AAC Clyde Space : Annual Report 2022

ANNUAL REPORT AND ACCOUNTS 2022

IT TAKES AN INDUSTRY

TO RAISE THE EARTH

2 ANNUAL REPORT AND ACCOUNTS 2022 OVERVIEW

2022 HIGHLIGHTS

NET SALES AND EBITDA		200,000
		180,000
		160,000
		140,000
		120,000
	KSEK	100,000
	80,000
		60,000
		40,000
		20,000
		0
		-20,000
		-40,000
		FY2019		FY2020			FY2021			FY2022
						Net sales		EBITDA (excluding one-off cost)
NET SALES - ROLLING 12 MONTHS
		200,000
		175,000
		150,000
		125,000
	KSEK	100,000
	75,000
		50,000
		25,000
		0
		2020-Q1	2020-Q2	2020-Q3	2020-Q4	2021-Q1	2021-Q2	2021-Q3	2021-Q4	2022-Q1	2022-Q2	2022-Q3	2022-Q4
ORDER BACKLOG		450,000
		400,000
		350,000
	KSEK	300,000
	250,000
		200,000
		150,000
		100,000
		50,000
		0		30 MAR	31 JUN	31 SEP		31 DEC	30 MAR	31 JUN	31 SEP	31 DEC
		31 DEC
		2020		2021	2021	2021		2021	2022		2022	2022	2022
			Space products		Space missions			Satellite as a service

FINANCIAL PERFORMANCE 2022 (2021 comparison)

Net sales increased 9% to

SEK 196.7M

(SEK 180.0M)

Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to

SEK -38.6M

(SEK -14.9M)

and to

SEK -30.0M

(SEK -12.3M)

excluding costs from an aborted acquisition of SEK -8.6 M (0.0) and non-recurring personnel costs and acquisition costs of 0.0 M (-2.6)

The order backlog increased 5% to

SEK 427.8M

(SEK 407.2M)

ANNUAL REPORT AND ACCOUNTS 2022	3
OVERVIEW

CONTENTS

OVERVIEW

04 VISION

06 AT A GLANCE

10 MARKET CONTEXT

STRATEGIC REPORT 14 CEO LETTER

1. STRATEGIC PRIORITIES

1. BUSINESS MODEL

OPERATING & FINACIAL REVIEW

1. SPACE DATA AS A SERVICE

1. SPACE MISSIONS

1. SPACE PRODUCTS AND COMPONENTS

1. FINANCIAL REVIEW

1. OUR PEOPLE

1. SUSTAINABILITY

CORPORATE GOVERNANCE 42 GOVERNANCE

1. BOARD AND EXECUTIVE MANAGEMENT

1. RISK

GROUP FINANCIALS

1. ADMINISTRATION REPORT

1. FINANCIALS

Annual General Meeting

Annual General Meeting of AAC Clyde Space AB (publ) takes place on Thursday on 25 May 2023 at 13.00 at Elite Hotel Academia, Suttungs gränd 6, in Uppsala.

The English version of the annual report is a translation from the Swedish version of the annual report. If there are any differences between the version, the Swedish version should prevail since it has been subject to audit.

4	ANNUAL REPORT AND ACCOUNTS 2022	ANNUAL REPORT AND ACCOUNTS 2022	5
	OVERVIEW	OVERVIEW

VISION

FACILITATING	SUSTAINABLE
A MORE	LIFE ON EARTH

WEATHER FORECASTING

DELIVERING BETTER DATA

FOR MORE ACCURATE PREDICTIONS

MARINE EFFICIENCY

LAUNCHING FOUNDATIONS

FOR A REVOLUTION OF COMMUNICATION

FARMING PRECISION
GETTING THE BIG PICTURE AND THE DETAILS	FOR SECURE FOOD SUPPLIES

6 ANNUAL REPORT AND ACCOUNTS 2022 OVERVIEW

AT A GLANCE

>25

years' operational experience

>180

employees across UK, Sweden, Netherlands, the US and South Africa

33

satellites designed, manufactured and launched to date

47

countries receive our satellite products

WHAT WE DO

AAC Clyde Space is continuing to invest in technology to address urgent challenges on earth.

We are developing technology to serve sectors where we can make the biggest impact to help society. By doing so, we are changing the economics and applications of space data.

AAC Clyde Space is a market leader in micro satellites technologies (satellites up to 50 kg) and services that enable a growing number of commercial, government and educational organisations to access high-quality, timely data from space. This data has a vast range

of applications, from weather forecasting to precision farming to environmental monitoring, and is essential to creating more resilient processes and industries, which improves life on Earth.

We are trusted by an increasing array of prestigious clients to deliver data and cutting edge satellite technology. Over the years, our clients have included ORBCOMM, Wyvern, Eutelsat, OHB, Intuitive Machines, Orbital Micro Systems, UK Space Agency, European Space Agency, and we've delivered solutions and platforms for multiple NASA programmes.

The global small satellite market is expanding rapidly, driven by an insatiable demand for data. Technological advances and falling costs together with our pedigree means we are best placed to capitalise on unprecedented interest in using data from a space perspective. AAC Clyde Space is backed by over 25 years' operational experience and our in-house expertise spans from subsystems through to advanced sensors and data delivery. Our combined workforce brings expertise to bear across three core areas

(see our divisions).

OUR OPERATIONS

SWEDEN

SCOTLAND

SWEDEN

USA

NETHERLANDS	SOUTH AFRICA

Our operations and structure

The Group's main operations are located in Sweden, the United Kingdom, the Netherlands, the USA and South Africa, with partner networks in Japan and South Korea. Shares of the Group's Swedish parent company, AAC Clyde Space AB, are traded on Nasdaq First North Premier Growth Market in Stockholm and on the OTCQX Market in the US.

ANNUAL REPORT AND ACCOUNTS 2022	7
OVERVIEW

WHAT WE DO

SPACE DATA AS A SERVICE	Timely, high-quality data from space
	delivered directly to clients. We take
	care of the process - from design
	through to build, launch, operation
	and data delivery - so clients can
	focus on their core business.
	Read more on page 22

	SPACE MISSIONS
	Fully assembled micro and nano
		satellite platforms (1-50kg) and
		customisable mission services,
		available for direct sale or as a
		comprehensive package including:
		mission design, manufacturing and
		integration of components, launch
		and ground services. Our turnkey
		offering empowers clients to both
		customise and streamline their space
		missions.
		Read more on page 24

	A full range of off-the-shelf and
SPACE PRODUCTS & COMPONENTS
	tailor-made subsystems and
	sensors for cube and small satellites
	(approximately 500kg), for use in our
	own platforms and by third parties
	and customers.
	Read more on page 26

8 ANNUAL REPORT AND ACCOUNTS 2022 OVERVIEW

AT A GLANCE

WHERE WE MAKE A DIFFERENCE

ANNUAL REPORT AND ACCOUNTS 2022	9
OVERVIEW

OBSERVING EARTH'S FORESTS AND FOOD

Our work with Canadian earth observation company Wyvern is helping to improve land usage, making food sources more stable, reducing water waste, and tracking deforestation.

PREDICTING EARTH'S CRISES

Our work on the Arctic Weather Satellite will help to improve weather forecasting accuracy, providing greater warning of server weather events to people across the globe.

OPTIMISING EARTH'S FUEL USE

Our work with SAAB and ORBCOMM towards the new VDES maritime communications systems will help drive more sustainable shipping, by finding the most fuel- efficient routes across our oceans.

CLEARING EARTH'S ORBIT

Our work with Astroscale is helping to safeguard Earth's orbits, ensuring they can be used in a safe and responsible way for years to come. With satellite numbers constantly rising, this is important work to keep the planet safe.

EXPANDING EARTH'S DATA COVERAGE

Our work on the xSPANCION project will allow us to offer near-global data coverage, helping to enable communications in unserved and underserved communities, and deliver data that will help fight climate change.

MONITORING EARTH'S OCEANS

Our work on the SOCON project (Sustained Ocean Colour Observation) with Seahawk uses nanosatellites to monitor biological changes in the ocean's surface, helping to track the health of the oceans and the ecosystems within them.