Slide 1: AI-Enabled Platforms for Protection against Advanced Threats
For personal use only AI-Enabled Platforms for Protection against Advanced Threats DroneShield (ASX:DRO) July 2023 www.DroneShield.com Image: DroneShield RfPatrol in deployment protecting the U.S. Presidential motorcade
Slide 2: Rapid Momentum
Rapid Momentum • Record contracts and rapidly growing cash receipts – $33 million US Government sale announced 16 July, expected to be fully delivered and paid this calendar year For personal use only – $9.9 million 2-year R&D contract announced 4 July, following on the earlier $3.8 million contract
Slide 3: Explosive Growth Based on a Strong Foundation
Explosive Growth Based on a Strong Foundation 2014-2017 2018-2022 2023 2024-2028 Building the Foundation “Green Shoots” Explosive Growth Transforming to Next Level For personal use only • Setting up in Australia and US • Multiple $1m+ orders • $33m U.S. Govt sale • 5-year target*: • ASX IPO (raising
Slide 4: Executive Summary
Executive Summary DroneShield • Founded in 2014 and listed on the ASX in 2016, DroneShield provides Artificial Intelligence platforms for protection Overview against drones • Hardware and software to detect and safely neutralise small drones used for warfare, terrorism, contraband delivery, and For
Slide 5: DroneShield Investment Highlights
DroneShield Investment Highlights Leader in World leading provider of state-of-the-art counterdrone solutions and electronic warfare systems Counterdrone used in a diverse array of critical end markets For personal use only Proprietary Full-scale hardware and SaaS offering used to detect, assess, an
Slide 6: Continued Rapid Growth
Continued Rapid Growth ($m, Dec YE) The business stands at an inflection point Strong Revenue Growth Rapid Cash Receipt Growth (Sales + Grants) For personal use only 16.9 ~3x growth 59% growth over HY 2022 14.8 15.6 15.3 10.6 5.4 5.6 3.7 1.8 5.3 3.6 1.2 2018 2019 2020 2021 2022 2023 2018 2019 2020 2
Slide 7: Business Overview
For personal use only Business Overview www.DroneShield.com
Slide 8: Why is the Malicious Use of Drones a Threat?
Why is the Malicious Use of Drones a Threat? The widespread adoption of drone technology has increased the risk and prevalence of disruptive use For personal use only Payload Delivery • Attacks: Dropping harmful / explosive payloads (including chemical or biological substances) or creating damage vi
Slide 9: AI-Enabled Platforms Protect Against Advanced Threats
AI-Enabled Platforms Protect Against Advanced Threats Multiple platforms in adjacent technologies and customers with a common theme of AI-based threat protection For personal use only Artificial Intelligence in Artificial Intelligence in computer Counterdrone Electronic Warfare vision and sensor fus
Slide 10: How a Counterdrone System Works
How a Counterdrone System Works Step 1 Step 2 Step 3 For personal use only Detect Assess Respond • State of the art, multi-sensor drone • Machine learning and AI based detection and • Respond / defeat technologies offer detection products provide optimal classification software is used to undertake
Slide 11: Geopolitical Environment Providing Market Tailwinds
Geopolitical Environment Providing Market Tailwinds • Increased expenditure by Western Governments in response to the war in Ukraine – US DoD increasing 2023 budget to over US$800bn, a record peacetime amount1 For personal use only – Germany increasing spending to over 2% of GDP (from 1.53% in 2021)
Slide 12: Addressable Market
For personal use only Addressable Market www.DroneShield.com Image: US Department of Defense conference
Slide 13: Counterdrone: Diverse Array of Critical End Markets
Counterdrone: Diverse Array of Critical End Markets Rapidly improving and easily available drone technology is driving demand for counterdrone solutions For personal use only Sources: Markets and Markets: https://www.marketsandmarkets.com/Market-Reports/anti-drone-market-177013645.html Factors & Fac
Slide 14: US$10bn Total Addressable Market
US$10bn Total Addressable Market For personal use only Sources: https://www.DroneShield.com/counterdrone-market 14 www.DroneShield.com
Slide 15: DroneShield Capability and Product Overview
For personal use only DroneShield Capability and Product Overview www.DroneShield.com
Slide 16: DroneShield: Complete Hardware and Software Offering
DroneShield: Complete Hardware and Software Offering High IP, yet mass-production hardware, with a software subscription platform and Electronic Warfare work • Company-owned production facility, supplemented by outsourced manufacturers, to ensure ability to manage large hardware orders For personal
Slide 17: Competitor Analysis
For personal use only Competitor Analysis www.DroneShield.com
Slide 18: DroneShield's Counterdrone Competitive Advantage
DroneShield’s Counterdrone Competitive Advantage C-UAS market pioneer, with a culture of systematic innovation and understanding of channels to market Market leading, differentiated technology… …across multiple platforms… For personal use only ü Multi-sensor detection, ID and tracking ü Body-worn Be
Slide 19: Competitor Analysis
Competitor Analysis DroneShield is the only global provider of its own individual sensors, all integrated into a complete system, fully in-house Country of Origin For personal use only Integrator ü ü ü ü ü - - - - In-House Detect Dismounted ü - - - - - - - - Vehicle Mounted ü - ü - - - - ü ü Fixed S
Slide 20: Key Execution Priorities and Growth Strategy
For personal use only Key Execution Priorities and Growth Strategy www.DroneShield.com
Slide 21: Strategy | Continue Leadership in Counterdrone, Grow Adjacent Capabilities and SaaS
Strategy | Continue Leadership in Counterdrone, Grow Adjacent Capabilities and SaaS Three-part Strategy Continue Leadership in the Counterdrone/Unmanned Threat Sector For personal use only • The counterdrone market is growing rapidly, especially in the US • DroneShield is well positioned as the indu
Slide 22: Contact Details
Contact Details Email: info@DroneShield.com For personal use only Sydney, NSW (Headquarters) Level 5, 126 Phillip St Sydney, NSW 2000 Australia Phone: +61 2 9995 7280 Warrenton, Virginia 7140-B Farm Station Rd, Warrenton, VA 20187 USA Phone: +1 (540) 215-8383 22 www.DroneShield.com
Slide 23: Appendices
For personal use only Appendices Image:www.DroneShield.com Middle Eastern Defence agency brief at IDEX
Slide 24: Counterdrone Detection Solutions
Counterdrone Detection Solutions DroneShield uses multi-sensor drone detection for optimal results, unaffected by time of day or weather Radio frequency Radar* Cameras* Acoustic* For personal use only Imagery • Electro-Optical (EO), Infrared • Foundational layer • Compares noise of drone • Motion tr
Slide 25: Counterdrone Defeat Solutions
Counterdrone Defeat Solutions DroneShield uses smart jamming which has advantages over other technologies, particularly, in its use across civil and military applications, and does not compete against large Defence Primes For personal use only Large Defence Primes Exotic Tech, Dominance Area DroneSh
Slide 26: Drones - A Critical and Growing Threat Vector
Drones - A Critical and Growing Threat Vector For personal use only 26 www.DroneShield.com
Slide 27: Benefits and Applications of Safe, Layered, Counterdrone Systems over Kinetic Systems
Benefits and Applications of Safe, Layered, Counterdrone Systems over Kinetic Systems Safe counterdrone systems have many advantages over kinetic counter-drone systems, which are only practical for deployment in war-like scenarios For personal use only Avoidance of Evidence for Legal Intelligence Mu
Slide 28: DroneShield AI Software Sees Through Noise – Radiofrequency Spectrum
DroneShield AI Software Sees Through Noise – Radiofrequency Spectrum World leading proprietary RF AI platform for protection against advanced threats, such as drones For personal use only • Drones operate in arguably the densest parts of the Radio Frequency (“RF”) Spectrum with “noise” coming from a
Slide 29: DroneOptID AI Software – Optical and Thermal Spectrum
DroneOptID AI Software – Optical and Thermal Spectrum Counterdrone Surveillance DroneShield’s DroneOptID AI engine detects and tracks complex threats such as drones in cluttered environments For personal use only • Drones are small, fast-moving objects, hard to detect with naked eye more than 50m aw
Slide 30: Artificial Intelligence in Electronic Warfare
Artificial Intelligence in Electronic Warfare DroneShield is favourably exposed to the fast-growing Electronic Warfare business segment For personal use only • Electronic warfare (EW) is any action involving the use of the electromagnetic spectrum (EM spectrum) or directed energy to control the spec
Slide 31: Seasoned Senior Team
Seasoned Senior Team DroneShield’s experienced team carries a solid track record of delivering growth Peter Oleg Jethro Carla Red Tom James Vornik Marks Balanco For personal use only McClintock Branstetter Independent CEO and Independent CFO and Sales U.S. Director Non- Managing Non- Joint Director
Slide 32: Industry and Media Recognition
Industry and Media Recognition For personal use only 32 www.DroneShield.com
Slide 33: Epirus Investment and Partnership
Epirus Investment and Partnership • In November 2022, DroneShield announced a strategic partnership with Epirus, which included a $3.7 million investment at 20c (market price at the time) for a For personal use only 4.1% stake • Epirus is a high-growth U.S. technology unicorn, developing software-de
Slide 34: Capital Structure
Capital Structure Capital Structure (approximately 10,000 shareholders) Research Coverage DRO Shares on Issue 586,903,611 For personal use only DRO Options on Issue1 35,740,000 Fully Diluted Shares on Issue 622,643,611 Fully Diluted Equity Value2 $208.6m Cash3 $42.4m Debt3 $nil Fully Diluted Enterpr
Slide 35: 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