Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Shareholder Meeting (May 2020)
31 slides from Electro Optic Systems's shareholder meeting presentation, May 29, 2020
Slide 1: Electro Optic Systems Holdings Limited Annual General Meeting
Electro Optic Systems Holdings Limited Annual General Meeting | 29 May 2020 1
Slide 2: Proxy Votes Received
Resolution Vote ty} Voted of alll securities 2, RE-ELECT MR FRED BART For 49,465,018| 79.30 33.86 Against 11,874,699] 19.03 8.13 Open-Usable 1,044,455 1.67 0.72 Board 994,306 1.59 0.68 Non-Board| 50,149 0.08 0.03 Open-Cond o 0.00 0.00 Open Unusable 0 NA 0.00 Abstain 148,066 NA 0.10 Excluded 0 NA 0.0
Slide 3: Proxy Votes Received
Resolution Vote type Voted % % of all securities 6.2, APPROVE LOAN SHARE PLAN For 32,251,770| 70.81 22.08 Against 11,518,061] 25.28 7.89| Open-Usable 1,780,927| 3.91 1.22 Board) 1,730,763] 3.80 1.18 Non-Board| 50,164 0.14 0.03 Open-Cond 0] 0.00 0.00} Open Unusable 0 NA 0.00] Abstain 16,971,480 NA 11
Slide 4: Proxy Votes Received
Resolution Vote type Voted of all securities 11, LOAN SHARE PLAN - BROWN For 33,829,663| 78.90 23.16 Against 7,976,648 18.61 5.46 Open-Usable 1,057,722] 2.47 0.72 Board| 1,007,573] 2.35 0.69 Non-Board| 50,149] 0.12 0.03 Open-Cond 10,000] 0.02 0.01 Open Unusable 0 NA 0.00 Abstain 19,658,205 NA 13.46
Slide 5: Disclaimer
Disclaimer This presentation and any related communication may contain statements that are forward looking with regard to the business and future performance of Electro Optic Systems Holdings Limited (“EOS”) and its subsidiaries. These statements reflect EOS’ current views, assumptions and projectio
Slide 6: 2019 Performance
sens 01 | 2019 PERFORMANCE | wa
Slide 7: Company Highlights 2019
Company Highlights 2019 1. Expanding exploitation of strategic synergies between sectors 2. Improved backlog, pipeline and internal processes supporting growth 3. New technology and products: Defence, Space, Communications 4. Space Communication Sector: EM Solutions, Audacy Corporation 5. Plant expa
Slide 8: Strategic Synergies
Strategic Synergies Weapon Aiming and Pointing Space Domain Awareness Directed Energy Systems Counterspace Operations Optical Sensors Mission Control Real Time Controls Adaptive Optics Adaptive Optics Shared Infrastructure EOS market sectors are designed as stand-alone profit centres, but when combi
Slide 9: Financial Summary 2019
Financial Summary 2019 Revenue Revenue(A$ (A$millions) million) Cash (A$ million) 180.0 160.0 80.0 140.0 120.0 60.0 100.0 80.0 40.0 60.0 40.0 20.0 20.0 - 0.0 2016 2017 2018 2019 2016 2017 2018 2019 EBIT (A$ million) 25.0 20.0 15.0 Results for 2019 were in line with management 10.0 5.0 expectations a
Slide 10: Financial Summary 2019
Financial Summary 2019 Financial Results Financial Results $m $m 2019 2019 2018 2018 Change Change Gross Margin 75.9 43.9 32.0 Emp. costs (33.7) (22.1) (11.5) G&A (20.8) (14.4) (6.4) FX 0.6 7.7 (7.1) Profit before tax 22.0 15.1 6.9 10
Slide 11: COVID-19 Update
sens 02 | COVID-19 UPDATE | w-
Slide 12: COVID-19: Impacts to Date
COVID-19: Impacts to Date • Health and Safety: No material impact • Backlog: No material impact • Pipeline: Delays of 3-6 months for some H2 2020 tender opportunities • Cash Flow: Delays of 6 months to $100M of receipts due to delivery issues • Revenue: Deferral of $70M to 2021 with $230M revenue re
Slide 13: Defence Sector
sens 03 | DEFENCE SECTOR | - °°
Slide 14: Defence Sector: Achievements
Defence Sector: Achievements • Completed 500 unit RWS contract on time and on budget • Commenced delivery of a second major contract • Delivered weapon system products to six nations • Exceeded manufacturing and profitability targets • Contract for Land 400 Phase 2 delivery of RWS to the Australian
Slide 15: New Technology
New Technology In 2019 EOS accelerated testing and qualification of new products and variants of existing products. EOS continued to expand the capabilities of its lightweight remote weapon systems, adding directed energy and missiles to the compatible payloads. EOS products continue to be weapon sy
Slide 16: Production
Production In 2019 EOS production capabilities met or exceeded all performance requirements. Production teams completed one major delivery program on time and on budget, and transitioned smoothly to another. This was achieved while managing five smaller delivery programs to customers globally. Produ
Slide 17: Space Sector
sens 04 SPACE SECTOR -”- @~»
Slide 18: Space Sector: Achievements
Space Sector: Achievements • Awarded multiple minor space tracking contracts and delivered over 100,000 space object tracks under contract in 2019 • Selected as preferred provider for an international space equipment program, with contract award expected in Q2 2020 (now completed) and also preferred
Slide 19: Space Optical Communications
Space Optical Communications There is a global effort to develop optical (laser) communications in space, to escape the limitations of current RF (radio frequency) technology. EOS has focused on developing elements in the communication chain not likely to emerge from other efforts. Success has allow
Slide 20: Communication Sector
sens 05 COMMUNICATION SECTOR - @»
Slide 21: Communication Sector: Established
Communication Sector: Established • Conceived to create access for EOS optical communications technologies to $100 billion annual revenue segment • Established seven months ago (1 October 2019) with the acquisition of EM Solutions • Market pull and disruptive technologies create current opportunitie
Slide 22: Mobile Ground Terminals
Mobile Ground Terminals Through EM Solutions, EOS is now the premier global provider of on-the-move, stabilised tracking terminals for wide-band satellite communications. EOS can now design satellites which will be automatically compatible with customer terminals and receivers on the ground. This in
Slide 23: Company Outlook
sens 06 | COMPANY OUTLOOK | - i@
Slide 24: Outlook: Defence Sector
Outlook: Defence Sector • Maintaining global market leadership in lightweight, high performance RWS • Positioned for strong growth in the two fastest-growing market segments: - CUAS (drone) hard kill market with both RWS and directed energy - Remotely operated combat vehicle weapon systems • US Manu
Slide 25: Remotely Operated Combat Vehicles
Remotely Operated Combat Vehicles EOS products are the only weapon systems which have fully established the two essential performance requirements for remotely operated combat vehicles: 1. Accuracy is vital when no reload of ammunition is possible 2. Reliability is vital when no operator is availabl
Slide 26: Outlook: Space Sector
Outlook: Space Sector • The outlook for Space Sector is positive, with revenue increasing from government and commercial customers: - Awarded a contract from a US company to design a high performance optical system - Negotiating space data delivery award with government customer • Exploitation of sy
Slide 27: Outlook: Communication Sector
Outlook: Communication Sector Space Communication Terminals EMS contract awards in 2020 establish record backlog and expand the customer base to include six navies, including RAN and several NATO naval forces. EOS satellite communication terminals are widely used on military platforms, and achieving
Slide 28: Communication Sector
Communication Sector EOS Satellite Constellation On 28 May 2020 EOS completed the acquisition of the satellite communication business of Audacy Corporation (USA). With this acquisition EOS has both ground and space segments, as required for an end-to-end space communications capability. EOS customer
Slide 29: Communications Sector
Communications Sector EOS Satellite Constellation • EOS spectrum licenses must be used in operational spacecraft by 2024 so EOS teams are meeting with customers and vendors to expedite the initial satellite launches. • The constellation will cost around AU$1.2 billion including $0.9 billion in capit
Slide 30: Company Outlook 2020
Revenue(A$ Revenue (A$million) millions) 250.0 Company Outlook 2020 200.0 150.0 100.0 No change from guidance issued 15 April 2020: 50.0 • 38% revenue growth to $230M - • 25% EBIT growth to $27M 2017 2018 2019 2020 • Margin reduction from 13% to 11% due to program EBIT (A$ million) 30.0 disruption a
Slide 31: Company Outlook: 2021
Company Outlook: 2021 EOS has a backlog of executed orders to support further growth in 2021. Beyond the near term it is not possible to forecast the impacts of Covid-19 on supply chain, global logistics, customer budgets or EOS’ operational efficiency. Guidance for 2021 will be issued when these fa
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