Astroscale Holdings (186A) investor relations material

Business evolution and strategy

• Transitioned from securing study projects in the 2010s to operational missions in the early 2020s, now focusing on repeatable bookings for scalable growth and profitability in the late 2020s and beyond.

• Achieved global recognition for on-orbit servicing (OOS) and non-cooperative RPO technology demonstrations, driving backlog and revenue growth.

• Emphasizes repeatable defense and commercial projects, strict cost control, and expects subsidy projects to turn profitable from FY2028 onward.

• No further pre-contract development costs anticipated, with SG&A expenses targeted to remain in the low ¥9.0 billion range.

Defense business developments

• Rising space threats, especially from Russian satellites, have increased demand for space surveillance and protection using RPO technologies.

• Demonstrated technologies like ADRAS-J have received defense awards and are integrated into national defense strategies in Japan and the US.

• Secured contracts for versatile grapple mechanisms and responsive space system demonstration satellites, targeting repeatable bookings in the next defense buildup period.

• Defense pipeline expanded globally, with multiple awarded and potential projects in Japan, US, UK, and other regions.

Commercial business and market opportunity

• GEO satellite operators face high replacement costs and complex fleet management, with life extension services offering significant cost savings and operational flexibility.

• Approximately 20-30 GEO satellites per year are eligible for life extension services, representing a large, stable market.

• LEXI-P can dock with over 80% of GEO satellites, enabling multi-customer service and attractive annual fees ($10–15 million per satellite).

• Contract execution for LEXI-P is delayed due to customer satellite health assessments, but key terms are agreed and revenue recognition is unaffected.

• Technology development for LEXI-P is on schedule, with successful ground testing and no material issues identified.