Cobham Aerospace Aps

Management's review

Development in activities and financial mattersThe Company operates the aerospace activities contributed by Thrane & Thrane A/S on 30 November 2020 in the continuity of previous years.The year was marked by the pursuit of the development and certification of the Aviator-S system with Airbus, Boeing and Comac (thru Collins) and their respective platforms and the support of the legacy products. Most of the engineering resources were dedicated to the Aviator-S development and certification and the support of legacy technology, whereas revenues continued to be driven by legacy products.Legacy volumes were higher than expected with an extended life on some of the major contracts and solid opportunities with military applications. Aviator-S Inmarsat final certifications were completed in 2023 except for A350 and Boeing 777X expected to be completed in 2024. These certifications cover all the platforms of the 3 main Airframer and first orders have already been placed.If ramp up has been delayed and slower than expected initially, the acceleration of prospects in the recent months due to the upcoming certification process completion are in line with the business plan with several major awards and a strong appetite from the market.The company is pursuing actively the development of solutions for other constellations and involved in several commercial prospects for commercial and defence applications. Development activities on Next Generation Satcom aerospace technology for Yahsat and Iridium constellations have accelerated with promising opportunities.The conditions that are necessary for an assessment of the company's activities and liabilities, the financial position and the result of the year's operations, appear from the balance sheet and income statement as well as from the notes, please refer to this.2023 is the second year for the company as an autonomous R&D center with 2022 marked as the first year of the company transformation into a full and autonomous R&D center with the implementation of a transfer price policy providing recurrent and predictable revenue allowing to secure break-even in the short term and a net profitable situation on the long run. With revenue flows from its R&D activities to the benefit of other entities and the revenues of royalties.The result is as expected.LiquidityFunding of the Company was fully restructured with the implementation of an intercompany loan from its direct parent company to fund working capital requirements.Further, Cobham Aerospace SAS has declared to support Cobham Aerospace ApS, if necessary, to provide additional liquidity in order for the Company to meet its financial obligations and thereby ensuring Cobham Aerospace ApS’ continued operations until June 2025.