Annual Report 2025

59.8586° N, 17.6389° E

59.8586° N, 17.6389° E

Annual Report 2025

Introduction

Operations

Corporate governance

Contents

Financial statements

VISION

Empowering better decisions in a changing world

MISSION

To turn space-based capabilities into usable data, information and services. Delivered through scalable, commercial solutions, these enable organisations to understand change and make informed decisions.

1. Introduction

2. AAC Clyde Space at a glance

3. 2025 in brief

4. CEO review

1. Invest in AAC Clyde Space

2. Operations

3. Business model

4. Business segments

5. Markets

6. The Group

7. Our constellations

8. Our people

9. Sustainability

10. Corporate governance

11. The Share

12. Corporate Governance

25 The Board

27 Group Executive Management

30 Risk and risk management

32 Financial statements

33 Board of Directors' Report

35 Consolidated financial statements

65 Parent Company financial statements

AAC Clyde Space Annual Report 2025 2

Introduction‌

Operations

Corporate governance

Financial statements

INTRODUCTION

59.8586° N, 17.6389° E

59.8586° N, 17.6389° E

1. AAC Clyde Space at a glance

2. 2025 in brief

3. CEO review

8 Invest in AAC Clyde Space

AAC Clyde Space Annual Report 2025 3

‌AAC Clyde Space at a glance

Introduction

Operations

Corporate governance

4,000 60

Financial statements

We operate in a world where change is constant and the margin for error is shrinking. From orbit, satellites provide

continuous, independent data, enabling insight into our planet. Creating value from space, however, requires more than access alone. Space-based capabilities must be deliberately built, operated and connected to real needs in order

to support real decisions.

This is exactly what AAC Clyde Space does.

satellites built for ourselves and customers

1,500

subsystems sold

11

years in orbit heritage

4,500

satellites in current constellation

75,000

satellite images taken in 2025

ships tracked per day

DATA & SERVICES

Data & Services is where space-based information is put to work. We can track ships at sea, monitor forests over time and analyse changes on land with updates by the day or by the hour. The value lies

in continuous data that makes patterns, movement and change visible.

PRODUCTS & MISSIONS

Products & Missions is where space systems are designed, built and proven. We develop everything you need to launch a satellite: from power systems and star trackers to complete satellite platforms and advanced payloads. Our focus is on systems that are cost-effective, reliable and perform as intended.

AAC Clyde Space Annual Report 2025 4

‌2025 in brief

Introduction

2025 highlights

Operations

Corporate governance

Financial statements

Net sales

SEK 295 M

(352 M)

EBITDA

SEK 17 M

(47 M)

SEK 2025 2024 2023

INFLECION Phase 1 contract signed

Phase 1 contract signed with ESA for INFLECION, a programme to develop a satellite constellation for maritime intelligence based on VDES communications, Radio Frequency sensing and Synthetic Aperture Radar.

First EPS-Sterna order received

AAC Clyde Space received an order for long lead components for the EPS-Sterna weather constellation. The order marked an early step in programme implementation ahead of the formal approval in 2026.

Initial Sedna constellation operational Sedna-1 and Sedna-2 became fully operational, strengthening our space-based AIS maritime network with greater capacity, coverage and reliability. Multi-year customer agreements support continued growth in recurring maritime data revenues.

CubeCAT laser terminals delivered

First CubeCAT laser terminals delivered to customer, enabling high-speed optical links for small satellite missions and expanding advanced mission capabilities.

VIREON™ satellites assembled

Assembly of the first VIREON™ Earth Observation satellites began during the year, an important step towards a constellation generating recurring revenues from agriculture, forestry and environmental

data services.

Operations structured in two segments

The business was structured into Products

& Missions and Data & Services. The structure reflects the Group's combined capabilities in satellite technology and data services.

Weather technology praised by ESA

The Arctic Weather Satellite was launched in August 2024 as a New Space prototype for faster weather missions. Developed and delivered in

approximately three and a half years, it demonstrated significantly lower cost and shorter development cycles than traditional programmes.

In April 2025, the European Space Agency praised the strong performance of the microwave radiometer onboard. Developed in Gothenburg, it demonstrated new capability for atmospheric measurements, including the 325 GHz sounding channel. The data

is now used in operational weather forecasting.

The mission was a finalist in the SpaceNews Icon Awards.

The AWS mission laid the foundation for the

EPS-Sterna weather constellation, improving forecast accuracy and update frequency. EUMETSAT estimates a benefit-to-cost ratio of 51:1 and approved the full programme in January 2026. In March 2026, AAC Clyde Space was awarded a EUR 76.3 M contract by OHB Sweden to deliver 20 microwave radiometers.

Institutional ownership strengthened

AAC Clyde Space strengthened its capital base through two targeted share issues supporting investment in satellite constellations and data services. Bonnier Capital will become the largest shareholder through a strategic investment of up

to SEK 140 M. As an established institutional investor with a long-term perspective, Bonnier Capital contributes an active ownership approach to the company. The transactions broadened institutional ownership and strengthened the long-term shareholder base. Nowo Global Fund also invested in the company.

AAC Clyde Space Annual Report 2025 5

Luis Gomes CEO

‌CEO review

Introduction

Operations

Corporate governance

Financial statements

Well positioned as data grows

Interest in the space industry has grown steadily over a long period

of time, driven by both technological development and geopolitical uncertainty. In recent years we have seen an acceleration of this interest with growing investment in programmes that are designed to move faster and deliver results quickly.

At the same time, advances in AI are changing how data is used. As analytical tools become more accessible and cost-efficient, the value increasingly lies in the data itself.

This is driving broader use of space-based data, as more organisations can access and apply it in their operations.

AAC Clyde Space has built its business around this development. While we are often associated with satellite systems and subsystems, we have expanded our capabilities and our constellations to deliver data and services directly to customers. This remains our direction.

We have now achieved three consecutive years of positive EBITDA. This shows that we can combine growth with profitability, which is not a given in our industry. We also continue to invest in new satellites and constellations, based on the demand we see in the market.

In 2025, Data & Services continued to grow, increasing by 80 percent. This reflects a shift where we increasingly design, build and operate our own satellite systems, and thereby develop recurring revenue streams.

AAC Clyde Space Annual Report 2025 6

Introduction

Operations

Corporate governance

Financial statements

CEO REVIEW

That said, it is clear that development does not always follow a straight line. The past year included several achievements, but also a number of delays that affected both revenues and cash flow. While disappointing, this also reflects how the space industry works.

Against this background, our starting position today is stronger than before. In early 2026, EUMETSAT confirmed the next generation of weather satellites, EPS-Sterna, where the core instrument is the radiometer developed by AAC Omnisys in Gothenburg. Other parts of the Group also deliver critical subsystems. In March, this resulted in the largest single order in the company's history. In addition to increasing our order backlog to approximately SEK 1.1 billion as of end of March, it provides a new level of financial stability and demonstrates our capability to deliver payloads for operational weather missions.

As wee see increased demand for maritime data, we are building more Sedna satellites. In February we initiated the build of Sedna-3 and Sedna-4, with launch planned for next year. This will increase our capacity, enable us to deliver more data and improve the quality of our services.

At the same time, we continue to work towards the next generation of maritime space-based services through the INFLECION programme. With its dual-use profile, it is well aligned with current demand, where improved communication and optimised routing are as important as the ability to detect dark vessels or illegal fishing. With 50 percent funding from the UK Space Agency, through ESA, we are able to carry out the development work with solid margins, while also creating the conditions for future data and service revenues once the system becomes operational.

Bonnier Capital's investment just before year-end has not only secured several of the investments within our maritime offering. It also brings the experience and engagement of a highly regarded and active owner.

Advances in AI are changing how data is used. As analytical tools

become more accessible and

cost-efficient, the value increasingly lies in the data itself.

"

Finally, at the end of March this year, we saw the launch of our first two VIREON™ satellites, alongside five satellites delivered to customers. With VIREON™, we are building capacity to grow within Earth Observation, further strengthening our ability

to deliver data and services to customers.

The current geopolitical environment has led to increased demand for space-based capabilities in defence and security, particularly in Europe. We see that different countries and customers are at different stages in their plans, and we expect continued opportunities in this area.

Taken together, this means that our position today is stronger than before. It gives us better conditions to continue developing the business in the direction we have been working towards for several years.

Luis Gomes CEO

AAC Clyde Space Annual Report 2025 7

‌Invest in AAC Clyde Space

Introduction

Operations

Corporate governance

1. A business that already delivers

   Our components, satellites and data services are in use today, in orbit and on the ground. The company has delivered positive EBITDA for three consecutive years, built on capability, capacity and disciplined delivery.

2. Recurring revenues from space-based data

   Data and services from our own satellite constellations generate a growing share of recurring revenues, with improved margins. AI and advanced analytics drive demand for data.

3. Focused positions in the market

   AAC Clyde Space is a leading provider of satellite-based maritime awareness. In Earth Observation, affordability and operational experience create competitive positions

   in focused niches.

4. Built with capital discipline

   The business has grown with limited capital and a clear focus on affordability, reliability and performance.

5. A timely position in the space market

Investment in space-based infrastructure, data and services continues to grow.

Net sales

Year on year

400

350

300

Financial statements

Products & Missions Data & Services

The space market is accelerating. In an increasingly uncertain world, governments, businesses and organisations are investing heavily, driven by the need for reliable information, resilience and security. Space capabilities are no longer a new frontier or a series of individual projects. They form the backbone of critical infrastructure that must work every day.

The space market

250

200

150

100

MSEK

50

0

2021

2022

2023

2024

2025

CAGR 2021-2025: 26%

Global small satellite market growth

Year on year

20

15

MARKET SIZE (USD BILLION)

10

5

0

2026

2027

2028

2029

2030

CAGR 2026-2030: 18.6%

Source: The Business Research Company. Small Satellite Market Report 2026

AAC Clyde Space Annual Report 2025 8

Introduction Operations

Corporate governance

Financial statements

OPERATIONS

55.8627º N, -4.2853º W

55.8627º N, -4.2853º W

1. Business model

2. Business segments

3. Markets

4. The Group

5. Our constellations

6. Our people

7. Sustainability

AAC Clyde Space Annual Report 2025 9

‌Business model

Introduction

Operations

Corporate governance

Financial statements

SERVICES

We deliver applications and information services that turn data into decision-ready outputs. They make space-based capability usable in real-world workflows. Our services provide valuable decision support.

DATA

We deliver accurate and timely space-based data from our own satellite constellations. This data creates recurring revenue through a variety of customer agreements. It underpins

our own data services.

MISSIONS

We integrate components into complete satellite systems and deliver end-to-end missions for customers and our own use.

This builds operational heritage and connects technology development with operation under real-world constraints.

PRODUCTS

We develop and deliver satellite components and subsystems used across the space industry. This builds capability and market presence.

Products form the industrial base underpinning

missions and data delivery.

DATA & SERVICES PRODUCTS & MISSIONS

Data & Services turns space-based data into information and services that support operational decision-making. As advances in AI make analysis more accessible and cost-efficient, the importance of reliable, high-quality data is increasing.

Revenue is generated through recurring data sales and service agreements with customers.

The segment combines predictable revenue with opportunities to increase customer value over time. The model is scalable and serves a broader mix of

commercial and institutional customers.

Products & Missions delivers components, integrated systems and complete end-to-end missions to commercial and institutional customers across the space sector.

Revenue is generated through

project-based deliveries with defined scope, pricing and execution risk.

The segment generates cash flow and operational heritage and anchors AAC Clyde Space in the global space industry. Mission delivery strengthens product capability and validates performance

in orbit.

AAC Clyde Space Annual Report 2025 10

Introduction‌

Operations

Corporate governance

Financial statements

Business segments

DATA & SERVICES

2025 Highlights

• Sedna-1 and Sedna-2 became operational, expanding our AIS maritime data delivery capability. This strengthened our capacity to support multi-year customer agreements and recurring maritime revenues.

• The Swedish-built YMIR-1 satellite gained media attention for demonstrating

  Smarter, safer seas

  INFLECION advances space-based maritime intelligence to improve safety, efficiency and environmental performance at sea. By combining VDES communications with signal intelligence and radar, the future service will enable detection of dark vessels, smarter routing and stronger maritime domain awareness. Co-funded by the UK Space Agency through ESA, the programme defined system requirements and service concepts in 2025, and targets a VDES constellation launch in 2028.

two-way VDES communication from space, a world first, supporting the transition to VDES, the next-generation maritime service.

• Spacemetric was awarded funding under The Swedish Space Agency's Dual-Use Space Technology Programme to further develop Bluestone, its onboard data processing software for civil and defence applications.

• Earth Observation services advanced through applications for forest monitoring and AI-driven environmental analytics, preparing for the 2026 launch of VIREON™.

  PRODUCTS & MISSIONS

  2025 Highlights

  • 11 satellites were built during the year for both internal constellations and external customers, with two completed after year-end ahead of launch in 2026.

    The work reflects growing volume manufacturing capability, developed through institutional programmes and now applied to constellation and mission delivery.

    
    
    

  • AAC Clyde Space received an order for long-lead components for the EPS-Sterna weather constellation.

  • In February 2025, the Starbuck power system supported the IM-2 lunar mission to the Moon. The system continues to be selected for demanding missions across exploration, Earth Observation and institutional programmes.

  • The first CubeCAT laser communication terminals were delivered to EMTECH SPACE S.A. for Greece's Hellenic Space Dawn mission, enabling secure,

high-speed optical data transfer for small satellites.

SEK 80 M

Net sales

(45 M)

Net sales

SEK 245 M

(346 M)

EBITDA

SEK 28 M

(21 M)

SEK 17 M

EBITDA

(52 M)

AAC Clyde Space Annual Report 2025 11

‌Markets

AAC Clyde Space operates in well defined markets. Our customers build satellite systems or use satellite data and services in their operations. Some develop space-based capabilities of their own, while others rely on information from space as

part of their daily work. These markets share a need for reliable information and operational capability based on space infrastructure.

Introduction

Operations

Corporate governance

Financial statements

Key sectors

MARITIME DOMAIN AWARENESS

Tracking ships and understanding activity at sea. Authorities and insight providers use satellite data to monitor movements, detect dark vessels and illegal fishing. VDES enables global two-way communication with ships to improve operational efficiency and safety.

EARTH OBSERVATION

Monitoring forests, agricultural land and infrastructure over time. Frequent revisits reveal plant stress factors, storm damage and land-use change across large areas. Agricultural platforms, forest managers and financial institutions use the data to target interventions.

USING SATELLITE DATA AND SERVICES

Data & Services support organisations that use satellite data and services as part of their daily operations. Customers include service providers, public authorities and commercial organisations that depend on reliable and regularly updated information. Satellite data and operational services enable continuous monitoring and support planning and operational decisions.

WEATHER AND CLIMATE

Measuring the atmosphere for weather forecasting and climate monitoring.

Microwave instruments measure temperature and humidity through cloud and precipitation. Improved forecasting strengthens societal resilience.

SECURITY & DEFENCE

Monitoring activity on land and at sea using dual-use space capabilities. Signals and imagery reveal activity and change on the ground and at sea. Independent space capability strengthens national sovereignty.

BUILDING SPACE SYSTEMS

Products & Missions serves organisations that develop and operate satellite systems. Customers include space agencies and institutional programmes, commercial satellite operators and organisations establishing their own space-based capabilities. These customers invest in satellite systems as long-term operational infrastructure.

AAC Clyde Space Annual Report 2025 12

‌The Group

AAC Clyde Space operates from eight specialised sites across five countries in Europe, the United States and South Africa. Each location contributes distinct technical capabilities developed over many years. Together they span the full value chain from satellite components, payloads and mission development to data services and analysis. This combination enables the Group

to design, build and operate space systems and deliver information that helps organisations make informed decisions in a changing world.

Introduction Operations

AAC Clyde Space

Uppsala

Headquarters

The Group's headquarters. Founded in 2005 as a spin-off from Uppsala University. The site develops and sells advanced, reliable and flight-proven satellite subsystems to customers worldwide. The Swedish-built YMIR-1 satellite demonstrates hands-on capability in full satellite integration.

Corporate governance

AAC Clyde Space

Glasgow

Main Satellite Facility

The Group's main site for satellite design, manufacturing and integration, and the operational core of Products & Missions.

Founded in 2005 and a pioneer in Scotland's early small satellite industry. The site designs, builds and integrates satellites operated in active missions.

Financial statements

AAC Clyde Space

London

Data & Services

The main base for the Group's Data & Services business.

The site develops and operates satellite-based data services. This is where space-based information is structured, delivered and commercialised for customers worldwide.

AAC Hyperion

Delft

Satellite Subsystems

AAC SpaceQuest

Fairfax

Satellite Systems

AAC Space Africa

Cape Town

Radio Systems

AAC Omnisys

Gothenburg

Microwave Instruments

Spacemetric

Sollentuna

Geospatial Analytics

Founded in 2013, the site in Delft develops high-performance satellite components. The focus is on attitude and orbit control systems and laser communication technology for small satellite missions. Components are supplied to external customers and selected Group programmes.

SpaceQuest, founded in 1994, builds satellites, manufactures components and operates satellites in active missions.

The site supports the Group's data and services offering through on-orbit operations, maintaining one of the world's longest continuous satellite AIS data archives since 2009.

AAC Space Africa, founded in 2021, develops and delivers satellite ground and radio communication systems. The site provides mobile ground station capability and gives market access across the region.

Founded in 1992, AAC Omnisys develops high-frequency microwave instruments for atmospheric measurement. The site delivers compact radiometric sensors used in operational weather and climate missions. Its technology brings advanced scientific capability to small satellite platforms.

Spacemetric, founded in 1999, develops software for satellite image processing and data management, turning raw satellite data into usable products. Its systems are used by defence, government and commercial customers and underpin the Group's data services.

AAC Clyde Space Annual Report 2025 13

‌Our constellations

AAC Clyde Space operates satellite constellations that form the foundation of the Group's data and services activities. These

constellations generate continuous data streams and underpin recurring revenue across maritime and Earth Observation applications.

Our satellites either receive and transmit signals or capture images. Radiofrequency (RF) signals form the basis for AIS and VDES-based maritime services.

Hyperspectral and multispectral imaging generates Earth Observation data.

By designing, building and operating its own satellites, the Group maintains control over mission performance, data access and service

quality. The operational fleet represents established infrastructure supporting long-term customer relationships and commercial data delivery.

The Group is gradually expanding its constellation capacity in line with service development and market demand. At the time of publication, two additional VIREON™ and two Sedna satellites are under construction.

Introduction

Operations

Corporate governance

Financial statements

EARTH OBSERVATION

Hyperspectral and high-resolution imaging.

MARITIME

AIS-based maritime data services, with progressive VDES capability.

3 Operational satellites

EPICHyper-1 (2023)* EPICHyper-2 (2023)

EPICHyper-3 (2023)

6 Operational satellites

AprizeSat-8 (2013)

AprizeSat-10 (2014)

Thea (2018)

Ymir-1 (2024)

Sedna-1 (2025)

Sedna-2 (2025)

2 In commissioning

VIREON™ -1 (2026)

VIREON™ -2 (2026)

Delivers continuous vessel tracking and data services supporting maritime monitoring.

Delivers high-resolution and hyperspectral imaging data supporting environmental monitoring, resource management and data-driven analytical services.

CASE STUDY

VIREON™

VIREON™ integrates capabilities from across the Group into a single operational system. Satellites are manufactured in Glasgow using subsystems, electronics engineering and software development from sites across the Group. Multispectral imagery is processed into operational products

by the team in London using image processing software from Spacemetric, and delivered through the Group's data and service infrastructure.

The 1.5 metre resolution and daily revisit capacity make it possible to distinguish individual tree crowns and field structures across large areas, combining local detail with regional coverage.

By designing, building and operating the constellation in-house, the Group controls the chain from satellite technology to delivered information.

VIREON™ demonstrates how Products

& Missions and Data & Services combine to establish long-term data capability and recurring service revenues.

*year of launch

AAC Clyde Space Annual Report 2025 14

‌Our people‌

Introduction

Operations

Corporate governance

Financial statements

Our business depends on technical expertise, critical thinking and drive for execution. We rely on specialist competence, practical experience and cross-functional collaboration. People and capability are integral to long-term performance.

Headcount by location

22

9

40

11

11 Total

191

23

5

70

Uppsala Glasgow

London Delft Fairfax Cape Town

Gothenburg Sollentuna

Gender split Attrition rate

Anushka Singh

Earth Observation Analyst

"Strong solutions come from understanding both the technical method and the real-world problem you're trying to solve."

Anushka Singh works with Earth Observation data at AAC Clyde Space's London office. She joined in 2025 with a background in biology and Geographic Information Systems (GIS). She enjoys collaborating with the team whose expertise spans geospatial analysis and software development. The work demands precision and rigorous quality assurance.

Anushka analyses satellite imagery, detecting patterns or changes and turning results into visual insights. One example is the Canopy project for Scottish Forestry.

"It's rewarding to contribute to something with practical environmental value, using satellite technology to replace older ways of forest monitoring."

Stefan Strålsjö

Head of Engineering

"Working with long-term product strategy is both challenging and exciting. Engineering decisions today may influence satellites operating in orbit many years from now."

Stefan Strålsjö leads engineering at AAC Clyde Space's Uppsala office. He joined the company in 2013 and works with the development of satellite platforms and their core subsystems.

23%

77%

Male Female

17%

2024

17%

2025

His role spans roadmap planning, product architecture and coordination across teams in electronics, software, FPGA, systems and mechanical engineering.

Much of the work focuses on how complex technologies are integrated into reliable satellite systems. Over time, the engineering teams have developed a modular platform architecture, allowing new capabilities to be introduced while maintaining system stability.

"The most rewarding moments are when our teams solve complex technical problems together and the systems perform in space exactly as intended."

Organisational focus

Structure and priorities

During the year, the organisation was reshaped in response to market

developments and to support the growing role of Data & Services. Headcount was reduced in parts of Products & Missions, primarily in Glasgow and Uppsala.

The changes reflect the Group's strategic focus and evolving business mix.

Employee engagement

A Group-wide employee survey was conducted with a response rate of 64%. Results indicate strong professional relationships, mutual respect and clarity in day-to-day expectations. Internal communication was identified as a key area for improvement and will remain

a leadership priority in 2026.

Performance and culture

Collaboration across technical, operational and commercial roles is central to how

we work. We continue to develop a performance-oriented culture built on clear expectations, structured dialogue and shared responsibility. A Group Employee Referral Policy was introduced to support recruitment in specialised technical roles.

AAC Clyde Space Annual Report 2025 15

‌Sustainability

Introduction

Operations

Corporate governance

Our role and impact

Financial statements

Sustainability for AAC Clyde Space is driven by the applications we enable and the way we operate. Decisions about land, sea and infrastructure increasingly depend on reliable information about how conditions change over time.

Satellite systems and space-based data enable such changes to be observed across large areas.

Earth Observation data makes it possible to monitor changes on land over time. This supports planning and resource management in forestry and agriculture.

Space-based maritime data shows vessels movement across shipping routes and coastal areas. Improved route planning reduces fuel use and operational losses.

Satellite measurements of the atmosphere

support more accurate weather forecasts and improve understanding of extreme weather.

Operating with integrity

The Group operates in a regulated and strategically sensitive sector where clear internal frameworks are essential. Policies and procedures cover business ethics, anti-corruption, supplier responsibility, data security and privacy.

Industry awareness

The satellite sector faces sustainability challenges, including space debris and launch activities.

AAC Clyde Space designs and operates missions in accordance with debris mitigation, deorbiting and passivation requirements, and monitors regulatory developments as operations expand.

AAC Clyde Space Annual Report 2025 16

Introduction‌

Operations

Corporate governance

Financial statements

CORPORATE GOVERNANCE

51.9883° N, 4.3616° E

51.9883° N, 4.3616° E

18 The Share

19 Corporate Governance Report

25 The Board

27 Group Executive Management

30 Risk and risk management

AAC Clyde Space Annual Report 2025 17

‌The Share

AAC Clyde Space AB (publ) was listed on Nasdaq First North on 21 December 2016. The share was

admitted to trading on Nasdaq First North Premier Growth Market on

27 March 2019 under the ticker AAC.

Trading in the United States on the OTCQX Market commenced on 20 August 2020 under the symbol ACCMF. The Company's Certified Adviser is DNB Carnegie Investment Bank AB.

As of 31 December 2025, the total number of shares amounted to 7,106,085. The shares are fully paid and freely transferable. All shares carry equal rights to the company's assets and earnings.

The company's dividend policy is to reinvest profits in the business to support continued development. No dividend has been proposed for the financial year.

Following completion of the second tranche of the directed share issue, which is subject to approval from the Swedish Inspectorate of Strategic Products (ISP), Bonnier Capital AB will be the company's largest shareholder, representing approximately 15 percent of the share capital and votes.

Top 10 shareholders 31 December 2025

Name

Capital % Votes %

Key share data

All data refer to 31 December 2025 unless otherwise stated. Share price refers to the last trading day of the year.

SHARE PRICE

SEK 46.4

Start of year

SEK 105.4

End of year

+127%

Change

‌Corporate Governance Report

AAC Clyde Space AB is a Swedish public limited liability company with corporate registration number 556677-0599 whose shares are traded on Nasdaq First North

Premier Growth Market. The share is also traded on the American OTCQX. The company's registered office is in Uppsala, Sweden.

The goal of corporate governance is to ensure a clear division of responsibilities between shareholders, Board and management and that the company follows applicable rules and established processes.

Corporate governance framework Corporate governance is based on the Swedish Companies Act, the Swedish Annual Accounts Act, Nasdaq First North Premier Growth Market Stockholm's regulations and the Swedish Code of Corporate Governance, as well as internal governance instruments.

Application of the Swedish code of Corporate Governance

Since November 2018, AAC Clyde Space has followed the Swedish Code of Corporate Governance, and its principle of "comply or explain". For the year 2025, AAC Clyde Space had no deviations to report.

The share and shareholders

All shares have equal rights to the company's assets and profits. For more information about the AAC Clyde Space share and shareholders, please refer to the section The share on page 18.

Articles of Association

According to the Articles of Association, the company's name is AAC Clyde Space AB (publ) and the financial year is 1 January to 31 December. The Articles of Association do not contain any specific provisions regarding the appointment and dismissal of Board members. Amendments to the Articles of Association are made in accordance with the provisions of the Companies Act after a decision at the general meeting.

For the Articles of Association in its entirety, which in its current form was adopted at the Annual General Meeting on 1 November 2023, see the company's website https://www.aac-clyde.space.

General meeting

The company's highest decision-making body is the general meeting where the shareholders' influence in the company is exercised. One share entitles to one vote at the general meeting. There are no restrictions on how many votes each shareholder can cast at the general meeting. Shareholders who wish to participate in a general meeting, in person or by proxy, must be registered in the share register five weekdays prior to the general meeting and give notice of attendance in accordance with the notice. Notice of General Meetings will be given through an announcement in Post- och Inrikes Tidningar (the Swedish Official Gazette) and on the company's website. Information that notice will be issued is announced in Dagens Industri.

The Annual General Meeting shall be held within six months of the end of the financial year. At the Annual General Meeting, the shareholders decide on the Board of Directors, auditors, discharge from liability for the Board of Directors and the CEO for the past year.

Decisions are also made on the adoption of the annual report, appropriation of profits or treatment of losses and fees to the Board of Directors and the auditors.

Shareholders have the right to have a matter addressed at the Annual General Meeting and must then make a written request to the Board of Directors. The matter shall be addressed at the Annual General Meeting if the request has been received by the Board of Directors no later than seven weeks prior

to the Annual General Meeting.

The Annual General Meeting will take place on 19 May 2026.

Annual General Meeting 2025

The Annual General Meeting was held on 22 May 2025 in Uppsala. At the meeting, 11.91 percent of the votes in the company were represented. The Annual General Meeting resolved in accordance with the Board of Directors' proposal on:

• to adopt the statement of profit or loss and the statement of financial position

• to carry forward the loss for the year

• to discharge the members of the Board of Directors and the CEO from liability

• fees to the Board of Directors and the auditor

• the number of directors and auditors

• to re-elect Rolf Hallencreutz, Per Aniansson,

  Per Danielsson, Dino Lorenzini and Stuart Martin, and elect Lars-Olof Corneliusson as new member of the Board. Rolf Hallencreutz was also re-elected as Chairman of the Board

• re-election of the accounting firm Öhrlings PricewaterhouseCoopers (PwC) as the company's auditor

• to authorise the Board of Directors to resolve on issuance of new shares, warrants and/or convertible debentures during the period until the next annual general meeting and at one or more occasions. The company's share capital may by support of the authorisation be increased by an amount corresponding to 20 percent of the share capital and number of shares in the company as of the date the Board of Directors make use of the authorisation.

• directed issue of warrants within the framework of three incentive programs

• changes to the principles for the appointment of and instructions concerning a nomination committee.

  Nomination Committee

  The AGM has resolved that the Nomination Committee shall consist of the four largest shareholders in the company in terms of votes as of 30 September, as well as the Chairman of the Board. If any of these owners refrains from appointing a member, his or her right shall be given to the owner who is directly below in terms of voting rights. As long as the company's domicile is in Sweden, the majority (3/5) of the members of the Nomination Committee shall also be registered in Sweden. The Nomination Committee elects its Chairman. AAC's Chair of the Board calls for a constituent Nomination Committee meeting to be held in October. If a member represents a shareholder who has sold the majority of its shareholding and who is no longer to be regarded as one of the four largest shareholders, the Nomination Committee may decide that the member shall resign.

  If the Nomination Committee is not complete due to the resignation of a member and more than three months remain until the next Annual General Meeting, the Nomination Committee may continue its works provided that it has at least four members remaining.

  The Chairman of the Board shall ensure that an annual evaluation of the Board is carried out and that the results are presented to the Nomination Committee.

  The Nomination Committee shall submit proposals for the Chairman and members of the Board of Directors as well as fees to the Chairman and other Board members. If the election of auditor for the company is to take place, the Nomination Committee shall submit a proposal for election and remuneration of the auditor. The Nomination Committee shall inform the company of its proposals in good time so that the information can be presented in the notice of the Annual General Meeting.

  Ahead of the 2026 Annual General Meeting, shareholders representing approximately 20 percent of the shares and votes have formed a Nomination Committee consisting of:

• Dino Lorenzini on his own account

• Carl Backman, appointed by Bonnier Capital AB

• Lars Edgardh, appointed by Edgardh Holding AB

• Claes Mellgren on his own account

• Rolf Hallencreutz, Chairman of the Board of AAC Clyde Space AB

  The Nomination Committee's proposal to the Annual General Meeting 2026 will be presented in connection with the notice and made available on the company's website.

  Board

  Duties of the Board of Directors

  The primary task of the Board of Directors is to safeguard the interests of the company and its shareholders, appoint the CEO and ensure that the company complies with applicable laws and the Articles of Association. The Board is also responsible for the Group's organisation and administration, as well as for the Group's internal control and ensuring

  that the accounting, asset management and the company's financial conditions in general can be controlled in a reassuring manner.

  At least once a year, the Board of Directors shall, without the presence of the executive management, meet with the company's auditor and continuously and at least once a year evaluate the work of the CEO.

  Composition of the Board of Directors According to the Articles of Association, AAC Clyde Space's Board of Directors shall consist of a minimum of three and a maximum of seven members who are elected annually at the Annual General Meeting for the period until the end of the next Annual General Meeting.

  The Annual General Meeting 2025 resolved that the number of members shall be six and re-elected Rolf Hallencreutz as Chairman and Per Aniansson, Per Danielsson, Dino Lorenzini, Stuart Martin and elected Lars-Olof Corneliusson as new Board member.

  The composition of the Board meets the requirements in the Swedish Corporate Governance Code with regards to independence in relation to the company and its management and major shareholders.

  For information on the Board members assignments, holdings of shares and warrants and independence, see pages 25-26.

  Committees of the Board of Directors Since January 2020, the Board of Directors has had a Remuneration and Audit Committee.

  Remuneration Committee

  The Remuneration Committee's tasks have been performed by the Chairman of the Board, Rolf Hallencreutz, and by Board member Stuart Martin.

  The tasks follow from instructions adopted annually by the Board of Directors. These include submitting proposals for guidelines for remuneration to senior executives, submitting proposals to the Board of

  Directors regarding the CEO's salary and other terms of employment, determining salaries and terms of employment for other members of the management

  team, and preparing proposals for incentive programmes and other forms of bonuses or similar compensation to employees. The CEO may report on matters relating to the Remuneration Committee's tasks but does not participate in the processing of the Remuneration Committee's own salary and terms of employment.

  At the Annual General Meeting, the Board of Directors presents proposals for guidelines for determining salaries and other remuneration to the CEO and other members of the company's management for approval by the shareholders. This is performed when needed and at least each fourth year. Current guidelines were adopted on the Annual General Meeting on 23 May 2024.

  For a further description of the guidelines and terms of employment for senior executives and remuneration to the Board of Directors, please refer to the Consolidated Financials note 8, page 51.

  Audit Committee

  The duties of the Audit Committee are carried out by the Chairman of the Board, Rolf Hallencreutz, and by the Board members Per Aniansson and Per Danielsson.

  The tasks follow from instructions adopted annually by the Board of Directors and are included in the Board's rules of procedure. These include monitoring and quality assuring the financial reporting and the effectiveness of the company's internal control system and risk management.

  The Committee meets with the company's auditors, evaluates the audit efforts, the auditors' independence and approves which additional services the company may procure from the external auditors.

  Board of Directors' instructions and policies

  The Board reviews and adopts annual rules of procedure for its work. The Board of Directors also adopts instructions for the CEO and instructions for financial reporting. The rules of procedure and instructions regulate, among other things, the division of work between the Board of Directors, the Chairman of the Board, the CEO and the auditor, quorum, conflict of interest issues, internal and external reporting, procedures for convening, meetings and minutes.

  Audit Committee

  Remuneration Committee

  Reporting and internal control

  Information

  Board

  Board members elected by the AGM

  The Board establishes committees and appoints their members

  core values and

  e

  emuneration structur

  r

  Goals, strategies, policies, governance instruments,

  CEO

  Elects Board

  Elects Auditor

  Proposes Board, Auditor and Nomination Committee

  Auditor

  Annual General Meeting

  Information

  Nomination Committee

  Corporate Governance

  Group Management

The Board of Directors meets according to an annually established schedule. In addition to these Board meetings, additional Board meetings may be convened to address matters that cannot be referred to an ordinary Board meeting. In addition to the Board

meetings, the Chairman of the Board and the CEO have an ongoing dialogue regarding the management of the company.

Instructions and policies

The Board of Directors reviews and adopts the following instructions and policies annually:

• Rules of procedure for the Board of Directors

• Instructions for the CEO

• Instructions for the financial reporting

• Communication and IR-policy

• lnsider Policy

Evaluation of the work of the Board of Directors

The work of the Board is evaluated annually with the aim of developing the Board's working methods and efficiency. The Chairman of the Board is responsible for the evaluation and for presenting it to the Nomination Committee.

The work of the Board of Directors According to the Board's rules of procedure, the Board shall, in addition to a statutory meeting, meet six times a year and in addition when the situation so requires. At one of the meetings, the Board of Directors will discuss the Group's strategic direction, risks and business plan.

The CEO and CFO, who is also the secretary of the Board, normally attend Board meetings. Other officials participate as necessary to present specific cases.

According to the rules of procedure, the Board of Directors shall meet with the company's auditor at least once a year without the presence of the company's management, evaluate the work of the Board of Directors and evaluate the CEO.

The work of the Board of

President and Group Management

The CEO is appointed by the Board of Directors and leads the business in accordance with the Swedish Companies Act. The CEO is responsible for ensuring that the Board receives information and the necessary documentation for decision-making and keeps the Board of Directors and the Chairman informed of the company's and the Group's financial position and development.

For information on the CEO and Group Management refer to pages 27-29.

Auditor

The auditor is appointed by the Annual General Meeting to review the company's annual report and accounting records as well as the administration of the Board of Directors and the CEO. The auditors' report to the owners takes place at the Annual General Meeting through the auditor's report.

At the 2025 Annual General Meeting, the accounting firm Öhrlings PricewaterhouseCoopers AB was

re-elected as auditor for the period until the 2026 Annual General Meeting. The authorised public accountant Johan Engstam is the auditor in charge.

Financial reporting

The Board of Directors is responsible for ensuring that the company's organisation is designed so that the company's financial conditions can be controlled in a satisfactory manner and that financial reports such as interim reports and annual accounts to the market are prepared in accordance with the law, applicable accounting standards and other requirements that exist for listed companies. The Board of Directors shall monitor financial developments, ensure the quality of financial reporting and internal control, and regularly monitor and evaluate operations.

A monthly financial statement is prepared for the Group, which is submitted to the Board of Directors and management. A profit and loss budget, balance sheet and investment budget are drawn up for each financial year, which are normally adopted at the ordinary Board meeting in December.

External financial information is provided regularly in the form of interim reports, annual reports, press releases on important news that is expected to affect the share price, presentations and meetings with representatives in the financial market.

Directors in 2025

In 2025, the Board of Directors placed particular emphasis on issues related to business strategy,

Attendance Audit Committee Remuneration Committee Received Board fee

growth, organisation and financing The number of Board meetings in 2025 amounted to 18, of which 11 were ordinary, including 4 regarding adoption of quarterly reports and 7 extra. The extraordinary Board meetings have mainly dealt with capital raise.

Chairman of the Board

The Chairman of the Board shall lead the work of the Board and ensure that the Board's work is well organised and that the Board's work is evaluated annually.

18

18

18

18

17

6

11

*Michael Mattsson was not re-elected at the AGM

Yes No No No Yes No No

**Lars-Olof Corneliusson has been present at all Board meetings since he was elected at the AGM

Internal control and risk management regarding financial reporting

Introduction

The responsibility of the Board of Directors and the CEO for internal control is regulated in the Swedish Companies Act. The responsibilities of the Board of Directors are also regulated in the Swedish Code of Corporate Governance. The Annual Accounts Act contains requirements for disclosure of the most important elements of the company's system for internal control and risk management in connection with financial reporting.

AAC Clyde Space's process for internal control over financial reporting is designed to reasonably ensure the quality and accuracy of the reporting. The process is to ensure that the reporting is prepared in accordance with applicable laws and regulations as well as requirements for listed companies in Sweden.

A prerequisite for achieving this is that there is a good control environment, that reliable risk assessments are carried out, that there are established control structures and control activities, and that information and communication as well as follow-up function in a satisfactory manner.

Internal audit

The Board of Directors has evaluated the need for an internal audit function and concluded that such a function is not justified in AAC Clyde Space in view of the scope of the business and that the Board's

follow-up of internal control is deemed sufficient to ensure that the internal control is effective. The Board reassesses the need when changes occur that may give rise to a reassessment and at least once a year.

Control environment

AAC Clyde Space's organisation is designed to be able to operate dynamically in an emerging market, which is why operational decisions are made by the company management and at the company level. Decisions on strategy, direction, acquisitions, and overall financial issues are made by the Board of Directors and executive management.

The Board's work on internal control includes internal control over financial reporting and internal control from an operational perspective.

Risk management is an integral part of the Board's work with internal control, the purpose of which is to ensure that operations are managed in an appropriate and efficient manner.

Control structures

The Board's rules of procedure and instructions for the CEO and the Board's committees ensure a clear division of roles and responsibilities. The Board of Directors has overall responsibility for internal control.

The CEO is responsible for the system of routines, processes and controls that have been developed for day-to-day operations. This includes, among other things, guidelines and role descriptions for various executives, as well as regular reporting to the Board of Directors based on established procedures.

Policies, processes, procedures, instructions and templates for financial reporting and the ongoing work with financial administration and financial issues are documented.

Risk assessment

At least once a year, a review is conducted to identify and evaluate AAC Clyde Space's risk profile. The work also involves assessing what preventive measures

should be taken to reduce and prevent the Group's risks. This work includes ensuring that the Group is properly insured and preparing a basis for decisions regarding any changes to policies, guidelines and insurances.

AAC Clyde Space's system for identifying, reporting and remediating risks is an integral part of the ongoing reporting to the management team and the Board of Directors and constitutes an important basis for the assessment of risks of errors in financial reporting.

As part of the process, the items in the income statement and balance sheet where the risk of material error is elevated are identified. For AAC Clyde Space, the percentage of completion method of projects may give rise to risk in the financial reporting. Particular attention has therefore been paid to the design of controls to prevent and detect shortcomings in this area.

Control activities

The primary purpose of control activities is to prevent and detect errors in financial reporting at an early stage so that they can be managed and corrected. Control activities exist at both general and more detailed levels and are of both manual and automated nature.

Access rights to IT systems are restricted in accordance with authorisations.

The finance function compiles monthly financial reports in which earnings and cash flow are reported and budget deviations are analysed and commented on. For larger projects that last longer than 12 months, the company sets up special steering groups that analyse how projects are developing in relation to budget. Steering groups meet quarterly and in the event of deviations.

Follow-up takes place through regular meetings for review of financial reports and analyses with management teams and project steering groups.

In these ways, significant fluctuations and deviations are monitored, which minimises the risk of errors in financial reporting.

The year-end and annual report work are processes where there is an additional risk of errors in financial reporting arising. This work is of a less repetitive nature and contains more elements of an assessment nature.

Important control activities include ensuring that there is a well-functioning reporting structure in which the Group's companies report in accordance with standardised reporting templates, and that important income statement and balance sheet items are specified and commented on.

Information and communication

AAC Clyde Space's information and communication channels shall contribute to complete, accurate and timely financial reporting. This is achieved by making all relevant guidelines and instructions for internal processes available to all relevant employees. Where necessary, regular updates and notifications of changes to accounting rules/guidelines, reporting requirements and disclosure requirements are provided.

Information activities are regulated in an information policy. For external communication, there are guidelines that ensure that the company meets high standards for correct information to shareholders and the financial market. AAC Clyde Space's communication shall be accurate, transparent, timely and simultaneously to all stakeholders. All communication shall be in accordance with the rules of Nasdaq First North Premier Growth Market. The financial information should provide a comprehensive and clear picture of the company, its operations, and financial development.

The Board of Directors adopts annual reports, year-end reports and interim reports.

All financial reports are published on the website (https://www.aac-clyde.space) after they have first been published in accordance with the Exchange's rules. The annual report is held available on the website.

Follow-up

The Board of Directors' follow-up of internal control over financial reporting is carried out, among other things, by following up the work and reports of the CFO and the external auditors. The work includes ensuring that measures are taken regarding the deficiencies and proposals for measures that have emerged from the external audit.

The follow-up is conducted with a focus on AAC Clyde Space's compliance with its regulations and the existence of efficient and appropriate processes for risk management, corporate governance and internal control. The external auditor follows up on selected parts of the internal control within the framework of the statutory audit on an annual basis. The auditor reports the outcome of his or her review to the Board of Directors and executive management. Where applicable, significant observations are reported directly to the Board of Directors.

Uppsala, 22 April 2026

AAC Clyde Space AB (publ) The Board

*This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall prevail.

Auditor's report on the

Corporate Governance Statement*

To the General Meeting of the shareholders in AAC Clyde Space AB (publ), org. nr. 556677-0599

Engagement and resposibility

It is the Board of Directors who is responsible for the corporate governance statement for the year 2025 on pages 19-24 and that it has been prepared in accordance with the Annual Accounts Act.

The scope of the audit

Our examination has been conducted in accordance with FAR's standard Rev 16 The auditor's examination of the corporate governance statement. This means that our examination of the corporate governance statement is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinions.

Opinions

A corporate governance statement has been prepared. Disclosures in accordance with chapter 6 section 6 the second paragraph points 2-6 the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the annual accounts and the consolidated accounts and are in accordance with the Annual Accounts Act.

Stockholm den 22 April 2026 Öhrlings PricewaterhouseCoopers AB

Johan Engstam

Authorized Public Accountant

‌The Board

Introduction

Operations Corporate governance

Financial statements

Rolf Hallencreutz

CHAIRMAN OF THE BOARD SINCE 2014

Education/Background: Extensive experience from both entrepreneurial and multinational companies within technology, industrial businesses, life science and shipping.

Experience includes roles as Chairman, CEO and Sales Manager, with particular expertise in financing, growth companies and M&A. MSc in Logistics and Finance, Chalmers University of Technology, Gothenburg.

Born: 1950

Independent in relation to the Company and the Company management: No

Independent in relation to major shareholders: Yes

Holdings in the Company: Shares: 16,632 Warrants 2023/2026:C: 58,100

Warrants 2024/2027:C: 1,299

Warrants 2025/2028:C: 1,284

Per Aniansson

BOARD MEMBER SINCE 2014

Education/Background: More than 25 years of experience in venture capital in senior roles. This includes experience as CEO and CFO in venture capital-backed companies, with broad expertise in financing and the development of growth companies. Today Chairman of the Board of several companies. MSc in Engineering Physics, Chalmers University of Technology, Gothenburg, and an MBA in Finance and Entrepreneurship from INSEAD Business School, France.

Born: 1966

Other significant assignments: Chairman of the Board of Colorifix Ltd, Abarceo Pharma AB and Turnpike Group Ltd. Board member

of PharmNovo AB.

Independent in relation to the Company and the Company management: Yes

Independent in relation to major shareholders: Yes

Holdings in the Company: Shares: 6,200 Warrants 2023/2026:C: 43,575

Warrants 2024/2027:C: 866

Warrants 2025/2028:C: 856

Per Danielsson

BOARD MEMBER SINCE 2014

Education/Background: More than 30 years of experience in senior roles within the space industry. This includes organisational development, strategy, international business and financing, as well as the execution of company sales to major global corporations. MSc, Chalmers University of Technology.

Born: 1962

Independent in relation to the Company and the Company management: Yes

Independent in relation to major shareholders: Yes

Holdings in the Company: Shares: 3,576 (private and via company)

Warrants 2023/2026:C: 43,575

Warrants 2024/2027:C: 866

Warrants 2025/2028:C: 856

AAC Clyde Space Annual Report 2025 25

The Board continued

Introduction

Operations Corporate governance

Financial statements

Dr. Dino Lorenzini

BOARD MEMBER SINCE 2023

Education/Background: More than six decades of experience in space programmes and satellite systems. Former US Air Force Colonel and founder of SpaceQuest, where he served as Chief Executive Officer from 1994 to 2021. Early work included development of satellite navigation and communications systems and participation in major US space programmes. BSc, USAF Academy; SM and ScD in Astronautical Engineering, MIT; MBA, Auburn University.

Born: 1940

Independent in relation to the Company and the Company management: No

Independent in relation to major shareholders: No

Holdings in the Company: Shares: 624,000 Warrants 2023/2026:C: 43,575

Warrants 2024/2027:B: 1,299

Warrants 2024/2027:C: 866

Warrants 2025/2028:B: 1,284

Warrants 2025/2028:C: 856

Stuart Martin

BOARD MEMBER SINCE 2024

Education/Background: More than 20 years of experience in the space sector as an industry leader and executive working at the intersection of the public and private sectors. Former CEO of Satellite Applications Catapult for ten years, supporting innovation and growth across the space ecosystem. BSc Physics (First Class), Imperial College London.

Other significant assignments: Non-Executive Member of the Board at the UK Space Agency and Visiting Professor at Imperial College London.

Born: 1968

Independent in relation to the Company and the Company management: Yes

Independent in relation to major shareholders: Yes

Holdings in the Company: Shares: 3,000 Warrants 2024/2027:C: 866

Warrants 2025/2028:C: 856

Lars-Olof Corneliusson

BOARD MEMBER SINCE 2025

Education/Background: More than 40 years of experience from the Swedish Armed Forces in operational and strategic roles. International assignments within the UN, EU and NATO, including Director of Intelligence at the EU Military Staff and Swedish delegate to the Neutral Nations Supervisory Commission in Korea. Officer training at the Swedish Armed Forces Staff College, the Swedish Defence University and the NATO Staff Officers Course.

Other significant assignments: Senior Advisor to Spacemetric AB and Military Works Group AB. Member of the Royal Swedish Academy

of War Sciences and the Royal Society of Naval Sciences.

Born: 1959

Independent in relation to the Company and the Company management: Yes

Independent in relation to major shareholders: Yes

Holdings in the Company: Shares: 1,275 Warrants 2025/2028:C: 856

AAC Clyde Space Annual Report 2025 26

Introduction

Group Executive Management

Operations Corporate governance

Financial statements

Luis Gomes

CHIEF EXECUTIVE OFFICER

Education/Background: More than 25 years of experience in the space industry, specialising in small satellite systems.

Previously Chief Technology Officer and Executive Director at Surrey Satellite Technology Ltd (SSTL), with responsibility for technical and commercial strategy. MSc in Satellite Technology, University of Surrey, and BSc in Applied Physics, University of Lisbon.

Born: 1971

Employed since: 2019

Holdings in the Company: Shares: 16,140 Warrants 2023/2026:B: 72,625

Warrants 2024/2027:B: 1,732

Warrants 2025/2028:B: 1,712

Mats Thideman

CHIEF FINANCIAL OFFICER AND DEPUTY CEO

Education/Background: Extensive experience as Chief Financial Officer in growing industrial companies with both public and venture capital ownership. Previous positions include Åkerströms, Image Systems AB (publ), TracTechnology AB (publ) and Cortus Energy AB (publ). MSc in Industrial Economics, Linköping Institute of Technology.

Born: 1963

Employed since: 2014

Holdings in the Company: Shares: 11,363 Warrants 2023/2026:A: 58,100

Warrants 2024/2027:A: 1,299

Warrants 2025/2028:A: 1,284

Richard McKay

PRESIDENT PRODUCTS & MISSIONS

Education/Background: More than 25 years of experience in electronic subsystems and mission-critical product design and manufacturing within the aerospace and defence sector. Experienced international executive with a track record of business growth and transformation. Executive Management Development Programme, University of Bath.

Born: 1973

Employed since: 2022

Holdings in the Company: Shares: 0 Warrants 2023/2026:B: 43,575

Warrants 2024/2027:B: 1,299

Warrants 2025/2028:B: 1,284

AAC Clyde Space Annual Report 2025 27

Introduction

Group Executive Management continued

Operations Corporate governance

Financial statements

Dr. Andrew Carrel

PRESIDENT DATA & SERVICES

Education/Background: More than 20 years of experience across satellite manufacturing and downstream space data applications.

Technical background includes space missions and artificial intelligence. BA and MSci in Natural Sciences, University of Cambridge; MSc in Astronautics and Space Engineering, Cranfield University; PhD in Electronic Engineering, University of Surrey Space Centre.

Born: 1978

Employed since: 2021

Holdings in the Company: Shares: 1,722 Warrants 2023/2026:B: 58,100

Warrants 2024/2027:B: 1,299

Warrants 2025/2028:B: 1,284

Andrew Strain

CHIEF TECHNOLOGY OFFICER

Education/Background: More than a decade of experience in development and delivery of small satellite missions. Broad technical background including systems engineering, product development, manufacturing and project management. MEng in Electrical and Electronic Engineering with Business Studies, University of Strathclyde.

Born: 1981

Employed since: 2006

Holdings in the Company: Shares: 7,640 Warrants 2023/2026:B: 58,100

Warrants 2024/2027:B: 1,299

Warrants 2025/2028:B: 1,284

Ross Lang

DIRECTOR OF FINANCE UK AND DEPUTY CFO

Education/Background: Extensive experience in financial management. This includes nearly two decades in audit and advisory services providing financial support to small and medium-sized enterprises, followed by more than a decade in the space sector. FCCA, Fellow of the Association of Chartered Certified Accountants.

Born: 1980

Employed since: 2014

Holdings in the Company: Shares: 1,512 Warrants 2023/2026:B: 58,100

Warrants 2024/2027:B: 1,299

Warrants 2025/2028:B: 1,284

AAC Clyde Space Annual Report 2025 28

Introduction

Group Executive Management continued

Operations Corporate governance

Financial statements

Dr. Pamela Smith

DIRECTOR OF GOVERNMENT PROGRAMMES

Education/Background: Experience from government-funded space programmes across industry, academia and the European Space Agency. Works with programme development and partnerships with agencies, industry and academic organisations. PhD in Mechanical and Aerospace Engineering and BEng (Hons) in Aero-Mechanical Engineering, University of Strathclyde.

Born: 1987

Employed since: 2015

Holdings in the Company: Shares: 0 Warrants 2023/2026:B: 29,050

Warrants 2024/2027:B: 866

Warrants 2025/2028:B: 856.

Kulwinder Bhumbra

CHIEF PEOPLE OFFICER

Education/Background: Nearly 20 years of experience in human resource management across private and not-for-profit organisations. Works closely with senior management on people strategy and organisational development. MSc in Human Resource Management, University of Strathclyde.

Born: 1986

Employed since: 2021

Holdings in the Company: Shares: 0 Warrants 2023/2026:B: 58,100

Warrants 2024/2027:B: 1,299

Warrants 2025/2028:B: 1,284

Dr. Dino Lorenzini

CHIEF STRATEGY OFFICER

Education/Background: More than six decades of experience in space programmes and satellite systems. Former US Air Force Colonel and founder of SpaceQuest, where he served as Chief Executive Officer from 1994 to 2021. Early work included development of satellite navigation and communications systems and participation in major US space programmes. BSc, USAF Academy; SM and ScD in Astronautical Engineering, MIT; MBA, Auburn University.

Born: 1940

Employed since: 1994

Holdings in the Company: Shares: 624,000 Warrants 2023/2026:C: 43,575

Warrants 2024/2027:B: 1,299

Warrants 2024/2027:C: 866

Warrants 2025/2028:B: 1,284

Warrants 2025/2028:C: 856

AAC Clyde Space Annual Report 2025 29

‌Risk and risk management

AAC Clyde Space operates

Risk area Business exposure Risk management

through two business segments: Products & Missions and Data & Services. The Group's activities involve technical complexity, long sales and development cycles and milestone-based deliveries.

Products & Missions is typically project-driven and linked to defined milestones and formal customer acceptance. This affects the timing of revenue recognition, profit and cash flow between reporting periods. The risk profile in Data & Services is different, with revenues generally recurring and dependent on operational continuity and customer retention.

The Group operates across multiple jurisdictions and is subject to licensing, export control and security-related requirements.

Geopolitical developments and public funding priorities may influence procurement decisions and programme timelines, particularly in larger institutional programmes.

Risk management is integrated into the Group's governance and management processes. The Board of Directors oversees the overall risk framework, while executive management is responsible for risk identification and management within their respective areas.

Financial risk disclosures are set out in Note 3 in the Consolidated Financial Statements.

Principal risk areas are outlined in the table.

Demand for satellite systems and

space-based data services is influenced by global economic conditions, public sector budgets and geopolitical developments.

Procurement timing, funding decisions and programme scope adjustments may affect order intake and contract volumes, particularly within Products & Missions. Technological change and competitive pressure may influence pricing, margins and market position.

Satellite development, integration and operation involve technical complexity and coordination across multiple sites and suppliers. Delays or performance issues at suppliers or programme partners may affect delivery schedules and revenue recognition, particularly within Products & Missions.

Launch services are procured from third parties and subject to external scheduling constraints. Satellites in orbit are exposed to technical malfunction or other unforeseen events, which may affect service continuity.

Diversified customer portfolio across geographies and sectors. Structured bid and contract approval processes. Ongoing

investment in the Group's technology roadmap.

Established engineering processes, qualification and testing programmes, modular platform design and accumulated flight heritage. Active supplier management and dual sourcing where feasible. Dedicated

in-orbit operations and anomaly response capability. Insurance coverage for launch and in-orbit risks in line with market practice.

Risk and risk management continued

Financial risks and capital management

Regulatory, legal and security risks

People and organisational risks

Products & Missions revenues are typically recognised upon milestone delivery, while cash flow is dependent on formal customer acceptance. This may affect revenue timing, earnings and working capital between reporting periods. Data & Services revenues are generally recurring but dependent on service continuity and contractual arrangements. Investment in proprietary satellite constellations and technology development requires capital allocation prior to full revenue generation. The Group is exposed to currency risk, credit risk related to receivables and liquidity risk.

The space sector is subject to national and international regulation, including export control, licensing, spectrum allocation and security-related restrictions. Changes in regulation or its interpretation may affect market access and delivery capability. The Group manages satellite and ground infrastructure and handles customer data, exposing it to cybersecurity and data protection risks.

The Group depends on specialised engineering and commercial expertise across its segments. Competition for qualified personnel may affect recruitment and retention. Organisational changes and capacity adjustments may create execution risk if not effectively managed.

Cash flow forecasting and working capital monitoring. Ongoing evaluation of capital structure and financing capacity. Credit risk management procedures. Regular review of liquidity position by executive management and the Board.

Compliance procedures and defined approval processes for export control and licensing matters. Information security and data protection measures integrated into operational processes. Ongoing monitoring of regulatory developments.

Structured recruitment processes, competence development initiatives and defined organisational governance.

Monitoring of engagement and retention metrics. Succession planning integrated into management processes.

Risk area Business exposure Risk management

Comments on outcome 2025

Two programme-related delays materially affected revenue, cash flow and order intake in 2025. In one programme, technical discussions between an end customer and a subcontractor delayed milestone recognition, shifting approximately SEK 32 M into 2026.

In the EPS-Sterna programme, political and procurement developments postponed project initiation.

Commissioning of the two Sedna satellites took longer than planned. Launch of the first two VIREON™ satellites was delayed through rescheduling by the launch provider.

Two capital raises were completed to support continued investment in the Group's satellite programmes.

Guidance for 2025 was revised during the year in light of programme developments and timing effects.

Introduction

Operations

Corporate governance

Financial statements

FINANCIAL STATEMENTS

57.6487° N, 11.9438° E

57.6487° N, 11.9438° E

35 Consolidated financial statements

65 Parent company statements

AAC Clyde Space Annual Report 2025 32

‌The Board of Directors and the CEO of AAC Clyde Space AB (publ), corporate registration number 556677-0599, hereby submit the annual report and consolidated accounts for the financial year from 1 January 2025 to 31 December 2025.

The results of the year's operations are presented in subsequent financial reports, which shall be adopted at the Annual General Meeting.

Operations

AAC Clyde Space provides small satellite technologies and services that enable governments, businesses and institutions to access space-based, application-ready data. With proprietary components, satellite solutions and data services, we deliver complete offerings - from design and operations to valuable spacebased data.

Registered office of Parent Company

AAC Clyde Space AB (publ)'s registered office is in Uppsala, Sweden, at Uppsala Science Park, SE-751 83 Uppsala, which is also the company's head office.

Significant events during the year

AAC Clyde Space won a EUR 1.0 M (approx. SEK 11.8 M) order from OHB Sweden for components for the planned EPS-Sterna constellation, with delivery scheduled by the end of 2025. EPS-Sterna is a satellite programme by EUMETSAT to improve weather forecasts and climate monitoring, based on the Arctic Weather Satellite (AWS) prototype launched in August 2024. It plans to launch six satellites by 2029 and grow to 20 satellites by 2042.

AAC Clyde Space has announced a EUR 0.85 M (approx. SEK 9.5 M) contract with the European Space Agency (ESA) for the INFLECION project. Focused on "Safer Oceans, Smarter Shipping, and a Greener Future", the project is a key step in growing Space Data as a Service and will deliver a new satellite constellation, fully operational by 2028. The total value of the project is EUR 30.7 M (approx. SEK 350 M), co-funded at 50% by the UK Space Agency.

In April 2025, AAC Clyde Space restructured its operations into two business segments: Products & Missions and Data & Services. The new structure merged the former Products and Missions segments to strengthen coordination in hardware development and improve operational efficiency.

Board members Rolf Hallencreutz (chairman), Per Aniansson, Per Danielsson, Stuart Martin and Dino Lorenzini were re-elected at the Annual General Meeting in May 2025. Michael Mattsson was not re-elected. Major General Lars-Olof Corneliusson was elected as an ordinary Board member, bringing over 40 years of experience in intelligence, defence policy and strategic leadership.

AAC Clyde Space expanded its overdraft bank facility from SEK 30 M to SEK 50 M to strengthen liquidity and

support continued growth.

In June 2025, AAC Clyde Space carried out a directed share issue of 585,938 shares at SEK 110 per share, raising approximately SEK 64.5 M before transaction costs. The proceeds are to be used to accelerate the company's strategic initiatives in earth observation, maritime intelligence, and European defence and security.

AAC Clyde Space delivered the first two units of its commercial CubeCAT laser communication terminal to EMTECH SPACE S.A., marking a key milestone for Greece's Hellenic Space Dawn mission. CubeCAT enables tenfold faster data transmission and is less vulnerable to interception or jamming, supporting future data-intensive small satellite missions.

AAC Clyde Space, together with the AOS consortium, successfully validated the mission objectives for the YMIR-1 satellite, proving that ships can both send and receive VDES data via satellite globally. The AOS consortium consists of AAC Clyde Space, ORBCOMM (now S&P Global Market Intelligence Inc) and Saab TransponderTech (now FLIR TransponderTech).

In November 2025, AAC Clyde Space's Sedna-1 and Sedna-2 satellites were fully operational, strengthening the company's space-based AIS data network and enhancing capacity, coverage and reliability. Together, they reinforce AAC Clyde Space's leading position in space-based maritime intelligence and support its strategy to grow recurring revenues from high-value maritime data services.

AAC Clyde Space welcomed Bonnier Capital in December 2025 as a new shareholder following a directed investment of up to SEK 140 M. The Board has resolved on a directed share issue of approximately SEK 100 M at market price, with warrants that may provide an additional SEK 40 M. The investment secures full

funding of the INFLECION programme and supports continued growth. The first of two tranches, amounting to 598,409 shares and based on the remaining part of the authorisation granted by the Annual General Meeting on 22 May 2025, was completed in December 2025 at a subscription price of SEK 84.13 per share. Through the directed share issue, AAC Clyde Space AB raised approximately SEK 50.3 M before transaction costs.

AAC Clyde Space begun assembly of the first two satellites in its VIREON™ Earth Observation constellation.

Launch of the first satellite is planned in the first quarter of 2026. The project marks an important step in realising the company's vertically integrated business model - building its own satellites, using its own components, and delivering recurring revenue through data services to multiple global customers.

AAC Clyde Space updated its full-year 2025 guidance, mainly due to delays in the award of the EPS Sterna programme and in a customer project, with around SEK 30 M of revenue from the customer project now expected in 2026.

AAC Clyde Space's subsidiary Spacemetric divested a minority shareholding in an associated company for

a total consideration of SEK 7.65 M. The transaction had no impact on operational activities.

Significant events after the end of the year

An extraordinary general meeting in January 2026 approved the second tranche of AAC Clyde Space's directed share issue to Bonnier Capital. The tranche comprises 590,228 new shares, corresponding to approximately SEK 49.6 M. Completion remains subject to the necessary approvals from the Swedish Inspectorate of Strategic Products (ISP), which is currently reviewing the transaction. The Board has also resolved to issue warrants to Bonnier Capital that may provide additional proceeds of up to approximately SEK 40 M.

AAC Clyde Space initiated the build of two additional maritime data satellites, Sedna-3 and Sedna-4, by placing orders for key components. The satellites will add capacity and support continuity within the company's established maritime data services, with launch planned for early 2027.

AAC Clyde Space has received an order from OHB Sweden valued at EUR 76.3 M (approx. SEK 820 M) for the delivery of 20 microwave radiometers for the EPS-Sterna satellite programme. Approximately half of the contract value is expected to be recognised by the time the first six instruments are delivered by the end of 2028, with the remaining instruments delivered at a rate of two per year until 2035.

AAC Clyde Space has successfully launched VIREON™-1 and VIREON™-2 in a new Earth Observation constellation. The satellites have entered a commissioning phase ahead of data delivery under initial customer agreements, and the company has initiated procurement of components for VIREON™-3 and VIREON™-4 to continue building out the constellation.

AAC Clyde Space has completed Phase 1 of the INFLECION programme, defining the mission concept, service offering and system architecture for a satellite-enabled maritime intelligence system. Following completion, contract negotiations for the next development phase are underway.

Group structure

As of 31 December 2025, the Group consisted of the Parent Company AAC Clyde Space AB, with its registered office in Uppsala, and six operational subsidiaries, refer to Note 14.

Profit and loss and financial position

Group

Sales and earnings

Net sales decreased by 16% to SEK 295.3 M (352.9). Total revenue amounted to SEK 337.8 M (408.8). Operating result after depreciation and impairment of intangible non-current assets amounted to SEK -40.0 M (-4.0).

The loss after tax amounted to SEK -46.6 M (-5.7).

Investments

The Group's investments in fixed assets amounted to SEK 46.7 M (44.6), of which SEK 2.8 M (17.9) pertained to intangible non-current assets.

Cash flow, liquidity and financial position

Available cash and cash equivalents on 31 December 2025 amounted to SEK 30.1 M (49.7). Used credit facility amounts to SEK 0 M (8,9) of the total available overdraft facility amounts to SEK 50.0 M (30.0). Total available cash, including bank overdraft facility, amounted to SEK 80.1 M (70.8). The Board's assessment is that the operations are financed for the next twelve months.

Contract liabilities (customer prepayments) decreased to SEK 51.0 M (97.9) as prepayments from customers were converted to Net Sales.

As of 31 December 2025, the equity to assets ratio was 80% (71).

Staff

At year-end there were 191 (199) employees.

Parent Company

The Parent Company's net sales amounted to SEK 80.6 M (102.8). The result after tax, before impairment of shares in subsidiary Clyde Space Ltd was SEK -11.6 M (7.2) and after impairment SEK -26.6 M (-19.9). Investments in fixed assets amounted to SEK 1.8 M (4.9).

The equity to assets ratio was 92% (87).

Corporate responsibility

The Group does not conduct operations that require a permit according to the Swedish Environmental code ("Miljöbalken 1998:808). For information about the Group's sustainability initiatives, see page 16.

Risks and uncertainties in the business

The Board decides on the level of risk-taking in the business and makes final decisions based on proposals from the CEO. The company continuously collaborates with suppliers to secure deliveries as far as possible.

The management team maintains an internal Business Continuity Plan on an ongoing basis to ensure that products and services are delivered as expected. AAC Clyde Space closely monitors geopolitical developments and takes proactive measures to mitigate the impact of trade restrictions, new security requirements, and shifting government priorities.

Guidelines for remuneration to senior executives

Information regarding the guidelines can be found in consolidated Note 8, refer to page 50.

The share

AAC Clyde Space's shares are traded under the ticker AAC on Nasdaq First North Premier Growth Market.

The share is also traded on the US OTCQX market under the symbol ACCMF. On 31 December 2025, 7,106,085 shares were issued with a quotient value of SEK 2.0. All shares have equal rights to the company's profits

and assets. The number of shareholders at 31 December 2025 was 11,505. The largest single owners on 31 December 2025 were AAC SpaceQuest founder Dino Lorenzini with 624,000 shares corresponding to

8.8% of votes and capital. For more information about AAC Clyde Spaces shares and shareholders, see the Share section on page 18.

Incentive scheme

During December 2025, a total of 478,350 warrants under the Warrants 2022/2025 programme were exercised at an excercise price of 94.65 SEK, resulting in an increase in number of shares by 9,567 and a dilution of approximately 0.13%. Of the exercised warrants, 220,000 warrants, corresponding to 4,400 shares, were exercised by members of the Board of Directors and executive management. Remaining number of warrants was hereby expired.

For information on active incentive programmes see Consolidated note 8 on page 50.

Proposed appropriation of earnings

At the disposal of the Annual General Meeting (SEK):

Share premium reserve 1,046,882,674

Loss brought forward -392,062,456

Loss for the year -26,628,189

Total 628,192,029

The Board of Directors proposes that no dividend will be paid and that the retained earnings of SEK 628,192,029 be carried forward.

‌CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

kSEK Note

Net sales 6

Work performed by the Company for its own use and

capitalised

Other operating income 9

TOTAL

Raw materials and subcontractors

Personnel costs 8

Other external expenses

Other operating expenses 10

EBITDA

Depreciation/amortisation and impairment of tangible

and intangible assets 15, 16, 29

EBIT

Financial income 11

Financial expenses 11

Net financial items

Income tax 13

PROFIT/LOSS FOR THE PERIOD

PROFIT/LOSS FOR THE PERIOD ATTRIBUTED TO:

Parent Company shareholders

Results attributable to minority interests

Other comprehensive income:

Items that may be transferred to profit or loss

Exchange-rate differences

Other comprehensive income for the period

Other comprehensive income for the period attributable to:

Parent Company shareholders

Results attributable to minority interests

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

CONSOLIDATED BALANCE SHEET

kSEK Note

ASSETS

Non-current assets

Intangible assets 16

Goodwill

Brands

Customer relationships

Technology

Capitalised expenditure for development

Other intangible assets

Total intangible assets

Tangible assets

Plant and equipment 15

Inventories 15

Right-of-use assets 29

Total tangible assets

Financial assets

Other long-term securities holdings

Total current assets

TOTAL ASSETS

kSEK Note

EQUITY AND LIABILITIES

Equity attributable to Parent Company shareholders

Share capital 24

Other contributed capital

Reserves

Retained earnings (including earnings for the year)

Total equity attributable to Parent Company shareholders

Non-controlling interest

Total equity

Total current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES

CONSOLIDATED STATEMENT OF CASH FLOWS

kSEK Note

Cash flow from operating activities

EBIT

Adjustments for non-cash items 34

Interest received Interest paid Income taxes paid

Cash flow from operating activities before changes in working capital

Cash flow from changes in working capital

Change in inventory

Change in operating receivables Change in operating liabilities Total changes in working capital

Cash flow from operating activities

Cash flow from investing activities

Investments in tangible assets 15

Investments in intangible assets 16

Investment in subsidiaries

Sale of shares in associated companies

Cash flow from investing activities

Cash flow from financing activities

New share issue Issue expenses

Outgoing repayments of lease liabilities 33

Utilised credit facility 25, 33

Cash flow from financing activities Cash flow of the year

Decrease/increase in cash and cash equivalents

Cash and cash equivalents at start of period

Exchange-rate differences in cash and cash equivalents

CASH AND CASH EQUIVALENTS AT END OF PERIOD

Note 1 General information

AAC Clyde Space AB (publ) ("AAC") Corp. Reg. No. 556677-0599 is the Parent Company registered in Sweden with its registered office in Uppsala at Uppsala Science Park, Dag Hammarskjölds väg 48, SE-751 83 Uppsala, Sweden.

The financial statements were authorised for issue by the Board of Directors on 22 April 2026.

Unless otherwise stated, all amounts are in thousands of SEK (kSEK). Data in parentheses pertain to the

comparative year.

Note 2 Summary of significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated. The consolidated financial statements pertain to the Parent Company AAC Clyde Space AB (publ) and its subsidiaries.

Basis of preparation

The consolidated financial statements for AAC Clyde Space AB have been prepared in accordance with the Swedish Annual Accounts Act, RFR 1 Supplementary rules for corporate groups, International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC)

as adopted by the EU. They have been prepared under the historical cost convention, as modified by the revaluation of financial liabilities measured at fair value through the statement of comprehensive income.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.

New and amended standards not yet adopted by the Group

IFRS 18 addresses the presentation and disclosure of financial statements and is effective for annual periods beginning on or after 1 January 2027. The standard replaces IAS 1, Presentation of Financial Statements, and introduces new requirements that aim to achieve greater comparability for similar companies and provide users with more relevant information and transparency. The new requirements include, amongst others, that all income and expense items must be classified based on three main categories: operating, investing or financing. IFRS 18 also introduces mandatory subtotals and expanded disclosure requirements for certain performance measures, known as "Management-defined performance measures" (MPM). Management is currently analysing the full implications of applying IFRS 18 in the Group's financial reporting.

Subsidiaries

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its influence over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any liability resulting from a contingent consideration arrangement.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

The Group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest's proportionate share of the carrying amount of the acquired entity's net identifiable assets.

Acquisition-related costs are expensed as incurred and are reported in the item "Other operating expenses"

in the consolidated statement of comprehensive income.

Foreign currency translation

Functional and presentation currency

Entities in the Group use the local currency as their functional currency, where the local currency is defined as the currency of the primary economic environment in which the entity operates. The consolidated financial statements are presented in Swedish kronor (SEK), which is the Parent Company's functional currency and the Group's presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are generally recognised in the statement of comprehensive income.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are recognised in the statement of comprehensive income as financial income or expenses. All other foreign exchange gains and losses are presented in the item "Other operating expenses" and "Other operating income" in the statement of comprehensive income.

Foreign subsidiary translation

The results and financial positions of foreign operations that have a functional currency different from the presentation currency are translated into the Group's presentation currency. Assets and liabilities for each statement of financial position presented are translated from the foreign operations' functional currency to the Group's presentation currency, SEK, at the closing rate at the balance sheet date. Income and expenses for each statement of profit or loss are translated into SEK at the average rate per each transaction date. All resulting exchange differences from foreign currency translation are recognised in other comprehensive income.

Revenue recognition

Revenue is measured at the fair value of what has been or will be received, and is equivalent to the amount received for goods and services sold less discounts and VAT. The Group recognises revenue when the amount can be reliably measured, when it is likely to lead to financial advantages for the Company in the future and when the below criteria have been met for each of the Group's operations.

Sale of goods

The Group develops, manufactures and sells satellite platforms and subsystems. Product sales are reported

as revenue when control of the goods is transferred, which happens when they are delivered to the customer.

Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

Income from the sale of customised satellite platforms and subsystems is recognised based on the price

in the contract and degree of completion. Revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. No element of financing is deemed present as the sales are made.

Sales of services

The Group provides services at fixed and variable prices in the form of consulting and project fees for launching and operating satellites in orbit. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the financial year as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously. This is determined based on the actual labour hours spent relative to the total expected labour hours.

Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenue or costs are reflected in the statement of comprehensive income in the period in which the circumstances that gave rise to the revision become known by management.

In the case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by AAC Clyde Space exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

If the contract includes an hourly fee, revenue is recognised based on the hours expended. Customers are

invoiced on a monthly basis and the consideration is payable when invoiced.

Sales of data

The Group delivers data from its own satellites to customers. The scale of the revenue depends on the quantity of data delivered and is normally recognised in the delivery month.

Sales of licences

The Group licences IP rights (technology and manufacturing licences) for components of AAC Clyde Space's technology to help customers manufacture products they then utilise for their own use, and sometimes can then sell to external customers. Compensation covers the licence as well as consulting services related to adapting technology for customers. The transaction price includes fixed portions and portions dependent on future events. The portion of compensation dependent on future events is recognised as variable under revenue recognition and only when AAC Clyde Space deems it likely that the compensation will be received and the conditions for receiving remuneration have been met.

The Group decides if a licence is distinct from the consulting services that will be rendered and thereby constitutes a separate performance obligation in the contract. A licence is considered a separate performance obligation when it can be used without additional consulting services from AAC Clyde Space. If a licence is considered distinct, this means that the contract includes two obligations: a licence and consulting services. These are recognised separately.

The transaction price is allocated to the licence and to the consulting services at an amount that reflects the compensation the Group expects to have a right to in exchange for transferring the licence and consulting services to the customer. This is added to an allocated transaction price for the undertaking recognised as revenue either at a specific date or over time.

Licences identified as separate performance obligations are either "right-to-access" or "right-to-use." A "right-to-access" licence includes access to AAC Clyde Spaces IP rights over the term of the licence,

meaning the IP rights in question change over time as AAC Clyde Space conducts operations that significantly affect the value of the intangible asset the customer has a right to. A "right-to-use" licence includes the right to use AAC Clyde Space IP rights as they stood at the time the licence was granted. "Right-to-access" licences are recognised over the period when the customer has right to exercise the licence, while "right-to-use" licences are recognised at a specific point in time (that is, when the customer is given control over the licence).

If consulting services are considered a separate and distinct commitment, their revenue is recognised over the period according to the accounting policies given above in "Sales of services".

If the licence is not distinct from the consulting services provided to the customer, the two items are recognised as a single performance commitment. An assessment is made of whether income for the combined performance commitment is reported at a certain date or over time, depending on when control of both the licence and the consulting services were transferred to the customer.

Sales-based royalties

Revenue from sales-based royalties pledged in exchange for a licence for an intangible fixed asset is only recognised after the later of the following events:

• Subsequent sale

• The performance commitment pertaining to the sales-based royalty has been fulfilled

Interest income

Interest income is recognised as income using the effective interest method.

Leases

The Group's leases consist largely of premises and equipment. Leases are normally signed for fixed periods of one to five years, but may have extension options, as described below. The terms are negotiated separately for each lease, and contain a large number of differing conditions.

Leases are recognised as right-of-use assets, and a corresponding liability is recognised on the day the leased asset becomes available for use by the Group. Every lease payment is distributed between repayment of the liability and financial expenses. The financial expense is allocated across the lease term so that each reporting period is charged an amount equivalent to a fixed interest rate for the liabilities recognised in each period. The right-of-use asset is depreciated on a straight-line basis over the shorter of the useful life of the asset and the term of the lease.

Assets and liabilities arising from leases are initially recognised at present value.