Slide 1: Financial Results Q2 Fiscal Year Ending March 2025
Financial Results Q2 Fiscal Year Ending March 2025 2024.11.12
Slide 2: Table of Contents
Table of Contents 2 Table of Contents for Q2 of Fiscal Year Ending March 2025 Executive Summary Business Highlights Financial Results • Business Overview • Mission 1 Overview • Development KPI • Sales KPI Appendix • Sustainable Business Model • Financial Data • Glossary
Slide 3: Executive Summary of Q2 of Fiscal Year Ending March 2025
Executive Summary 3 Executive Summary of Q2 of Fiscal Year Ending March 2025 Business • Participated in the IAC(1) , the world’s largest space-related congress, to accelerate global Environment customer development • Mission 2: Launch timing updated. Our preparation towards the launch is progressing
Slide 4: Business Highlight
01 Business Highlight Contents: • Business Environment • Progress of Mission 2 • Progress of Mission 3 • Progress of Mission 6 • Mission Plan • Progress in Developing Global Customers • Changes of Global Management Structure • IR activity
Slide 5: Attended the 75th International Astronautical Congress in Milan
Business Environment 5 Attended the 75th International Astronautical Congress (IAC) in Milan to accelerate global customer development Our exhibition booth at IAC. At the back left is a full-scale mockup of the APEX 1.0 Lander EU entity CEO Julien-Alexandre Lamamy giving presentation at the booth •
Slide 6: Received IAF Excellence in Industry Award for Mission 1
Business Environment 6 Received “IAF Excellence in Industry Award”(1) at IAC, recognizing ispace’s Mission 1 as one of successfully executing landmark space missions Received the prestigious international award for our landmarking Mission 1 • Received the 2024 "IAF Excellence in Industry Award" from
Slide 7: M2 Launch no earlier than Jan 2025
M2 Launch no earlier than Jan 2025 * ⚫ SpaceX has defined an updated Launch Window for our Mission 2 for no earlier than January 2025* ⚫ Our preparations are progressing smoothly; Soon the RESILIENCE lander will be shipped to Florida on-time for final preparations for launch * Launch timing, targete
Slide 8: Progress of Mission 2: Launching soon
Progress of Mission 2 8 Launching soon! Mission2 Mission Description Lander etc. to be used Preparing shipment to launch site ⚫ Scheduled for launch no earlier than January 2025(1) RESILIENCE Lander ⚫ The RESILIENCE lander, with hardware validated through Size Mission 1, will be utilized aiming to i
Slide 9: Mission 2 Progress: Landing site Mare Frigoris
Progress of Mission 2 9 Launching soon! Mission Progress Mission2 Revealed M2 landing site “Mare Frigoris”! TENACIOUS rover was integrated to RESILIENCE lander, ready to be shipped to the launch site M2 Landing site* *The red point is primary candidate site and brown points are backup M1 Landing The
Slide 10: Mission 2 Sales Progress: HAKUTO-R Partners
Progress of Mission 2 10 Launching soon! Sales Progress Mission2 In total twenty-two HAKUTO-R(1) Official and Corporate Partners are confirmed, aiming for Mission 2 success 1 Official Partner 11(2) Corporate Partners 7 Supporting Companies 3 Media Partners (1) HAKUTO-R is a commercial lunar explorat
Slide 11: SMBC becomes HAKUTO-R Official Partner
Progress of Mission 2 11 Launching soon! Sales Progress Mission2 Sumitomo Mitsui Banking Corporation (SMBC) becomes HAKUTO-R Official Partner Together with the official partner, aim to develop cislunar(1) economy • Since joining as corporate partner in 2020, SMBC has provided significant support for
Slide 12: JINS and Kurita Water Industries join as Corporate Partners
Progress of Mission 2 12 Launching soon! Sales Progress Mission2 JINS and Kurita Water Industries join HAKUTO-R as Corporate Partners JINS joined as a Corporate Partner Kurita Water Industries joined as a Corporate Partner • A Japanese eyewear company, JINS, joined HAKUTO-R • A Japanese water treatm
Slide 13: Progress of Mission 3
Progress of Mission 3 13 2026 Mission3 Mission Description Lander to be used CDR(3) to be completed ⚫ Scheduled for launch in 2026(1) ⚫ Selected for NASA CLPS Task Order CP-12 as a member APEX 1.0 Lander of Draper’s team Size ⚫ Ability to carry up to 300kg to the lunar surface – more Approx. 3.3m ta
Slide 14: Mission 3 Development Progress
Progress of Mission 3 14 2026 Development Progress Mission3 U.S. entity unveiled a full-scale APEX 1.0 lander mock-up and U.S. MCC, standing ready to carry out consecutive commercial missions APEX 1.0 lander mock-up at IAC booth The main operation room of the Summit Mission Control Center • A full-s
Slide 15: Progress of Mission 6
Progress of Mission 6 15 2027 Mission6 Mission Description Lander to be used PDR(6) in progress ⚫ Scheduled for launch in 2027(1) ⚫ Part of mission costs supported by the grant of $80MM(2) which was the largest budget size(3) of Series 3 Lander(7) the SBIR program(4)(5). The 1st payment of the grant
Slide 16: Mission Plan
Mission Plan 16 Developing 3 landers simultaneously: in Japan for Mission 2 (scheduled launch in no earlier than 2025/1), Mission 6 (scheduled launch in 2027), and in the U.S. for Mission 3 (scheduled launch in 2026) R&D Commercial M1 M2 M3 M4 M5 M6 (2022) (no earlier than 2025/1) (2026) (2027) (1)
Slide 17: Progress in Developing Global Customers: MOUs
Progress in Developing Global Customers 17 New Around the International Astronautical Congress (IAC), signed MOUs(1) and iPSA(2) MOUs with 7 global entities totaling $99MM, aiming to move forward to final agreements Takeshi Hakamada, Founder & CEO of ispace, Takeshi Hakamada, Founder & CEO of ispace
Slide 18: Progress in Developing Global Customers: MOUs
Progress in Developing Global Customers 18 New Around the International Astronautical Congress (IAC), signed MOUs(1) and iPSA(2) MOUs with 7 global entities totaling $99MM, aiming to move forward to final agreements Ron Garan, CEO of ispace-U.S., Sam Ximenes, Founder and CEO of Ron Garan, CEO of isp
Slide 19: Announced Changes of Global Management Structure
Changes of Global Management Structure 19 Announced Changes of Global Management Structure to Streamline Business Development CEOs of all three entities will be directly in charge of sales activities • Changed the management structure in order to streamline business development and advance sales act
Slide 20: IR Activity
IR Activity 20 IR Activity Actively creating opportunities to directly communicate with our shareholders and investors Completed Upcoming • Held a lander papercraft event for our shareholders • Updates on shareholder benefits program(1) • Opportunity to apply for participation in Mission 2-related e
Slide 21: Financial Results
02 Financial Results Contents: • New Financing • Profit and Loss Statement • Net Sales by Service • Balance Sheet • Cash Flow Statement • Our KPI • Illustrative Business Model
Slide 22: New Financing: Equity program with Heights Capital Management
New Financing 22 New Announced equity program agreement with Heights Capital Management Financing as the allottee, aiming at securing the necessary funds for future missions Introduction of allottee ⚫ Heights Capital Management (HCM) is an affiliate of Susquehanna International Group (Susquehanna),
Slide 23: Background of the third-party allotment
New Financing – background 23 Background of the third-party allotment M3 (2026) ⚫ ispace is currently in the process of “initial model development” for two landers: the APEX 1.0 lander(1) in the U.S. entity and the Series U.S. 3 lander(2) in Japan entity ⚫ Development of the “initial model developme
Slide 24: Financing – overview of the equity program
Financing – overview of the equity program 24 The total amount raised will vary depending on the share price at each of the four equity programs. In addition to the Base Capital Increases, planned to be completed by the end of this fiscal year, Upside Capital Increases through stock acquisition righ
Slide 25: Image of the equity program
New Financing – Image of the equity program 25 Image of the equity program FYE 25/3 Stock price 4 Stock acquisition rights The exercise price is 120% of the closing 3 price on the trading day immediately prior to each announcement 2 Common Stock Issued at 90% of the closing price on the Expected per
Slide 26: Reasons for selection of procurement method
Financing – reasons for selection of procurement method 26 By issuing common stock and stock acquisition rights with four separate issuances, the program is designed to: 1. reduce the impact on the share price, 2. take dilution into consideration, and 3. leave open the possibility of upside procurem
Slide 27: New Financing – use of proceeds (overview)
New Financing – use of proceeds (overview) 27 Through the funding from Base Capital Increases and potential funding from Upside Capital Increases, ispace expects to secure development capital to execute three missions through 2027 FY2025/3 FY2026/3 FY2027/3 FY2028/3 CY2024 CY2025 CY2026 CY2027 Serie
Slide 28: Profit and Loss Statement
Profit and Loss Statement 28 Despite YoY increase in net loss due to recording of non-operating expense and extraordinary loss, the size of loss is within the expectation in comparison to the full-year forecast Point: FY2024/3 FY2025/3 FY2025/3 (Previous year) (Forecast) ⚫ Net Sales: Although net sa
Slide 29: Profit and Loss Statement - SG&A
Profit and Loss Statement - SG&A 29 R&D costs increased YoY due to an increases in mission development costs Point: FY2024/3 FY2025/3 (Previous year) ⚫ R&D: Q2 Cumulative Q2 Cumulative %Change Increased YoY due to increases in development costs (Millions of yen) for Mission 2 defined as a R&D missio
Slide 30: Net Sales by Service
Net Sales by Service 30 The full-year sales forecast for this fiscal year remains at ¥4.0 Bn. We aim to expand payload sales in the second half of the fiscal year, mainly through Mission3 Payload Partnership Others (Millions of yen) 4,033 YoY +71% temporal net sales increase 2,357 along with M1 comp
Slide 31: Balance Sheet
Balance Sheet 31 Short term advances and advances received increased from the previous fiscal year along with the progress of Mission 2 and 3 development, while long term liabilities also increased due to long-term debt through syndicated loan FY2025/3 Q2 FY2024/3 Point: (as of Sep 2024) (as of Mar
Slide 32: Cash Flow Statement
Cash Flow Statement 32 Financing CF, including syndicated loan, mostly covers significant loss in Free CF due to the progress of Mission 3 development FY2024/3 Point FY2025/3 (Previous year) (Millions of yen) Q2 Cumulative Q2 Cumulative ⚫ Cash Flow from Operating Activities: Cash Flow from Operating
Slide 33: KPI
KPI 33 Sales pipeline for Mission 3 onward increased by $89MM. We will continue aiming to execute final agreements of current iPSAs(1) and to obtain new PSAs from sales pipeline. CDR for Mission 3 Lander will be completed after final internal procedures CY2023 CY2024 CY2025 CY2026 CY2027 FY2024/3 FY
Slide 34: Illustrative Business Model of Payload Service
Illustrative Business Model 34 Illustrative Business Model of Payload Service For illustrative purposes only; all values are rounded off to integral values and subject to change present Planned Total Mission revenue recognized(2) over… Internal use Customer Total mission sellable payload contract pa
Slide 35: Mission Name and Mission Logo Unveiled
Towards Mission 2 Mission Name and Mission Logo Unveiled
Slide 36: SMBC RE VENTURE
SMBC RE VENTURE M@QON
Slide 37: Appendix
03 Appendix Contents: • Business Overview • Mission 1 Overview • Development KPI • Sales KPI • Sustainable Business Model • Financial Data • Glossary
Slide 38: Business Overview – Our Vision
Business Overview – OUR VISION 38 EXPAND OUR PLANET. EXPAND OUR FUTURE. Creation of a world where the Earth and the Moon are one ecosystem, establishing a new economy on the Moon ⚫ “Moon Valley 2040” is an outlook on the worldview representing ispace’s vision EXPAND OUR PLANET. EXPAND OUR FUTURE ⚫ W
Slide 39: Business Overview – Why the Moon?
Business Overview – WHY THE MOON? 39 The potential of the Moon as a “fuel supply base” utilizing water (H2O) that exists in the form of ice with an estimated mass of as much as 6.6Bn tons on the Moon ENVISIONED ECOSYSTEM(1) BRINGS THE EARTH & MOON TOGETHER H 2 O (2) 1 / 6 G (3) Decreasing costs to a
Slide 40: Business Overview – Business area
Business Overview – Business area 40 Our lander is launched into outer space on an external vendor’s rocket. After landing, our lander and rover explore and acquire data from lunar surface Launch using an external Our lander navigates and delivers the payload to vendor’s rocket the Lunar orbit and L
Slide 41: Business Overview – Main Service
Business Overview – Main Service 41 Payload services and Partnership services are our current business pillars. We plan to establish Data services in the future Payload services Data services* Partnership services Core service Potential driver of growth Service with a long history • Transport custom
Slide 42: Mission 1 – Mission Schedule
Mission1 Business Overview – Mission Schedule 42 In 2022, ispace became the first December 11, 2022 commercial company to successfully SpaceX's Falcon 9 rocket carrying our lander launch a lunar lander launched at Cape Canaveral Our Mission Schedule(1) 2022 Mission 1 2023 2024 2025 Mission 2 2026 Mi
Slide 43: Mission Overview: Mission 1
Mission 1 Overview 43 FY 2022（Finished） Mission 1 Mission Overview Lander ⚫ In 2022, ispace became the first commercial company to (Former) Series 1 lander successfully launch a lunar lander Size ⚫ Required hardware functions worked appropriately, and Approx. 2.3m tall by 2.6m wide Achievements Tech
Slide 44: Mission 1 Success Milestones
44 Mission 1 Overview - Success Milestones KPI Achieved 8 out of 10 Success Milestones, despite not being able to achieve lunar landing. M1はミッション期間のsuccess5まで達成 Acquired valuable data until the end of landing sequence Success 4 ✓ Success 3 ✓ Completion of first orbital Establishment of a control man
Slide 45: Mission 1 Achievements
45 Mission 1 Overview - Achievements 45 Became the first private company to reach the final lunar landing phase. Gained valuable data that can be used in future missions, and established the policy for Mission 2 and beyond, considering the results of Mission 1 Effectively decrease speed from the orb
Slide 46: Landing phase: cause of failure
Landing phase 46 The cause of failure is “mis-recognition of altitude”: The lander judged sudden and unexpected altitude change measured by a sensor as breakdown, which has been remedied for Mission 2 ⚫ In the final phase of landing, the sensor (route) noticed sudden altitude change ⚫ The system jud
Slide 47: Development KPI
Development KPI 47 To increase the probability of mission success, we conduct reviews at each milestone. PDR and CDR, two particularly important KPIs, will be scheduled immediately before large investment. Quality and efficiency improve through several mission cycles. 2017 2018 2019 2020 2021 2022 2
Slide 48: Sales KPI – Accounting Standard
Sales KPI – Accounting Standard 48 Due to the application of the cost recovery method, net sales and costs are recorded in equal amounts About cost recovery method Total Contract Amount Sales＝Cost incurred －Total recorded sales Until a mission ends: • Amount of net sales that can be recorded is no m
Slide 49: Sales KPI – Revenue Recognition for Payload Service
Sales KPI – Revenue Recognition for Payload Service 49 Since quarterly sales fluctuate depending on the timing of the mission, our KPI is total contract amount per mission. Mission A Mission B Mission C ①: Mission A Launch ②: Mission B Launch FY N FY N FY N FY N FY N+1 FY N+1 FY N+1 FY N+1 FY N+2 FY
Slide 50: Sales KPI – Impact of Mission Failure
Sales KPI – Impact of Mission Failure 50 The impact on sales depending on mission outcome Contracts with non-cancellable and Approx. 90% of the funds will be paid Mission 1 only had an 8% impact non-refundable policies before launch • Our payload contracts are non-cancellable • On average, approx. 9
Slide 51: Sustainable Business Model
Sustainable Business Model 51 Our business model involves multiple missions, developed in parallel; feedback from the preceding mission is transferred to the subsequent mission in a timely and appropriate manner to enhance the maturity of the technology. This model is essential to build a strong fin
Slide 52: Financial Data – Profit and Loss Statement
Financial Data – Profit and Loss Statement 52 FY2023/3 FY2024/3 FY2025/3 M1 M1 Launch Completion (Millions of yen) Q1 Q2 Q3 Q4 Full-Year Q1 Q2 Q3 Q4 Full-Year Q1 Q2 Net Sales(1) 194 201 428 165 989 815 514 496 530 2,357 635 706 Cost of sales 129 55 215 35 436 243 400 377 407 1,428 528 609 Gross Prof
Slide 53: Financial Data – Balance Sheet
Financial Data – Balance Sheet 53 FY2023/3 FY2024/3 FY2025/3 (Millions of yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Current Assets Total 10,827 14,840 7,263 5,730 10,078 13,525 13,485 21,784 21,220 22,527 Cash and Deposit 5,175 8,617 4,399 3,381 7,611 11,522 9,676 14,315 12,673 13,153 Short Term Advances 5
Slide 54: Glossary
Glossary 54 The following is a glossary with explanations of the acronyms & words used in this material Words Explanation Prelimimary Design Review : Review to confirm design results against specification values and feasibility of design PDR verification plan Critical Design Review : Review that con
Slide 55: Disclaimer
Disclaimer 55 Disclaimer • This presentation was prepared by ispace, inc. (referred to as the “Company”, “ispace”, or “we” herein) solely for informational purposes. • This document contains forward-looking statements, which reflect the Company's assumptions and outlook for the future and estimates
Slide 56: Never Quit the Lunar Quest
Never Quit the Lunar Quest For any questions and requests for 1on1 meeting etc., please feel free to contact ispace IR: ir@ispace-inc.com