

26 February 2024

57.

Q:

The order backlog for 2024 was communicated to amount to 280 MSEK. Given the variance between quarters, any guidance regarding the timing/distribution of the backlog throughout the year? For example, large differences between H1/H2, similar distribution as previous years?

A:

The order backlog was reported at SEK 630.3 M at year-end, of which approx. SEK 280 M is expected to be recognized as revenues during 2024. Our revenues follow the how our projects develops. For example, we recognize a high value of revenue when a supplier invoices a major milestone. This means that there will be variations between quarters depending on progress in the different projects. We don’t give any guidance for quarterly sales.

58.

Q:

How are you expecting to reach the 430 / 500 MSEK target with only 280 MSEK in the backlog? Quite a substantial difference, approximately half of 2023 revenue.

A:

In Q4 alone we saw more than SEK 200M of new orders, showing the strength of demand for our products. We expect to maintain this momentum throughout the year and grow our order backlog. We see a growing demand for our products and missions, with new constellations driving that demand. The increased need for timely, good quality data will also drive the growth of our Data & Services business, particularly as more of our satellites come online and we have more data to sell. This growth across all our business lines will result in improved financials for the year and we expect to hit net sales between SEK 430M and SEK 500M.

59.

Q:

Given that 5-10% EBITDA would be a massive improvement compared to 2024, can you provide any comments on how you expect to achieve this?

A:

We expect to increase our revenues in 2024 to 430 – 500 MSEK. At the same time, we will not increase our fixed costs at the same rate.

60.

Q:

Previous quarters for the year you've had positive EBITDA every quarter. Even considering the mentioned currency effects the EBITDA is still negative for Q4, what is the main reasons behind this?

A:

The loss is mainly explained by the product mix and a currency loss of 4.8 MSEK in the quarter.

61.

Q:

SDaaS has increased a bit this year, should we expect it to increase further 2024?

A:

Yes, we see an increased need for good quality data and as more of our satellites are commissioned we will have more data to sell.

62.

Q:

How many SDaaS satellites are currently operational and delivering revenue? And how many satellites are launched and about to deliver revenue?

A:

We currently have four satellites delivering data under SDaaS contracts, another five undergoing commissioning and plan to launch a further three in 2024 and early 2025.

63.

Q:

Regarding the SDaaS there have been no orders communicated since the large Wyvern order a few years ago. Do you have difficulties to attract customers for this segment?

A:

Contracts for Secured Capacity (also known as Capacity Subscription) data and services are not frequent in the SDaaS business, and in that sense a company having two such contracts is unusual. The more frequent type of contract in SDaaS are Subscription contracts (which we previously called Annual Subscription) and AAC is growing its fleet of satellites to support this type of offering, as success in this part of the market requires the availability of data to sell, and that is currently the bottleneck.

64.

Q:

The xPANCION project was supposed to be accelerated through the capital injection, yet according to my calculations the xPANCION project is actually behind its initial time line. What is the reasons for the delays?

A:

Strictly speaking, the capital injection from last year was intended to accelerate the growth of the Earth Observation part of our SDaaS business, not the xSPANCION project. This said, the xSPANCION project is part of that SDaaS growth and is supporting it and the capital raise enabled that to happen by providing the funds to match investment.

As part of this plan, the first four xSPANCION satellites went through preliminary design review (the first major review of the full, detailed satellite design) at the end of 2023. Manufacturing for the first two starts in the spring, in preparation for the launch of the first satellite in either late 2024 or beginning of 2025.  These will be the first 16U satellites built by AAC Clyde Space and will introduce a new generation of EPIC VIEW satellites.

65.

Q:

The manufacturing of the first xPANCION satellites are planned in spring. Why do start manufacturing without any larger commitments from customers?

A:

We are working closely with customers to get commitments for the data, but we need to be closer to data delivery before customers sign up to the service.

66.

Q:

Considering it's a 200 MSEK investment into the project in total, should you not ensure some larger orders before you start manufacturing?

A:

Using a new satellite type for the data will require an investment from the customers to prepare their internal systems to process the data, and as such they need to be confident that the satellites will be a reality. We see good demand for the data from the satellites, but customers for this type of SDaaS service want to be assured that the satellites will be launched before contracting for the service.

Furthermore, the constellation is planned in such a away that the investment is done over a period of time and we can accelerate or slow down its deployment depending on the pull from the market.

67.

Q:

It was mentioned the first four satellites have gone through the preliminary design review during 2024. It was communicated in a press release 2021 that the Preliminary Design Review conducted jointly with ESA was successful. Can you please comment on the reasons for this? If it was needed to be reviewed again why was it not communicated to the market? Again given the size of the investment.

A:

The PDR in 2021 covered the generic design, process improvements among other things. The PDR in 2024 covered the specific design of the satellites.

68.

Q:

For the xPANCION project, what is the expected most common subscription type? Capacity subscription, annual subscription or pay per access?

A:

I will not speculate on that. It should also be noted that we expect to keep 4 of the satellites, and sell the rest to customers.

69.

Q:

What is the main reasons behind the improved operational cashflow for Q4?

A:

The main reasons are payments from achieved milestones in customer projects and prepayments from new customer orders.

70.

Q:

You mentioned expected positive cashflow for 2024, does that mean that you expect cashflow from Operational activities to be positive for the full year 2024?

A:

Yes.

71.

Q:

Has Ymir started to deliver any revenue?

A:

Ymir-1 is first and foremost a satellite demonstrating VDES capabilities. When the capability has been demonstrated, it will deliver AIS data to Orbcomm.

72.

Q:

There was some large orders communicated at the end of the quarter. How is the customer interest at the moment?

A:

As stated in the CEO letter, we say more than SEK 200M of new orders in Q4, showing the strength of demand for our products. We expect to maintain this momentum throughout the year and grow our order backlog. But order inflow will continue to fluctuate over the year.

73.

Q:

Are you expecting the reorganisation to incur additional costs for the company?

A:

We expect to gain focus and efficiency through the reorganisation, and don’t expect it to incur any additional costs.

74.

Q:

When in 2024 are you expecting to launch the additional two VDES satellites?

A:

The plan is to launch them in Q3 and Q4, but as always with launches, dates can move depending on the launcher schedule.

75.

Q:

Any comment on the market's reaction to the report?

A:

We don’t comment on reactions in financial markets.

76.

Q:

How many satellites do you expect to launch during 2024? Owned by AAC and in total.

A:

We expect to launch 2 AIS/VDES satellites, under our ownership. The first xSPANCION satellite is planned for launch late 2024 or early 2025. We are also manufacturing satellites for some customers but they are arranging the launches themselves and launch dates are not confirmed yet.

77.

Q:

How long do you expect the commercialisation of the SmallCAT laser to take?

A:

We are working on it and have a pipeline of potential customers.

78.

Q:

Are there any competitors for the SmallCAT laser for small satellites?

A:

Yes, there are other laser communication systems for small satellites. AAC Hyperion’s SmallCAT distinguishes itself from the competition by offering high performance with a low cost and small size.

79.

Q:

Recently, a billionaire started buying a large amount of shares from Gomspace. If you were to speculate, what made him invest in Gomspace and not AAC?

A:

We do not engage in speculation.

80.

Q:

In the Q3 report you wrote "Available cash and cash equivalents as of 30 September 2023 totalled SEK 22.7 M (25.0), excluding use of an unutilised bank overdraft facility of SEK 12.2 M (5.0), and in the Q4 report "Available cash and cash equivalents as of 31 December 2023 totalled SEK 59.5 M (52.1), including use of SEK 25.2 M (0) of a bank overdraft facility". Can you clarify why you express this differently?

A:

The intention was to write it in a more clear way. What it says is that we had SEK 59.5 M in available cash end of 2023 and another 4.8 available thru the overdraft facility.

01 December 2023

81.

Q:

You do not mention any forecast for the turnover 2024 anymore. You used to state that 500 MSEK is a realistic goal, now this sentence is gone, replaced by a general "the future will be great"-statement. Can you confirm the 500 MSEK, or do you have another, realistic, forecast for 2024?

A:

There have been no changes to our targets. For 2023 we target positive EBITDA and we are targeting revenues of SEK 500M in 2024.

82.

Q:

Why are you not providing a report on YEO, we have come a long way now so you should be aware of this? Are we reaching the expected turnover?

A:

The guidance we have given is that we target positive EBITDA for 2023. For 2024 the revenue target remains SEK 500M.

83.

Q:

Have you had the thought of decreasing the growth to "normal" levels and working towards a positive result instead during this period when your share value is very low in comparison to your revenues? It seems like the growth costs a lot of money which is hard to regain from investors these days?

A:

We have been reporting positive EBITDA for the last three quarters.

84.

Q:

In your most recent rights issue 43% of the shares were subscribed. Are you happy with this outcome?

A:

Many companies are witnessing a difficult funding environment. In this context we are grateful as these funds will enable is to increase our SDAAS operations through the xSPANCION project, which also has co-funding from UK Space Agency and ESA.

85.

Q:

Why did you see it more beneficial for the shareholders to make a rights issue rather than utilizing existing credit facility or expanding/applying for a new one? What are the main consequences/trade offs for the company of only having 43% subscription rate?

A:

In this case, we were able to in addition to subscriptions also utilize guarantee undertakings representing approx. 20% of the rights issue to provide us with the funds necessary to advance the xSPANCION project which was the main aim of the effort. Our assessment was that this was the most attractive financing options available.

86.

Q:

Recently there was a consolidation of shares 50:1. What was the main reasons behind this decision? Some of my fellow shareholders are speculating that one of the reasons is that it makes it easier to make additional right issues, any comments on this?

A:

Past rights issues have resulted in many outstanding shares, so the board decided to consolidate the number. There is no connection to additional rights issues.

87.

Q:

When will you move to a bigger list? First North is not in your favor since it is a non-liquid market place and some investors avoid the list. Does not matter how good news you release a big mass of investors will still avoid the list.

A:

We have no plans at this time to move to the main market.

88.

Q:

In the Q3 report, the warrants (2020/2023B etc) are not corrected for the 50:1 share split. Is this intentional or will they be corrected? The split was performed in Q4, although it is mentioned in the report. I'm assuming it will be corrected in the next report.

A:

The consolidation did take place in November, not in Q3. The reduced number of shares impact on key figures and incentive programmes will be reported in the year-end report 2023, as stated in the Q3 report.

89.

Q:

The cash is again running pretty low. End of Q3 roughly 22MSEK. Do you have plans, except yet another devastating share renumeration, how to mitigate this?

A:

Our cash position varies and is often impacted by larger payments from clients. We are monitoring our cash position as part of normal operations.

90.

Q:

Unfortunately, there was an antenna problem with Kelpie-2. In the press release you mentioned that you are looking into options to deliver this data anyways. Can you elaborate on the different options you are looking into, is it through external channels or still through AAC’s own satellites?

A:

We are investigating other options to deliver the data service to the customer in order to mitigate any financial consequences, while we in parallel also continue with existing data deliveries to the customer.

91.

Q:

I assume we will see a write down of the satellite’s book value in Q4, is that correct and are you able to disclose the effect of this?

A:

We have submitted an insurance claim for the satellite loss and will provide further information as soon as its available.

92.

Q:

If you manage to deliver the data anyways, is there any additional potential sales impact from losing the satellite? If I remember correctly, the data was exclusively for one customer.

A:

If we do manage to deliver the data from satellites we own, there should be no material impact on sales apart from the fact that the that capacity cannot be sold to any other customer.

93.

Q:

Is there any potential timeline you can communicate regarding the insurance claim? Is it correct to assume it will not match the timing of the write down?

A:

We will provide further information as soon as possible. At this time we have nothing further to convey.

94.

Q:

Do you have any updates regarding the lost Kelpie satellite? Is it possible to deliver the intended data from existing constellation or is a replacement satellite planned? If no, will the insurance cover loss of income as well as loss of hardware?

A:

The satellite is reported as lost to the insurer. We will come back with more information as soon as it is available.

95.

Q:

The order backlog is reported in SEK and positive year on year. Is the backlog still growing if you disregard exchange rate effects?

A:

The order backlog would be about the same, as it consists of a mix of different currencies.

96.

Q:

The royalty income has grown exponentially this year due to licensee starting up production. Do you expect the royalty income to stay on this level? The full cashflow effect is not expected until H1 next year. Can you elaborate on the timing of the cashflow?

A:

Payment of the royalties impact cash flow and are made successively. We expect payments to be completed during the first half of 2024.

97.

Q:

The AWS weather payload was delivered in October. Should we expect the full order value to be recognized in Q4, if not – can you elaborate on how the revenue has been distributed?

A:

The main part of the order value will be recognized up until the launch, which is expected before the summer 2024.

98.

Q:

Regarding your revenue recognition model. Can you elaborate on what milestones are used for each segment and approx. how large shares are attributed to each milestone within each segment? If not, can you provide any guidance in terms of how investors should think regarding this? Sometimes, you communicate milestone with order values, but I personally think it is very difficult to understand what effect these milestones have in the result. Is it possible in your reporting, to follow the total order value against what has already been recognized, if so can you provide some guidance on how investors should look at this.

A:

The revenue recognition model is based on accrued costs in a project. If, for example, if 30 % of the total costs of a project have been accrued, 30 % of the order value will be recognised as revenues.

99.

Q:

Where did the recent royalty income come from?

A:

In the press release we stated that it is from an existing license agreement relating to power and data handling systems. We are not providing further details as they are part of a confidential business agreement.

100.

Q:

How far forward does the license agreement with York space extend? Can you give us a little more detail about what the agreement looks like, how much royalties can we expect going forward? how much royalties per satellite?

A:

Unfortunately, we cannot provide any details about licensing agreements, as they are central business agreements. We do press release larger royalty amounts once they are agreed and communicated to us.

101.

Q:

In the latest report there was a gross margin improvement of 10% excluding royalties, what is the main driver behind that?

A:

The margin varies over time as a result of the product mix.

102.

Q:

If you exclude the royalties from the last quarterly report, then the quarter is actually a bit lower compared to last year. What is the main reason for this?

A:

We are growing our business, but sales revenue varies quite a bit from quarter to quarter, which is why we show net sales on rolling 12 months in the report. We believe this conveys a better picture of how our sales are developing. That being said, in Q3 revenue recognition was affected by a temporarily slower supply chain due to summer holidays.

103.

Q:

Investing cash flow has drained the cash equivalents this year, can you please specify where or which projects these costs are related to, and also if the cost was planned or if it was higher than expected.

A:

The Group’s investments in non-current assets for the period totaled SEK 41.0 M (26.7), of which intangible assets accounted for SEK 28.4 M (25.0). Investment in intangible assets mainly comprised development expenses related to the ORBCOMM and Wyvern projects, ongoing development of next-generation space products and satellite platforms (50% financed by Scottish Enterprise) and investments in two new Space Data as a Service satellites.

104.

Q:

During the end of last year and beginning of this year there was quite a lot of orders communicated. After that, there was a longer period with no orders communicated and since summer the communicated orders have picked up a little bit. How do you assess the customer interest/activity compared to last year?

A:

We saw a marked increase in customer interest and activity in the second half of 2022, and that continued into 2023, allowing us to build a large pipeline of opportunities. If anything, we have seen an increase of interest/activity towards the second half of 2023, particularly for larger orders.

The timing of orders is variable, and particularly larger orders can take several months to negotiate. This can create quarters with low order intake, followed by large order intakes in the next quarter.

105.

Q:

Ymir-1 has been launched, can we expect Ymir-1 to generate revenue by itself or do you need to have multiple satellites to complete the constellation before it can generate revenue?

A:

When Ymir-1 delivers data to Orbcomm, we will be able to recognize revenue from the satellite.

106.

Q:

Regarding xSPANCION. During summer, there was a press release commenting the SDaaS order backlog at year-end amounting to 166.8 MSEK and the planned acceleration of xSPANCION project. Is the 166.8 MSEK backlog mainly connected to the 4 xSPANCION satellites that are planned to be launched within the project?

A:

The 166.8 MSEK order backlog does not include the 4 xSPANCION satellites.

107.

Q:

In what way are you accelerating the xSPANCION project compared to the original plans?

A:

What we have done is advance the project and now moved into the phase 3B of the project, in which the project will be completed with the manufacturing of 10 novel spacecraft of which four will be launched within the project's framework.

108.

Q:

Should we expect customer agreements or orders to be communicated before the launch of the xSPANCION satellites?

A:

Any important customer agreements and orders will be communicated as soon as possible.

109.

Q:

Is the agriculture opportunity still on the table which was mentioned during the spring?

A:

Yes, it is.

110.

Q:

The four satellites already in orbit in the SpaceQuest constellation, for how many years can we count on them to be operational?

A:

The current constellation continues to deliver good service, but it is undeniable that some of the satellites in the constellation are getting old. For that reason, we started in 2022 a constellation refurbishment program, with the first two satellites in the plan scheduled to be launched in the second half of 2024. This will grow our constellation, while providing increased redundancy.

07 September 2023

111.

Q:

How long satellites need after they launched into Space to be fully operational and delivering Data you can sell?

A:

In our most recent launches, we have used an orbital transfer vehicle, what means that after the launch, the satellite will be in transit in its pod for several weeks to a few months until it reaches its final orbit. Only at that time does deployment occur and the satellite is switched on. After that follows a phase of early operations to stabilize the satellite, what can take a few weeks, and we then enter the commissioning phase, which varies from satellite to satellite.

 

During the commissioning phase our engineering teams will work closely with the operations team (and the data customers) to ensure that all equipment is operating within its design parameters, the satellite is performing to specification and the payload delivers the data that it is expected. This process can be long, particularly for the first satellite of a new design, as the process requires analysis of large amounts of data, understanding if there are problems and many software corrections and upgrades – some aspects of a satellite design cannot be tested on the ground, so several necessary improvements only come to light once in orbit. We aim for commissioning of a new design in six months, but sometimes this might need to be extended, with subsequent satellites of the same class requiring less time. One aspect that also needs to be taken into account when planning a start of service date is the readiness of data customers to receive and process data, as this is a necessary part of validating the data chain and hence start to deliver data.

112.

Q:

I was wondering to see the Wyvern Sat is not delivering revenue Q2?

A:

Commissioning is underway for EPIC Hyper-1.

113.

Q:

I wonder about EPIC Hyper-2 and Kelpie-2 and why you didn’t include their launch in events during the quarter? Also seen online that 18thSDS has "catalogued" (registered?) Kelpie-2 or EpicHyper-2. Are these 2 satellites working as they should or has something happened to them?

A:

The satellites have been launched, and we are working with their commissioning. AAC-AIS-SAT2, also known as Kelpie-2, was only deployed from its orbital transfer vehicle recently, so it is still going through the first phases of in-orbit testing. AAC-HSI-SAT2 (Wyvern-2) deployed earlier and is going through commissioning. 

114.

Q:

How are you financed in the future? Will more capital be needed for further growth or will you manage without additional capital?

A:

After the period end, the Group completed a rights issue raising a total of approx. SEK 47.6 M before transaction costs. The rights issue was carried out to accelerate the development of our next generation space data services. Space data services has been pointed out as a key area for growth for us. Our target for 2023 is to achieve a positive EBITDA and for 2024 to reach revenues of SEK 500M. We don’t expect to require more capital to achieve this growth.

115.

Q:

You estimate a turnover of SEK 500 m in 2024. What margins do you expect to land on?

A:

We expect 2023 to be a value inflection point in our strategy of profitable growth and that we are aiming for positive EBITDA in 2023. We have not provided any more detailed forecasts, but margins will be dependent on product mix between hardware and SDaaS. The net margin on hardware typically is 10-15% and 30-40% on SDaaS.

116.

Q:

Why are you unable to find new bigger investors willing to defend the share price? since the IPO there have been several large owners who have sold but very few who have taken their seats (apart from those who received shares as payment).

A:

We regularly meet with larger investors, presenting the company and our future growth plans. These are usually well received, but one of the challenges we face is that our current market capitalization does not meet the requirements of most large investors, making it difficult for them to invest in the company.

117.

Q:

What is a realistic goal on Sdaas turnover within the next years? How is the increased speed through the rights issue mirrored in forecasts for 24 and 25?

A:

We are not providing at this stage an independent forecast for SDaaS turnover in the coming years, but the funding from the rights issue will have an impact starting in 2025, with the launch of new services. The funding will ensure that we can deploy these services earlier than what we originally planned.

118.

Q:

You have previously mentioned that VDES is SDAAS. What role does AAC, Orbcomm and SAAB have in the project and how are the income shared between the three partners?

A:

The satellite VDES (SAT-VDES) service will be marketed in the future as a SDaaS offering. AAC Clyde Space entered into a partnership with Orbcomm and Saab to develop the market and offerings in the SAT-VDES market. AAC builds the satellite which will carry a VDES (VHF Data Exchange System) payload from Saab for two-way communication between satellite and ground. ORBCOMM will integrate the data in its distribution centre for maritime communications. The current agreement covers the in orbit demonstration of the services, with the companies intending to further their cooperation to offer a global service based on the current technology.

119.

Q:

Has the VDES satellite Njord-1 changed name to Ymer-1?

A:

Yes, the consortia has decided to rename the satellite Ymer-1.

120.

Q:

How many satellites are there today in the AAC group’s own fleet? How many satellites are you working on right now?

A:

As of September 2023, our fleet has a total of 8 satellites. These will be joined by another 2 later this year, subject to launch dates, followed by 2 further launches in 2024, and all these satellites are either ready to launch or in final phases of manufacture. We are now starting the manufacture of another four satellites for launch in late 2024 / early 2025, part of the xSPANCION programme.

121.

Q:

You say that you intend to "sell" 6 of the xSpancion satellites, does that mean that you sell the satellites completely as a mission project or will they remain in AAC ownership and only the place for payload is sold?

A:

The plan is to sell these satellites to customers, whereby AAC will not retain any ownership.

122.

Q:

How big will the 4 and 6 xSpancion satellites be and how many payloads/satellites?

A:

The “4 xSPANCION” satellites mentioned are 16U EPIC VIEW versions, weighing in at about 25-30kg. The “other 6” will be a mixture of sizes, mostly 6U and 8U.

123.

Q:

Can you tell us a bit more about the deal with the American blue chip company?

A:

No, under our contract we are unable to provide more information than what we have provided.

124.

Q:

How is your MoU with Qinetiq going? Do you still have a collaboration?

A:

Unfortunately we are unable to provide further details.

125.

Q:

Any news from AAC Africa?

A:

The company continues on its planned path, focusing on the supply of advanced radio communication and machine-to-machine systems to the rest of the group, while expanding our business in Africa. Its first main delivery was a ground station with locally and internationally sourced parts, delivered to a client in Africa. It is currently developing payloads for some missions to be launched next year, as well as developing new radio technology. In parallel discussions with potential customers continue on supporting the development of space in Africa.

126.

Q:

Any plans on building more ground stations?

A:

We have no immediate plans to add more proprietary ground stations. Our current network, supplemented by third-party ground stations, covers our current needs.

127.

Q:

Can you say something about why you chose to buy more shares at this time?

A:

The company cannot comment on decisions made by individuals.

128.

Q:

When are you planning to move to a bigger list?

A:

There are no such plans at this time.

05 May 2023

129.

Q:

In the annual report you write about the xSpancion project "The project is on track to be fully operational in Q3 2024 with manufacture, launch and in orbit operations”. How many satellites are included in that project?

A:

The project includes manufacturing of 10 satellites and launch of 4 of them. The other 6 satellites can of course be launched outside of the project.

130.

Q:

When is Phase 3B of xSpancion planned to start? Is there a time frame for this? So far, the only communication regarding this is that it will start once contracts are finalized. When can we expect this? Furthermore, project finalization is planned for Q3 '24, is that still valid?

A:

We still expect to finalize the project in Q3, 2024.

131.

Q:

Regarding xSpancion, this project has been ongoing for years now. Yet the discussions with potential customers still has not been finalised. What is the main challenges for landing these discussions considering the project has been ongoing for so long?

A:

Cash flow from operating activites, which does not include the overdraft facility, totalled - 9.7 MSEK. The assessment, based on the current order backlog and new customer orders intake, is that the Group is financed for the next 12 months.

It should be noted that our cash flow is variable as it is impacted by when we achieve milestones that trigger payments from customers as well as by some of our payments to suppliers. Operating cash flow does not include use of the overdraft facility.

132.

Q:

For both Kelpie and Epic satellites these are exclusively sending data to Orbcomm and Wyvern. Why do you have exclusive deals? Is this part of the SDAAS strategy for the company? One would assume you could reach larger economy of scale by owning the satellites and the data to sell to multiple rather than single companies.

A:

We offer customers three different business models in SDaaS, each with its merits and advantages. In the case of Orbcomm and Wyvern, they chose a capacity subscription model where they secure the full capacity in a number of satellites. It is a model that makes sense for these customers. We also offer annual subscriptions to satellite data and in some cases customers just buy data when they need it, a pay-per-access model. By offering different models we are better able to service the needs of our customers and capture a larger share of the market.

133.

Q:

The second Kelpie satellite is planned for launch during the first half of 2023.

A:

The second Kelpie satellite is planned for launch during the first half of 2023.

134.

Q:

Are there any launch dates for the 2nd and 3rd of Wyverns satellites?

A:

The other two satellites under the contract are expected to be delivered and launched in 2023. No dates have been set yet.

135.

Q:

In the Q1 report you mentioned the launch of the first VDES satellites. Are AAC already manufacturing more than Njord-1?

A:

Njord-1 is the first AAC Clyde Space VDES satellite, being manufactured in Uppsala. The project is key to demonstrate VDES operation as a reliable ship tracking and communications system, and Njord-1 will be the first in a new constellation of VDES satellites.

136.

Q:

What is the status of the VDES satellites? When can we expect the first one to be launched?

A:

The plan is to launch the first VDES satellite towards the end of 2023

137.

Q:

What drives the increase in Other Liabilities?

A:

Other liabilities increased to SEK 148.5 m by the end of Q1 from SEK 140.5 m at year-end, after partial use of the overdraft facility.

138.

Q:

The cash flow was approx -9 msek even after using your credit. What is the main driver behind this? Why was the credit utilised already at this point considering the cash balance at the end of the quarter? Do you deem the current cash and credit to be enough until you reach a more stable positive cash flow?

A:

Cash flow from operating activites, which does not include the overdraft facility, totalled - 9.7 MSEK. The assessment, based on the current order backlog and new customer orders intake, is that the Group is financed for the next 12 months.

It should be noted that our cash flow is variable as it is impacted by when we achieve milestones that trigger payments from customers as well as by some of our payments to suppliers. Operating cash flow does not include use of the overdraft facility.

139.

Q:

Can you comment anything about the aborted acquisition? In what domain is that company acting?

A:

I am sorry, but we cannot comment further.

140.

Q:

The board is mainly represented by larger shareholders. In this case the larger shareholders represent a minority ownership, less than 30% of the shares. Have you considered adding a representative to protect the smaller retail investors as well?

A:

According to Swedish law, board members are obliged to act in the best interest for all shareholders. Moreover, all current board members are independent of larger shareholders. Dino Lorenzini has been nominated to the Board, and if he is elected, there will be one board member who is not independent of larger shareholders.

141.

Q:

In the report it is mentioned the company is on plan to reach 500 msek revenue 2024 and positive ebitda 2023. Do you expect to reach your goals by organic growth or by acquisitions?

A:

The target for positive EBITDA is for 2023, and as stated we are targeting revenues of SEK 500M in 2024. This will be achieved by expanding all our business lines, but particularly by growth in Space Data as a Service. M&A activities are always a possibility, but they are not the baseline in our short-term growth plan.

142.

Q:

You estimate a turnover of SEK 500 m in 2024. What margins do you expect to land on?

A:

We have said that we are aiming for positive EBITDA in 2023. We have not provided any more detailed forecasts, but margins will be dependent on product mix between hardware and SDaaS. The net margin on hardware typically are 10-15% and 30-40% on SDaaS.

143.

Q:

It’s been a good year for the space industry considering the attention space images, rocket launches and overall increased investments. I follow the news closely and see many space companies land +100msek orders from government and private companies. Why have AAC not managed to land any of these larger orders? Is the company well positioned to take advantage? I’ve read and heard AAC claiming to be world leaders in the industry yet it’s been a long time since you have managed to land any larger orders. What gives you confidence in being well positioned?

A:

On March 31 our order backlog amounted to SEK 460.2 M and we continue to win new orders. We see strong interest in our current offering, and we expect revenue from particularly SDaaS to grow significantly over the coming years. It should be noted that many of the “large” orders mentioned in the question are either targeted to companies headquartered in specific countries, or are for satellites in classes that AAC Clyde Space does not offer to the market. This said, you can probably find our products on some of those satellites.

144.

Q:

Why are management and board members not buying shares?

A:

We cannot comment upon personal decisions. The Board has proposed new incentive schemes for both board members, management and other staff that would align their interests strongly to those of shareholders.

145.

Q:

How do you work with attracting larger investors to AAC?

A:

We regularly meet with and present the Group to institutional investors.

146.

Q:

What is you view on financing?

A:

The assessment, based on the current order backlog and new customer order intake, is that the Group is financed for the next 12 months.

147.

Q:

What is management’s reflection on the low share price?

A:

We have noted the share price development, and put a lot of effort into growing the business in a good way. Delivering on our strategy and  targets 2023, 2024, and with business mix shifting to more profitable Space Data as a Service would be a value inflection point in shareholder value creation. Growing EBITDA supports self financing of growth.

148.

Q:

What kind of benefits do you anticipate to follow from the MoU with ReOrbit?

A:

Our MoU with ReOrbit will expand the use base for the Sirius product line, ensuring a new long-term user for these products. In addition, ReOrbit’s software + hardware package will be available in the market in the future, extending the availability of Sirius based solutions for the space market.

149.

Q:

What is your view on the development of the share price in the last year? What can you concretely do in 3-6 months to break the downward trend?

A:

Delivering on our financial targets and plan with business mix shift to more profitable Space Data as Service would be a value inflection point and a new level of shareholder value creation. We are fully focused on achieving this which should pay-off to shareholders.

150.

Q:

I didn't find anything directly expressed about the need for financing, so I'm wondering if you think it can be handled with the remaining credit facility?

A:

In the press release about the extended overdraft facility, we said that we had met the group's short-term financing needs.

151.

Q:

You’ve previously said that your biggest challenge is to broaden the business to include a larger share of data delivery, and, by becoming a complete supplier of avionics, subsystems, satellite platforms, full missions and sdaas, you aim for a leading role within your field. So, within what specific field out of the ones listed above do you have the greatest weaknesses/room for improvement?

A:

Space Data as a Service is a growth market, representing a huge opportunity for the company to grow and expand. By that token, this is the area with the biggest “room for growth”. Our focus is in growing our offering to the market, ensuring that we have the satellites in orbit necessary to deliver more data and services.

152.

Q:

Can we presume that it is within this particular field that you’re looking for potential mergers/purchases or do you feel that it’s possible to meet that need in other ways, e.g. through strategic partnerships?

A:

We remain open to hear about interesting businesses that could strengthen AAC Clyde Space when acquired. This is particularly true if those businesses are in the space data and services downstream, as that would accelerate our Space Data as a Service growth. But at this point in time we are not actively looking for M&A targets and are instead focused on growing our business organically and together with our strategic partners.

153.

Q:

What is your near term outlook for satellite launches?

A:

We have so far launched two Space Data as a Service (SDaaS) dedicated satellites in 2023. These will deliver data to Orbcomm and Wyvern so far this year. We are currently preparing for launch this year three more satellites that will deliver data to these customers. Additionally we have another three satellites in production that will also be dedicated to SDaaS to launch later in 2023 or early 2024. xSPANCION is a separate project, following a different timeline.

154.

Q:

Are you still targeting your own weather satellites or do you focus more on Maritime and Agriculture for your own satellites?

A:

At this stage, the key customers for weather data prefer to own and control their own satellites. As such, our approach for now is to be part of the team led by OHB Sweden supplying satellites to the customers as part of the AWS project. If and when the market for weather data changes, and customers prefer a SDaaS business model, we will be ready to invest in our own assets to deliver weather data.

155.

Q:

There has been a change of board members where Nicole is not part of AAC anymore, did her new position in Comtech conflict with AAC or what was the reason for her departure?

A:

The company cannot comment on the reasons behind changes in the Board of the Company.

08 March 2023

156.

Q:

In the year-end report, we could see a cost of 8.6 MSEK related to an aborted acquisition. Firstly, more specific, what is that cost related to? Secondly, can you comment on what kind of company you were aiming to acquire?

A:

These costs relate to different advisors, financial, legal, etc, that we contracted in conjunction with investigations and negotiations around an acquisition, that we decided not to complete.

We cannot comment on the company since we are bound by non-disclosure agreements.

157.

Q:

I was just wondering if it was a bad idea for you to merge with another company. Wouldn´t it make both companies stronger, or are there downsides. It´s just that the New Space industry is very competitive, so wouldn´t it give an advantage to share resources?

A:

The success or failure of a merger depends heavily on the alignment of the companies’ philosophies, strategies, markets, customers, etc. Although there are some obvious advantages, like the aforementioned sharing of resources, the pitfalls are substantial, and any merger would need to be considered carefully. For us, any merger would need to be seen in the context of a strong strategic alignment, ensuring that the resulting entity was stronger than its parts It has been our strategy to grow by acquisitions, that successfully have broadened us from a hardware company delivering subsystem to now also delivering full satellites and space based data. Today, we are a vertically integrated company in the new space field.

158.

Q:

Has AAC been contacted by a larger company at some stage for a potential buy out?

A:

Had a concrete offer on the company been received, it would be the Board of directors duty to pass it on to the shareholders.

159.

Q:

Has AAC been contacted or contacted the new Space Fund which started trading in february for a potential buy in?

A:

We can’t comment on discussions, if any, with potential investors.

160.

Q:

Why was the final phase of the xSPANCION project divided into two parts and why did AAC Clyde Space and its partners decide to initiate phase 3A before the end of the second phase?

A:

It is natural to run part of the two phases in parallel, as their scope naturally overlaps and needs to be aligned between the phases. As you may be aware, phase 2 focuses on preparations for spacecraft manufacturing and the phase 3a focus is on platform qualification, scaling production capacity with increased automation and the development of cloud-based software for delivery of data services to users. There is an interest in ensuring close alignment between these activities, and as such it was decided to run some of the phases concurrently to ensure this alignment.

161.

Q:

Does ESA xSpancion give any pre-payment when a new phase is started?

A:

We cannot comment on details in specific projects but normally, we aim to achieve a positive cash flow in our projects which is achieved by customer prepayments.

162.

Q:

For how long will xSpancion Phase 3B last for?

A:

We expected to commence phase 3B once customer agreements are finalized, and complete it in Q3 2024 with the manufacture, launch and in-orbit operations activities.  

163.

Q:

In the press release related to the initiation of phase 3A one can read: “Once customer agreements are finalized, a phase 3B is expected to commence in which the project will be completed in Q3 2024 with the manufacture, launch and in-orbit operations activities.”, can you give any updates on this plan? Are we still on track for launch in Q3 2024?

A:

The project is on track.

164.

Q:

Can we get any updates regarding the customer agreements for xSPANCION? Previously, it was stated that agreements were expected to be signed during H1 2022.

A:

We are engaged in dialogue with selected customers and will publish agreements when they are ready.

165.

Q:

You mentioned there are several discussions ongoing with customers for the xSpancion project, is the ongoing discussions delaying the time plan of the launch of these satellites? My guess is that you need to know what type of data the customers need before you can go ahead and build a satellite to deliver it.

A:

The project is on track. The satellite platform is versatile, making it possible for us to incorporate many different types of payloads, also enabling a late “onboarding” of customers.

166.

Q:

I have heard of two major contracts related to SDaaS in the latest years, one for Wyvern and one for ORBCOMM. I understand that a large portion of your order backlog is connected to SDaaS. Is the backlog for SDaaS mainly consisting of these two customers or what other customers do you have for SDaaS?

A:

Wyvern av ORBCOMM are our largest customers for SDaaS, but there are also other customers.

167.

Q:

I read that the ORBCOMM contract is exclusive for ORBCOMM, but what about the data provided to Wyvern? Is it possible that more customers would be contracted for the data you also will provide to Wyvern?

A:

These three satellites are dedicated to delivering data to Wyvern.

168.

Q:

When looking at the current SDaaS operations I think you have mentioned that there was about 4 satellites providing SDaaS income already. With the new Kelpie satellites launched in orbit can we expect a similar revenue rate for each satellite or does the newer satellite provide more revenue per satellite?

A:

The total value of the data sales from the Kelpie satellites is, as earlier press released,  USD 5.9 M over 5 years.

169.

Q:

Can you name the satellites which are hopefully to be sent up in 23H1?

A:

In the beginning of the year the Kelpie-1, was launched and we have also  communicated that Kelpie-2 is planned for launch in the first half of 2023. These will deliver AIS data to ORBCOMM.

We have also communicated that one EPIC VIEW satellite dedicated to delivering data to Wyvern is planned for launch in April and is to be followed by two more satellites during 2023.

As regards other satellites that we manufacture, but not own, we communicate when they have launched. Sadly, a satellite manufactured by AAC Clyde Space for the Satellite Applications Catapult was lost when a Virgin Orbit rocket failed to reach orbit early on this year.

170.

Q:

Why don´t you name the latest US-Customers in the press-releases? quite easy to find out anyway when you write the details about the company?

A:

We are restricted on what we can say about certain customers, and aim instead to convey a good understanding of what type of customers we have.

171.

Q:

When building satellites without customers signed, will it go on an operating or investing account?

A:

Satellites that we own ourselves are booked as assets on the balance sheet, and appear as investments in the cash flow statement.

172.

Q:

We’ve seen two companies order demonstration satellites and then move their production of the constellation elsewhere. Kepler (in-house) and NSLComm (Arquimea). Eutelsat are planning a total of 25 cubesats for their ELO constellation and are at the same time starting to think about OneWeb Gen2 being manufactured. How are you positioned to be competitive with both technology and price for future commercial constellations with quantities of 10, 20, 50, 100, 200 satellites?

A:

Over the last few years, AAC Clyde Space has been growing its in-house capabilities through several acquisitions and technology development. This strategy was directed at ensuring that the company can offer the most technically advanced solutions to its customers, at competitive prices. This has been achieved and we now have a production process that can easily be scaled to the 10s or even 100s of satellites. Furthermore, the company has an extensive range of commercially successful products for satellites, that are now part of the designs of several constellations being built by other companies.

173.

Q:

Recently you announced an order from a US blue chip company with lower margin than usual due to your role being limited to procurement and deliver of the products. You have also said that the profit margin for data services are between 30-40%. What is your average profit margin on Space Products and Space Missions?

A:

Profit margins in Space Products are very variable and depend highly of the product being sold. We aim to have an average profit margin between 10% and 20%, but the actual value depends on the mix of space products being sold, and as such on some occasions the average might be lower and on others higher.

For space missions, again the aim is to have a 10% to 20% profit margin, but this will be dependent on the types of missions we are supplying – first in class usually are less profitable as there are plenty new designs and technologies needing to be designed and de-bugged. Follow on missions of the same design tend to be more profitable.

174.

Q:

What is the cause behind the delay for the Eutelsat’s ELO-satellites?

A:

It is a combination of several things, among them delays at some suppliers and shortage of components caused by the pandemic.

175.

Q:

NSLComm ordered two satellites from us, on the case studies section we can read “NSLComm has appointed us as “preferred supplier” in its planned commercial constellation and tasked us to deliver a second satellite.”, and a quote from the CEO of NSLComm – “/../ we look forward to a long and productive partnership with AAC Clyde Space”. This might be interpreted that we have a fair chance of getting the order to manufacture the entire constellation. We now know that NSLComm/Beetlesat largest owner is Arquimea, which will manufacture the rest of their constellation. Have we lost the “preferred supplier stamp”? If so, what is the reason for this?

A:

We do not usually comment on a customer’s commercial decisions, but on this specific case, NSLComm decided to change the design of their future satellites to a much larger platform. This would require a class of satellite that is outside of the range that AAC Clyde Space supplies, and the business case to develop such a capability for this project was not viable. As such, AAC Clyde Space did not bid for this constellation.

176.

Q:

When can owners expect to see some progress with AOS? It has been quiet since the press release and the webpage is rarely updated. Would be nice to have an update.

A:

We are currently in the assembly phase for the first satellite for the AOS partnership, and as such activity is less visible. And VDES is a competitive field and as such we must balance being open, with protecting our competitive advantage.  But we have made several investments in the clean room in Uppsala and assembly, integration and test of the satellite is ongoing.

177.

Q:

The report for 2022 mentioned that the result was affected by quite a lot of supply chain issues and also staff shortages. I heard that the supply chain issues are easing but what about the staff shortages? Is it a problem for you to recruit competent staff and when do you think this problem will be solved?

A:

Recruiting takes time and is not facilitated by competition for qualified staff, what although being a global industry problem, is particularly noticeable in Scotland. The situation has improved over the last year, but certain roles remain challenging to fill. We are in the process of replacing consultants with own staff while we are also growing our workforce overall. Speed is important, but time is key to identify and onboard the right persons.

178.

Q:

Luis mentioned shortage of personnel, which type of personnel are you missing which are affecting the growth?

A:

You can find open positions on our website. A lot of them require engineering degrees, combined with different types of experience.

179.

Q:

Regarding your personel, where are you expecting the largest growth for 2024?

A:

The group is working increasingly closer together, so in the medium term we have the opportunity to grow where we find the right talent.

180.

Q:

Last time I asked about how AAC plans to become profitable, you mentioned healthy cost control. In the fourth quarter sales decreased 3% and expenses increased 45%. This does not reflect a healthy cost control, what are the drivers behind this cost increase?

A:

In Q4 we recorded SEK 8.6m in costs related to an aborted acquisition. On a more general level costs do increase as we grow and build for the future, but we do that while maintaining a healthy cost control.

181.

Q:

You mentioned a target to become EBITDA positive for this year. Is this on a full year basis, quarterly or what can we expect? Are all segment expected to be positive?

A:

The target to become EBITDA positive is for the full year, on an annual basis.

182.

Q:

In the CEO comments Luis mentioned you are going to keep building significant growth in 2023. Can you clarify what you mean with significant? In relation... 2022 increased 9% on a full year basis. Do you consider this significant?

A:

We do not provide any numbers on the forecast, but it should be noted that we had an order backlog of SEK 427.8m at year-end that we aim to deliver from. We also plan to increase the number of satellites that we have in orbit generating revenues from data from 4 to 9 during 2023.

183.

Q:

Yet again we saw an optimistic forecast regarding revenue from Luis in beginning of Q4 saying the company was on track to hit 75 MSEK of revenue in 2022. Once again, we fell short. How are you navigating to set more realistic projections for the company and to the market in the future?

A:

We estimated SEK 210 M in revenue for 2022, and came in at SEK 197 m. That is SEK 13 M below, representing a difference of 6 per cent. We recognize that it would be better do differ on the upside, but our business is subject to short-term variabilities that many times are hard for us to foresee.   

184.

Q:

As I’ve come to understand, the reason for falling short of this 75 MSEK target was mainly due to the delay in the Transporter-6 mission. Is it possible to clearly communicate that a target is heavily dependent on a certain launch?

A:

No, unfortunately that it not possible. As a company engaged in long-term projects, we recognize revenues and costs successively in a cost-based percentage of completion method. This means that revenues and costs are recognized throughout the project successively, evening out results and reflecting how projects progress in the accounts. If a project is delayed due to shortage of components for example, that is reflected in lower revenue and costs.

185.

Q:

Regarding your segment reporting. It looks like AAC Clyde Space & Clyde Space are massive loss driver for you based on the result. In the ProHearings presentation you mentioned that your products are all priced profitably so what is the driver behind this and what do you believe is needed to turn this around?

A:

In the parent company, there are certain costs that we don’t distribute on subsidiaries such as those for the stock market listing. Clyde Space has been particularly effected by delays.

For 2023, we expect SDaaS revenue from ORBCOMM and Wyvern to improve Clyde Space revenues.

186.

Q:

The growth in revenue was 9% YoY, for 2024 you have a 500 MSEK target – does this stand? How do you plan to achieve this? Is it achievable without further acquisitions?

A:

Yes, the target still stands.

In 2023, our SDaaS revenue will start to pick-up through the contracts with ORBCOMM and Wyvern. In the coming years, we plan to expand our own fleet of satellites delivering SDaaS further.

Our order backlog stod at SEK 427.8 m at year-end. This provides us a good platform to deliver from and also to grow further.

187.

Q:

Due to the large free float created in relation to the acquisitions AAC has made the last few years, the stock price is mainly being traded by robots on a day to day basis. It is not uncommon to see the price of the stock tumble 4-5% in a day due to the large free float, low trade volume and robot trade. To help tackle this, the board could propose a rebuy of stocks at a small but impactful volume without risking too much of an negative effect on the cash flow. What are your long term strategies for protecting your stock owners investments?

A:

Share buyback programs are not allowed on Nasdaq First North where the share is traded.

188.

Q:

TO 2020/23 is to be issued to shares later half of 2023, do you have a plan for trying to increase the current share value or is the TO.s going to be worthless?. You always mention these programmes when answering questions regarding insider owners. So it should be quite important to you that these are converted to shares?

A:

The aim of this type of programs is to provide an incentive for the participants and to do so the naturally need to increase in value, but there are no guarantees that it will happen. The way that the company, and often the participants, can have an impact of the outcome of such program is through its operations.

189.

Q:

What could fail so everything goes wrong, and how will you prevent it?

A:

An account of the Group’s material financial and business risks can be found in the administration report and under Note 3 in the 2021 Annual Report. COVID-19 affected operations in the form of lower income recognition than planned in projects, since deliveries from subcontractors were delayed. The ongoing war in Ukraine has not so far affected operations. It remains difficult to estimate the final impact of COVID-19 and the war on the Group. No further significant risks are deemed to have arisen during the period.

190.

Q:

What is the biggest challenge, for Clyde Space looking forward?

A:

Currently, we are putting a lot of effort to broadening our business offering to include a larger share of data delivery. By becoming a complete supplier of avionics, subsystems, satellite platforms, full missions and SDaaS we aim for a leading role within the field of small satellites.

191.

Q:

Why are you better than your competitors?

A:

First, our heritage and experience of providing systems that work in space, built over more than 15 years (30 years for AAC SpaceQuest) of flying equipment in space.

Secondly, we control the majority of the IP and technical know how that we need for products and satellites, allowing us to customize solutions, both for our customers or for our internal purposes.

Thirdly, we have over the last few years developed the business models to attract a whole new range of customers, who although users of data collected by satellites, do not want to buy/own satellites – Space Data as a Service offers immense new opportunities, but like any new business line, needs time and effort to develop, and we have done exactly that.

192.

Q:

We are seeing a massive increase in launches and satellites going up in the coming years. Recently SpaceX was granted license by the FCC to to launch 7500 satellites into orbit. Meanwhile, AAC is planning to have 48 satellites in orbit by 2030. What are you doing to communicate and educate potential investors about the difference between your cubesats and those of other companies

A:

We regularly present our strategy to the investor community, both through presentations, but also through our publication SpAACe Talk. The size of the constellation being built by AAC Clyde Space is defined by the needs of the services that it will deliver. These types of service require tens of satellites, not hundreds or thousands. This has clear benefits in terms of reduction of capital expenditure, but it also has environmental benefits, reducing the number of satellites in orbit.

193.

Q:

AAC was not presenting and/or speaking at the Smallsat Symposium in Silicon Valley February 2023. Instead CCO Peter Anderson participated in a panel in Singapore regarding growing the space industry through partnerships and investments. What is the reason behind your absence in Silicon Valley? Peter Anderson has himself only invested less than £100 in AAC. What signals are you sending potential investors having him discuss the importance of monetary investments into the space industry?

A:

There are a large number of trade shows in the space industry and every year we have to plan which to attend and which to miss. The decision takes into account the cost vs benefit of each presence, the strategic alignment between the show’s themes and participants with AAC Clyde Space’s own objectives, the customer interaction opportunities, etc.

We have had a booth at the Smallsat Symposium in the past, but we feel that the benefit for our business as not been high enough to justify the cost of such presence. It is a show well attended by the industry, but not by our customers (present and future). Opportunities to speak are also very limited and usually require an expensive sponsorship of the show. This said one colleague from AAC SpaceQuest attended the show representing the group.

Participation in the GSTC in Singapore was deemed to be beneficial to expose AAC Clyde Space group products and services in Asia, Australia, and New Zealand. These are growing markets, and this trade show has traditionally attracted a good level of potential customers. Furthermore, one of our home countries had planned a high level delegation presence on the show, enhancing our opportunities to engage with potential customers.

194.

Q:

John Deere is seeking partnerships in the satellite market. Can that be something for AAC Clyde Space?

A:

We cannot comment on behalf of other companies, but we are already working with farming applications, most recently illustrated by the shipment of the first satellite dedicated to delivering hyperspectral data to Wyvern (see press release on 1 March 2023).

195.

Q:

Do you intend to help former Omnisys owners to find a new owner for their shares? they have until now had the tactic of releasing them on-market which have had quite some negative impact on the stock-price. This low price which you earlier described as problematic. So it should be in your benefit to maybe help them to sell it off-market instead?

A:

The shares sold by the former Omnisys owners were placed outside of the market.

196.

Q:

When will you release the next Spaace talk?

A:

We are working on it.

24 November 2022

197.

Q:

When do you expect to be break-even? What need to happen to be profitable? Is it just higher topline?

A:

Our objective is to deliver positive EBITDA and operational cash flow during 2023. We have also said that we target 500 MSEK in turnover in 2024. To reach these objectives, we need to deliver projects at a good pace, which is possible by delivering on orders already received or identified. Naturally, we also need to maintain a healthy cost control to reach profitability, and we need our suppliers to deliver when planned.

198.

Q:

What are the biggest risks you see for reaching the communicated goal of 500 MSEK by 2024? Also last q&a it was communicated that AAC would be cash flow positive 2023, what are the biggest risks against that?

A:

AAC Clyde Space has in recent times been affected by delayed launches and faced some challenges in its supply chain, what has pushed revenues later. We aim to reach our revenue objective by winning further orders and thereby expanding all our business lines, from avionics, to missions and Space Data as a Service (SDaaS).

199.

Q:

What gives you confidence in these goals? 500MSEK turnover 2024 and cash flow positive 2023?

A:

First of all, on Sept 30 the order backlog amounted to SEK 418.6 M and we continue to win new orders. We see strong interest in our current offering, and we expect revenue from particularly SDaaS to grow significantly over the coming years. When it comes to profitability, these objectives are supported both by higher revenue and us maintaining or improving our underlying level costs.

200.

Q:

How many satellites are you expecting to launch for 2023? And what is the share of SdaaS satellites?

A:

In 2023, we expect that 9 or 10 satellites will be launched, subject to the launch schedules being kept by the launch companies. Of these, 6 satellites will be added to the AAC constellation and will generate SDaaS revenue to the group.

201.

Q:

SdaaS has been communicated as part of the Group’s main strategy, yet only a small share of the income comes from sdaas. When do you expect sdaas to become a more significant part of the Group’s income?

A:

Of the order backlog of SEK 418.6 M in Q3, a total of 41 per cent are for data delivery. We already delivered the first Kepie satellite to the launch site at Cape Canaveral, Florida. This satellite will deliver AIS data to ORBCOMM under a SDaaS agreement. This is planned to be followed by a second satellite in the first half of 2023 adding further to our SDaaS revenue, and then by three satellites to deliver an hyperspectral imaging service.

The four-satellite constellation operated by our U.S. subsidiary AAC SpaceQuest, is set to grow by another two satellites in the fourth quarter of 2023.

202.

Q:

I’m very interested in the business with ORBCOMM and SAAB, is the satellite launch planned for December Transporter 6 part of this collaboration and how many more satellites are planned in this collaboration?

A:

The satellite that will be launched on the Transporter 6 launch is not part of the AOS (AAC Clyde Space, Orbcomm, Saab) collaboration. It is instead part of a batch of two satellites that will be used to provide AIS data to Orbcomm. The first satellite of the AOS team will be launched later in 2023.

203.

Q:

Finally, I’ve read a lot about the xSpancion project where the goal is to create further SdaaS deliveries. Do you have customers signed up for this already? and who would be a typical customer for this offering?

A:

There are several discussions ongoing with potential customers for satellites in the xSpancion project. The satellites will be able to carry several payloads, making them interesting for a broad range of customers such as communication providers, earth observation and weather data to name a few.

204.

Q:

Our cashflow has shown to be very negative in the last two reports. Needing to do a share issue at these levels would be devastating to dilution. Can you guarantee that we will not se any issue withing 12 months.

A:

The negative cash flow in Q3 was mainly due to revenues during the third quarter being accrued against project where prepayments already have been received, as well as not yet invoiced milestones in delayed projects. Scheduled launches in the next coming months have been delayed by launch providers, which will have a negative impact on revenue recognition and milestones to be invoiced in Q4.

We did also state in the Q3 report that the Group is assessed to be financed for the next 12 months based on the current order backlog and new customer orders intake. Please note that we also stated that measures to mitigate potential short term cash flow effects are under evaluation

205.

Q:

We have had to lower our prognosis in the Q reports which has been a large blow to market cap. How are you going to sort this out, when it is not building trust for the company.

A:

At the time of writing, the share price has increased since publication of the Q3 report. Overall though, we strive to be transparent to facilitate for shareholders to assess how our business is developing. We also deliver from an order backlog, the size of which we update on quarterly. It should also be noted that all business forecasting is uncertain. Recently we have experienced delays both from launch providers and in our supply chain, both sources that our difficult for us to mitigate in the short term.

In the Q3 report, we stated that we expect to recognise SEK 75 M of order backlog as revenue in Q4 after delays by launch providers have pushed revenue recognition into 2023.

206.

Q:

I dont remember when we saw the most recent insider buying in AAC, but it was a long time ago. Why this passivity?

A:

This is not a question for the company, but for the individuals. It should be noted though that the high business activity often prevents insiders from buying shares as we often have logbooks open.

It should also be noted that an incentive program for all employees, management and board was implemented earlier in 2022. The program represents 2% of the company.

07 September 2022

207.

Q:

How is the xSpancion project progressing?

A:

It remains in phase 2. We will communicate when the next phase starts.

208.

Q:

xSpancions first 4 satellites has been announced to be 12U satellites. Can investors expect to see more than one payload on these satellites?

A:

Depends on type, size and complexity of payloads. Our objective is always to have multiple payloads on satellites: it can be cost effective, it is a good environmental practice and, in some cases, works well operationally. But the trade off is if doing so increases complexity and price over the benefit of having multiple payloads then we won’t do it. Our current design for these satellites includes multiple payloads, but we do have options with a single payload. The cost/benefit analysis is on-going.

209.

Q:

Why do you fail to attract larger investors such as funds and institutions? what are you doing to try to get them to invest?

A:

We are meeting with larger investors. One challenge is our current market cap.

210.

Q:

How can order intake be affected by material shortages and supply chain issues?

A:

Our customers want certainty on delivery dates and want us to sign to those dates. Our suppliers are not committing to delivery dates because of the issues in the supply chain.

To overcome this issue, we are having to either get our customers to agree to different contractual terms (what requires extra time to negotiate) or we are having to look for different suppliers and/or change designs, all of which require extra time and add to the negotiation time.

211.

Q:

Has the listing on the American stock exchange been successful in your opinion?

A:

We believe that it has added to our visibility, and we have actually noted higher trading volumes totally since it became possible to trade our share at US OTCQX.

212.

Q:

Do you think the industry will keep consolidate with more mergers and acquisitions in the near future?

A:

The industry will continue to consolidate in the coming years, but we would not like to speculate in the timing of any M&A activity in the industry.

213.

Q:

You have said before that you are open to acquiring more companies if a good opportunity presents itself, but how do you feel about being acquired yourself and perhaps becoming part of a larger group?

A:

We believe that there are benefits in being part of a larger group. That’s one of the reasons why we have acquired several companies, which has made us well positioned in the industry. Our aim is to be a leader in the small satellite sector, and that will require more from us as the industry develops.

Should someone like to acquire the entire group and present an offer, it’s not a management decision. It is the Board obligation to issue a recommendation to shareholders to accept or reject such an offer, and ultimately it is up to the shareholders to decide upon it.

214.

Q:

When do you think the commercial customers will start ordering a larger number of satellites? directly after the demo satellites are launched and proven successful or will there be a delay in between?

A:

Commercial customers will first evaluate the demo project and then decide on how to proceed. This also applies to projects financed by the European Space Agency. We are currently involved in the Arcit Weather Satellite demonstration project, where a successful demonstration can lead to a constellation.

215.

Q:

Have you had to turn down any customers because you have difficulty hiring staff and problems with semiconductor shortages etc?

A:

As stated in the Q2 report, we have had problems with specifying delivery times which has made it difficult for us to reach agreements on the sale of new satellites. It is an industry wide problem which has not forced us to turn down any customers.

216.

Q:

Which satellites are launched with SpaceX in november?

A:

We plan to launch three satellites on Space-X’s Transporter-6.

217.

Q:

The satellites which will be sent up in November, are they expected to provide sdaas revenue? If yes, when can investors expect to see this revenue in the reports?

A:

Yes, one of the satellites is for Space Data as a Service. The satellite is expected to  start to generate data and revenue during Q1 2023, subject to a successful launch and commissioning.

218.

Q:

According to this website https://artes.esa.int/projects/xspancion the CDR was made in March. Is this correct? Could you name some activities in the project that has been delayed due to market situation?

A:

Preparation for the Critical Design review were held in March 2022. Some activities remain to be completed by our partners.

219.

Q:

Unfortunately, we once again missed the goals, even though you maintained them as late as June. How are things in the finance department? As this happens time and time again.

A:

As stated in the Q2 report, supply chain issues continue to affect the entire industry, delaying the delivery of existing projects and casting uncertainty over delivery times for new customer orders. These unexpected events result in delayed order intake and reduced net sales. We do expect sales to pick-up in the second half of the year as we complete more projects and thereby can recognize the associated revenue, but we don’t expect this to be enough to offset the delays we experienced during the first half of the year.

This is the background to that we needed to push our objective of a positive EBITDA and operational cashflow until 2023. We expect to generate at least SEK 236M of annual sales in 2022 from existing contracts (at the end of June). Since then, we have secured several new contracts and aim to continue doing so.

220.

Q:

Where is the insider buying?

A:

The AGM decided to adopt an incentive programme for the Board and employees including management. In this programme a total of 3.15 million warrants had been subscribed for as of 30 June 2022.

221.

Q:

Do you have any idea how to lead a company to a profit or are you forever going to play "good company" for the shareholders' money?

A:

We expect to reach positive EBITDA and operational cashflow in 2023.

222.

Q:

Are there any plans to do some kind of online event during one of your launches in the future?

A:

We usually share a link on social media where it is possible to follow the launch.

223.

Q:

Are the Wyvern and Orbcomm satellites owned by AAC Clyde Space? Are they going to bring SDAAS income for the AAC group?

A:

Yes, they are. The first Orbcomm satellite is expected to be commissioned and start to generate revenue during first half year 2023.

224.

Q:

How many satellites are there today in the AAC group's own fleet?

A:

Currently, our subsidiary SpaceQuest owns 4 satellites which are in orbit, delivering data to clients. We also have a further 19 satellites of our own which have yet to be completed, launched and commissioned.

The planned satellites include 2 satellites which will be added to SpaceQuest’s constellation. The group is also working on 3 satellites which are to deliver data to Wyvern, 2 being built with a grant from Scottish Enterprise, another 2 which will deliver data to Orbcomm, and 10 for xSpancion.

225.

Q:

How many Microwave sounding sensors does the AAC Omnisys (124 million SEK) contract with ESA project Artic Weather Satellite (AWS) include? Is it just one sensor or more?

A:

Currently we are making a demo version, which is one sensor. A successful demonstration could lead to a further 16 satellites with one sensor each.

226.

Q:

Can you say anything more about WeatherCube? Wich projects is it intended for?

A:

The WeatherCube project is an initiative to design and build the next generation of microwave sounder satellites for weather forecasting. The instrument is an evolution of the Artic Weather Satellite instrument, designed to fit on a lighter, smaller platform. It will in the future provide complementary data to the AWS constellation allowing for much improved weather forecasting.

227.

Q:

How is the AOS VDES project with SAAB and Orbcomm progressing?

A:

The integration of the satellite has been started at the Uppsala site. Deliveries of some subsystems have been delayed due to prevailing external factors.

228.

Q:

Who is running aos-vdes.com?

A:

AAC Clyde Space is running the AOS website.

229.

Q:

Any news from AAC Africa?

A:

Yes, the team is expanding and just moved to new premises in Cape Town. The largest recent event was that AAC Space Africa was selected to deliver a ground station for SEK 3.4 M that will be used as a steppingstone to leverage space-based data and services to improve the quality of life, safety and economic prosperity in the region.

230.

Q:

Every report it is clear that AAC receives orders that are not reported to the market. I understand that some orders are too small to report or that some clients require confidentiality, but I still believe that some type of reporting is of great interest to the market. Can't you release press releases where you compile several orders without mentioning the customers if necessary? Or alternatively use social media for this?

A:

Our policy is to release larger orders as well as orders of strategic character, which normally make up the bulk of our order intake. In every quarterly report, we also disclose our order backlog, making it possible to follow our sales over time.

231.

Q:

Do you see an increased interest in your products? Do you get a lot of new customers or is it mostly your former customers who place orders?

A:

Our order intake comes from a combination of recurring customers and new customers. As you may have noticed we also have repeat orders from customers building constellations.

Moreover, there are many clients new to space that are taking a serious interest in our SDaaS offering. AAC Space Africa also has a roster of regional clients who are new to the industry.

232.

Q:

How good is the quality of your products compared to your competitors? which of your products do you consider to be in the front?

A:

Internally, we view the orders from several lunar missions as a stamp of quality for our products. Being selected to participate in such prestigious, complex and also costly, missions is an opportunity not open to everyone. On a day-to-day basis, we also have quite a few returning customers, which is another sign of the quality of our products.

233.

Q:

How do you plan to turn the negative trend that the stock has been in for several years now?

A:

Like many other companies, we refrain from commenting on our stock price. Instead, we focus our communication on our business and its development. We aim to be transparent as well as accessible towards financial markets, including both potential and existing shareholders.

03 June 2022

234.

Q:

We can see that more and more space companies have been starting sdaas business. What makes you think AAC can take a big bite of the cake?

A:

Through SpaceQuest we are already actively delivering a SDaaS service, having built several years of experience in this business. Unlike many of the newcomers, we have developed the methods and systems to manage the service, deliver the data and ensure the quality of the service.

The fact that we have delivered satellites and subsystems for a long time also places us in a very strong position to succeed, both in attracting clients as well as to actually being able to deliver data.

Moreover, already in 2020, we initiated the xSPANCION project, to create a simplified access to space for a wide range of enterprises. The project is set to develop a innovative satellite constellation service, including 10 spacecrafts. As it is structured as a public private partnership with ESA and the UK Space Agency, we are also benefitting from public funding. Our aim is to develop an innovative satellite constellation service that will revolutionise the AAC Clyde Space SDaaS offering.

235.

Q:

Some companies that are your competitors take large orders and get large investors to invest in their companies. While AAC has not taken any significant major orders in almost 1 year and no major investors want to enter either. are you worried that you will slip behind and be driven away by them?

A:

We are targeting sales of SEK 500m in 2024 and SEK 2,200m in 2030, which we believe point towards a rather aggressive expansion. At the end of Q1 our order backlog stood at SEK 395m. We remain confident that we will reach our targets.

236.

Q:

Is there any mega companies intrested in you SdaaS platform ?

A:

Yes, there are which is perhaps best illustrated by the fact that both SAAB and Orbcomm are partners with us in the AOS concept, set to bring the next generation VDES data to improve safety and efficiency to seafarers worldwide.

237.

Q:

I'm curious about AOS. What's the business model like? Will AAC Clyde Space only get profit out from it by delivering satellites, or is there a license that all ships using the service in the future will have to pay to AOS?

A:

The AOS concept will deliver VDES data to a range of clients and form part of our Space Data as a Service offering. There are several different revenue models being considered for the service, including pay to use.  

238.

Q:

Is xSpansion project still going on track as planned?

A:

The project is progressing with phase 2 nearing the end. We will communicate when phase 3 starts.  As we stated in the Q1 report, the start of 2022 has not been plain sailing. Ongoing global supply chain issues and the lingering impacts of the pandemic continue to fuel an industry-wide shortage of components and skilled labour, resulting in delays in existing programmes.

239.

Q:

Are York Space Systems customers to you? I know you've had customer relations before but since we have not heard anything about it for a long time so maybe you can comment on whether your relations with York are alive or on ice?

A:

We have an active commercial relationship with York Space Systems.

240.

Q:

Does Spacequest and Google still have active project together?

A:

There is no such project.

241.

Q:

I know that there are some options among the members of the management, but you should really think about whether it is not time for broader insider buying because now the trust is not great, at least not among the small savers? Why does not Luis Gomes own more shares in the company?

A:

The recent annual general meeting decided to launch incentive programmes from employees and the Board of Directors amounting to 6.2 million warrants, each entitling to subscribe for one share. Management is expected to take part in the programs.

242.

Q:

Will you make any changes to save this sinking ship? We once again have a report that does not live up to expectations at all. I believe that you should rather put pressure on everyone in senior positions to start with massive insider purchases to try to instill courage in the share, this has been missed extremely much. What will the board do to speed this up?

A:

The Board of Directors proposed an incentive program that was approved by the AGM in May. The program will invite management and other employees to acquire warrants that will entitle them to buy shares, giving them exposure to the share price development.

243.

Q:

How will the warrants be priced?

A:

The warrants have been valued by an independent expert (PwC) on behalf of the Company through the Black & Scholes formula.

244.

Q:

What do you as a company do to attract more investors and make us existing to stay?

A:

Primarily, we aim to do good deals and run operations in a good way. An incentive program is also underway to align the interests of management with those of shareholders.

245.

Q:

Is there really nothing you can do to prevent the former Omnisys owners from continuing to massacre the share price? 1.73 now, minus 43% this year. And you think the owners are treated well?

A:

The former Omnisys owners are free to trade their shares as they wish.

246.

Q:

You have said that you are now meeting with "big" investors, what do you think is the answer to no wants to invest? Is it you that are really bad in promoting the company?

A:

We work continuously with communication, by providing a correct, and clear image of our operations, and the company. These efforts strive to build trust in the company long term.

247.

Q:

How does the work with finding some long-term investors going?

A:

It is a continuous work that is carried out. Dino Lorenzini with family, our largest shareholder with 24 million shares, has proven to be la long-term shareholder.

248.

Q:

As an investor since 2017 I feel sad about the development of the share price of the AAC Clyde Space stock. Have you guys any plans for how to strengthen the trust and relationship with the short and, most importantly, the long terms investors?

A:

It is a continuous work that we carry out, aimed at building trust in the long term.

249.

Q:

You have Spaace talk as a way of communicating with the market, do you really think 2 version is enough to satisfy the market with the information it is requesting to make investments in the company?

A:

The next edition of SpAACe Talk is in the making. Next investor presentation will be held via Zoom at “Aktiespararnas Småbolagsdagar” June 14: https://www.aktiespararna.se/smabolagsdagarna

250.

Q:

In spaacetalk you write about "the big idea" what exactly is "the big idea"?

A:

The big idea that we refer to in the second edition of SpAACe Talk is how space data can help create a more sustainable Earth, as described in the article under the heading. The commercial small satellite industry is uniquely positioned to support our global sustainability and climate change goals by providing access to increasingly sophisticated and timely earth observation data and space-based services. If analysed and acted upon quickly by businesses and governments, this can make a meaningful difference. That’s why we believe that space data really can make a difference in a big way. 

251.

Q:

Why do you use terms as "keep your eyes open", "keep your eyes peeled" or "there is a buzz" and then be dead silence?

A:

We work continuously to build the company. In Q1 2022, we did experience supply chain issues that have delayed existing programs as we have been forced to wait for important parts to complete projects. We expect to be able to recognize more revenue from new orders and meet our financial targets for 2022.

252.

Q:

As a shareholder in AAC Clyde Space for several years, it is a shame to say that the development has met expectations, many of us can sign it. Recently, however, I experience that this has escalated to a level that we go down several percent a day, regardless of how the stock market goes otherwise. The belief in the future that has previously made me stay despite long-term declines does not seem to be as strong anymore and communication from the company seems to be declining. My question is therefore, has any negative information that has not reached the market yet been leaked? The feeling is that several large banks sell large parts of their holdings at any price.

A:

There is no information leakage that we are aware of.

253.

Q:

Many of us shareholders are also members of a facebook group: https://www.facebook.com/groups/2422039454739168. At present, we are 1700 members, many of whom are quite resigned at the moment. It would have been fun to have a representative from the company there to answer questions and straighten out question marks.

A:

We answer questions here, so that answers are available to all, increasing transparency around AAC as a company.

254.

Q:

Are you looking at other ways to get more money then making more shares?

A:

As stated in the Q1 report, our target remains to be EBITDA positive and to generate positive operational cash flow in 2022.

That aside, we believe there are opportunities to finance satellites dedicated to delivering Space Data as a Service, by various sorts of debt.

255.

Q:

What do you want to say to all your shareholders who have invested their money in the company and are worried about seeing their investment reduced drastically? what can you say to calm everyone down?

A:

We reiterated our targets on sales and cash flow in the Q1 report, and are bringing more and more detail to how we expect it to materialize. We remain committed to our ambition to become a world leader in commercial small satellites and services from space.

256.

Q:

Do you think the company's current market capitalization is fair, in terms of current orders and the future?

A:

For comments on the share price and the market capitalization, we will have to refer you to analysts or others who specialize in that field. We don’t comment on our share price.

257.

Q:

Are you intrested in growing stock value for old investors ?

A:

We are not only interested in, but also working actively to create value for all our investors.

258.

Q:

Do you see some connections between bad financing and stockprice value?

A:

We cannot comment on the share price.

259.

Q:

Do you feel that it would be good to get one or more major investors into the company and thus get more money in the coffers? why have we not seen any major investors join the company do you think, where is the problem?

A:

In recent years, we have gotten in several new names among our 10 largest shareholders. Some of them have entered as a result of them being the entrepreneurs and main owners of companies that we have acquired. That these experts remain large shareholders could be seen as a sign of strength. In addition to these, there are other new names as well. We continue our efforts to build awareness about AAC and to attract shareholders.

04 March 2022

260.

Q:

Q: Why did you shift the focus from net sales to revenue as a target for 2021, without clarifying this for the market? It is directly misleading to say as Gomes did: "We remain with our revenue target of approximately SEK 200M in 2021". What caused the shift from net sales to revenue?

A:

We have not shifted focus. The target was set for sales but unexpected delays in deliveries from subcontractors resulted in us not being able to recognize that as revenue in our books. However, the business volume remains with us. Luis Gomes comments on this in the video about the Q4 report which you can find here https://investor.aac-clyde.space/en/presentations/

We are still targeting sales of SEK 500m in 2024 and SEK 2,200m in 2030.

261.

Q:

As an investor, H2 2021 has meant a news drought. Despite this, large sums of orders have been landed without being communicated to the market. That you do not communicate every small order is one thing, but when it comes to a total of tens of millions, within for example space missions, for Q4 2021? This is misleading for the stock market.

A:

We press release all significant order wins. During Q4 these amounted to approximately SEK 40 million. In addition to this, we have small orders and there is also a currency effect in the order backlog. Please note that xPANCION phase 2 was an order.

262.

Q:

AAC Clyde Space has an enormous number of vacancies to fill. Why is it so difficult to recruit people?

A:

We are recruiting people mainly to be able to deliver on our growth plans, but also to replace some vacancies. There is fierce competition for engineers specializing in space technology. We are using a variety of methods to reach interesting candidates, including social media.

263.

Q:

What does Dino Lorenzini think about the company's development? A person with such a heavy holding in the company, should have greater demands on IR vis-à-vis the market and more.

A:

Dino Lorenzini is the company’s largest shareholder. He has assumed a new role as Chief Strategy Officer for the entire Group and is working alongside colleagues to grow and improve our business. He has declared that he has a long term view on his shareholding, quoted in this press release https://investor.aac-clyde.space/en/press-releases/fauquier-to-lead-spacequest-after-lorenzini-assumes-cso-posi-90868 . He is also a member of the nomination committee.

264.

Q:

Does York Space still have a deal for manufacturing of components for the S-CLASS platform?

A:

We will receive royalty if and when York uses our equipment in their satellites.

265.

Q:

Do you have any involvement in the new LX-CLASS platform from York Space?

A:

We will receive royalty if and when York uses our equipment in their satellites independently of type of platform.

266.

Q:

Have you considered making a reverse split in the share price? As I myself am a long-term investor in AAC, I think it is sad to see the share being controlled, partly because the price has such a low value. I understand that you cannot influence how the price goes, but I think you would get more long-term and stable investors if you looked at this.

A:

Thank you for the suggestion. We are continuously working to make the share more interesting for investment.   

267.

Q:

Why don’t you run a little sale now to the armed forces around the world, try and seize the opportunity. You have technology that is sold to the military, for example. Should probably speed up the share price

A:

There is strong demand for our products from many different types of clients, reflected in our orderbook being more than twice last year’s total sales. Moreover, we would like to maintain healthy margins on our sales, so a sale is not really an option we are considering at this time.

268.

Q:

Our CEO and CFO only own one spitting thief of shares, what is the reason for this?

A:

When management have large holdings, it is usually because they are founders, as is the case with our largest owner Dino Lorenzini, who founded SpaceQuest, today our US subsidiary. 

Any actual investment decisions on behalf of management, board or other staff members, are not for the company to comment upon. We can point to the fact though that we have implemented an incentive program that has been very well received.

269.

Q:

Several people on the board do not own shares, why?

A:

Four of six directors own shares, and five of six participate in the incentive program while the last one was not onboard at the time it was offered. Any actual investment decisions on behalf of management, board or other staff members, are not for the company to comment upon.

270.

Q:

We promise things again and again that we then do not keep, what are the actions to regain confidence in the company and the stock?

A:

The board and management are working hard to grow and improve the business. Net sales increased by 83% to SEK 180m in 2021, while EBITDA improved by 36%. In 2022, we are starting out with 10 launches confirmed – and a further 12 in the pipeline that will form part of the next exciting phase of AAC Clyde Space’s growth: our own constellation of satellites. Our intention is to establish AAC as a market leader in SDaaS.

15 December 2021

271.

Q:

As an investor in the company, we heard Luis tell us about a "plan" that was to be announced at the end of the summer. Me and my fellow investors are anxious to hear about the status of this, or was it already announced, postponed or?

A:

The Plan is described in the newly issued newsletter SpAACe Talk, which can be found here. CEO Luis Gomes also presented The Plan, at Aktiespararna on November 29. You can find it at 11’35’’ and onwards at the video here.  

The Plan details our aim to grow substantially to reach a turnover of SEK 2.2 billion in 2030, mainly stemming from Space Data as a Service (SDaaS), with proprietary constellations delivering data to subscribing clients. We also aim to addi volumes in Space Missions and Products. Our main focus going forward will be weather data, maritime navigation as well as earth observation for farming and forestry.

Most of 2021 has been spent on bringing the company together under one brand, develop our communication around the group, and developing a management team and the organization to be able to scale operations. These efforts have put us on track to reach our target of SEK 500 million in turnover in 2024.

272.

Q:

As a shareholder, the only question I have is if the management team could clarify their view on purchasing shares themselves? That is, are they at all interested in doing so or is it simply irrelevant?

A:

Board and Management Executives hold a total of approx. 25.4 shares in the company, with the Group’s largest shareholder being our CSO Dino Lorenzini, together with his wife, with 24 million shares. Board Chair Rolf Hallencreutz increased his shareholding as recently as on November 25. All in all, both Board and Management Executives have a fairly significant exposure to the share.

Any actual investment decisions on behalf of management, board or other staff members, are not for the company to comment upon. We can point to the fact though that we have implemented an incentive program that has been very well received.

273.

Q:

You have never considered a repurchase program of your shares? Either for an employee incentive program or to shred them and create added value for your shareholders.

A:

No, we are focusing our investments into operations to grow and become profitable. Moreover, we are not even allowed to buy back shares with our listing on First North. As for incentive programs, there is an ongoing warrant program in which both Board and Management participate.

274.

Q:

Does AAC Clyde Space have the knowlegde to deliver a blockchain solution in space?

A:

We have no blockchain specialists among our team. We can provide the space and ground operations for a blockchain solution, but not the payloads or the system design.

275.

Q:

Paul Bates, talked a lot about the importance of collaboration within Scotland. In my point of view it would be really important that the two biggest satellite companies in Scotland have a great relationship to each other. How is the relationship and future or existing collaboration between Spire Global and AAC Clyde Space?

A:

We cooperate with many organizations and companies in Scotland but we do not disclose publicly many of those relationships due to their commercial nature. In the specific case of Spire, we are competitors in the commercial market but if there is an opportunity to collaborate in the scope of a Scottish or UK program, we would be receptive to it.

276.

Q:

There are two new "satellites" on the new webpage (bigger than i have seen before), what is the plan for those?

A:

Those are just illustrations.

277.

Q:

The AAC Clyde Space logo, what is it supposed to illustrate?

A:

In the first instance the logo reflects our group heritage in the CubeSat industry, as a world leader of the industry, for both components and satellites. In the broader sense, the logo reflects our commitment to standardized hardware solutions, which make it easier to access space data and services by simplifying the space segment.

26 August 2021

278.

Q:

Late 2020 you were building on 7 satellites, in different phases. Are anyone of those finished? Have anyone any planned launch date?

A:

One has been launched, while the others are going through final testing for launch later this year/early next year.

279.

Q:

Can the former owners of the subsidiaries and those who run the companies now buy and sell shares without communicating it to the market? do they have full transparency in the aac group?

A:

The former owners of the subsidiaries don't have access to all inside information. The board and the executive management have full insight and have to report if they trade the AAC share. If anyone else are aware of any inside information, they are included in a logbook and can't trade.

280.

Q:

Have the semiconductor shortage affected AAC production in any way?

A:

The shortage has not really affected us until now, but we are starting to see some effects of it. The biggest effect is that it is taking longer to procure parts, but we have accounted for that on our planning and are taking measures to build stock of critical parts.

281.

Q:

What is your current manufacturing capacity for satellites? How many, how fast, how much does it depend?

A:

Capacity always depends on the type of satellites we are producing. If we are producing one single design, the exact copy each time, we could reach up to 100 satellites per year. But most of the satellites we are producing right now are small batches, requiring a degree of re-engineering - that becomes the limiting factor, not production capacity. For those more specialised designs, we have a capacity of 15 to 20 per year, depending on complexity.

282.

Q:

It seems "everybody" wants to deliver space data these days, and some big names are on the move. How do you perceive your spot in the competitive landscape?

A:

The trend reflects a matter of fact: users around the world need more and better data. Traditional sources of data do not fulfil the demand so the opportunity to improve is here. Naturally many people want to join the trend. For our part, we have great satellite technology, unique instrument capability and lots of experience of operating satellites and deliver data and services from space. That places us in a good place to compete.

283.

Q:

In the Q&A on your web site, it says there is no partnership between SpaceQuest and SovereignSky, but on SovereignSky's web site SpaceQuest is mentioned as their space partner. Could you shed some light on this?

A:

As answered before, there is no partnership.

284.

Q:

There are several open engineering positions published in your website for both at Uppsala and Glasgow, are these new positions that are part of an expansion or is it replacing staff who left?

A:

It is both. The majority are related to the growth of the company and ensuring we have the capacity and skills to match the needs. There is also a number of replacement vacancies, but that is a minority.

285.

Q:

When are you going to launch the first four satellites in Xspansion?

A:

Not before 2023.

286.

Q:

Do you have any plans to expand your investor relations and your presence on social media?

A:

We are actively working on investor relations (planning to do 2 live investor presentations during Q3/Q4) and give frequent updates on social media. As you might have seen, we raised the quality of our annual and quarterly reporting. We have also recently started our newsletter SPAACE TALK.

287.

Q:

Luis, you have mentioned that you see great opportunity to sell to the US government for example directly to DoD. Can you expand this further? Do they for example require domestic production?

A:

The US is the largest single space market in the world and much of that is driven by the US government. It is naturally one of our areas of interest and we are developing our US business to answer the needs of US institutions. And yes, there is an expectation, and in many cases, it is a requirement, that such satellites are made in the US.

288.

Q:

When can investors expect the plan on how the Company are going forward?

A:

We are finalising our strategy for the coming years together with the board of directors. Once it has been signed off, it will be reflected in our communication to investors.

289.

Q:

When are you planning to move to a bigger list from the OTC-market?

A:

There are no immediate plans to change.

290.

Q:

You told us about a plan to be presented regarding xSpancion earlier. This was set to be by the end of summer. Will the plan be presented, or was the plan South Africa?

A:

AAC Space Africa is part of our future plan, but clearly it is not “the plan”.

291.

Q:

Congratulations on a great report! The Company looks to be developing well. Is the next goal to list the Company at small Cap in Sweden or the US main list NYSE?

A:

A change is not in our immediate plans.

292.

Q:

How is the cooperation among subsidiaries and the mother company? Do you have projects which different subsidiaries/offices contribute together?

A:

The cooperation is increasing at good pace. There are several projects on-going between the group companies as well as several joint technology developments. This is something that I expect will increase with time.

293.

Q:

Is the aim still to get the stock listed on small cap Stockholm?

A:

Institutions are today more active on First North than before, so it is not in the plans for now.

294.

Q:

What is advanced radio communication?

A:

‘Advanced radio communications’ in this context refers to state of the art communication systems for satellites, usually, but not exclusively, software defined radios, with complex modulation schemes and advanced options for encryption. These are fast, very secure, and efficient transmitters and receivers for satellites. Such systems are key to deliver the services and data that we are now offering to the market.

295.

Q:

How is the collaboration with Saab and Orbcomm with the new navigation system?

A:

The collaboration is progressing normally, with the demonstrator satellite being built in Uppsala.

296.

Q:

Which market segment and geographic part is believed to grow the most in the years to come?

A:

The space market is growing strongly across the globe. The US continues to be a very large market, but other smaller markets are growing fast. We strong opportunities in Europe, Africa and certain regions in Asia, as well as the US and Canada. In terms of which market segment, hardware sales will continue to grow strongly, but the biggest growth is to be found in services and data.

297.

Q:

Any new acquisition plans in the near future? Is there an interest from institutional investors to be a part of a directed new issue of stocks?

A:

We remain open to explore and discuss acquisitions that enhance the group capabilities, particularly in data and services.

298.

Q:

SDaaS accounts for about 40 per cent of the current order backlog, but only for about 10 per cent in your forecast for 2024. Is the 2024 turnover share for SDaaS perhaps a little to conservative?

A:

In the forecasts for 2024, SDaaS accounts for about 22% of our revenue. We expect the share of SDaaS to grow in subsequent years.

299.

Q:

How many people are hired for the new South Africa subsidiary this far?

A:

We start with a small team and plan to grow to meet the demand from the African space economy.

300.

Q:

Several space funds have been listed recently, what do you do to get them to invest in you?

A:

We maintain a dialogue with space focused investment funds. Some of these funds are focusing on earlier stage space companies or they don’t invest in listed companies, so there is a limited number that could potentially invest in the company. It is a dialogue that will continue.

301.

Q:

Do you see any Regulatory Challenges for LEO Satellites in the near future?

A:

Regulation is a fact of life, and we need to adapt to it. Challenges will be common to all manufacturers and operators. Space debris mitigation and frequency allocation will be the most demanding parts of the regulations in the future and might change how we build satellites. For our part, we are already integrating capabilities such as propulsion in our satellites to start addressing the changes needed.

302.

Q:

What is the approach to the space-market in big countries like China, India and Japan? Is there a potential growing market here?

A:

Those markets are large, but also extremely competitive given they all have a strong national industry. There is also a challenge of trying to break into markets that in some cases are protected or have export/import restrictions. Of the three mentioned in the question, we are active in Japan, working with our local representative to supply the Japanese space industry with our high performance products.

303.

Q:

How do you see the risk of being acquired by a major player?

A:

If there is a proposal to acquire the group by ‘a major player’ the Board will analyse it and provide its view on the merit of such proposal.

304.

Q:

When will Clyde Space be profitable?

A:

Our goal is for the AAC Clyde Space Group to be EBITDA positive in 2022

305.

Q:

Will the Company play a roll in the NMIS Boeing alliance? And if so could you explain how?

A:

We are not working with the NMIS Boeing alliance at this stage.

306.

Q:

What is your current manufacturing capacity for satellites? How many, how fast, how much does it depend?

A:

Capacity always depends on the type of satellites we are producing. If we are producing one single design, the exact copy each time, we could reach up to 100 satellites per year. But most of the satellites we are producing right now are small batches, requiring a degree of re-engineering - that becomes the limiting factor, not production capacity. For those more specialised designs, we have a capacity of 15 to 20 per year, depending on complexity.

307.

Q:

How many satellites are you working on right now?

A:

Fifteen, including several that are awaiting launch and some internal development platforms.

308.

Q:

How does AAC evolve in the space-market compared to other companies (rivals and partners) in the sector?

A:

I suggest you look at one of the investor presentations at our web where CEO Luis Gomes compares us with colleagues in the business.

309.

Q:

Can anyone work for AAC Clyde Space or are there national requirements similar to the USA's ITAR laws?

A:

The AAC Clyde Space group is an inclusive employer that always aims to hire the best people, but each group company must follow national regulations regarding employment. The different countries we operate on have different policies.

310.

Q:

Are you on track and when will you let the market learn more about the project/offering?

A:

During the first phase of the xSPANCION project, AAC Clyde Space will deliver a preliminary design for its next generation space as a service offering. This phase is expected to be finalised in the near future.

311.

Q:

How is the collaboration with Saab and Orbcomm with the new navigation system?

A:

The collaboration is progressing very well. Our team in Uppsala continues to successfully work on the first satellite.

312.

Q:

Any plans on building more ground stations?

A:

We have implemented a hybrid ground network using both our own ground stations and using third party commercial networks. But we remain interested in growing our own network in the future as the volume of data generated by our constellations increases. Of course we will still use other networks when it makes commercial sense.

313.

Q:

Profit margins, what´s your goal at the bottom row?

A:

Our communicated goal is to be EBITDA positive in 2022

314.

Q:

What was the rationale behind choosing South Africa for your first(?) organic geographical expansion before, for example Japan, or another Asian country where you already have traction and clients?

A:

We required specific competences that we found in South Africa, and we also wanted a base to address the south African and African markets. And we also have very good clients and 'traction' in South Africa, so this is not an unknown or untested market for AAC Clyde Space.

315.

Q:

When do you expect to hear from OHB Sweden about the ESA's Arctic Weather Satellite?

A:

The announced project is still ongoing

316.

Q:

Do you have any plans om acquiring an AI / machine learning company to have all software needed for SDaaS sales, or is this being worked on already?

A:

We cannot comment on on-going plans or discussions. I refer you to our previous answer on future acquisitions.

317.

Q:

Your market cap is significantly lower than for example gomspace, Ovzon, spire etc. In my view you are quite the big player in the field now. How do you think this does not reflect as such?

A:

The market makes the price of the share, not the company. We of course believe that the fundamentals of our company are strong.

02 June 2021

318.

Q:

Are you confident that the company can continue operations without raising more cash?

A:

Yes, we are confident that we have enough funding for our current plans

319.

Q:

How come some of the board members own none or very few stocks, if you do not believe in owning the stock why do recommend other to own stocks in AAC? Board members and management certainly have exposure to the share.

A:

Majority of the board members are shareholders. For the majority, their holdings also exceed two annual fees, which some institutions have as a long-term benchmark for board members.

Management also has substantial holdings, both in the form of shares and options. The company's largest owner is Dino Lorenzini together with wife, who heads the subsidiary Spacequest. Bert Monna, who leads Hyperion, is also a major owners. Other members of the management team also hold shares and options.

Any actual investment decisions on behalf of management, board or other staff members, may have many reasons, and are not for the company to comment upon. We can point to the fact that we have implemented an incentive program that has been very well received.

320.

Q:

Which type of info can the investors expect to get regarding xSpancion in the ”plan” you mentioned should be ready by this summer?

A:

xSPANCION is obviously part of our plan going forward, and as such it will be included in our future presentations, but information will not be specifically about xSPANCION.

321.

Q:

What are your thoughts in general about cryptocurrency in space?

A:

We remain interested in understanding how they can help the space economy. Plenty of potential but we need to create the mechanisms to use them.

322.

Q:

It is not yet possible to find any information on Hyperion’s and Omnisy’s websites that they are part of AAC Clyde Space. What are your group strategy within sales and marketing going forward?

A:

We are already seeing substantial synergies in our sales from the acquisitions. But we are currently redesigning our websites and adapting our sales organisation to the new company structure. This work will take a little bit longer but you will soon see the results.

323.

Q:

Will we see some financial guidance for 2021?

A:

Our targets are to be EBITDA positive in 2022 and to have revenues of 500 MSEK in 2024.

324.

Q:

How are spacequests partnership with sovereingsky and ruon ai evolving?

A:

SpaceQuest has no partnership with SovereignSky nor RUON AI.

325.

Q:

How do you view the satellite launch market during the past year? Do you expect to launch satellites from UK next year?

A:

Explosive growth - that is how I would define the launch market in 2020 (and 2021). There is a very large number of launches available and many more launch companies preparing to launch. All of that is very good news to satellite manufacturers and operators. And I do expect to see satellites being launched from UK soil very soon, hopefully early next year.

326.

Q:

Is it possible to disclose any information regarding (the size of) AAC’s pipeline?

A:

We have a healthy pipeline but don't disclose the value of it.

327.

Q:

Why do we not see any news about spacequest?

A:

You can find the latest news in the Q1-report. Their revenues was 3.9 MSEK with an EBITDA margin of 1.2 MSEK

328.

Q:

Did you reach out to any larger institutions in the last share issue? The top list didn't show that.

A:

Some institutions consisted of several investors. The share were divided between them.

329.

Q:

Is xspancion delayed?

A:

We are in the first phase of a three year programme and we are keeping to plan. The project is progressing as expected.

330.

Q:

Have you done any follow up on how much of the shares that was issued in the last emission is still owned by the same person/institutional investor? You said in the PM that the investors you were looking for was long-term investors.

A:

We are targeting long-term investors and succeeded in attracting some larger investors in the last share issue. That said, we continue our efforts to improve our ownership situation.

331.

Q:

With regards to larger investors/shareholders. It appears to be very few in the owner list. If I recall correctly, making the stock available on OTC for American market was one move.  How are you working to secure larger and more long-term investors?

A:

We are looking for long-term owners and are actively meeting with smaller and mid-size institutions and family offices.

332.

Q:

When is Orbcom and Eutelsat satellites planned for launch? From which quarter do you expect sdaas revenues from them?

A:

We shall announce the launches when the time is right.

333.

Q:

Why do you the stock had fallen 20 percent this year and around 20% in 2020?

A:

The stock market valuates the share. What management can do is run the business as well as we can and also communicate well with current and potential shareholders. We are growing and developing our offering and are also stepping up our investor relations efforts. You might have seen our new design of the Annual and Quarterly reports. We are continuing that work.

334.

Q:

What level is the company’s cyber security? Is this something you need to improve?

A:

When it comes to cybersecurity, we always need to improve. We continually monitor and improve our cybersecurity, working internally and with our service providers. Threats are growing and evolving, so we have to adapt our systems to maintain the highest levels of security.

335.

Q:

Could you explain why investors should Invest in AAC right now when the price is obviously going down more each year that is passing?

A:

I would invite you to check our latest presentation at https://investor.aac-clyde.space/en/presentations/

336.

Q:

Are some of AAC’s customers also competitors? For example OMS, the weather satellites of OMS compared to your future weather satellites.

A:

Yes, collaborations and partnerships have a long tradition in the space sector. ESA projects are often structured as collaborations between countries, thereby providing a platform for collaboration between sector colleagues. Participants normally contribute with a specific part of their expertise by delivering a specific part of the projects, such as for example a PCDU (power and control and distribution unit).

337.

Q:

Is it possible that the EBITDA for 2021 will be positive?

A:

Can't answer on that, we have not announced any targets for 2021

338.

Q:

What is AAC’s connection to Eric Penser today? they recently made an estimation of the stock price to 3.6 SEK, while Edision made an estimation of 5.6 SEK

A:

Erik Penser is our Certified adviser and the do analysis. Please note on page 3 in their most recent analysis, that Erik Penser's 3.60 represents a market cap of approx. 690 MSEK compared with 590 MSEK in their previous analysis. This is due to the higher amount of shares we have now compared to their previous analysis

339.

Q:

Are you still expecting Wyvern-deal to be closed during Q2?

A:

We are still working to the plan that we press released when we signed the ATP.

 

340.

Q:

Is it likely that you will acquire more companies in the near future?

A:

As we stated before, if there is a company with an interesting technology, or an interesting business model or idea on the market, we might consider acquiring if it makes AAC Clyde Space stronger and more competitive. But we expect most of our future growth to be organic.

341.

Q:

How is Orbcom deal with their New owners affecting you? Do you see any change in their strategy?

A:

We continue to work normally with our friends at Orbcomm and we look forward to work with their new owners when the time comes.

342.

Q:

A live presentation with SpaceQuest CEO and Hyperion CEO would be nice, is it something you are planning for?

A:

We have a whole new set of video content, podcasts and publications being prepared, and that will feature the different managers of the group, expressing their views and ideas about the industry.

343.

Q:

How would you describe AAC Clyde Space and your potential to another company like Spire global who also providing sdaas? Do you think AAC is in the same level or maybe ahead? Please compare a little because the market valuation are very different here.

A:

The comparison between us and other companies is always difficult. Our strength comes from our technology and experience, and how we can use those to answer the needs of different SDaaS customers. We can create offerings using different sources of data and different services, offering a data rich solution to our customers, not just one type of data.

344.

Q:

The license deal with York are soon to be expired, do you see this as one of your future businesses or do you see yourself keep you Technology within your walls?

A:

Our main aim is to grow our business, which we strive for in all three segments we operate in. The largest expansion we target is in our Space Data as a Service offering where customers buy space-based data from us.

We are also looking to grow in Space Products and Components. In this business area,  standardization has proven to be a driver for growth, but we don’t expect this field to expand as much as space data. Our relationship with York is part of this business area.

345.

Q:

Do you think that Eutelsat's investment in Oneweb will affect their planned IoT-constellation in any way?

A:

Eutelsat is one of the very largest satellite operators. We are not in a position to talk about their plans or strategies.

346.

Q:

Luis, could you please clarify if the three 6U EPIC satellites (equipped with a hyperspectral payload) that AAC will design, build and own, and Wyvern intend to subscribe to the data service from, are included in the 10 satellites within the xspancion programme, or not?

A:

xSPANCION is currently in its first phase and partners for the satellites have not yet been selected. In that context, the Wyvern satellites are not part of the xSPANCION programme.

25 February 2021

347.

Q:

Now the acquisition of SpaceQuest is complete. They have satellites in space. To whom do they deliver data and what kind of data?

A:

We cannot disclose those details.

348.

Q:

The laser that Hyperion Technologies is developing. Could it enable communication with other satellite constellations such as star link?

A:

The terminal being developed at this stage is a satellite-ground communications system, but future iterations of the design will be developing inter satellite links.

349.

Q:

You have been looking to hire new employees for a long time. Why? is it because some employees quit? or what is the reason for this?

A:

We are increasing our design and production capacity, as well as increasing the competence of our team in specific domains.

350.

Q:

Do you think that you have done a good job of finding the right investor since IPO? Or are you finally going to start tackling this problem properly soon?

A:

We have seen good liquidity in the share, which normally is deemed positive and that has allowed some of our long-time shareholders to exit in accordance with their strategies. We have also gained new major shareholders through the acquisitions of SpaceQuest and Hyperion.

351.

Q:

Good afternoon Luis. With the significant increase in outstanding shares in 2020 could you please discuss whether the product and services portfolio are now considered largely complete or whether we should anticipate the need for additional share-funded acquisitions. Thanks

A:

 The number of shares last year increased due to a directed share issue and two acquisitions. We have said we will do selected acquisitions that add value to AAC Clyde Space. Payment currency is up for negotiation.

352.

Q:

Do you cooperate with SpaceX in other ways than with launch services?

A:

No, not currently.

353.

Q:

In a presentation in December Luis got a question about if you compete with SpaceX. In the answer he told investors it was quite the opposite and that you were taking advantage of their success. What did you mean by that?

A:

The meaning of the answer was that the success of Space X and the growth of their satellite business is driving a quick reduction in launch prices. As a company that launches satellites, we benefit from the lower costs.

354.

Q:

What does a shift to laser communication mean for your current ground terminals?

A:

Laser communications will be an addition to our current systems and at least in the near term will not replace RF systems. Laser and RF will co-exist.

355.

Q:

What is the main difference between AAC Clyde Space and other small satellite companies, what makes AAC Clyde Space unique?

A:

All companies in our sector are different and have their unique aspects. In our case, the experience and track record of successfully deploying missions in space gives us a level of knowledge and experience of real-life space engineering that if not unique, is rare. Additionally, our vertical integration from design to delivering space data provides our customers with one stop solutions for their requirements.

356.

Q:

I'd like to hear more about your Q1 plans to gain more visibility in the USA.

A:

We are represented in the US after the acquisition of SpaceQuest and working from that. Other than that, we were in the OTC Market Newsletter this month and will to a virtual investor presentation in June.

357.

Q:

Do you only publish orders when they are of strategic value or do you publish all orders? What value does an order have to have in order to be published?

A:

We publish orders with a significant order value, if it is of strategic importance or new interesting technology - like the laser communication order.

358.

Q:

How much of the subsystem sales come from partnerships?

A:

Almost all sales are AAC Clyde Space products

359.

Q:

During your recent Capital Markets Day you mentioned further acquisitions may be on the horizon. Can you shed any light on what you are currently looking for in terms of particular technologies/synergies/etc in possible acquisitions?

A:

We chose targets for acquisition that add capabilities to the company that are important to our future strategy.

360.

Q:

Regarding xSpancion; You said that the first phase was to get deals done with "all your awaiting customers" (for data) during Q1, and yet there is no such order announced?! Is this a big misjudgement on your behalf?

A:

The work on xSPANCION continues its course, including discussions with partners. The work is progressing well and when there are relevant news, we will announce them.

361.

Q:

In the latest Q4 report, you told investors that you plan to grow through acquisitions. What do you need to supplement your current company with?

A:

We remain interested in companies that bring additional capabilities to our product or service portfolio. We can grow those capabilities internally, or if there is a company that we can acquire already with a proven record, we will consider the acquisition.

362.

Q:

As you deliver the backlog and transition towards Space as a service, how do you anticipate the financial model should stabilise in terms of margin and ROA eg in 2024 at your 500 m SEK target revenue split.

A:

We expect higher gross margins on Space as a Service projects compared to hardware sales. At the same time, we expect increased gross margins on hardware due to higher volumes.

363.

Q:

What kind of customers is the expansion project aimed at? is it to customers such as orbcom and eutelsat who in turn resell the data or is it aimed directly at the end customer, for example authorities, etc?

A:

The xSPANCION programme is intended to develop the tools and business models to support a variety of Space Data as a Service models. These can be implemented through different channels, including supplying data to large data companies, or in some cases to the users directly. What is the best solution depends on the market conditions.

364.

Q:

Can you elaborate on what type of customers you will be targeting from the recent US acquisition, and what type of projects?

A:

We will be targeting the same customers that we target all over the world – commercial and institutional, with similar product and service offerings.

365.

Q:

Long ago we heard something about NSL and OMS, are their planned constellations still relevant? Do you expect to be able to build these constellations?

A:

We are currently building satellites for both companies and that is the focus of our work with them. We cannot comment on their future plans. 

366.

Q:

You have mentioned that the Xspancion project is extremely scalable, what did you mean that?

A:

xSPANCION is designed to offer a framework, the tools and the systems for service delivery. This can be used to deliver services from a small constellation or from very large ones, or even from multiple constellations. So it can be scaled up to support very large constellations.

367.

Q:

Our Space Investing group on Facebook is eager for more content. Have you considered creating more YouTube content as events happen? So, we can feel like we are in it with you, similar to how SpaceX broadcasts their launches.

A:

Our events unfortunately are not as visually appealing as Space X’s, but we are creating more content and always endeavour to provide exciting coverage of our important occasions.

368.

Q:

In your latest year-end report, you mention now being "on a target to bring the group sales to 500M SEK by 2024". What would you say are the biggest risks and possible setbacks that might make you unable to reach this target?

A:

The biggest risks are always the unexpected changes in the world economy or the markets. These can change the nature of the industry. This said, we grew during the pandemic, so I believe the industry is pretty resilient.

369.

Q:

With Brexit deal in place, can you advise on the impact that will have on your business, in terms of funding and collaborations etc.

A:

There are more administration for the operation in certain cases, but it hasn't stopped anything.

370.

Q:

Right now, the space industry is hot but AAC Clyde Space is cold as ice. I am talking about the share price. What’s your thoughts about why the company’s share price are not moving like the rest of the space market?

A:

It’s the stock market’s job to value the share. What management can do is run the business and also communicate with current and potential shareholders. We are growing and developing our offering and are also stepping up our investor relations efforts. I believe that should create value for shareholders.

371.

Q:

How many satellites are planned with Saab and Orbcomm?

A:

We are building a first demonstration satellite. It could be followed by a larger constellation.

372.

Q:

What is most important to you in the next few years, grow and gain market share or keep costs down and maybe start making a profit?

A:

We are aiming to both grow and make profit.

373.

Q:

When do we see AAC on the Nasdaq Stockholm main market?

A:

Institutions are today more active on First North than before, so it is not a focus are for now.

374.

Q:

You wrote in the latest quarterly report that the goal is to have revenue of 500M by 2024, is it possible without acquisitions?

A:

We aim to reach 500 MSEK in 2024 by strong organic growth combined with select acquisitions.

27 November 2020

375.

Q:

There have been many acquisitions in the recent, can you comment on these acquisition’s and how this will help the future of AAC Clyde Space?

A:

We are acquiring two profitable companies. SpaceQuest gives us a completely new position in the USA, the world's largest and probably the fastest growing market. Hyperion gives us access to new technology. There are extensive synergies between all three units; sales, manufacturing, development, in-house access to everything from components, platforms to ground stations.

With these acquisitions AAC Clyde Space can grow significantly faster than the market, and thereby become a leader in both technology and business development.

376.

Q:

Could you explain the process from signing the ESA contract to designing platforms before customers are ID'd, and then tailoring payloads for those customers? The program has a wide potential of customers, payloads, with inter-satellite links, etc.

A:

The first phase of the project will run until early next year and during this period we will be iterating the design with our partners to meet the needs of the payloads. During this phase we will increase our contacts with potential customers to meet their needs.

377.

Q:

Are there any more details you can tell us about the integration process of Hyperion and SpaceQuest? For example, regarding production, timeline etc.

A:

We are currently going through the integration process for Hyperion and will start the one for SpaceQuest when the deal closes. The companies continue to operate normally, as subsidiaries, with their own local management and this is the mode of operation for the future. Naturally we will look at synergies in some areas such as sales and R&D, and we will integrate their products into AAC Clyde Space satellite designs.

378.

Q:

Nslcomm chose AAC as the supplier of its future constellation. Then they chose York space system for coverage in the United States. Why when you acquire a US company 1 month later?

A:

That was a decision that NSLComm took independently for their own strategic reasons. They were not aware of our acquisition of SpaceQuest nor of any other such confidential deals.

379.

Q:

Why do you think the market is valuing the company as such low levels right now?

A:

It’s the stock market’s job to value the share. What management can do is run the business as well as we can and also communicate well with current and potential shareholders. We are growing and developing our offering and are also stepping up our investor relations efforts. I believe that should create value for shareholders.

380.

Q:

How many satellites are there in SpaceQuests constellation in orbit right now and to whom are they delivering data?

A:

I cannot comment on the details of on-going SpaceQuest projects, particularly before the acquisition is closed.

381.

Q:

How Many payloads can you have on a 3U,6U,12U and 16U satellite?

A:

Well, it depends on the size of the payloads. In general, the avionics to manage the platform will require between 1U and 3U of the platform volume, so the rest can be payload.

382.

Q:

In recent financial results there was a decrease in order stock. Do you have a reasonable explanation for this decrease, or is it more due to corona virus impact and less investments?

A:

When it comes to revenues, we had a record quarter which decreases the order backlog. It was not compensated by the same level of order intake since customers have postponed, not cancelled, new orders due to Covid.

383.

Q:

We haven't heard about the cooperation with NSLComm in some time now. How's it going?

A:

We continue to work with NSLComm, with whom we have a very good relationship, on their next satellite. I cannot comment on their future plans.

384.

Q:

Current offerings by AAC Clyde Space are quite a few and very diverse. Which products/services have seen the most growth, can you share some values? Which product/service will be the focus of 2021?

A:

We continue to see strong and growing interest across the range of products that we offer. The strongest growth in recent years has been in turnkey mission platforms and particularly in Space as a Service. We expect this trend to continue, but we are also growing our subsystem and component portfolio with the acquisitions.

385.

Q:

Regarding the latest order, ESA/UK Space Agency contributes with ~100MSEK and AAC and its partners shares the other ~100MSEK investment. Can you give us the percentage of that investment that will come from AAC (approximately)?

A:

We intend, before we start phase 2, to enter into customer agreements for data delivery from the constellation services that match co-fund to the project.

386.

Q:

When talking about the acquisitions in the US and the market access. How big do you estimate the chances to become a significant supplier for sats regarding big customers like amazon, space X, etc..

A:

The manufacturers of super and hyper-constellations tend to have very specific supply chains for their products, many times dedicated to their needs. We continue to engage with them and if there is an opportunity that makes business sense, we would happily take it on.

387.

Q:

Why do we still have an temporary CEO for the US part of the company that sells millions of shares?

A:

We are restructuring our US business with the acquisition of SpaceQuest. AAC Microtec North America is a dormant company.

388.

Q:

AAC can expect royalties from York, how much per satellite? can you tell us more about your deal?

A:

We cannot comment on details in our customer agreements.

389.

Q:

Why did you do a advanced book building and not a direct Issue to long term investors? You seem to have some difficulties to find larger investors that are intending to stay for a longer time? Why is that you think?

A:

We have and have had many shareholders who have been invested for a long time. As we grow, we will attract more and more shareholders and eventually also institutional shareholders. This is a long-term effort, but we have seen quite a number of new shareholders entering the share in recent months. An accelerated book building procedure is well established method to safeguard value for existing shareholders.

390.

Q:

What ground station services does AAC Clyde have access to?

A:

We have our own in Glasgow, getting access of SpaceQuest's when the acquisition is closed and via third party agreements.

391.

Q:

Will you keep running Hyperion and SpaceQuest as separate brands or is your plan to fully integrate them and only use the AAC Clyde Space brand/name?

A:

Our plan is to keep those two, very strong brands active. The exact branding for the group and its different products will be announced in Q1 2021, but Hyperion and SpaceQuest will continue to exist.

392.

Q:

How are you working to harmonize work culture, decision-making processes and routines between the companies? This is usually a challenge when merging different organizations. Have you taken any steps already?

A:

This is a process that started immediately after the closing of the Hyperion acquisition. We are going through an audit of current processes and mapping of interactions and decision making processes. In some areas change is not urgent, as Hyperion had robust processes and the management team has remained in place. In other areas, such as finance, sales and marketing and strategy, harmonisation of processes and policies is already on-going. For other areas, we expect any changes required to be implemented by the spring next year. Once the acquisition of SpaceQuest closes, we will follow a similar approach.

393.

Q:

Is there a risk that too many products/services creates a high burden of complexity (comparing to aviation industry where SAS many models had very high cost in different skill sets needed and need for a lot of staff just to keep up the width of products)

A:

There is indeed a risk and we are very aware of that. One of my early decisions when I took over was to rationalise the range of products offered by AAC Clyde Space. That process is a continuous one and right now we are again going through an analysis product by product to understand their strategic interest to the company. As we move forward, we are pursuing a strategy of higher standardisation of our products (part of the work being done under the Scottish Enterprise grant), to reduce the need for so many products. And we are not wedded to a ‘make’ philosophy: If it makes more sense to ‘buy’, we will do it.

394.

Q:

To what extent will AAC Clyde pursue this apparent vertical integration strategy?

A:

Having a secure and efficient supply chain will enhance our offerings to the market. As a company we will always make a ‘make’/‘buy’ decision before progressing. There are some key equipments that are critical to the performance of our satellites, and for these, having them in house allows us to control their performance, but we need to be able to deliver them at the right cost. Vertical integration is not a strategic objective. Securing our supply chain for satellites and offering good products to sell to the market are.

395.

Q:

How do you react when your issue of New shares was very attractive from investors but when they get their shares, they just bomb it out on the market?

A:

We see a growing interest in the share, which indeed is very positive. We also have several new names among top shareholders, indicating that the directed share issue and the activities preceding it succeeded in attracting new investors to the share.

396.

Q:

Just need a short answer, in what way will the small sat industry consolidate in the coming 3-5 years and which role will Clyde play in that industry change?

A:

We expect the industry to consolidate further and continue the current trend. We have said that we want to be a world leader in small satellites and as such we will be an active part of that consolidation.

397.

Q:

In January, you announced that NSLcomm had appointed AAC as preferred supplier for their intended constellation. Is this still the case?

A:

We are not aware of any change.

398.

Q:

With the recent acquisition of Hyperion Technologies, will AAC Clyde pursue the industrialization of Optical Laser Communication Technologies?

A:

We see Optical Laser Communications as a key future technology, both for Earth-satellite links and for intersatellite links. We want to deploy these in our future fleet and as such developing and industrializing the technology is one of our strategic objectives.

09 september 2020

399.

Q:

As a long-term shareholder, I want to know why during the current pandemic and pressure on the share price, the founder of Clyde Space sells 1 million shares at a great discount, leading to one of the major shareholders pumping out millions of shares on the open market? On top of this, you choose in your latest presentation to state that the company is considering different financing alternatives. What is your explanation for the company's actions to your long-term investors?

A:

Our focus continues to be to manage the company well and grow it for the future. The actions we have taken over the last few months are driven by a desire to give the company a good, stable basis to grow and to strengthen our prospects. Although I understand the anxiety that large sales of shares can create, the founder of Clyde Space is still a major shareholder in the company, owning more than 7 million shares, and he is a very active member of the management team. 

400.

Q:

Why have you guys not tell the market that you where on the otc market already in 2018?

A:

We joined the OTC market in August 2020. There had nevertheless been transactions before that between brokers that appear in the history of transactions, but those were unofficial. It was also a surprise for us that they appeared on the list.

401.

Q:

Are you ready today to take on a constellation order? Or will you be ready when your new facility opens in Uppsala?

A:

Yes. We can scale up our production to meet the needs of a constellation.

402.

Q:

Is it possible for you to submit a schedule of planned launches of AAC Clyde Space Satellites?

A:

We do not publish our launch schedule as that information is usually commercially sensitive to our customers.

403.

Q:

The bluestone project at space metric how does that going?

A:

We ended the demonstration phase in 2018 and the project was handed over to Spacemetric after that

404.

Q:

How will you continue to increase the visibility for the company in the US?

A:

We are already interacting with US investors, and we have prepared an extensive campaign to show off the company in the US over the next few months.

405.

Q:

What options of finance are you looking at?

A:

The board is considering various alternatives.

406.

Q:

Hi! How are your relationships with your "bigger" investors at the moment due to not so understandable beating of your share price. Many included my self are worried that "bigger" investors are leaving the ship...?

A:

We work hard to increase the value of our company and do not comment on our shareholder’s ownership.

407.

Q:

How has your partnership with Ball evolved?

A:

We do not have any common projects at the moment.

408.

Q:

How many employees do AAC Clyde Space have now?

A:

At the end of Q2 we had 97 employees.

409.

Q:

AAC Clyde Space and York Space Systems have signed an agreement for the delivery of advanced command and data management electronics to York's platform. Devices from your Sirius product platform will be integrated across York's 20+ platforms currently undergoing formal "intentions" (LOIs). 1. How are these LOIs doing? 2. How does the royalty part of the agreement work between AAC and York?

A:

We will receive a royalty when and if York uses AAC Clyde Space's equipment in their satellites.

410.

Q:

Regarding the new type of partnerships as recently seen with Saab and Ordcomm. Will ACS maintain equity ownership in these kinds of partnerships in the long term?

A:

That will depend on the nature of the deal and of the partnership.

411.

Q:

With the opening of your new facility will you be able to ramp up production even further?

A:

Yes, we will build a complete assembly cube satellite assembly line.

412.

Q:

How big capacity will Uppsala facility have regarding satellite production? The EPIC 3U satellite is planned to launch in mid-2022 and will be the first satellite assembled at AAC Clyde Spaces new integration facility in Uppsala. Where is your new facility in Uppsala?

A:

The new assembly facility will be at our current premises in Uppsala

413.

Q:

When do you expect NLS to order the other 79 satellites?

A:

I presume you meant NSL. That would be a question best directed at them. Currently we are building a second satellite for them.

414.

Q:

Why is that you are in mkc market in Germany and London also but haven’t told the stock owners?

A:

We are not on the German or London markets. It might be that there have been transactions between brokers that you have found. Same thing has happened on the US OTC market before we started to be officially traded.

415.

Q:

Why do we not have a permanent US CEO? Is that not the market you would like to have high focus on?

A:

We are currently reviewing our US operation and our medium-term plan is to have a much bigger presence in the US. Joining the OTC market is part of our strategy to increase that presence.

416.

Q:

Have you applied for IPP funding for some of your projects?

A:

Firesat was built under an IPP project.

417.

Q:

The latest news on the colab with saab and orbcom was really great news! And so was the the listing on otc, very exciting! How come we don't see any trades on the otc list.

A:

We are still a bit unknown in the US. We are presenting AAC Clyde Space for different stakeholders and have a plan to make ourselves for visible to the US market.

418.

Q:

What kind of manufacturing capacity for cubesats are you achieving now at Uppsala? In the near future, do you plan to work on other satellites in Uppsala, in addition to the Saab/orbcomm project?

A:

First step is to have an assembly capacity of 2 satellites. We will use the Uppsala facility to increase our overall capacity.

419.

Q:

4 years soon on the stock market and still not making a profit. When can we expect that to happen?

A:

We stated, in the 2019-Q4 report, that we were aiming to be EBITDA positive in 2021. However, as stated in the 2020-Q2 report, the pandemic has proved this to be difficult to achieve.

420.

Q:

How has the competitive landscape developed for aac clyde space during the past years? Do you see increased competition?

A:

Competition in the sector has increased but opportunities have increases even more as small satellites become more the solution of choice for many users. The increased competition is the mark of a rapidly expanding market.

421.

Q:

Are you still looking for a company to merge with in USA?

A:

We are continuously evaluating different options, acquisitions and/or setting up our own manufacturing facility.

422.

Q:

Will the collaboration with York continue as before?

A:

Yes, there is no change

423.

Q:

What can you say about your progress in the US except the otc listing?

A:

Major part of the orders we have press release this year are from the US, so it is an important market for us

424.

Q:

How fast can you build a satellite today. Last time I read it said about 5 days. Is it because of the modular platforms?

A:

Ultimately the driver for the time it takes to build a satellite is how much non-recurring engineering is required. If none is required, and all the parts are ready, five days for build would be possible, as the system is very modular.

425.

Q:

What does it mean for your business opening your new facility in Uppsala in October?

A:

It is gives us extra capacity and we will have the capacity to build satellites in different locations what sometimes is advantageous.

426.

Q:

Could you talk about the advantages and challenges of the new type of equity partnerships as seen recently with Saab and Orbcomm?

A:

The consortium with Saab and Orbcomm is not an equity partnership. The three parties share a project and this opens the door for future joint projects, which might have a different format.

427.

Q:

During 2018 you had several orders with expected follow up orders, did you receive antog these? The Ukraine company for example?

A:

So far this year, we have had follow on order from NSLCom, Intuitive Machines, Orbital Micro Systems, Loft Orbital and from two Japanese customers.

428.

Q:

What are your estimates regarding the next 2-5 years were do you think the company will be around 2025?

A:

Sorry, we don't do forecasts.

429.

Q:

Does the future still look bright for small sat industry or has the corona virus make those forecast look darker?

A:

We see the COVID-19 pandemic as a temporary difficulty, rather than a permanent feature. It has affected the economy and depressed markets, but the fundamentals of the small satellite industry remain strong.

430.

Q:

Can you comment on Craigs sale of shares?

A:

We cannot comment on the actions of any of our shareholders. This said, Craig still holds more than 7million shares in the company.

431.

Q:

You don’t inform your shareholders much what’s going on in the company (IR). is this something you might improve? As you know the stock price is very low and it is probably one of the reasons.

A:

We do quarterly updates, press release relevant events/contracts and regularly do presentations to investors. For the fall we have a whole string of activities planned already. We are also continuing our efforts to interest both Swedish, US and other international investors in the share.

432.

Q:

In which phase of the projects you usually get paid? By delivery or milestones?

A:

We usually get paid by milestone.

433.

Q:

Can you give more details on which projects have been delayed due to covid-19?

A:

We don’t comment how individual projects progresses.

434.

Q:

How much do you need to invest in the SAAB, Orbcomm partnership both short term and long term?

A:

We will receive 17.0 MSEK in total, of which 12.2 MSEK is in the form of a grant from the Swedish Transport Administration, to finance the building, launch and commissioning of the first satellite in the project.

435.

Q:

How big capacity will Uppsala facility be regarding satellite production?

A:

The Uppsala facility for now is being sized to produce two satellites per year. But we have space to significantly increase that rate if required.

436.

Q:

What type of company is most interesting to acquire?

A:

We are looking for companies that enhance our technical capability, product lineup and/or geographical reach.

437.

Q:

How many satellites can you produce per year in Glasgow?

A:

Currently our capacity is for 8-10 satellites requiring non-recurring engineering. But for pure recurring builds, we could produce in the 10s, probably up to 100 per year.

438.

Q:

Why didn’t Kepler continue with AAC satellites for their constellation?

A:

Kepler’s strategy is to build their own satellites.

439.

Q:

The total value of the small satellite market is estimated at 42 billion between 2019-2028. you want to take a big piece of it, can you be more specific? how many %?

A:

AAC Clyde Space aims to be the world leader in commercial small satellites.

440.

Q:

Do you have problems with getting New resources to Glasgow?

A:

No. Of course, with COVID-19 there have been restrictions, but remote working is working very well for us.

441.

Q:

The sat you currently are building for NSL, is that NSL-sat2, 1 of 80, that can be a intended commercial constellation?

A:

We are indeed building NSLSat-2 for NSLComm. Regarding their future plans, I would urge you to contact them.

442.

Q:

Do you still see AAC as the leading company in the smallsat sector?

A:

My ambition is to make AAC Clyde Space THE leading company in the sector. Currently I would say we are one of the leading companies.

443.

Q:

Can you tell us which countries you are doing project for now?

A:

Our main markets are US, Europe and Asia.

444.

Q:

How many companies around the world are struggling with pandemic. What do you say to us investors here tonight and the ones for example in the US why this company is a good investment at this time?

A:

We offer a rare blend of experience, technical ability and commercial mindset in the sector. We have been building and operating successful space hardware for 15 years. And we also have the appetite, the talent and the capability to grow our business by exploring new ways of doing business. Despite the pandemic, the small satellite business is the future of space and it is a growing sector. We believe we particularly well placed to take advantage of that growth.

445.

Q:

Luis have a interesting background as a CEO of a bigger satellite company. Could this be any advantage for AAC on the US market?

A:

I held a diversity of senior roles in my previous company (but not CEO) and I do believe that has prepared me well to understand the small satellite market in general.

446.

Q:

How bigger capacity does Glasgow have compared to Uppsala facility regarding satellite production?

A:

In Glasgow we can produce 8-10 satellites/year, but we are growing that capacity to 20 satellites/year. In Uppsala we are starting with a maximum capacity of 2 satellites/year but could scale that five or ten fold if the demand exists. 

447.

Q:

In which milestones are you getting paid and How is the percentage of the total payment divided between them?

A:

It is different from project to project. We always aim to be cash flow positive through the project

448.

Q:

Who is your dream Customer and Investor?

A:

Someone that shares our vision of providing cost effective, cutting edge space solutions that are changing the economics of space services.

449.

Q:

When do you think the stock price will rise to decent levels?

A:

It is the stock market’s job to value the share. What management can do is run the business as well as we can and also communicate well with current and potential shareholders. We are growing and developing our offering, partnering with companies like Saab and Orbcomm and are also stepping up our investor relations efforts. I believe that should create value for shareholders.

09 June 2020

450.

Q:

Can you elaborate on the work that has been done on M&A? How would you describe your progress in this area?

A:

It is an ongoing process and we move ahead when we find an opportunity that will benefit our business. To add to that, we have been looking at possible acquisitions and joint ventures over the last year, but we will only move when it makes sense for the company.

451.

Q:

Regarding Kepler - Is this a closed chapter on your part, or will you deliver parts in any way?

A:

Kepler has chosen its strategy for the future and we remain open to support them when and if they so wish. In the meantime, we are looking forward to the launch of Kepler TARS and it will be good to once again work with our colleagues from Kepler.

452.

Q:

Is there any news on the change of marketplace, from First North to OMX Small cap?

A:

We have done a readiness assessment by an external consultant with a list of actions as a result. The actions will be implemented over time. The ambition to transfer the listing to the main market remains.

453.

Q:

Can you give an overview outlook on how the second quarter is looking so far. I know you cannot tell in number and specific. But more generally, are you affected by the corona virous, or is business and projects progressing as expected despite the turbulence?

A:

The impact on our business performance has thankfully been rather limited to date. Manufacturing is up and running, business development have managed to stay active despite cancellation of trade fairs and are replenishing our prospect pipeline at good pace. We have press released several contract wins since March, so I would say we are doing ok.

454.

Q:

You had said in May that you had seen not much slowdown from Covid-19. A month later, is that still the case in terms of 2020 expected results?

A:

The impact on our business performance has been limited to date. Looking forward, manufacturing is up and running, business development have managed to continue to engage with customers and we continue to see a good pipeline of opportunities.

455.

Q:

Have you had any indication if the shares still owned by Fouriertransform will be gradually sold on the stock market or if the intent is to find a new institutional owner as they are set for ending their ownership?

A:

We can't comment on Fouriertransform's plans.

456.

Q:

Could you please comment on current business activity? Offer request ect?

A:

The pandemic has led to the cancellation of many trade shows and changes in the way we interact with customers, but we have moved our business development activities on-line and we have seen very positive results from those. Our pipeline remains strong and we have not seen a reduction in interest in our products.

457.

Q:

Several of the smaller shareholders keep seeing the value of the share being pushed down by massive dumps following almost all major positive news. One or more major owners are dumping shares, keeping the value down. Is this not a risk for becoming an acquisition target at a very low valuation? Have you considered meeting with these larger shareholders and make a deal outside the public market so that the share value is not so adversely affected?

A:

We aim to diversify our shareholder base. It is a long-term effort, where we expect to see gradual results. These efforts have high priority.

458.

Q:

A question specifically for the CEO. Can you please comment why your commitment regarding ownership is so absent? It sends bad signals on the market.

A:

Although this is frustrating to myself, I buy when the time is right, and I am allowed to do so.

459.

Q:

Someone or some are selling large number of shares from UBS account(s), resulting in a downwards pressure on the stock price. Do you have any comments on this?

A:

We don't comment on shareholders trading.

460.

Q:

What impact will the GBP 2.3M grant from Scottish Enterprise have on your production capacity in the future (ie number of satellites per month) and your overall competitiveness? Will it increase your chances to win contracts already this year or first in a couple of years?

A:

The introduction of the Platform Functional Unit (PFU) will change dramatically our approach to satellite design and manufacture. As a standard, very flexible unit, we can reconfigure designs without needing to change the core of the hardware. That will improve our competitiveness in both cost and schedule. My expectation is that the main impact will be seen next year and the years after.

461.

Q:

Has your collaboration with Ball lead to something and/or is this still an ongoing process?

A:

A Memorandum of Understanding was entered in 2018 with Ball to conduct open-ended discussions on various topics. Nothing has materialised as of today.

462.

Q:

AAC Clyde Space has grown significantly, but in common with other CubeSats manufacturers has revenue that would be a rounding error in conventional satellite manufacturers' accounts. How can CubeSat manufacturers transition to the mainstream?

A:

We want and expect to grow our business strongly, but we do not want to be 'conventional' satellite manufacturers. Our value is in innovating faster and being more agile and creative then the 'conventional' manufacturers. We see our market growing strongly and we will grow with it by being technically strong and commercially aggressive.

463.