Slide 1: AI-Enabled Platforms for Protection against Advanced Threats
AI-Enabled Platforms for Protection against Advanced Threats DroneShield (ASX:DRO) October 2022 www.droneshield.com Image: DroneGun MKIIITM units ready for dispatch under a US DoD order at the DroneShield Virginia warehouse
Slide 2: October 2022 Update
October 2022 Update • Positive operating cashflow quarter, with bank balance as of 30 September at $7.5 million. • Multiple larger size contracts received, including $2 million European DroneSentryTM order, $1.8 million US DoD DroneGunTM order. • First paid US civilian airport deployment - a referen
Slide 3: Business Overview
Business Overview www.droneshield.com Image: DroneSentryTM at an airport
Slide 4: 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 Payload delivery • Attacks: Dropping harmful / explosive payloads (including chemical or biological substances) or creating damage via collision • Smugglin
Slide 5: 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 protection Counterdrone Artificial Intelligence in Artificial Intelligence in Electronic Warfare computer vision and sensor fusion Synergies b
Slide 6: How does a counterdrone system work?
How does a counterdrone system work? 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 undertake intelligent, resp
Slide 7: Investment Highlights
Investment Highlights World leading Leverage to the global defence Sales pipeline of $50m for proprietary AI platform and security technology sector. remainder of 2022 and for protection against $10bn counterdrone $180m for 2023 drones addressable market, in addition to electronic warfare and Defenc
Slide 8: Executive Summary
Executive Summary DroneShield • Founded in 2014 and listed on the ASX in June 2016, DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against advanced threats such as drones and autonomous systems Overview • Hardware and software solutions that detect and safely n
Slide 9: Continued Rapid Growth (A$m, Dec YE)
Continued Rapid Growth (A$m, Dec YE) Moving Towards Positive Cashflow Rapidly improving financials, as the business stands at an inflection point into 2022 Strong Revenue Growth Rapid Cash Receipt Growth (Sales + Grants) 14.8 Expecting strong 10.6 4Q22 89% growth 10.9 5.6 5.4 3.6 3.7 1.2 1.8 2018 20
Slide 10: Addressable Market
Addressable Market www.droneshield.com Image: DroneShield product brief at the Eurosatory conference
Slide 11: 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 Sources: MarchWatch: https://www.marketwatch.com/press-release/counter-uas-market-size-share-growth-business-scenario-insights-industry-analysis-and-
Slide 12: US$10bn Total Addressable Market
US$10bn Total Addressable Market Sources: https://www.droneshield.com/counterdrone-market 12 www.droneshield.com
Slide 13: DroneShield Capability and Product Overview
DroneShield Capability and Product Overview www.droneshield.com Image: DroneGun TacticalTM and DroneSentry-XTM at BT’s stand at International Security Expo in London
Slide 14: DroneShield Capability Overview
DroneShield Capability Overview High-IP, yet mass-production enabled hardware, enabling a software subscription platform Hardware with Embedded Software and Associated Services Software (SaaS and R&D contracts) Dismounted & Body-Worn Counterdrone Solutions Electronic Warfare and SIGINT DroneGun MKII
Slide 15: Counterdrone detection solutions
Counterdrone detection solutions DroneShield uses multi-sensor drone detection for optimal results Radio frequency Radar* Cameras* Acoustic* Imagery • Electro-Optical (EO), • Foundational layer • Motion tracker - emits • Compares noise of drone Infrared (IR) and Thermal • Detects drone comms signals
Slide 16: 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 Exotic tech, Large Defence Primes limited reliability dominance area Safe – “s
Slide 17: Competitor Analysis
Competitor Analysis www.droneshield.com
Slide 18: 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 Market leading, differentiated technology… …across multiple platforms… ü Multi-sensor detection, ID and tracking ü Body-worn Best-in-breed detection
Slide 19: Competitor analysis
Competitor analysis DroneShield is the only global provider of own individual sensors, all integrated into a complete system, fully in-house Country of origin Integrator ü ü ü ü ü - - - ü In-House Detect Dismounted ü - - - - - - - - Vehicle Mounted ü - ü - - - - ü ü Fixed Site ü ü ü - ü - - ü ü In-H
Slide 20: Key Execution Priorities and Growth Strategy
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 • The counterdrone market is growing rapidly, especially in the US • DroneShield is well positioned as the industry pioneer, with on-
Slide 22: Contact details
Contact details 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 22 www.droneshield.com
Slide 23: Appendices
Appendices www.droneshield.com
Slide 24: Drones - A Critical and Growing Threat Vector
Drones - A Critical and Growing Threat Vector 24 www.droneshield.com
Slide 25: 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 Avoidance of Evidence for legal Intelligence Multi-platform with coll
Slide 26: 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 • Drones operate in arguably the densest parts of the Radio Frequency (“RF”) Spectrum with “noise” coming from all kinds of other emit
Slide 27: DroneOptID AI Software – Optical and Thermal Spectrum Counterdrone Surveillance
DroneOptID AI Software – Optical and Thermal Spectrum Counterdrone Surveillance DroneShield’s DroneOptIDTM AI engine detects and tracks complex threats such as drones in cluttered environments • Drones are small, fast-moving objects, hard to detect with naked eye more than 50m away, against complex
Slide 28: Artificial Intelligence in Electronic Warfare
Artificial Intelligence in Electronic Warfare DroneShield is favourably exposed to the fast-growing Electronic Warfare business segment • Electronic warfare (EW) is any action involving the use of the electromagnetic spectrum (EM spectrum) or directed energy to control the spectrum, attack an enemy,
Slide 29: Seasoned senior sales and engineering teams
Seasoned senior sales and engineering teams DroneShield’s experienced team carries a solid track record of delivering growth Peter Oleg Jethro Carla Red Katherine James Vornik Marks Balanco McClintock Stapels Independent CEO and Independent CFO and Sales Non- Managing Non- Director General Company E
Slide 30: Industry and Media Recognition
Industry and Media Recognition 30 www.droneshield.com
Slide 31: Never Standing Still
Never Standing Still 31 www.droneshield.com
Slide 32: Capital Structure
Capital Structure Enterprise Value (A$) Research Coverage DRO Shares 16.5c / share1 $71.4m2 Cash As at 30 September 2022 $7.5m Debt As at 30 September 2022 nil Enterprise Value $63.9m 1 Shareprice as at 11 October 2022. 432,541,985 ordinary shares outstanding 2 Excluding unlisted options. 40,025,001
Slide 33: 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