Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Shareholder Meeting (May 2006)
27 slides from Electro Optic Systems's shareholder meeting presentation, May 31, 2006
Slide 1: Annual General Meeting 31 May 2006
Annual General Meeting 31 May 2006 4 : ol 1) ae
Slide 2: Agenda
EOS 1. Review of 2005 2. Military Business 3. Space Business 4. The Future
Slide 3: Share Performance: Past 12 months
‘Eos Share Performance: Past 12 months $2.68 —e— EOS —a—All Ords $3.43 140.0 120.0 100.0 + 80.0
Slide 4: 2005 in Summary
2005 in Summary Los oN OAR Strategic relationship with Northrop Grumman Space Technology (NGST) for space business CROWS/EFCS contracts for 268 units — production capacity established NEOT space surveillance and space ablation successes Process re-engineering (incl. ERP) commenced Major new Faciliti
Slide 5: Revenue Growth 2004 - 2005
Revenue Growth 2004 - 2005 CE os A$ millions No Oo 2004 2005 Revenue growth is 140%
Slide 6: Profit/(Loss) 2004 - 2005
Profit/(Loss) 2004 - 2005 ‘Eos (2.00) 2004 | A$ millions 2005 2005 results driven by accelerated development
Slide 7: Key elements of 2005 Loss
Key elements of 2005 Loss EOS R&D 5.8 Production establishment 5./ Staff options 3.7 Process engineering 4.0 Training 1.6 20.8 These expenditures caused $15.1 million loss in 2005
Slide 8: Combat Systems
Combat Systems Autonomous and remote weapon systems Digital fire control and surveillance systems sepa ‘Eos
Slide 9: peas
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Slide 10: Customer-supplied weapon: US Army CROWS
customer-supplied weapon US Army CROWS [Common Remotely operated Weapon System] weapon gimbal by ROM Inc. Capabilities provided by EOS: ° Laser rangefinder ¢ Fire control computer ° Multi-spectral imaging and target ID « Image analysis and video tracking ° Attitude and environmental sensors ¢« Data
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Slide 12: EOS
EOS Fast & light RPG kill in flight Intense firepower Multiple munitions Less lethal Load & leave Networked Multiple targets
Slide 13: EOS Military program status
EOS Military program status eos * Operational effectiveness maintained * 450 EFCS [A$54m] contracted for 2006 delivery * 2007 funding for 800 EFCS [A$95m] ¢ Production established, quality and quantity on track ¢ Significant funding and administrative delays and product configuration changes for CRO
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Slide 15: Space
Space ‘EOS Progress in the development of space business with NGST was slow in 2005, and is expected to be slow thru 2007 due to: * Funding constraints due to the war in lraq * Administrative issues such as US/AU security clearances ¢ Different technical solutions and priorities between the partners
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Slide 17: Control of Space
CONTROL OF SPACE Space — Surveiiiance Assured ACCESS Prevention EOS systems are evolving to ground-and-space based applications
Slide 18: Space Surveillance
Space Surveillance ‘EcO0Ss Advanced proprietary technologies address space situation awareness and space control Precise real-time laser acquisition and tracking of known space objects Detection, tracking and classification of new space objects Moving objects in space using directed energy [space ab
Slide 19: EOS Space Operations
EOS Space Operations ‘E0S The USAF “Razor View” laser space surveillance project was successfully completed in August 2004. The Australian Defence “NEOT” laser surveillance project was successfully completed in August 2005. EOS ablation technologies are now being integrated with the proven Razor Vie
Slide 20: Space Ablation
Space Ablation LOS Space ablation is the process of generating forces on objects in space by means of surface interactions [at the atomic level] with energy projected from the earth surface. Energy beams are directed from earth to intersect with the object in space. Significant forces are generated
Slide 21: The Future: 2006 and 2007 - Military Business
The Future: 2006 and 2007 Cos MILITARY BUSINESS On 18 May EOS announced a $9m reduction in projected 2006 revenue for this business. This was due to administrative delays in establishing delivery contracts. The impact of reduced military revenue was absorbed without change to the projected 2006 prof
Slide 22: The Future: 2006 and 2007 - Space Business
The Future: 2006 and 2007 Cos SPACE BUSINESS A review of space projects completed this week shows $12m reduction in projected 2006 revenue, due to program delays. It also shows a reduction of $4.4 m in projected profit for 2006 due to reduced revenue, delays in current contracts, 2 major (optics) ve
Slide 23: Revenue Growth 2004-2006
Revenue Growth 2004-2006 Yenes 140 120 100 w < & 80 E es 80 < 40 20 _ La 2004 2005 2006 2007 Projected revenue for 2006 is down by $18m, for 2007 by $30m. EOS earnings are sensitive to revenue due to fixed costs.
Slide 24: Net Profit 2004-2007
A$ millions Net Profit 2004-2007 ‘Eos 2004. (5.00) (10.00) (15.00) (20.00) 2006 profit/(loss) is now ($5.2m), a reduction of $4.4m. 2007 profit/(loss) is now $5.2m, a reduction of $5.6m.
Slide 25: Cash projections
1/1/2006 $21m e Half-Year [30/06/06] $14m e Full-Year [31/12/06] $14m [down $6m] FY06 min holding $10m @ 30/09/06 e Full-Year inventory increase $3m EOS has cash to fund projected growth thru 2007
Slide 26: Share Performance
‘Eos Share Performance $2.68 —e— EOS —a—All Ords $3.43 140.0 120.0 100.0 + 80.0
Slide 27: Summary
Summary EOS e Disappointing revenue & profit downgrades Military business is performing well Space business is not performing well e New technology & products will feed growth
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