Ondas Inc · NASDAQ:ONDS
Ondas — Investor Presentation (February 2023)
46 slides from Ondas's investor presentation, Feb 14, 2023
Slide 1: Virtual Investor Event February 14, 2023
Copyright 2023. All rights reserved. Nasdaq : ONDS VIRTUAL INVESTOR EVENT FEBRUARY 14, 2023
Slide 2: Forward-Looking Statements
Forward - Looking Statements Statements made in this presentation that are not statements of historical or current facts are "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 . All statements other than statements of historical fact are, or may
Slide 3: Non-GAAP Financial Measure
Non - GAAP Financial Measure As required by the rules of the Securities and Exchange Commission (“SEC”), we provide a reconciliation of Adjusted EBITDA, the non - GAAP financial measure, contained in this presentation to the most directly comparable measure under GAAP, which reconciliation is set fo
Slide 4: Next-generation industrial wireless and autonomous drone leader
Provider of next - generation private industrial wireless networking technologies for large critical industrial markets Autonomous drone systems and regulatory leader; provider of the Optimus autonomous drone platform, the leading data and information services solution for commercial drone markets L
Slide 5: Leadership Team
STEWART KANTOR PRESIDENT Stewart brings over 20 years of experience in the wireless industry to Ondas Networks . ERIC BROCK CHAIRMAN & CEO Eric is an entrepreneur with over 25 years of management and investing experience . DEREK REISFIELD CFO Derek is an experienced executive with over 30 years expe
Slide 6: Agenda
• Business & Financial Recap • Financial Outlook • Ondas Networks 2023 Plan • Introducing Ondas Autonomous Systems • Ondas Autonomous Systems 2023 Plan • Closing Remarks • Q&A Nasdaq : ONDS 5 Agenda
Slide 7: Timelines pushed out, yet significant progress made
Timelines pushed out, yet significant progress made Corporate Performance • Secured largest commercial orders to - date • Advanced business development to create an expected path to significant revenue growth, scale and profitability • Creation of Ondas Autonomous Systems (OAS) business unit via the
Slide 8: Financial Recap
Nasdaq : ONDS 7 Financial Recap Investments to drive growth in 2023 Select, preliminary unaudited financial data ($ IN MILLIONS) FY 2022 Revenue 2.1 Adjusted EBITDA (1) (39.5 - 40.5) Cash 29.8 Convertible Notes (net) 30.0 Key Financial Insights • Rail timelines extended • Opex high due to: • R&D and
Slide 9: Financial Outlook: Ondas looks for a breakout year in 2023
Nasdaq : ONDS 8 Ondas looks for a breakout year in 2023 Financial Outlook • Significant revenue growth expected in 2023 and beyond • Cash utilization improves: • Ondas Networks operating leverage • Integration of American Robotics and Airobotics • Financial targets for the year are based on: • Exist
Slide 10: Financial Targets
Nasdaq : ONDS 9 Financial Targets Commercial adoption begins for both FullMAX and Optimus ADJUSTED EBITDA LOSS (%) 25% 5% 30% 40% Expect 100%+ revenue growth in FY 2024 as platform adoption accelerates FY 2023 $26 – $30 million REVENUE Ondas Networks Ondas Autonomous Systems $18 - $22 million ~ $8 m
Slide 11: Business Unit Review
Business Unit Review 10 Nasdaq : ONDS 10
Slide 12: Leadership Team: MC-IoT Connectivity
STEWART KANTOR PRESIDENT Stewart brings over 20 years of experience in the wireless industry to Ondas Networks. GUY SIMPSON COO G uy brings over 30 years of development, solutions engineering, operations and customer support experience in the telecoms industry to Ondas Networks. MARTIN PAGET VP, IND
Slide 13: Key Developments
Key Developments Class I Railroads dot16 commercial adoption begins EXPANDED ENGAGEMENT WITH RAILS • Active with 6 Class 1 Rails • Qualified with BNSF & CSX for commercial deployment • Siemens sales efforts accelerating • Target Rail Signaling departments • Siemens application engineering • New Pass
Slide 14: Path to Broad dot16 Adoption
Path to Broad dot16 Adoption Siemens and MxV Rail (AAR) drive expanded use cases Development programs continue • Expanded MC - IoT Lab with MxV Rail • Peer to Peer • Network Controller • Executing European on - train system with Siemens UK • Additional development programs in 2023 projected • Class
Slide 15: Customer Activity
Customer Activity Current backlog: $7.4 million Path to Scaling Orders • Siemens builds inventory for initial 900 MHz rollout • Volume purchasing agreements negotiated • Siemens engages customer with Ondas' technology and Siemens Rail application experts • Rails order vs purchasing agreement • Sieme
Slide 16: Rail Total Addressable Market
Rail Total Addressable Market (1) Edge Remote Allocation • 900 MHz: Waysides, ATCS, Interlocking, High Rail, Vehicle Protection, RCL, Drones, PTC Activated Crossings, Crossing Monitoring, and Shortlines as a Service • 160 MHz: Loco Data Radio, 160 MHz Voice / Data, Hazard Detectors • 220 MHz: PTC 2.
Slide 17: Commercial Deployment: The 900 MHz Opportunity
Nasdaq : ONDS 16 Commercial Deployment • Legacy 900 network slated for retirement by 2025 to meet FCC mandate • Initial deployment represents base station, network coverage upgrade • Edge remote deployments are both existing legacy and newly identified critical applications • MC - IoT functionality
Slide 18: Ondas Networks Financial Outlook
Nasdaq : ONDS 17 Revenue Target Supported By: • Existing $7.4 million backlog • Identified demand from Rail customers • Siemens intent to build inventory for expected 2H 2023 demand • BNSF & CSX lead; additional rails advance commercial activity Ondas & Siemens capitalizing on greenfield 900 MHz net
Slide 19: Airobotics Joins Ondas
AIROBOTICS JOINS ONDAS Ushering in a New Era for Autonomous Drones
Slide 20: Combination Creates Leading Autonomous Drone Ecosystem
Nasdaq : ONDS 19 Combination Creates Leading autonomous drone ecosystem Shared technologies Shared customer pipelines Revenue acceleration Reduced expenses T H I S I S RAIDER T H I S I S SCOUT T H I S I S OPTIMUS Note: Iron drone acquisition is expected to close in Q1 2023. 19
Slide 21: Leadership Team: One Platform. One Team.
Leadership Team One Platform. One Team. REESE MOZER PRESIDENT, ONDAS HOLDINGS CEO, AMERICAN ROBOTICS MEIR KLINER PRESIDENT, ONDAS AUTONOMOUS SYSTEMS CEO, AIROBOTICS Nasdaq : ONDS 20
Slide 22: OAS Vision
Create the leading commercial drone services provider in winner - take - most market OAS | Vision • Land and expand, starting with highest value markets • Capitalize on momentum of success with early customers • Progressively build out data products based on customer successes • Reinforce and expand
Slide 23: OAS Business Plan
OAS | Business Plan Focus on Optimus & revenue | LT focus on mass industrial markets Financial Stability & Cash Management • Significantly cut OPEX at AR to unify under Optimus platform in 2023/2024 • 65% reduction in headcount; 77% reduction in OPEX • Invest additional R&D dollars when directly sup
Slide 24: OAS Synergies
OAS | Synergies Combined business drives revenue and capital efficiency Revenue Acceleration • Robust customer pipeline across multiple countries; POs in hand • Mature platform with customer acceptance • Multi - national customer support and sales capacity • Significant expansion of addressable mark
Slide 25: The Optimus System
The Optimus System The world's leading autonomous drone platform 24 Nasdaq : ONDS 24
Slide 26: Market Leading Functionality
Market Leading Functionality FULL AUTOMATION 24/7 MULTIPLE DATA COLLECTION Allowing routine data capture without ROBUSTNESS Rugged exterior and climate - controlled drone shelter for harsh weather and COVERAGE AREA 80 sq. km. coverage area Payload Swapping Cabinet holds up to 9 payloads Battery Swap
Slide 27: Payloads And Sensors
Nasdaq : ONDS 26 2D/3D MAPPING THERMAL VIDEO LASER SCANNING (LIDAR) LIVE VIDEO EMERGENCY RESPONSE DELIVERY Payloads And Sensors
Slide 28: Insightful – Data Platform
Insightful – Data Platform Nasdaq : ONDS 27
Slide 29: The Optimus System: $140M+ invested
The Optimus System $140M+ invested into the market’s most mature product Hardware reliability enables commercial growth Durability Test Parachute Test Rain And Wind Test Climate Test Nasdaq : ONDS 28
Slide 30: Inspection & Analysis Applications
Inspection & Analysis Remote Monitoring Mapping & Survey Video on demand and camera Perimeter 3D/2D visualization Tank inspections and analysis Security Digital Twin creation/updates Pipeline inspections and analysis Emergency Response Project progress documentation Flare visual inspections and anal
Slide 31: Airobotics UAS Regulatory Milestones
Airobotics has attained groundbreaking achievements in unmanned aircraft regulations Airobotics is currently in the final phases of obtaining a Type Certification in the USA The US Type Certificate will enable the Airobotics drone to fly overpopulated urban areas without the need for a designated pe
Slide 32: Opportunities in the urban airspace
Opportunities in the urban airspace 3 1 31 Nasdaq : ONDS 31 Urban Drone Infrastructure
Slide 33: Smart City Go-To-Market
COMMERCIAL SERVICES PUBLIC SERVICES Nasdaq : ONDS 32 LAW ENFORCEMENT PUBLIC SAFETY PHASE - 1 ONBOARDING Smart City | Go - To - Market PHASE - 2 SCALE UP
Slide 34: Versatile Drone Platform Offers Multiple Monetization Strategies
Versatile Drone Platform Offers Multiple Monetization Strategies Business Model DATA AS A SERVICE (DAAS) 33 Nasdaq : ONDS 33 • Sale of Optimus System plus an annual maintenance package • Typically for defense and homeland security (HLS) sectors • Systems is owned by Airobotics; customer pays subscri
Slide 35: Coming Soon
COMING SOON 3 4 34 Nasdaq : ONDS 34 Note: Iron drone acquisition is expected to close in Q1 2023.
Slide 36: OAS Large Commercial Drone Markets
Nasdaq : ONDS 35 OAS | Large Commercial Drone Markets (1) PWC, May 2016 (2) Management estimates; assuming cities must have 100,000+ population to qualify, and one Optimus system will be deployed for every 100,000 inhabitants. (3) GrandView Research, 2020 $68.1 B I L L I O N $25.6 B I L L I O N $20.
Slide 37: OAS Product Roadmap
OAS | Product Roadmap Following the Tesla cost - down path • Win market with high - end functionality and value. • Progressively reduce cost to manufacture to reach broader market opportunities. Phase Tesla Equivalent Product Version Cost Reduction Market Viability Target Timing 1 Roadster Optimus -
Slide 38: OAS 2023 Commercial Plan
Market 2023 Revenue 2023 Status 2024 Revenue Smart Cities, Public Safety $7M+ 78% under contract $15.0M+ Construction $400k+ 100% under contract $1M+ Oil & Gas $250K+ 50% under contract $5M+ Nasdaq : ONDS 37 OAS | 2023 Commercial Plan Active Opportunities Visible LT opportunities: • 24+ systems in D
Slide 39: OAS Fulfilling Demand
OAS | Fulfilling Demand Ramping production to meet current customer demand Nasdaq : ONDS 38 Inventory will drive revenue growth • Supply constrained; current inventory sold out • Manufacturing • 15 more units on order • Expect to receive 2 systems per month beginning mid - year • Expect to place ord
Slide 40: OAS Financial Outlook
OAS | Financial Outlook Target ~$8 million of revenue in 2023 • Expect EBITDA loss due to initial scaling with existing POs and investment in product roadmap • Expect 100%+ revenue growth in 2024 • Plan to increase Optimus production rates to support expected customer demand Urban infrastructure dep
Slide 41: Consolidated Outlook
Consolidated Outlook 39 Nasdaq : ONDS 40
Slide 42: Consolidated Financial Targets
Nasdaq : ONDS 41 Expect 100%+ revenue growth in 2024 as platform adoption accelerates FY 2023 $26 – $30 million REVENUE Ondas Networks Ondas Autonomous Systems $18 - $22 million ~ $8 million Adjusted EBITDA (1) ($19 - $24) million Consolidated Financial Targets Our path to EBITDA profitability in 20
Slide 43: Our Time is Now
Nasdaq : ONDS 42 Our Time is Now Management team committed to shareholder value creation • Addressing huge end markets • Massive investments in technology platforms • Business development efforts have entailed long cycles; inflection point here • FullMAX and Optimus are seeing commercial adoption no
Slide 44: Questions & Answers
Nasdaq : ONDS 43 QUESTIONS & ANSWERS
Slide 45: Appendix: Adjusted EBITDA Reconciliation
ONDAS Appendix Ondas Holdings Inc. Reconciliation (Unaudited) Year Ended December 31, 2022 (In millions) (53.2)- Net income (loss) (1) $ (54.2) Depreciation 0.4 Amortization of debt discount/interest expense 3.8 Amortization of intangibles 3.6 Stock based compensation 5.9 (39.5 Adjusted EBITDA $ (40
Slide 46: Thank You For Listening
THANK YOU FOR LISTENING www.ondas.com www.linkedin.com/company/ondasnetworks/ www.twitter.com/ondasnetworks www.american - robotics.com www.linkedin.com/company/american - robotics - inc/ www.twitter.com/americanrobotic Nasdaq : ONDS www.airoboticsdrones.com/ www.linkedin.com/company/airobotics/ www
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