Coda Octopus Group, Inc. · NASDAQ:CODA
Coda Octopus — Investor Presentation (February 2023)
51 slides from Coda Octopus's investor presentation, Feb 6, 2023
Slide 1: World Leader in Sound Underwater Technology
Coda CODA OCTO World Leader in Sound Underwater Technology Corporate Presentation February 2, 2023
Slide 2: Forward-Looking Statements
Coda Octofus'Group, Inc. Forward-Looking Statements This presentation contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities SS= Exchange Act of 1934, as amended. Those for
Slide 3: CEO Vision Statement
Coda Octofus'Group, Inc. CEO Vision Statement “To grow the Group through increased and sustained organic growth through the exploitation of our unique and revolutionary underwater sonar technologies (Echoscope® Technology) and our newly launched Diver Augmented Vision Display (“DAVD”) system and con
Slide 4: Market Cap and Shares Outstanding
NASDAQ: CODA (As of February 2, 2023) Market Cap $78.76 MM Shares Outstanding 10. 94 MM Public Float 4.74 MM % Officers & Director 32.0% Coda Octofus'Group, Inc.
Slide 5: Overview
Overview Coda Octofus'Group, Inc. + Established business with strong pedigree in underwater technology and defense engineering; Underwater Technology Solutions Business Market leader in underwater imaging sonar technology. We have the world's only 4D, SD and 6D sonar capability, being the only sonar
Slide 6: Strong Culture of IP
Coda Octofus'Group, Inc. Strong Culture of IP ¥ Multiple patents pending pertaining to recent technology innovations, such as SD and 6D Echoscope PIPE® Y Patents cover the spectrum of software and hardware capabilities of Coda Octopus Group's unique real-time 3D technology Proprietary hardware and s
Slide 7: FY2023 Management Goals
Coda Octofus'Group, Inc. FY2023 Management Goals v Reduce R&D spending and re-focus resources to Global Business Development and Brand Building for key technologies such as Echoscope®, Echoscope PIPE® and DAVD and Investor Relations to create stakeholders value. v Increase the Number of New Underwat
Slide 8: Annual Results FY Ended October 2022
Coda Octofus'Group, Inc. Annual Results FY Ended October 2022 REVENUE GROWTH = We grew revenue over FY 2021 with progress around our key growth accelerators. Net Sales YoY Change a = Net Sales were $22.22M versus $21.33M in FY 2021, an increase of 4.2%. $22.2M 4.2% Adverse Exchange Rate Movements re
Slide 9: Financial Snapshot
Coda Octofus'Group, Inc. Financial Snapshot ANN FY 2018 019 FY 20 FY 2021 FY 2022 Revenues $18,019,429 $25,056,934 $20,043,810 $21,331,527 $22,225,803 Net Income $3,102,899 $5,225,199 $3,343,585 $4,947,765 $4,301,221 EBITDA $4,069,175 $6,253,437 $4,278,437 $6,196,972 $5,880,768 Earnings per share —
Slide 10: Net Income Before Tax (Adjusted)
Coda Octofus'Group, Inc. Net Income Before Tax (Adjusted) Period Ending 10/31/21 10/31/22 Net Income $4,947,765 $4,301,221 PPP Contributions ($648,872) - ERC Program ($701,568) ($88,917) Income Tax Expense $305,479 $831,114 Net Income Before Tax (Adjusted) $3,902,804 $5,043,418 NI Percentage Change
Slide 11: Financial Snapshot
Coda Octofus'Group, Inc. Financial Snapshot 10/31/22 | 42022 | $5,135,348 $704,013 $1,243,792 $0.06 Period Ending 7/31/21 QUARTERLY Q3 2021 Revenues $5,827,375 7/31/22 10/31/21 Q3 2022 Q4 2021 $6,267,409 $5,080,617 Net Income $1,521,086 $1,768,657 $89,902 EBITDA $1,554,038 $2,252,278 $1,096,818 Earn
Slide 12: Marine Technology Business
Marine Technology Business (Underwater Technology Business) Research Development and Innovation
Slide 13: COTS Products & Engineering Services
_ COTS Products & Engineering Services Products Services Commercial off-the-shelf (COTS) product sales Our engineering services are primarily i occur primarily through two channels: sold through: + Direct Sales: Most sales occur through our + Prime Partnerships: We benefit from the 3 in-house sales
Slide 14: Products Services
Products Services
Slide 15: Echoscope PIPE Family of Volumetric Sonars
Coda Ociogus'Group, Inc. Echoscope PIPE® Family of Volumetric Sonars Echoscope*S® Buney urdeq Echoscope*6® : iw Echoscope PIPE® Echoscope PIPE® C500 SWaP (Size, Weight and Power) and Price 15 Seeing & Measuring in Real-Time 3D in Zero Visibility Conditions Underwater
Slide 16: Echoscope Family of Volumetric Sonars
ar) Echoscope® Family of Volumetric Sonars Continuation of Echoscope® Series 16,384 Points of Data Up to 40 million Points of Data Single Real-Time Image Bch a
Slide 17: Real-Time 3D Technology productivity and cost savings
Coda Octofus'Group, Inc. Coda Real-Time 3D Technology 200 76 $1M >100% Blocks placed Sleepers placed per day per day In cost savings Productivity rates: Van Oord Port Construction Project ZADCO UTEC ‘Technip/Shell ‘Sleeper Placement Oilfield Development iilty Conditions Productivity: > 100% P Pradue
Slide 18: Competing Technology is No Comparison
Competing Technology is No Comparison Pelican Island Causeway, Galveston TX
Slide 19: 3D Product Line
Coda Ociogus'Group, Inc. 3D Product Line “30 Car ne aMode “ Unigue 3D Complex:Mapping No Post Processing World's most advanced sonar technology — real-time 3D/5D/6D Subsea Imaging 15
Slide 20: 3D Product Line: Delivering on Everyday Challenges Subsea
Coda Octofus'Group, Inc. 3D Product Line Delivering on Everyday Challenges Subsea Complex Asset Placement - Alaska Monopod Installation Oilfield Disaster Recovery + Four Echoscopes® used to provide real-time visualization of landing site and control stabilization for crane operators + Software ‘mode
Slide 21: 3D Product Line: Mining and Marine Construction
3D Product Line = Delivering on Everyday Challenges Subsea Mineral Mining - Diamonds Marine Construction - Breakwaters * Operator can “see” exactly where each + Echoscope® is the No. 1 preferred solution for cut has taken place subsea placement + No overlapping of cuts + Crane operator can “see” and
Slide 22: Defense Applications
Defense Applications inet Complex Structure Target ID CodaOctopus 22
Slide 23: Real-Time 3D Imaging in Defense Applications
Coda Octofus'Group, Inc. Real-Time 3D Imaging in Defense Applications Momentum has grown significantly within the U.S. Navy community for CODA’s industry-leading, real-time technology solutions. The following groups are actively funding development, trials or purchases of Coda Octopus Echoscope® tec
Slide 24: Key Growth Market
Coda Octofus'Group, Inc. Key Growth Market ' * Obstacle Avoidance for manned + Search & Rescue and Recovery Missions anc & unmanned missions * Asset Identification & Reacquisition m Real-Time Decision Making » See Gent eee + Route Clearance Survey for foreign ports + Record & Map to gather intellige
Slide 25: Commercial Applications
Coda Octofus'Group, Inc. Commercial Applications Dive Inspection Channel ‘Support Clearance n Recovery & 9 Rock ROV Navigation Pipeline Survey & Placement & Breakwater sset Inspect Salvage Dumj Zero Leak ID Landing Construction 25
Slide 26: \ Boskalis 7echnip
ay - 7 \ Boskalis 7echnip De Beers Grour oF Companies DEEPOCEAN subsea 7 Van Oord ww) | Marine ingenuity
Slide 27: Summary of Growth Accelerators
Coda Octofus'Group, Inc. Summary of Growth Accelerators What is DAVD? Who uses DAVD? Why DAVD revolutionizes diving? The DAVD opportunity 27
Slide 28: About DAVD (Growth Pillar of Company)
Coda Ociogus'Group, Inc. About DAVD (Growth Pillar of Company)
Slide 29: What is DAVD?
Coda Octofus'Group, Inc. Summary of Growth Accelerators What is DAVD? + DAVD is a complete Diver Video, Media and Communication system * Connects the Diver and the Supervisor coherently (similar to a virtual meeting) + Diver uses see-through head-up Augmented Reality (AR) displa + DAVD, for the firs
Slide 30: Who uses DAVD?
Coda Octofus'Group, Inc. Summary of Growth Accelerators Who uses DAVD? * The DAVD system is fully compatible with all standard diving helmets full-face masks * DAVD focus is all diver markets excluding the leisure scuba market * DAVD addresses all high importance key challenges and problems in divin
Slide 31: Why DAVD revolutionizes diving?
Summary of Growth Accelerators Why DAVD revolutionizes diving? PROBLEM - Diving Challenges Diving is regularly conducted in low to zero visibility environments in which standard visual displays, cameras and gauges are virtually useless. Even in somewhat visible environments, situational awareness, n
Slide 32: COMMUNI
COMMUNI VISIBILITY
Slide 33: Project & Technology Outline
Coda Octofus'Group, Inc. Project & Technology Outline GEN 3.0 Development Gen 3. Product development for FFM and Autonomous untethered operations due November 2021. ence ge Techs NAVSEA GeN2.0 complete Pe eebilies exc en oa aa 2022 2019 DAVD Gen 3.0 Complete DAVD Gen 3:0 complete and pending Fleet r
Slide 34: About the DAVD
Coda Octofus'Group, Inc. About the DAVD —_ tT, | = Eq \) * z 1 5 ~ wi DAVD - A ‘\ DAVD - TC CAMERA (ea Worst and obi HetGT \ comune ate hea en aa \ eaaen eee inte a, Pega ans DAVD - HUD Tost ead Up DAVD - DPP ae ‘The Diver Processing Unt fuses sensor data and manages ultra low latency video display
Slide 35: Key DAVD Milestone Progress
Key DAVD Milestone Progress + DAVD is approved under Authorization for Navy Use (ANU) * DAVD now compatible with a widespread of Helmets, Face Masks and Diving Suits * Customization of DAVD Technology for US Military Command, Prototype to be delivered in February + DAVD GEN 3 is now being sold to US
Slide 36: Value Drivers
Value Drivers + First mover in innovating and commercializing real-time 3D sonar technology for the subsea market + No other commercially available real-time 3D sonar in the market + As market requirements shift to real-time imaging our 5D/6D Innovation decisively puts CODA in the lead for real-time
Slide 37: Thermite Rugged Embedded Mission Critical Integrated Systems
_ Thermite® Rugged Embedded Mission Critical Integrated Systems Computing Solutions va Advanced Signal Processing | Obsolescence Management of Legacy oes ‘ense Products
Slide 38: Colmek Key Markets
© COLMEK® cots oviipr en. y ‘toda Otpus Company Key Markets Trusted U.S. DoD Subcontractor Phalanx® Close-in Weapon UAV/AQS-24 = TAN/AGS 24 ST System (CIWS) Mine Hi Mine Hunting System 38
Slide 39: Customers
Customers NORTHROP GRUMMAN | BOEING LockmerD mantTiIN7y GENERAL, l>yNamics| COLMEK ods octofus'éroup, tne. ‘toda Otpus Company 39
Slide 40: COLMEK
COLMEK’ ccda ZF Keossozcpun company Obsolescence management: Defense requirements for extended system/program life offer significant sustainment opportunity + Engineering services to re-design/upgrade + Production opportunity through program life Ruggedized Embedded Computing + Logical companion to
Slide 41: COLMEK Thermite Embedded Computing
COLMEK ‘Goda Otpus Company Thermite® Embedd Market: The ~$1B (estimated) embedded computing market shows strong growth, reflecting increasing demand for embedded computing capability on military platforms Thermite® Vision: Focus on small, low power applications. Offer standard products and provide r
Slide 42: Martech: Test, Instrumentation and Control
Htiett® th. th ® Test, Instrumentation and Control | Obsolesce e Management of Legacy fense Products 43
Slide 43: Customers
Coda Octofus'Group. Inc. Customers Located in Portland, Dorset, UK. Martech follows the same model as Colmek. THALES SIEMENS Bia ATLAS ELEKTRONIK i GRUNDFOS 43
Slide 44: Long-tail recurring revenues from ongoing Defense Customer Programs
Long-tail recurring revenues from ongoing Defense Customer Programs + Proprietary Chemical Decontamination Systems + Component of the Eurofighter Tycoon's Ground Equipment + Used to decontaminate pilot helmets that have come in contact with chemical weapons Increasing customer base via successful R&
Slide 45: Operations
Coda Octofus'Group, Inc. Operations Group a — Technology Business Defense Products & Engineering Business if Copenhagen, Denmark Op Sr Copenhag a MARTECH
Slide 46: Management
Coda Octofus'Group, Inc. Coda Octopus Group ‘ Management Annmarie Gayle, LL.B, LLM (Qual f Executive Officer — Denmark ied Soli itor England & Wales) — Chair and Cl Ms. Gayle has been our CEO and a member of the Board of Directors since 2011. She has also been the CEO of our flagship Products Busine
Slide 47: Management
Coda Octofus'Group, Inc. Coda Octopus Group Management Blair Cunningham — President of Technology —US — Orlando, Florida Mr. Cunningham has been with the company since July 2004 and has had a number of roles including his current position of President of Technology and CEO of Coda Octopus Products,
Slide 48: Board of Directors
Coda Octofus'Group, Inc. Coda Octopus Group Board of Directors Annmarie Gayle, LL.B, LLM — Chief Executive Officer and Chairman — Copenhagen, Denmark Ms. Gayle was appointed Chairman of the Board in March 2017, and previously served as Director since 2011. Additionally, Ms. Gayle has been the Group
Slide 49: Board of Directors
Coda Octofus'Group, Inc. Coda Octopus Group Board of Directors Mary M. Losty — Director — U.S. Ms. Losty has been a member of Coda’s Board of Directors since July 2017. Ms. Losty is a private investor in both U.S. equities and real estate. Her career includes serving as a Partner at Cornwall Asset M
Slide 50: Board of Directors
Coda Octofus'Group, Inc. Coda Octopus Group Board of Directors G. Tyler Runnels- Director— U.S. Mr. Runnels has been nominated by our board to be elected as a director at the 2018 annual meeting to fill a vacancy created by the departure of two of our directors. Mr. Runnels has nearly 30 years of in
Slide 51: Coda Octopus Group, Inc.
oN Coda Oto igup,n. foe CODA OCTO ;ROUP, INC. World Leader in Sound Underwater Technology NASDAQ: CODA Wwww.codaoctopusgroup.com Investor Relations: Cody Slach or Jeff Grampp, CFA Gateway Group, Inc (949)574 3860 CODA@GatewayIR.com
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