QPS Holdings (464A) investor relations material

Capital raise background and objectives

• Rapidly increasing capital needs driven by plans to build a 24-satellite SAR constellation by May 2028, expanding to 36 satellites by 2030 for near real-time Earth observation at 10-minute intervals.

• Significant ongoing investment required, with each satellite costing ¥1.5–2 billion for manufacturing and launch.

• Growing demand from both government and private sectors, necessitating a stable annual production of 6–10 satellites.

• Strengthened financial base through diverse funding, including loans and new share issuance, to accelerate proactive investments and avoid project delays.

• Strategic partnerships with major corporations to secure funding and enhance business collaboration for long-term value creation.

Capital raise details and shareholder impact

• Third-party allotment of 7.3 million new shares at ¥2,088 per share, raising approximately ¥15.2 billion.

• Main investors: SKY Perfect JSAT (4.5 million shares), Mitsui Sumitomo Insurance, and Mitsuuroko Group Holdings (1.4 million shares each).

• SKY Perfect JSAT becomes the largest shareholder with a 13.21% stake; CEO's stake drops to 7.18%.

• Mitsui Sumitomo Insurance and Mitsuuroko Group become new shareholders; existing shareholders' stakes diluted.

• No change in controlling shareholder; share dilution remains below 25%.

Strategic partnerships and market expansion

• Partnerships with SKY Perfect JSAT, Mitsui Sumitomo Insurance, and Mitsuuroko Group aim to accelerate demand creation in overseas and private markets.

• Collaboration expands satellite operations, data processing, and sales, leveraging partners' networks for new use cases.

• High complementarity in insurance, communications, and infrastructure management, enabling broader adoption of SAR data.

• Partnerships lower adoption barriers and enhance service integration into client workflows.