Kleos Space S A : Annual Report to shareholders

PACE

WERE SIGNAL OSPAT LIGEN

Annual Report

2021

REPORTING PERIOD:

For the year ended 31 December 2021

Annual Report

2021

COLLECT

Constellation of satellites collecting RF signals over critical areas of interest.

LOCATE

Signals are processed, precisely

geolocating RF transmitters.

INFORM

Delivering actionable, analytic-ready data to detect hidden human activity.

CONTENTS

CORPORATE DIRECTORY 8

CHAIRMAN'S STATEMENT 11

ADDITIONAL ASX INFORMATION 15

CORPORATE GOVERNANCE STATEMENT 20

SIGNIFICANT ACTIVITIES

Commercial 22

Technical Development 23

Partnerships 26

Financials & Corporate 26

Leadership Changes 28

DIRECTOR'S REPORT 31

RESPONSIBILITY STATEMENT 39

STATEMENTS 31 December 2021

Profit or Loss & Other Comprehensive Income 40

Financial Position 41

Changes in Equity 42

Cash Flows 44

NOTES TO THE FINANCIAL STATEMENTS

Note 1 46

Note 2 47

Note 3 64

Note 4 67

Note 5 67

Note 6 68

Note 7 68

Note 8 69

NOTES TO THE FINANCIAL STATEMENTS Continued

Note 9 70

Note 10 70

Note 11 71

Note 12 71

Note 13 72

Note 14 73

Note 15 74

Note 16 76

Note 17 77

Note 18 78

Note 19 78

Note 20 79

Note 21 80

Note 22 81

Note 23 82

Note 24 84

Note 25 86

Note 26 86

Note 27 90

Note 28 92

Note 29 93

Note 30 93

Note 31 94

Note 32 95

Note 33 97

Note 34 99

INDEPENDENT AUDITOR'S REPORT 101

CORPORATE DIRECTORY

DIRECTORSCOMPANY SECRETARYAUSTRALIAN POSTAL ADDRESSAUSTRALIAN REGISTERED OFFICEPRINCIPLE PLACE OF BUSINESS

Peter Round (Chairman and Executive Chairman)

Andrew Bowyer (Chief Executive and Managing Director)

David Christie (Non-Executive Director)

Padraig McCarthy (Non-Executive Director)

Vanessa ChidrawiBoardroom Pty Ltd

Level 12, 225 George Street Sydney

NSW 2000 AustraliaBoardroom Pty Ltd

Level 12, 225 George Street Sydney

NSW 2000 AustraliaLuxite Two

7, Rue de l'Innovation L-1896 Kockelscheuer Luxembourg

WEBSITEBUSINESS OBJECTIVESCORPORATE GOVERNANCE STATEMENT

www.kleos.space

The company has used cash and cash equivalents held at the time of listing ini a way that is consistent with its stated business objectives.

The directors and management are committed to conducting the business of Kleos Space S.A. in an ethical manner and in accordance with the highest standards of corporate governance. Kleos Space S.A. has adopted and has substantially complied with the ASX Corporate Governance Principles and Recommendations (Fourth Edition) ('Recommendations') to the extent appropriate to the size and nature of the Group's operations.

The Corporate Governance Statement, which sets out the corporate governance practices that were in operation during the financial year and identifies and explains recommendations that have not been followed, was approved at the same time as this report and can be found at:https://kleos.space/investors/.

SHARE REGISTER

Link Market Services Limited Level 12, 680 George Street Sydney, NSW 2000 Australia

AUDITORSTOCK EXCHANGE LISTING

Ernst & Young S.A.

35E avenue John F. Kennedy L-1855 Luxembourg Luxembourg

Kleos Space S.A. CDIs are listed on the Australian Securities Exchange (ASX code: KSS) and on the Frankfurt Stock Exchange (FRA code: KS1)