Danish Aerospace Company A/S issues Annual Report for 2022

COMPANY ANNOUNCEMENT

Odense, March 23^rd, 2023

Company Announcement no. 41 - 23.03.2023

This announcement contains insider information.        

Danish Aerospace Company A/S issues Annual Report for 2022

The Board of Directors of Danish Aerospace Company A/S (DAC) have today approved the audited annual report for 2022.

Key points from the 2022 Annual Report

• Revenue has risen by 14% to DKK 23.3 million. (DKK 20.4 million in 2021)
• EBITDA increased by 50% to DKK 3.36 million. (DKK 2.24 million in 2021)
• Profit for the year grew to DKK 1.87 million (DKK 175 thousand in 2021)
• DAC won a large contract with Axiom Space, Inc. which has the first private commercial contract with NASA to operate on the International Space Station (ISS). DAC has hereby taken the lead in providing exercise equipment for commercially selected astronauts and is very well positioned for growth in the commercial human spaceflight market.
• ESA extended DAC’s contract in support of health monitoring on ISS and executed options in the contract for the coming years.
• DAC has been allotted a significant part of the available test time for Andreas Mogensen’s next flight to ISS in 2023. In this connection DAC received approval to conduct three technological experiments, which will strengthen developments in our product portfolio going forward.
• ESA initiated a new contract with DAC and Aquaporin Space Alliance ApS for further development of Aquaporin Inside water recovery technology for use in space.
• DAC was selected to be a subcontractor to a project under the European Defense Fund -ABITS (Advanced Biometrics In Training and Simulation) -- to develop an in-door tactical training technology that integrates medical sensor feedback in the simulation environment.
• DAC will receive the GAINTEX (Garments for Advanced INsight with TEXtiles) contract with ESA that is being transferred from the now bankrupt company Ohmatex. DAC will be the new prime contractor and pursue the project to completion.
• The expectations for 2023 is a revenue of DKK 24-26 million; and an operating profit (EBITDA) of approx. DKK 3-4 million.

Management review

DAC realized earnings from operations before depreciation and amortization (EBITDA) of DKK 3.36 million. The DAC earnings before tax were DKK 2.59 million. The Company’s equity amounts to DKK 21.3 million as of December 31^st, 2022.

In 2022, DAC entered the private commercial space market by signing a contract for exercise equipment with Axiom Space Inc. in January. The contract with Axiom was the result of several years of focused activities. This area has considerable further potential since four other private American consortia also plan to develop private commercial space stations. Accordingly, DAC is realizing one of its ambitious goals, which was set in connection with the IPO in 2019.

DAC has in 2022 completed the FERGO contract with the delivery of three completed FERGO flight ergometers and a training model for NASA. In 2023, NASA expects to launch two of the new FERGO ergometers to the International Space Station (ISS). Thus, four of DAC’s ergometers will be on board ISS (two of DAC’s original CEVIS ergometers will remain on board as back-up).

Development and manufacturing work on the multifunctional E4D exercise equipment for ESA and comparable exercise equipment for Axiom Space Inc., along with other contract activities is continuing as planned.

DAC has, on several occasions, received extensions and prolongations of this ESA contract for support of medical equipment and health monitoring of astronauts on the International Space Station, a contract that DAC has held since July 2006. The DAC team supports regular health monitoring and exercise tests on the International Space Station from the company’s control room in Odense, Denmark.

In pursuit of the second ‘pillar’ of DAC’s strategy outlined in its 2019 IPO – development of wearable technology for extreme environments on Earth – DAC is supporting the European Defense Fund’s ABITS (Advanced Biometrics In Training and Simulation) project. DAC’s role involves providing a medical sensor feedback capability to the new technology. Meanwhile DAC is continuing internal development work on a variety of new wearable sensors for health monitoring of astronauts and others in extreme environments.

Shortly before the end of the year, the company, in collaboration with its joint venture partner Aquaporin Space Alliance ApS, received a contract for further development of Aquaporin Inside Water Recovery technology for use in space.

In connection with Danish ESA Astronaut Andreas Mogensen’s upcoming six-month mission (named Huginn) to the International Space Station, the Danish Ministry of Higher Education and Science has approved three technological DAC experiments for implementation in 2023: (1) testing of the company’s wearable technology in space, (2) using virtual reality with DAC’s on-orbit exercise equipment and (3) testing of water recovery technologies for the Aquaporin Space Alliance. These experiment demonstrations will support the company’s efforts to mature new technologies for the growing commercial human space industry, as well as in development of technologies for extreme environments on Earth.

DAC passed this year’s annual supervisory audit, which is a check of the company’s AS/EN9100 standard rev. D quality control authorization by Bureau Veritas. DAC therefore continues to be one of few space companies in Denmark with this certification.

Expectations for the 2023 fiscal year.

Danish Aerospace Company continues to aggressively pursue its objectives in developing and providing innovative exercise and medical monitoring equipment for government and commercial human spaceflight activities and for terrestrial applications in extreme environments.

In the fiscal year 2023 Danish Aerospace Company’s expectations are:

• Revenue of DKK 24-26 million; and
• Operating profit (EBITDA) of approx. DKK 3-4 million.

General Assembly 2023  
DAC’s General Assembly will take place on April 24^th, 2023. DAC will publish its interim report for 2023 on August 28^th, 2023.

Attached to this document:
Appendix 1 – Key Figures
Appendix 2 – Changes in Equity 2022
Appendix 3 – Cash Flow 2022

The final annual report for 2022 will be available on the company’s website by March 27^th, 2023, via the link below:

Annual Reports - Danish Aerospace Company

For further information, please contact:

Danish Aerospace Company A/S:

Chairman of the Board of Directors Niels Heering
Mobil: +45 40 17 75 31

CEO Thomas A.E. Andersen
Mobil: +45 40 29 41 62

Certified Adviser:

Baker Tilly Corporate Finance P/S
(CVR-nr. 40073310)
Poul Bundgaards Vej 1, 1.,
DK-2500 Valby
Tel.: +45 33 45 10 00
www.bakertilly.dk

About Danish Aerospace Company A/S:

Danish Aerospace Company is a high-tech company operating in the area of advanced medical instrumentation and other engineering fields primarily within space applications. Our products are based on many years of specialized research and development. These consist of developing, integrating, and applying new as well as established medical technologies to the challenges of functioning and remaining reliable in space. These products and services bring the potential of space research and experience from space operations down to Earth for the benefit of all Mankind.

Danish Aerospace Company employs engineers and technicians who deliver full engineering, production and technical services for our customers. We have specialized in customer specific design, development, manufacturing, certification, maintenance, testing, and operations.

The company has developed five generations respiratory equipment for spaceflight, bicycle ergometers for astronauts, countermeasures, adapted several commercial medical equipment for spaceflight and has participated in the development of the minus eighty-degree Celsius freezers.

The Company’s quality system is certified in obligation to BS EN ISO 9001:2015, BS EN 9100:2018 technical equivalent to AS9100D that is the acknowledged standard in the area.

Note: This is a translation of the corresponding Company Announcement in Danish. In case of discrepancies between the Danish wording and the English translation, the Danish wording prevails.

Appendix 1 – Key figures

		2022                           2021			2020
Key figures (DKK’000)
Revenue		23,234	20,354		22,072
Gross profit/loss		18,098	15,638		16,891
Other Operating Income		677	0		0
EBITDA		3,358	2,236		3,019
Operating profit/loss		2,590	1,101		1,538
Net financials		656	(116)		(374)
Profit/loss for the year		1,865	175		233
Total assets		36,005	28,170		31,487
Equity		21,306	19,727		19,869
Ratios
Gross margin (%)		77.89	76.83		76.53
EBITDA margin (%)		14.45	10.99		13.68
Equity ratio (%) Share performance Earnings per share (DKK) P/E ratio P/B ratio Total number of shares No. of shares (on average) Closing share price (DKK)		59.18 0.17 24.10 2.11 10,908,330 10,908,330 4.12	70.03 0.02 304.95 2.71 10,908,330 10,908,330 4.90		63.10 0.02 285.17 3.37 10,908,330 10,908,330 6.10

Appendix 2 – Changes in Equity 2022

		Reserve for
	Contributed	development	Retained
	capital	expenditure	earnings	Total
	DKK	DKK	DKK	DKK
Equity beginning of year	1,090,833	824,735	17,810,947	19,726,515
Exchange rate adjustments	0	0	(284,947)	(284,947)
Transfer to reserves	0	228,121	(228,121)	0
Profit/loss for the year	0	0	1,864,658	1,864,658
Equity end of year	1,090,833	1,052,856	19,162,537	21,306,226

Appendix 3 – Cash flow 2022

Operating profit/loss		2,589,875	1,101,247
Amortisation, depreciation and impairment losses Working capital changes Cash flows from ordinary operating activities	13	767,855 (10,416,241) (7,058,511)	1,134,370 4,938,509 7,174,126
Financial income received Financial expenses paid Taxes refunded/(paid) Cash flows from operating activities		702,589 (46,428) 31,807 (6,370,543)	243,986 (359,901) 554,026 7,612,237
Acquisition etc. of intangible assets Acquisition etc. of property, plant and equipment Cash flows from investing activities		(856,520) (255,564) (1,112,084)	(329,911) (270,650) (600,561)
Free cash flows generated from operations and investments before financing		(7,482,627)	7,011,676
Loans raised		4,906,187	0
Repayments of loans etc. Cash flows from financing activities		0 4,906,187	(4,486,867) (4,486,867)
Increase/decrease in cash and cash equivalents		(2,576,440)	2,524,809
Cash and cash equivalents beginning of year Cash and cash equivalents end of year		2,682,873 106,433	158,064 2,682,873
Cash and cash equivalents at year-end are composed of: Cash Cash and cash equivalents end of year		106,433 106,433	2,682,873 2,682,873