Front Ventures (FRNT) Investor Update summary

Strategic investment and partnership

• Invested approximately 5.1 MSEK in Ukrainian drone motor manufacturer Aeromotors to support expansion and production capacity growth.

• Aeromotors specializes in advanced drone motors for both small quadcopters and larger fixed-wing surveillance drones, offering both standard and customized solutions.

• Aeromotors maintains full in-house production, ensuring quality, rapid development, and supply chain control.

• The investment aims to triple Aeromotors' production capacity and support establishment of new production units and manufacturing agreements within the EU.

• The partnership strengthens access to European-made drone motors and supports European independence in critical defense technology.

Market context and growth potential

• Aeromotors has established customers in Ukraine and two NATO countries and is targeting further European market expansion.

• Global drone motor production is currently dominated by China, accounting for about 98% of output, highlighting the strategic importance of European alternatives.

• The investment is enabled by recent successful capital raising, allowing for accelerated strategic investments in the defense sector.

Regulatory and corporate information

• The information is classified as insider information under EU Market Abuse Regulation 596/2014 and was publicly disclosed on December 16, 2025.

• Front Ventures is a Swedish investment company focused on scaling innovative businesses in defense and fintech, listed on NGM Nordic SME.