Droneshield Limited · ASX:DRO

Droneshield — FY2020 Earnings Presentation

37 slides from Droneshield's earnings presentation, Feb 25, 2021

  1. Slide 1: Full Year 2020 Results

    Full Year 2020 Results February 2021 www.droneshield.com

  2. Slide 2: Foundation completed for rapid growth

    Foundation completed for rapid growth Leader in counter-drone products and technology with approx. A$35 million spent on R&D, marketing ü and global sales channels establishment over the last 5 years The counter-drone market is growing rapidly with a forecast total addressable market of c.A$5.9 bill

  3. Slide 3: Who is DroneShield?

    Who is DroneShield? Overview Counter-drone product suite • DroneShield (ASX: DRO) develops pre-eminent Dismounted & Body-Worn counter-drone technology and products with wide application across defence and civil roles • Specialises in detection and safe defeat which minimises / prevents collateral da

  4. Slide 4: Malicious use of drones continues to be a global concern

    Malicious use of drones continues to be a global concern Recent cases around the world highlight the extent of the problem United Arab Emirates United Kingdom United States Iran Australia Canada Source: News articles. 4 www.droneshield.com

  5. Slide 5: High profile incidents have caused major disruptions for infrastructure facilities and Governments

    High profile incidents have caused major disruptions for infrastructure facilities and Governments Attack on Saudi Arabian oil facilities Gatwick Airport drone incident Drone assassination attempt on by Houthi rebels Venezuelan President Maduro • In September 2019, drones were used to • Between 19 a

  6. Slide 6: Counter-drone technology is critical to protecting various sectors

    Counter-drone technology is critical to protecting various sectors Increasing drone use is driving demand for counter-drone technology across a number of sectors Counter-drone total addressable market Counter-drone products have applications across various sectors Protection from Protection from A$5

  7. Slide 7: What do DroneShield's products do?

    What do DroneShield’s products do? DroneShield counter-drone products provide multi-layered solutions to detect and defeat drones, utilising radio frequency jamming as the core safe defeat component Drone response process Step 1 Step 2 Step 3 Step 4 Analysis & Monitoring & Detection Response & Defea

  8. Slide 8: DroneShield's financial snapshot

    DroneShield’s financial snapshot DroneShield maintains an excellent operating outlook with balance sheet strength to support future growth ü Strong revenue outlook ü Record results ü Strong cash position • High conviction, near term sales • Record 4Q20 quarter, with A$2.5m in • Cash balance at A$16m

  9. Slide 9: FY20 financial results

    FY20 financial results | DroneShield delivers 58% revenue growth on 2019 Since 2016, DroneShield’s total revenue has grown materially each year with FY20 results setting a new record Revenue since 2016 (A$m – December year end) 58% revenue growth on FY19 5.6 3.5 1.2 0.4 0.1 DroneShield has consisten

  10. Slide 10: Rapid growth in cash receipts has accompanied DroneShield's revenue growth

    Rapid growth in cash receipts has accompanied DroneShield’s revenue growth Cash Receipts since 2016 (A$m – December year end) 43% cash receipts growth on FY19 5.4 3.7 1.8 0.5 0.2 FY16 FY17 FY18 FY19 FY20 Customer receipts Research and Development Tax and other incentives received Source: Company fil

  11. Slide 11: DroneShield's near term, high conviction sales pipeline stands at A$100m

    DroneShield’s near term, high conviction sales pipeline stands at A$100m1 DroneShield maintains a significant and geographically diversified near term high conviction revenue pipeline High conviction pipeline: A$67.7m High conviction pipeline: A$11.3m • Awarded preferred bidder status for a • Sales

  12. Slide 12: DroneShield's revenue streams are supported by dedicated sales teams and continuous R&D

    DroneShield’s revenue streams are supported by dedicated sales teams and continuous R&D DroneShield positions itself as an industry disruptor not only in the nature of its products, but in transforming customer expectations with its technology, responsiveness and short manufacturing times Product sa

  13. Slide 13: DroneShield's competitive advantage?

    DroneShield’s competitive advantage? By offering best-in-class performance across a suite of multi-platform products, DroneShield’s technology has been validated through orders, deployments and partnerships with blue-chip customers Market leading technology… …across multiple platforms… ü Multi-senso

  14. Slide 14: Appendix A – Further company information

    Appendix A – Further company information www.droneshield.com

  15. Slide 15: Drones are one of a number of new, technology based, asymmetric threats

    Drones are one of a number of new, technology based, asymmetric threats The widespread adoption of drone technology has increased the risk and prevalence of disruptive use Why is the malicious use of drones a threat? Payload delivery • Attacks: Leveraging drones to drop harmful / explosive payloads

  16. Slide 16: DroneShield has gained significant momentum over the last 12 months

    DroneShield has gained significant momentum over the last 12 months DroneShield continues to grow through the awarding of material contracts from blue-chip customers across numerous sectors Receives multiple orders from Receives DroneGun Tactical Deployment of DroneSentry Receives order from major U

  17. Slide 17: DroneShield directors and key leadership team

    DroneShield directors and key leadership team DroneShield is complemented by an experienced team with solid track record of delivering growth and executing strategic acquisitions Peter James Oleg Vornik Jethro Marks Carla Balanco Independent Non- CEO and Managing Independent Non- CFO and Company Exe

  18. Slide 18: Appendix B – Macroeconomic thematic

    Image: RfPatrol Appendix B – Macroeconomic thematic www.droneshield.com

  19. Slide 19: Global defence spending continues to rise

    Global defence spending continues to rise Overview Global defence spend (US$bn)1 Dip attributable to end of large scale combat • Global military spending in 2019 operations in Afghanistan represented 2.2% of GDP 1,849 1,914 1,753 1,789 1,794 1,778 1,766 1,779 1,800 • Total military spend is primaril

  20. Slide 20: The Australian Government has committed to creating a sovereign defence capability

    The Australian Government has committed to creating a sovereign defence capability The Australian Government’s defence spending commitment presents a large opportunity for the sector Overview Capability investment funding profile (A$bn) • The long term funding certainty confirmed in the July 2020 De

  21. Slide 21: Appendix C – Counter-UAS technology

    Image: DroneGun Tactical Appendix C – Counter-UAS technology www.droneshield.com

  22. Slide 22: Defeat and mitigation solutions in the counter-drone market

    Defeat and mitigation solutions in the counter-drone market DroneShield defeat solutions utilise radio frequency jamming as the core safe defeat component which has advantages over other technologies, particularly, in its use across civil and military applications Safe – “soft kill” Kinetic – “hard

  23. Slide 23: Detection solutions offered by DroneShield

    Detection solutions offered by DroneShield DroneShield detection solutions utilise layered technology to create highly capable counter-drone systems Radio frequency Radar Cameras1 Acoustic2 Imagery • Systems that act as motion • Foundational layer of an • Systems that are able to trackers by emittin

  24. Slide 24: Benefits and applications of safe, layered, counter-drone systems over kinetic systems

    Benefits and applications of safe, layered, counter-drone systems over kinetic systems Safe counter-drone systems have many advantages over kinetic counter-drone systems, which are only practical for deployment in war-like scenarios Avoidance of Evidence for legal Intelligence Multi-platform with co

  25. Slide 25: Appendix D - Product overviews

    Image: DroneSentryTM installation Appendix D - Product overviews www.droneshield.com

  26. Slide 26: DroneGun Tactical™

    DroneGun Tactical™ Long range, highly effective counter-measure Application Features • The DroneGun Tactical is a highly effective drone counter-measure Best-in-breed defeat range, in a wide range of designed for two hand operation and long range defeat ü environmental conditions • The product inclu

  27. Slide 27: DroneGun MKIII™

    DroneGun MKIII™ Lightweight, compact counter-measure Application Features • DroneGun MKIII is a compact, lightweight drone counter-measure solution designed for one hand operation ü Best-in-breed defeat range • The product features a robust compact pistol shaped design with a control panel user inte

  28. Slide 28: RfPatrol MKII™

    RfPatrol MKII™ Compact, wearable detector Application Features • RfPatrol is a highly versatile, wearable drone detection device. The Detects a wide variety of drones and remote controllers device offers the user real situational awareness without distraction or complex operation ü Best-in-breed det

  29. Slide 29: DroneNode™

    DroneNode™ Covert, portable defence Application Features • DroneNode is a highly portable and inconspicuous counter-drone Inconspicuous and non-threatening design provides solution that can be set up in seconds and requires very little training to operate ü protection without inciting public concern

  30. Slide 30: DroneSentry-X™

    DroneSentry-X™ Vehicle mounted 360° detect and defeat Application Features • DroneSentry-X is a cross-vehicle compatible, automated 360° detect and defeat device ü Best-in-breed detect and defeat range • It provides 360° awareness and protection using integrated sensors to detect and defeat drones w

  31. Slide 31: DroneCannon RW™

    DroneCannon RW™ Hard / soft kill combination Application Features • DroneCannon RW offers a lightweight, soft kill, drone jamming Fit-for-purpose design, optimised for mobile operations solution for use on remote weapon stations ü including effective shock and vibration dampening • The DroneCannon R

  32. Slide 32: RfZero™

    RfZero™ Omni-directional detection Application Features • RfZero is a rapidly deployable drone detection device that is ideal for Provides omni-directional detection capability for cost- small to medium sized sites ü sensitive deployments • With a single RfZero, a prison or government building is al

  33. Slide 33: DroneSentry™

    DroneSentry™ Autonomous integrated detect and defeat system Application Features • DroneSentry is an autonomous fixed counter-drone system that integrates DroneShield’s suite of sensors and counter-measures into a unified responsive platform ü Best-in-breed detection and defeat range • Incorporating

  34. Slide 34: DroneSentry-C2™

    DroneSentry-C2™ User interface, monitoring and analytics suite Application Features • DroneSentry-C2 is a graphic user interface (GUI) that compiles and analyses vast amounts of environmental data to display to a user seamlessly and effectively. ü Displays live drone activity, providing alerts to th

  35. Slide 35: Contact details

    Contact details Email: info@droneshield.com Sydney, NSW (Headquarters) Level 5, 126 Phillip St Sydney, NSW 2000 Australia Phone: +61 2 9995 7280 Warrenton, Virginia 7140-B Farm Station Rd, Vint Hill, VA 20187 USA Phone: +1 (540) 215-8383 35 www.droneshield.com

  36. Slide 36: Disclaimer

    Disclaimer These presentation materials (the Presentation Materials) are confidential and have been prepared by DroneShield Limited (Company). By receiving the Presentation Materials, you acknowledge and represent to the Company that you have read, understood and accepted the terms of this disclaime

  37. Slide 37: Disclaimer

    Disclaimer FORWARD LOOKING STATEMENTS Certain statements contained in the Presentation Materials, including information as to the future financial or operating performance of the Company and its projects, are forward looking statements. Such forward looking statements: a) are necessarily based upon

DroneShield — FY2020 Earnings Presentation on 6ix