Droneshield Limited · ASX:DRO
Droneshield — Investor Presentation (February 2023)
38 slides from Droneshield's investor presentation, Feb 6, 2023
Slide 1: Capital Raising Presentation
For personal use only Capital Raising Presentation DroneShield (ASX:DRO) 6 February 2023 www.droneshield.com Image: DroneGun counterdrone system
Slide 2: Investment Highlights
Investment Highlights For personal use only 1 2 3 World leading Leverage to the global defence $19m contracted backlog proprietary AI platform and security technology sector. of orders and cumulative for protection against $10bn counterdrone sales pipeline of over drones addressable market, in addit
Slide 3: Executive Summary
Executive Summary DroneShield • Founded in 2014 and listed on the ASX in 2016, DroneShield (ASX:DRO) provides Artificial Intelligence platforms for protection against drones For personal use only Overview • Hardware and software solutions that detect and safely neutralise small drones used for high-
Slide 4: Record 2022, with Strong Outlook for 2023
Record 2022, with Strong Outlook for 2023 For personal use only • All-time record revenue and cash receipts achieved in 2022, with a strong outlook for 2023* • Revenue increases approximately 60% over previous record year, to $16.9 million • Cash receipts at a record $15.6 million • Two all-time rec
Slide 5: Epirus Investment and Partnership
Epirus Investment and Partnership For personal use only • In November 2022, DroneShield announced a strategic partnership with Epirus, which included a $3.7 million investment at 20c for a 4.1% stake • Epirus is a high-growth U.S. technology unicorn, developing software-defined directed energy syste
Slide 6: Business Overview
For personal use only Business Overview Image: RfPatrolTM during customer evaluation www.droneshield.com
Slide 7: Why is the Malicious Use of Drones a Threat?
Why is the Malicious Use of Drones a Threat? The widespread adoption of drone technology has increased the risk and prevalence of disruptive use For personal use only Payload delivery • Attacks: Dropping harmful / explosive payloads (including chemical or biological substances) or creating damage vi
Slide 8: AI-Enabled Platforms for Protection against Advanced Threats
AI-Enabled Platforms for Protection against Advanced Threats Multiple platforms in adjacent technologies and customers with a common theme of AI-based threat For personal use only protection Counterdrone Artificial Intelligence in Artificial Intelligence in Electronic Warfare computer vision and sen
Slide 9: How does a counterdrone system work?
How does a counterdrone system work? For personal use only Step 1 Step 2 Step 3 Detect Assess Respond • State of the art, multi-sensor drone • Machine learning and AI based detection and • Respond / defeat technologies offer detection products provide optimal classification software is used to under
Slide 10: Continued Rapid Growth
Continued Rapid Growth (A$m, Dec YE) Rapidly improving financials, as the business stands at an inflection point into 2023 For personal use only Strong Revenue Growth Rapid Cash Receipt Growth (Sales + Grants) 59% growth 16.9 14.8 15.6 10.6 5.6 5.4 3.6 3.7 1.2 1.8 2018 2019 2020 2021 2022* 2018 2019
Slide 11: Capital Structure
Capital Structure Capital Structure Research Coverage For personal use only DRO Shares on Issue 451,041,985 DRO Options on Issue1 35,755,001 Fully Diluted Shares on Issue 486,796,986 Fully Diluted Equity Value2 $180.1m Cash3 $10.3m Debt $nil Fully Diluted Enterprise Value $169.8m 1 Options issued at
Slide 12: Seasoned senior sales and engineering teams
Seasoned senior sales and engineering teams DroneShield’s experienced team carries a solid track record of delivering growth For personal use only Peter Oleg Jethro Carla Red Tom James Vornik Marks Balanco McClintock Branstetter Independent CEO and Independent Sales U.S. Director CFO and Non- Managi
Slide 13: Addressable Market
For personal use only Addressable Market Image: DroneSentryTM system www.droneshield.com
Slide 14: Counterdrone: Multi-Billion Dollar Market by 2024
Counterdrone: Multi-Billion Dollar Market by 2024 Rapidly improving and easily available drone technology is driving demand for counterdrone solutions For personal use only Sources: MarchWatch: https://www.marketwatch.com/press-release/counter-uas-market-size-share-growth-business-scenario-insights-
Slide 15: US$10bn Total Addressable Market
US$10bn Total Addressable Market For personal use only Sources: https://www.droneshield.com/counterdrone-market 15 www.droneshield.com
Slide 16: DroneShield Capability and Product Overview
For personal use only DroneShield Capability and Product Overview Image: DroneSentry-XTM atwww.droneshield.com the Canadian Government Agency evaluation
Slide 17: DroneShield Capability Overview
DroneShield Capability Overview High IP, yet mass-production hardware, with a software subscription platform and Electronic Warfare work For personal use only Hardware with Embedded Software and Associated Services Software (SaaS and R&D contracts) Dismounted & Body-Worn Counterdrone Solutions Elect
Slide 18: Counterdrone detection solutions
Counterdrone detection solutions DroneShield uses multi-sensor drone detection for optimal results, unaffected by time of day or weather For personal use only Radio frequency Radar* Cameras* Acoustic* Imagery • Electro-Optical (EO), • Foundational layer • Motion tracker - emits • Compares noise of d
Slide 19: Counterdrone defeat solutions
Counterdrone defeat solutions DroneShield uses smart jamming which has advantages over other technologies, particularly, in its use For personal use only across civil and military applications, and does not compete against large Defence Primes Exotic tech, Large Defence Primes limited reliability do
Slide 20: Competitor Analysis
For personal use only Competitor Analysis www.droneshield.com
Slide 21: DroneShield's competitive counterdrone advantage?
DroneShield’s competitive counterdrone advantage? C-UAS market pioneer, with a culture of systematic innovation and understanding of channels to market For personal use only Market leading, differentiated technology… …across multiple platforms… Multi-sensor detection, ID and tracking Body-worn B
Slide 22: Competitor analysis
Competitor analysis DroneShield is the only global provider of own individual sensors, all integrated into a complete system, fully in-house For personal use only Country of origin Integrator - - - In-House Detect Dismounted - - - - - - - - Vehicle Mounted - - - - - Fixed Site
Slide 23: Key Execution Priorities and Growth Strategy
For personal use only Key Execution Priorities and Growth Strategy www.droneshield.com
Slide 24: Strategy | Continue Leadership in Counterdrone, Grow Adjacent Capabilities and SaaS
Strategy | Continue Leadership in Counterdrone, Grow Adjacent Capabilities and SaaS For personal use only Three-part Strategy Continue Leadership in the Counterdrone/Unmanned Threat Sector • The counterdrone market is growing rapidly, especially in the US • DroneShield is well positioned as the indu
Slide 25: Capital Raising
For personal use only Capital Raising Image: DroneShield product brief at the Eurosatory conference www.droneshield.com
Slide 26: Capital Raising Overview
Capital Raising Overview DroneShield has raised approximately A$10.9 million via Placement and expects to raise up to an additional For personal use only A$3 million via SPP to raise a total of approximately A$13.9 million • Placement to raise approximately A$10.9 million under the company’s existin
Slide 27: Capital Raising and Use of Funds
Capital Raising and Use of Funds For personal use only PRO-FORMA FUNDING A$M CAPITAL RAISE USE OF FUNDS A$M Cash Balance1 $14.1 Inventory Build up of inventory in response to recent and anticipated contract $9.9m Capital Raising2 $13.1 wins Growth Pro Forma Cash Balance $27.2 1 Cash balance as at 31
Slide 28: Offer Timetable
Offer Timetable For personal use only Indicative capital raising timetable1 Date (AEDT) Trading Halt and Bookbuild Opens Thursday, 2 February 2023 Record date for SPP 7:00pm, Friday, 3 February 2023 Announcement of Capital Raising and Trading Halt Lifted Monday, 6 February 2023 SPP Information Bookl
Slide 29: Key Risks
For personal use only Key Risks Image: DroneSentry-XTM in deployment www.droneshield.com
Slide 30: Key Risks
Key Risks DroneShield’s growth and financial performance is dependent on its ability to successfully execute its growth strategy. For personal use only Business Strategy If DroneShield fails to execute on its business strategy, its business, financial condition and results of operations could be Ris
Slide 31: Key Risks (continued)
Key Risks (continued) The Company conducts a significant proportion of its business with customers outside of Australia. This presents risks in the For personal use only ability and the costs to the Company in recovering payments due to the Company. The Company mitigates that by generally Counterpar
Slide 32: Key Risks (continued)
Key Risks (continued) The Company stores data in its own systems and networks and also with a variety of third party service providers. For personal use only Exploitation or hacking of any of these systems or networks could lead to corruption, theft or loss of the data which could Data Loss, Theft o
Slide 33: Key Risks (continued)
Key Risks (continued) There are no limits on strategies that the Company may pursue. The strategy discussed in these Presentation Materials may For personal use only evolve over time due to, among other things, market developments and trends, technical challenges, the emergence of new or enhanced te
Slide 34: Key Risks (continued)
Key Risks (continued) Changes in the general economic climate in which the Company operates may adversely affect the financial performance of For personal use only the Company and the value of its assets. Factors which contribute to that general economic climate include: • contractions in the world
Slide 35: Key Risks (continued)
Key Risks (continued) A substantial part of the Company's commercial success will depend on its ability to establish and protect DroneShield’s For personal use only intellectual property to maintain trade secret protection and operate without infringing the proprietary rights of third parties. There
Slide 36: Foreign Selling Restrictions
Foreign Selling Restrictions For personal use only Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commi
Slide 37: Contact details
Contact details For personal use only 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, Warrenton, VA 20187 USA Phone: +1 (540) 215-8383 37 www.droneshield.com
Slide 38: 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