Welcome to today's event where we have the pleasure to present GomSpace. As we can see here on the front page, the Q2 and H1 report is in focus today.

I guess we will also share some views on a sector, I guess, where, yeah, the world is changing every quarter, [laughter] as I see it, from decreeing nuclear power plant on the moon and so on and SpaceX, very, very likely to hear some of your insights in this sector, Carsten. As always, we're joined by Carsten Drachmann, CEO of GomSpace, to take us through the results, the presentation, and answer questions in the end.

As always, there's a box down below where you can ask your question. A lot have already come in, see if something is answered, but do feel free to ask questions through all the presentation, but we will take it in the end.

For now, I will hand the stage over to you, Carsten.

Thank you Michael, and yeah, welcome all here to to our first half report for for 2026. Like Michael said, do ask questions.

I repeat, I am reading the chat forums. I'm seeing everything that you are writing, and and please ask questions.

I try to answer the the best I can. The picture here, I think it's a fantastic picture, maybe starting with that.

10 years on Nasdaq in in Sweden, it's a long time. It's been a very ambitious time, it's been turbulent times, it's been up and down.

I think, I hope you'll agree with me, the the Q2 and the first half result here for 2026 is trending towards definitely in in a better end and towards more more stability. So 10 years, ups and downs, and now we are we are we are moving forward to to a brighter future, I believe.

Let's take a look at it. Q2 results, our revenue compared to same period last year went up 17%, 112 million.

We have delivered a positive EBITDA of 13%. It's it's it's pretty good percentage-wise, because this is significantly better than than most of the industry, and many are, please remember, many are still not making any money, but we understand how to make money.

Our cash flow is negative. This is according to to our plan.

Also, I know there's some questions on what what are we doing, where we are investing in in developing more technology, we're creating more platforms of different sizes of of satellites. Then I thought, stepping aside here so you can see that, this is also what what some of your money has gone into, what we have spent.

This is a vibration table, fairly big one. It's much larger than what we had before because we start building bigger satellites.

We have invested in this, and the whole vibration is a pretty important part of our of our process of building and testing satellites. The vibration is about when you put the satellite on the rocket and it goes up, there's a lot of vibration, has to sustain that.

Once it's in space, no vibration, but a lot of rules and procedures, and it's much more efficient for us to have it here. Some of the money of the -42 million is is sitting right here behind me, it hasn't just vanished into to blue space.

Bank account looks looks healthy. We have bit more than 180 million in in a bank account at the end of of June.

Looking at the half year summary, we are looking at 30% growth on on revenue, also very good. Remember, the market is growing 14%, 15% in average for for our business segment here.

We're growing 30%. This is well in line with what we have predicted for for the year.

EBITDA at 25 million, about 11%, again, very very I'm very happy with hitting that number. This is what we want to be and still better than than the market in average.

-100 million in in cash flow, expected, and, well, the bank account is the same as as a previous one. Also note the bottom-line net profit is positive with 28 million.

There's been some some some transactions, financial transactions that has helped that, we actually have a situation we have a positive EBITDA, we have a positive EBIT, and we have a positive net profit also. That's good, and net profit helps us also adding to our equity value.

Taking a look at other events that had happened, I wanted to highlight first of all Peter Hargreaves. Thank you, Peter, again.

He has converted, he's had a lot of warrants in connection with the the previous loan agreements we've had. He's converted that to shares, that's good.

Why? Concretely on a balance sheet, it has increased our equity ratio to 41%.

Remember we need that when we're doing the government business. We need to have a strong balance sheet, and also when we when we are playing for the for the bigger deals, we need to be more solid.

This is helping us a lot. The other thing is the issue we had with those warrants is that every time the share price goes up and you investors are are happy with what we're doing, it has a negative impact on the net profit.

When the share price goes down, has a positive impact, it doesn't make any sense. Luckily Peter had no problems taking those warrants off the market and converting them to shares.

He's not selling, just converting to shares. This is good, this has helped us.

Somebody called it the elephant in the room. It's not an elephant, but we do have an outstanding receivable that's still here.

It was from 2025. We reduced it with with a customer by simply reusing material.

A reminder, they had owed us a a a big amount of money for some time. We control the assets.

We haven't sent anything to them, and we had different collateral agreements in place. In this context, we've simply chosen now to reuse some of the material for other projects and also reduced our exposure.

The customer is in a fundraising period. It's taken a long time.

Said before, they're playing for big bucks, not not peanuts, it's it's taking some time. I am in a daily contact with them, and I'm confident that they will be successful in the end.

It's a question of timing, but we have understood how we we manage this situation. Further, after it was after the the Q2 closing, but on August 1 the agreement we had was that if they hadn't paid at that time, we we will take over a significant amount of shares in that company.

We are now sitting on 30,000 shares in that company. It's not a security per se, it's simply now we control those shares, they are ours, and it's a future upside.

Obviously, if the company is worth nothing, which I don't think they will be, this is not worth anything. If the company is successful going forward, well, there's an upside sitting here for for GomSpace, and we have we have a right to convert those shares into cash.

Basically, it's called a put option. We can put it back to the to the company, and they will have to give us cash.

Once they raised the capital, that should be no problem. It's a little bit a compensation for annoying, clearly, that this receivable has been outstanding so long.

We have handled it. We are we know we don't have to take any write-downs.

We have reduced the exposure by reusing the material, and we have a lot more material in control that we could reuse other places if we have to. Then as a compensation, a future upside on on on owning holding shares in that company.

You can read in the report the current share price valuation is about $949. Convert that to to SEK, 250 plus-odd SEK today.

There's no guarantee, I'm not saying that's a value in the future, but this is this is as it's valued right now. Moving on, just a repeat, remember we're executing in the four business units here.

It's important. I see there are some questions, how are you going to make money into the future, how are you going to grow, I just want to do a little recap on on on these business units.

If you start with Product, industrial scale engine, the revenue come by high-volume sales, thousands of products of standardized products and subsystems to different kind of integrators. The profit is driven by our manufacturing efficiency, supply being able to scale supply chain and repeatable production, we keep doing more of the same, this is good for us.

I've said to you before, the margins here are good, and the cash flow is really it's driven by by inventory turnover. This is also a business where we have to have fast delivery times, we really need to manage our supply chain and inventory, and then we can turn it quickly into to revenue and cash.

Products is a baseline for everything we do, and you will see that also in a later slide. It's really a core.

This is all the core technology sitting here. Satellite Systems is about putting together satellites on contracts.

The customer wants a satellite, I want it to be red, this big, and do this or that. This is what we do.

We have to do that efficiently. This is amongst others where this vibration table comes in, that once we put the satellite together, it goes on this table, and we have to check that nothing falls off and everything is okay.

Revenue will be the the the growth come of course from number of deals that we can close, but also driven by constellations. We're working towards getting larger program contracts that will run over a longer period of time.

We're not in a service business, we are in a in a hardware, software business, the our repeatable revenue over time is getting bigger contracts, which of course we're working for. In order to do that, we need to be able to do repeatability, we need to standardize our platforms more so that once we get the the larger deals, we can also execute efficiently.

Cash flow here is much more driven by by milestones. Contracts have a certain lifetime: 12-year 12 months, 2 years, 3 years, and then there are paying milestones.

Our job is to make sure that we're always cash flow positive, which we are on the majority of the contracts. National and Defense Solutions, this is where we see the pipeline going up a lot.

We'll talk a bit more about that. It's really driven by multi-year mission-critical programs and contracts, very much focused on sovereign customers, so different nations: Denmark, Germany, Indonesia, France, US.

Very much driven also by defense. The profit is coming from we do more value-based selling.

We're not selling satellites, we're selling solutions to to troubles or problems, challenges. Our Indonesian project, which is still alive, is about protecting the fishing industry, we are selling protection of fish and information about Chinese trawlers.

We're not selling satellites, two different things. Same thing with the opportunities in Ukraine, I'll talk a bit about later, is also about solving a specific problem, not just selling a satellite.

Also here, the the cash flow is driven by by payments, where we are looking for to have advanced payments, which is normal, so that we're always cash flow positive on these programs, provided obviously that the customer is paying. This is how we drive it, and this is where we see the pipeline.

If I look into the pipeline, it's it's growing for all the different business units, but this is where we see by far the largest deal sizes. This is also a part of the strategy from last year that we said, okay, we're going to focus more on this, and we're getting better.

We're recruiting more people, we have more skill sets into doing these solutions, and eventually it it will pay off. Advanced Missions, remember our innovation, our capability engine here also, revenue driven by securing strategically important, high-complexity missions, something new, something more difficult, tapping into the European defense fund budgets, ESA budgets, looking at things that are becoming the next big thing into the future.

It can be lunar missions, it could also be this very low Earth orbit, or it could be other technology that we see becoming dominant into the future. North America, this is about market presence.

This is about tapping into that enormous budget that they have in the US and really focusing and hiring we're hiring more people. I think we have about 10 people now in in the US working on capturing initially some some smaller mid-sized deals, getting some product sales, which is a bit easier to get, and then working towards hooking into some some larger programs, be they commercial or government.

There's also much more commercial activity in the US, and Silicon Valley is booming with money right now, and everybody who wants to do a a new service in space can get money. They are our customers, and we're focusing on that.

Business unit numbers, on the back of that, let's let's dive into it. Revenue: 112, up about 17% from from from quarter last year.

If you look at the the distribution here, Products came in at about 40 million of that, Satellite Systems 50, Advanced Missions 22, and North America 11. There's zero, and I get that question, 'Hey, why do you have a business unit that has zero?'

The explanation is we are really focusing there, and this is where the pipeline is driving, and I'm I am cautiously optimistic about that zero won't stay there very long. Once we start getting some of those contracts in, the numbers will be be quite different, but we still keep it on on this level here.

As you can see, all all the units are actually growing compared to to last year. Where's the EBITDA?

We are measuring each business unit per as as as an standalone entity, we're also measuring and sharing the EBITDA with you. We are at 14 million overall, and you can see here that the vast majority is actually coming from from Products.

It's not a surprise. We're also doing so that our Satellite Systems actually have to pay something to our Product business unit, which is only fair, because if you don't buy it in-house, we buy it externally.

That is why we've structured it like this. I've said before, remember Products is that's a higher margin, it's a different kind of business.

It's customer see, customer like, order, production, ship, collect cash. Maybe collect cash first, it's a good idea, we do that as well.

Very different animal where where we have different margins. Satellite Systems is contract business.

You can have certain margins there, they're not as high as in in Products, but but the volume is is here. You have a you have quite a big revenue to get that.

You will see better EBITDA once that volume goes up, simply by the by the scale of things. National and Defense Solutions right now not making money obviously since they have no sale or revenue.

We see that changing also. We're also expecting to see better better margins here compared to Satellite Systems, and it's okay because it's a different game, and that's how we see it.

Advanced Missions, the margins will vary a bit with what we are entering into. Overall, I'm satisfied with the EBITDA here is in line with what we are have projected, and also what we're trying to to keep a profitable growth, which which we have succeeded with in this quarter.

Looking a bit at order intake, went to 140 million. Yes, it's less than I saw there were some comments on on on Q2 last year, that's also where we had a large order intake, not surprised.

What I'm more looking at two things: it's better than it was in first quarter this year, and also it is higher than our revenue, which means when it's higher than our revenue, which was 112 million compared to 140, it means our backlog is going up. Backlog going up is a good thing because it gives more predictability into the future.

Looking at what are the key deals, we had two more microsats from from Unseenlabs, 50 million. We had a big product order for for kit sales.

Remember, the kits is the IKEA bag. We take all that everything you need to build your own satellite, put it in a bag with a little description and some screws and cables, and send it to the customer, and then they can do it themselves.

This is this is the first we have had some orders on this before. This is the biggest deal we've had so far on this.

If you compare it to a a revenue, I think you saw was it 47 million for for first half for Products, and then look at this order, you can see we start seeing a differentiation a bit in the order sizes. In Products, we still have a €5,000, €10,000 sale.

This is this is more frequently going, and then we start seeing some bigger-ticket items. Causes a bit more on on unpredictable, but when they're coming, they also have a big impact on the on the company results.

Very happy with that deal. More CubeSats to Unseenlabs and also Ramses, ESA, European Space Agency, another asteroid missions.

Remember, we still have our little satellite, Juventas, flying out. Still has to fly for some time before it gets to the asteroid, 180 million kilometers away.

We're entering now more on a consulting basis in another program, which is, what's it called, Apophis or something like that. It's another asteroid that's coming close to Earth in, I believe it's in 2030 or very soon.

It's going to go very close to Earth, and this is a rapid mission to try and get something up and flying so we can study what does that asteroid look like when it's much closer to Earth than than before. It's also a very cool mission coming in here.

Now this is I haven't showed you this one before. It's in the report, but just looking a little bit differently, how is how is it distributed on on order intake per per per business unit.

You can see 47 million for Products, 74 from from Satellite Systems, Advanced Missions, and and North America. Overall, our order backlog is is going up.

You can see where the order backlog is sitting, right now the largest is still in Satellite Systems. That's understood.

That's where we have contracts that's running over longer time. The backlog for Products will never externally be it shouldn't be a lot higher, because if it gets too high, much higher, then we are not fast enough in delivering.

That will always be turning quickly, whereas Satellite Systems, you like to see that it's growing for predictability. Now here you can see what I'm saying why we have structured it the way we do between the different product units, and actually Satellite Systems and the others are shopping from Products.

Externally, we might have a 42 million backlog, but if you count all the obligations that are internally to the other business units and on customer contracts, it's a lot higher number: 100 and can barely read myself, 134 million. It's significantly higher, and this is to imply also and show this is actually the activity level that's there in the business units.

This is how we need to scale our our manufacturing capacity and our supply chain is actually to the 134, it's not to the 42 alone. That's also why we do it like this and and there's some internal trading to make sure that there's a fair compensation in the Products in order to keep up the supply chain and everything going.

Conclusion on that, our order backlog has gone up 28 million since first quarter, and the order intake is outperforming that the revenue for the quarter. I'm pleased with that.

Outlook for 2026 unchanged. Still believe that we will we will hit inside the range.

You can ask, 'Carsten, why are you not narrowing it down now?' There's a lot of dynamic in going on.

Things are moving quickly. There could be some large product orders coming that we can we can ship quickly.

They could also come a bit later. I just don't know now.

It's it's hard to predict. Our our best estimate is that we're hitting inside of this range with a good profitability.

You can take the first half as we're definitely on the right track here, unless we totally falter the in in the second half of the year, there's no reason to believe that we're not doing well in in this area here. The cash flow remains negative as as already projected.

We see strong opportunities, particularly within National and Defense Solutions. This is where we see the the big-ticket items.

You can you will see that the business is going to be a continuous business of Products. There will be some swings up and down, but that's a solid income and and contribution, a margin stream there.

Satellite Systems also have different deals. We announced some: 50 million for Unseen, 24 for Unseen.

We have Virtuallabs in Italy the previous quarter. We will have these 20 million, 30 million, maybe up to 80 million deals coming on a regular basis.

That's our bread and butter. Then we all want, I know you want, I want, we all want the same thing, the big-ticket items, and they they will very much be coming through the the National and Defense Solutions.

That's that is my expectation. Now let's take a look at market momentum.

I'm going to show you a slide you've seen before. I think repeat is good for clarity, and then I want to put some more market trends and comments on this.

Pay attention here. I'm trying I think I will answer a number of the questions I see in the chat forum also.

We are here. Satellites are are redefining what's happening in the world now.

Space is now frontline. Space is defense, defense is space.

That is that is undisputable. This is what's happening.

Governments are shifting to a large extent towards sovereign assets, enabling end-to-end solutions. Like I said, we're not selling satellites, we're selling solutions to to problems, challenges.

We also we'll also see that we should start eventually we'll see some contracts from all our efforts over the years that are multi-year in nature, it's not just in and out, and then and then we have to get more sales. We always have to get more sales, but longer contracts is good for us.

Now let's reflect a little bit on what we see here. Ukraine.

Pay attention. We have now have the satellite for the so-called UASAT, the operator potential satellite operator ambition in Ukraine.

We have the first satellite, which is intended as a IOD, in-orbit demonstrator, where we're going to look at frequencies, measure different things to prepare for a larger constellation. Now there's a long road to go.

As I've shared before, there is budgets in in EU and funding from Europe that are very positive to go to Ukraine for this. We are talking directly with the MOD and the the government in Ukraine around this.

It is a process of there needs to be funding, a service operator for running it, similar to Starlink, needs to be set up. It has to be in Ukraine.

When that structure is in place, that customer would be our customer, who will then order satellites from us. Here we are really truly showing you what solution selling mean and market making means, because in the end, we want to sell the satellites for you as well as investors.

We have to do a lot of work to lobby to make sure that the money is flowing in the right way. This is what we're doing.

The first technical step on that is to get that satellite up and flying. It is right now it's been potted, as it's called.

It's been through the vibration here and is on the way to the launch site, and will go up with the next Starlink or SpaceX launch in the beginning of October. This is progressing.

I know everybody wants to hear what are the numbers or when is it happening. We're working on it.

It's a complicated process, as you can imagine. Ask yourself the question: when is the war in Iran ending?

If you can answer that question, you can answer when this is happening also. When is the war in Ukraine ending?

If you can answer that question, you can see how fast this is going. It's not an impossibility, but it is a process.

We're taking the steps and the measures, and we are we are well-positioned here. Ukraine is more than that.

This is one opportunity that has gone somewhat public before. There are other opportunities that we're working with Ukrainian government.

Asia is another area, speaking into those four bullets that I'm be mentioning here. Yes, Indonesia is alive.

No, I will not answer when it's closing, but yes, Indonesia is alive. That's for just for you what does what does Carsten mean?

It's a project around illegal fishing in Indonesia. It's still there.

We have the commercial contract, it's still valid, there's no end date on it. The next step is still that the financing, direct government-to-government financing from Denmark is happening, but the Indonesians have to ask for that, and this is still a process.

Sorry guys, long process. I'm not going to give up, we'll keep at it, and eventually we will see results out of that.

Asia in general is is a key market, I've said that before, because there's not that much local industry. There's some industry in the different countries, but not really that not so much in Indonesia, not in the Philippines, not in Malaysia.

Singapore has something, but actually we we have we're the biggest provider of satellites to Singapore right now. There is a need out in in Asia, especially Southeast Asia, that is there.

You can say, 'Well, it's also big in Europe.' Yes, it is.

We'll talk a bit about that. In Italy, for example, Italians have a tendency to buy from it Italians, and France buying France, etc.

While there is bigger budgets there, there is also local industry that they're keeping alive. In Asia, not so much, not in Southeast Asia.

That's a key area for us, and so you'll also see some revenue streams from there. If you go north, South Korea is very aggressive, ambitious here.

We have a lot of product sales in South Korea, so that's good, and we see more programs coming from there. We have a good name in South Korea.

Lars and Morten, our founders, were there when they were students, they were teaching at the university. Everybody knows Lars and Morten and GomSpace in South Korea, so that's helping us.

Japan is opening up. Japan has been a fairly closed market, they're trying to do their own industry.

They've done okay, but actually they haven't done as well as they should. They don't have a sovereign network for communication, they're missing capabilities.

We see an opening there also that we're starting to to focus on, and we're going to put more boots on the ground in Asia, meaning we will we will hire people in the Asian market to be to be closer. Denmark, ongoing.

What to say? I think across Europe and in Denmark, I I see a couple of things.

The understanding of what's investing in space for defense is there. The political understanding is there, and I believe the political will is there.

The budgets have been put forward across Europe, also in Denmark. What's missing the the right now is the procurement processes have not really changed.

While political process and budgeting process has actually moved forward, there is a lot of of money flowing, there is a political will. I'm not blaming anybody, don't take it wrong, but there is a procurement process that hasn't really changed.

You can discuss why, who's responsible for that, but it doesn't really matter. The fact is that it's a it's a sort of avalanche, it's rolling.

First, the politicians understood this is needed. Government decision-makers, this is needed.

After some time, there was budgets. Now there's budgets.

Now the procurement processes need to happen. We're patiently working on here also in Denmark.

I'm mentioning Germany because we have been focusing on that for for some time now, trying to understand what's our place. There are some opportunities we see in Germany where we can we can play.

Remember, it's a €35 billion investment from the government into space for defense in Germany. I just heard that it's been expanded to €42 billion.

That's a lot of money. It's more than the German industry can can handle by themselves.

The interesting part for us is that we're saying, 'Okay, where where where do we play?' We start seeing some some openings.

Want to reference a large prime, let's just call it that, right, we met with. We're meeting with a lot of potential partners in in Germany.

They came to us and said, 'Let's talk more,' and said, 'Okay, let's talk more. Why do you want to talk to us?'

They say, 'You know what? When we analyze the whole German market for the for the type of satellites that you're representing and building, you're actually more mature than most of the rest of the German market.'

We you can imagine we were smiling and saying, 'Okay.' This is also playing a bit into the old Indra case.

I know you want some some news on that, they're still working on budgets, there's not a lot of of progress there. Remember back in the day some of you disputed with Indra, that didn't like what we were doing, big showdown, not nice.

In the end, they came back after a year, a year and a half and paid us 20 million SEK and said, 'Actually, we've been around the world. You guys are actually pretty good, and we're sorry, and now we want to work more,' which resulted in we've launched a satellite with them.

This is an example also. We were happy to hear that, and encouraging us to go even more towards Germany.

You can ask me, when are you closing deals? I don't know, but what I do know is that the pipeline is growing, and opportunities also there in in Germany.

Next one is deep space. I talked about the ESA Ramses asteroid mission.

Remember Blue Origin is here also, not to forget all the good things that we've been doing. We announced the first phase with Blue Origin earlier in the year, and and obviously we're expecting that there will be a second phase as well for a lunar mission.

This is run out of Luxembourg. It's also funded from the Luxembourg government, actually.

This is this is pretty cool. By the way, pop quiz: why is it that Luxembourg is investing in lunar missions?

Weird. That lunar mission is about mapping out the the minerals on the moon for potential future mining.

What is Luxembourg? If you go back in history, some of you are strong on that, pick it up on the chat forum, Luxembourg is actually the the mining heart of Europe.

They have a vision to say, 'We used to be great. Our biggest income is from mining in the past.

Let's make it so in the future.' That's why they're investing.

It's a bit curious, why why is Luxembourg, but they do. They're very serious about it.

There you go, there is more opportunity here. Products, I've also said that we will see there would be more product revenue coming, because when the whole market is growing, and since we're catering to the whole market, also our competitors, sheerly by growth and keeping our market share and our brand out there, we should see revenue a growing revenue stream here.

The large kit order we got as the largest we've had so far is a is a confirmation of that. If you can imagine, I said that 34 million out of current revenue of 50 million in in a half year, this is a pretty big deal, and and they come with with good contribution.

We need more of those. It would be a bit more lumpy, that would come some in one quarter and then nothing, and then there will come two in the next quarter.

It'll be a bit more lumpy, but nevertheless, once they're coming, they are very good for us. Then volume, scalability will become a competitive advantage.

We have to be able to scale our production. We can do a lot, and we will and we can still do.

We have a lot of capacity here. We just built our vibration table for larger satellites.

Going into larger satellites, if we really pick up on larger deals, we need to have a more scalable supply chain, we need to understand, we have to invest more in also managing the supply chain, inventory. We will have to expand eventually our production capability.

It goes without saying. Therefore, what's a negative cash flow, Carsten?

It is related amongst others to this also, the investment, and now now you have proof. It's here, I'm not lying.

[laughter] Actually put some millions into into this one. We need to be able to scale.

Not not it's not just about a physical production capacity, it's also how do we handle our supply chain, how do we make sure that long-lead items and critical components, that we can get them also in volume when when those deals comes in. Last one: roll-up and consolidation, what will happen?

We don't we have a plan to be the ones that are rolling up and consolidating others, and I don't see any any reason that we need to be consolidated at at this stage. I think we have much much good many good times, much more good time in front of us than than looking for that right now.

I hope you pay attention. I'm trying to answer a lot of your questions and give you an idea of where where where will the revenue come from going into the second half year and also into the coming years.

Summarizing it so we can get to to questions, we keep our forecast and our guidance for the year. We have a 30% growth year-on-year in the first half year.

EBITDA is a nice 11% with a net profit of 28 million. Remember, remember the market is growing with 15%, 14%, and anything above that is is better than the market.

Right now we are double, quite quite okay with that. Cash flow negative as anticipated.

We have money in the bank at the end of the of the quarter. Order backlog improved from from quarter-to-quarter here, from Q1 to Q2, and we have the higher obviously because we had a higher order intake than we have revenue.

Balance sheet improved. Again, thank you to to Peter Hargreaves for supporting, not just GomSpace, all of you, investors.

This is a good thing for you. Now we have a a solid 41% equity ratio.

Michael, over to you.

You have already done my job much easier, Carsten. [laughter] I think you took a lot in advance.

There's a question about this Stedman. You talked there was which milestones, technical, contractual, and financial.

Financial, that's the funding from EU and so on, if I should understand that correct. Technical, that is you shipping it up and showing it that it will work before that.

Then maybe contractual, this joint venture, this you might see you are selling a service provider. Can you elaborate a little bit on is it that joint venture who will be a service provider or maybe a little bit more understanding there?

Let me clarify. No, the joint venture is not the service provider.

Service provider would be something like Starlink. Those of you who are familiar with Ukraine, it's a company called Kyivstar, which you can compare it to Telenor here in Denmark as an operator.

That would be the operator. That needs to be set up, and this is where the money is going to flow in.

Money flows into the operator. Operator needs something to operate, they need satellites.

They will go out and buy satellites from GomSpace together with Stedman or and potentially others in this joint venture. The reason we have a joint venture is that it needs to be anchored in Ukraine, and while we do the first satellites in very likely out of our production here in Aalborg, over time it is supposed to be a Ukrainian sovereign asset, we also want to move the production to Ukraine using our technology.

The vision is also this is needed now where Ukraine is in peril and in a very difficult situation, but it is also a vision to be a future operator. There's going to be future business for Ukraine.

We're part of setting this up. It's a fantastic job to do, it's hard.

It's hard, but the demand is there, and the willingness from EU is there. Again, we're talking big bucks, it's not solved in one day.

We're on the track now to get some technology flying for this.

The contractual part is actually maybe more surrounding the service provider right now, if I should understand.

First, that a service provider needs to come up and running, and it will take some time. Once they're up and running, then they can start placing orders for satellites.

What you're telling me and you, and maybe not the investors, they follow you very, very closely, is that could actually be a European-run [laughter]

Starlink.

Yeah. Ukrainian-run Starlink.

Ukrainian-run, but it could actually be selling to all of Europe, if we feel that they are our backbone of defense in Europe, yeah. Absolutely.

Absolutely. The Danish government could buy services as well.

It's just a question of the number of satellites that you send up. The initial focus is to cover Ukraine with a certain amount of satellites that I'm not commenting on, but a certain amount of satellites.

Go Google how many satellites are needed to run a network over a country, people can use ChatGPT, and then if you want to have a global coverage, you need more, obviously. That's step two.

Okay.

Then of course, I think you already answered this on the Indra and Startical, as we say, they are starting to be a more vertical integrated company. The question here is, could you still be a platform subsystem supplier when Indra scales in the future?

The direct question is, is that still a possibility even if they are growing more vertical integrated?

Let's divide it up. Indra is definitely a potential customer for us into the future as well, delivering technology or full platforms, whatever, depends the question is a bit which direction they go.

Just to be clear that the customer we have is called Startical, and yeah, Startical. They are a joint venture between Indra and, I believe it's the Spanish airport authorities.

That's a joint venture, and this venture needs money in order to progress what we've been doing. Indra is behind it, and the question is will they take over?

Are they going to take say, 'Okay, we're going to do this. We're going to fund it.'

Somebody has to fund it, right? Somebody needs to commit to build this network.

We're still there, we're in a dialogue. Our satellite is flying, it's working, it's being tested, and we are in regular conversation.

Again, as many of these larger programs, it's about budget. Either you're a commercial startup operator like our good customer, hope customer for many years that hasn't yet paid, they're working to get capital for commercial startup.

When it's government business and air traffic control, it's very likely going to be funded from a government. That takes time.

Look at Denmark, how long time it takes. These are the processes we're in, but our job and what we're doing right now is we're preparing for all of that.

We're making sure we have technology, the competences. We're also talking to everybody, and we're also starting to build this trusted relationship where we are actually helping shape what should Ukraine buy, and they're starting to ask us, as an example.

Perfect. Then of course a lot of questions surrounding this receivable and so on, and the collateral you took in here.

I think actually I'm not really sure how much more you can ask. There's a maybe a little bit on the valuation part.

Is that because you kind of know they're in a funding process, you kind of know some valuation? When you say you have these amount of shares, the value here, and then the question of course also rounding how will you get it?

If I understand you correct, you had a put option that actually would let the company, if they get funded, buy back the shares. A little bit on the number you put up here, is that because there are some indications when they're fundraising right now so there will always be some numbers swimming around on the valuation?

Let me answer that with a disclaimer. I cannot give any guarantee that these shares have any value in the future, but it is an upside.

I want to separate it from it's not a security for that what they haven't paid. We actually hold the assets, the actual satellites that they haven't paid for.

We control those, and that's actually our collateral. That's why we're not taking a write-off, but we keep it alive.

Those shares is basically a bonus. They haven't paid in time by August 1, big bonus for everybody, including you investors.

We don't know what it will be. You're right, in terms of that it's described on page 33, you can read more about it there, there is a share price of $949 per share.

This is how they have been raising capital. It's not like they have received nothing, but they haven't received enough.

We have a documentation, this is a current share price and valuation, of course that's what we're looking at. If you look specifically for the first half year, we have recognized a few shares, page 33, you can read it, and we put them in at value at 949.

Disclaimer: I cannot guarantee you that it will be that in the future. It could be nothing if they are not successful, they have a different story.

It could be a lot more if they're very successful. I just don't know.

Look at it as a nice upside. A

nice upside. You have the collateral in the satellites and maybe other, that's also why we are seeing your inventory go a little bit up.

Perfect. I think that's kind of you alluded to this.

They asked you to name the company and so on so people can feel comfortable, more comfortable. I'm not sure you're want to

No, I really want to also say I speak with them every day, including some of their large investors. We're very close to them, we understand what they're doing.

I know where they are today, I know where the CEO is, I know who's talking to. We're very close to them.

We have no interest in sharing that because it's going to go public, and that might jeopardize their capital raise for whatever reason. I have no interest, it's not in your interest either to know.

Just

take it as an upside and then let them be successful, and they will be successful.

Yeah. Then there's a question: when do you see the best development for one of the four business units for the next year looking into it?

Not that we are asking you to guide in each area, but where do you see the best opportunities? Are this National and Defense?

National and Defense, yeah. Let me let me say not the best, let's say let me let's say the biggest, the big-ticket items is National and Defense Solutions.

There are lots of good opportunities also for Satellite Systems, for for Advanced Missions. We talked a bit about Blue Origin, it's going to be a continuation of that contract.

It's no secret, it's out in the press release, that's what we're expecting. We also see Product pipeline keeps evolving and growing, but like I say, every time we close something we ship in a quarter or faster, and then then we're we're adding again.

We see good opportunities many places. The big-ticket items are in National and Defense Solutions.

I think the way to look at it is that what you see now is bread and butter. I'm very happy with the first quarter, because at the first half, because we're really delivering on target.

All of that is coming from these, let's say, small to mid-sized and slightly sniffing at the larger deals, but we we can keep a growth on that. Of course, we are waiting patiently, I know you're impatient, am I, but we are waiting patiently for the big-ticket deal that's going to give us a jump and change the dynamics.

They they take time.

Actually maybe we should stop asking these questions because if I should understand, you're building the company, you have something as a base, if you need to scale up your production you need some kind of a base case going, a base tune, I would say, through the Products and the Satellite Systems. Then being prepared for potential big-ticket items that can come in in some of the others.

I guess is that how you kind of think of your setting up the company right now?

Yes, absolutely. That's also why I showed this interesting right, that the external backlog for our Products was, I believe, 49 million, 47 million.

Then, but if you look at it internally, the demand through from the other business units is actually quite high. That's showing how we need to manage the supply chain.

Some items are, expensive or longer lead times, etc. It's becoming really a supply chain game very much so.

We have to look at our pipeline and understand that National and Defense Solutions will bring the big contracts, but it has a consequence for everybody in the company, it's not just isolated there.

No, no, no. Then actually under Defense Solutions, and I don't want you to go into that, you indicated good margins, better maybe than Satellite System.

Why not better than Products also? At some point in time you will, and we need to model it, I guess solutions, if it's total solution, must always carry a better margins than [laughter] I don't know whether you want to go so far and indicate to us.

I know as long as you don't have any in the books, maybe you don't want to front-run that. Us thinking about it, solutions must carry higher margins, or is that a

They are. No no, no no, and that's why what I've been saying also.

I wouldn't compare it to Products because Products is very transactional, like I said. You have a it's simply a different dynamic.

You also have bigger overhead, our largest R&D is in the Product side. Products have a production capacity that you need to run, supply chain, it's a little bit of a different dynamic.

When you are in solution business and National and Defense Solutions, you have to think about it as solving a problem. It becomes more value-based.

In Indonesia, what is the value of a satellite network that could save $1 billion per year in lost GDP on the fishing industry in Indonesia, right? It's a different animal simply.

When you can bring value, then you price the value. When you do Satellite Systems, it is often much more comparable to either it's a tender process, there are five other bidders that are bidding something, and then you have to have the best price.

It's becoming a little bit harder to make the high margins, but here it's a capability we need to have, because National and Defense Solutions are also going to bring volume, plus a lot more, but that volume will ripple down in the system, and we have to be able to do that in Satellite Systems. It's a different dynamic.

We are competing on we have clever engineers at the customers buying satellites, okay, they will always be scrutinized. You can get to a certain level and then it's very transparent what it's costing and comparing.

When you do solutions, where you're selling value, it's very different business.

Then there's a question: timeline for the order in Indonesia? I think you answered that [laughter] very clearly.

I don't know. It's still alive, guys.

It's still alive. It's not dead.

Timeline, well, I still, as I joke, so far Indonesia is working faster than Denmark, let's just say like that.

Yeah. Perfect.

Then there's a little bit about the margins and the sustainability in what you're showing right now. Is there something special in this quarter if we look on the margin side in any of the areas or in your total margins?

Is there anything special, or should we kind of in the half-year reports start to see a picture about the margin and the gross margin in the different areas and in your type of the business?

That obviously, as I explained, there's a difference between the different business units, what the margins are. There will be some fluctuations quarter-by-quarter.

If you have a very strong revenue quarter for Products, that contributes a lot more. If it's Satellite Systems, then the percentage margin will be lower.

I think it will vary a bit, but that's also why

There's a question here on the Advanced Mission, who delivered. Is that a product mix, is that

No, Yeah, that is a result of a number of things that has happened in that business unit in terms of executing products or contracts. I wouldn't take that as an indicator that you can calculate the margin on that.

It's just a happenstance here. It's probably going to be less in the next quarter, but then you'll see Products perhaps doing more.

Overall, I'm really focused on the average percentage of everything. We're now hitting this 10%, 11%, and over time obviously ambition is to go higher.

Hey, 11% is pretty good in this market.

I think you covered most of the questions, you've done a lot of my job. There is a final one, and let's start by this, share price swing up and down.

There's a question here: why don't you go out and speak and tell the market that it's going as you expect and plans? I don't know how to ask it because that's what you're doing here today by confirming your guidance.

I know there's a range, every company has a range. You told us about the market and the developments in the plans.

I guess I would actually not feel comfortable owning a share with a CEO commenting the share price, I understand the feeling when you get hit by the share, but yeah, any comments to this request, Carsten?

Like you say, the golden rule number one for CEOs: you don't comment on share price, unless you're Elon Musk, who is above God and he does it, but I don't. [laughter] So it's not my job.

My job is to create that transparency. If some people feel we're not communicating enough, don't expect me to comment on a share price.

I really try to share as much as possible. We had a Q&A just before the summer.

I think we're sharing quite a lot in these sessions. We're trying to talk about what's happening.

I would say, and maybe in the chat forum you can help each other, do the market analysis. Take a look at how has the market gone up and down for space.

There are a lot of this is related very likely to general fluctuations in the space investment. Do that analysis yourself, don't ask me.

I will keep of course reporting to you how we're doing. The quarterly result here is good.

I'm talking to you about National and Defense Solutions and building a pipeline. I know it would be lovely, wouldn't it, to know the exact timing on everything.

I'd like to know that, my job would be a lot easier, but it's not how it works. I'm telling you that we are seeing good pipeline growth.

We're delivering. We have a totally on track with our plan that we set out 3 years ago, turn around the company.

We did cash flow positive in 2024. Now we're not because we're investing more on purpose, and obviously customers owing us a bit more money than we had planned.

We are managing that. We have a positive EBITDA, we are performing above the industry standard.

They're growing 15%, we're growing 30%, and we're delivering that positive profit. Not even EBITDA, my ambition was just a positive EBITDA.

We have a positive EBIT and even a net profit. As far as I'm concerned, we are really on a good track, and there's a positive outlook that I have given to you.

I think that's a very good place to stop here, Carsten. Thank you for taking us through your results and answering questions and taking us through a lot of the smaller steps and the different market.

I think that helps kind of to understand it, and I think everybody understands that some of the larger contract that can have a longer timeline, it can have a shorter timeline. Nobody really knows.

Thank you, Carsten, and thank you to the audience for listening in and getting a very lively debate through the questions. May everybody have a nice day.

Reminder, keep writing on the chat forum, I see it, I'm taking notice and I'm learning, and check in on our social media. Please hook up so that you get a lot more information.

I know there was a question on LinkedIn hires also. We are hiring because we're growing, we need more people to do different things, and we're investing more, so that is why.

Sorry, I actually [unclear].

Anyway, thank you.

Then actually you did my job one more time, Carsten. Thank you for that.

[laughter] Have a nice day.