Slide 1: Artificial Intelligence For Multi-Mission C-UxS: 2024 Half Year Results
For personal use only Artificial Intelligence For Multi-Mission C-UxS 2024 Half Year Results 27 August 2024 Image: DroneSentry-X Mk2TM
Slide 2: 1H24 Results Update
For personal use only 1 1H24 Results Update
Slide 3: Accelerating the Business
Accelerating the Business Highest ever first half revenues and cash receipts in DRO history For personal use only • 1H24 revenues of $24.1m, up 110% on 1H23 ($11.5m) – Highest ever first half year revenues in DRO’s history • 1H24 customer cash receipts of $21.4m, up 40% vs 1H23 ($15.3m) – Highest ev
Slide 4: Accelerating the Business (continued)
Accelerating the Business (continued) DRO is well positioned for growth following $235 million raised this year to scale the business, and a rapid ongoing growth of nefarious use of drones For personal use only • Post the July 2024 capital raise, DRO has commenced broadening and acceleration of its
Slide 5: Highest First Half Revenues and Cash receipts in DRO history
Highest First Half Revenues and Cash receipts in DRO history ($m, Dec YE) Growing use of nefarious drones and low existing market saturation are driving the growth For personal use only Strong Revenue Growth (A$m) Cash Receipt Growth (Sales + Grants) (A$m) SaaS Revenue Growth (A$000) Profit and Loss
Slide 6: The Changing Landscape of Warfare
The Changing Landscape of Warfare Technology in warfare is advancing rapidly, making it crucial to stay at the cutting edge to maintain military superiority For personal use only Role of ● Advanced technology is crucial for maintaining military superiority – the integration of sophisticated systems
Slide 7: DroneShield: A Decade of Prediction, Execution and Agility
DroneShield: A Decade of Prediction, Execution and Agility DroneShield is utilising its current leadership role in the sector to lead the next phase of evolution in counter drone technology For personal use only Counter Drone Phase 1 Counter Drone Phase 2 Transitional moment PIONEER STAGE COMPETITIO
Slide 8: Accelerating & Expanding R&D Investment
For personal use only 2 Accelerating & Expanding R&D Investment
Slide 9: DroneShield Solutions Today: Market Pioneer at the Forefront of Innovation
DroneShield Solutions Today: Market Pioneer at the Forefront of Innovation Complete Multi-Mission Counter-Drone Arsenal with the Best Product for Every Scenario Dismounted Defeat Dismounted Detection On-The-Move/Portable Fixed-Site For personal use only DroneGuns RfPatrol Mk2 DroneSentry-X Mk2 Drone
Slide 10: Technology Roadmap: Accelerated Development of New Products & Software Capabilities
Technology Roadmap: Accelerated Development of New Products & Software Capabilities Expansion of DRO solution pipeline will accelerate towards a SaaS based revenue model and further increase gross margins For personal use only Opportunity Approach Outcome ● Next-generation R&D is critical for To fur
Slide 11: Accelerating the Development of Next Generation Products
Accelerating the Development of Next Generation Products Development of comprehensive ability to detect and counter next generations of drones For personal use only Existing Product Improvement Development of AI-enabled Next generation AI software hardware systems platform development ● Ultra-low po
Slide 12: DRO Proprietary AI Software Engines
DRO Proprietary AI Software Engines Next generation, responsive approach for enhanced detection and defeat of threats For personal use only Current: NextGen: Detects drone signals via an True responsive detection RF library of signals and defeat ● DRO’s Machine Learning and AI based detection and ●
Slide 13: Investment in R&D Programs to Accelerate Growth
Investment in R&D Programs to Accelerate Growth R&D activity expected to accelerate the SaaS model driving recurring revenue For personal use only Accelerate SaaS Subscriptions Incremental revenue opportunities expected from investment R&D ● The rapid evolution of drone technology programs means the
Slide 14: Pipeline
For personal use only 3 Pipeline
Slide 15: Deep and High Quality $1.1bn Government Customer Pipeline
Deep and High Quality $1.1bn Government Customer Pipeline (as at 23 August 2024) 33 pipeline projects over $5m each, with the largest at $213m For personal use only 6-18 months from lead to sale, but can be much shorter for repeat orders P-Go vs P-Win Probability weighting Credible on a project is a
Slide 16: Sales Pipelines Doubled this year to $1.1bn
Sales Pipelines Doubled this year to $1.1bn (as at 23 August 2024) USA continues to be the major contributor to the sales, however the global pipeline is also growing rapidly For personal use only $220m / 49 projects $156m / 22 projects ● DRO won the NATO European ● Multiple military/Govt order disc
Slide 17: Appendices: Other Information
For personal use only A APPENDICES Other Information
Slide 18: How a Counterdrone System Works
How a Counterdrone System Works DRO performs all steps of the process For personal use only Step 1 Step 2 Step 3 Step 4 Bespoke sensor solutions provide Machine Learning and AI based Respond / defeat technologies Review by visualizing event data optimal Detection and detection and classification off
Slide 19: DRO "Secret Sauce"
DRO “Secret Sauce" C-UxS pioneer, full in-house suite of multi-mission products, culture of innovation and deep channels to market For personal use only Market leading, differentiated AI technology Complete product, integration and geographic coverage All hardware (except radar and camera) developed
Slide 20: Counterdrone Detection Solutions
Counterdrone Detection Solutions DRO 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 Overview ● Foundational layer ● Motion tracker - emits signals ● Electro-Optical (EO), Infrared ● C
Slide 21: Counterdrone Defeat Solutions
Counterdrone Defeat Solutions DRO 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 For personal use only Large Defence Primes Exotic Tech, Dominance Area DRO Limited Rel
Slide 22: Leading Technology Utilising Exceptional Market Intelligence
Leading Technology Utilising Exceptional Market Intelligence For personal use only Origin Integrator ü ü ü ü ü - ü - - - ü Most extensive DETECT product range from handheld Dismounted ü - - - - - ü - - - to fixed-site Vehicle ü - ü - - - ü ü ü ü solutions Fixed Site ü ü ü - ü - ü ü ü ü ü Large IP DE
Slide 23: Geopolitical Environment Providing Market Tailwinds
Geopolitical Environment Providing Market Tailwinds • Increased expenditure by Western Governments in response to small drones being used in virtually all conflicts globally o NATO members bordering Russia reported to be considering a “drone wall”1 For personal use only o Iran’s recent attack on Isr
Slide 24: Counter-Drone Solutions Across Military & Civilian Sectors
Counter-Drone Solutions Across Military & Civilian Sectors The Rapid Proliferation of Drones has Escalated the Potential for Disruptive Incidents For personal use only Commercial Airspace Payload Delivery Intel Gathering Swarms Nuisance Activity Cyber Attacks Deepening the Demand for Robust Counterm
Slide 25: Artificial Intelligence in Electronic Warfare
Artificial Intelligence in Electronic Warfare DRO is Favourably Exposed to the Fast-growing Electronic Warfare Business Segment For personal use only • Electronic warfare (EW) is any action involving the use of the electromagnetic spectrum (EM spectrum) or directed energy to control the spectrum, at
Slide 26: Visionary Team of Industry Veterans with Deep Industry Experience
Visionary Team of Industry Veterans with Deep Industry Experience Peter Oleg Jethro Carla Red Tom James Vornik Marks Balanco McClintock Branstetter For personal use only Independent CEO and Independent CFO and Joint Sales Director U.S. Director of Non-Executive Managing Non-Executive Company Busines
Slide 27: Capital Structure
Capital Structure Capital Structure (27,000 shareholders) DRO Shares on Issue 872,065,159 Research Coverage For personal use only DRO Options on Issue1 48,094,000 Fully Diluted Shares on Issue 920,159,159 Fully Diluted Equity Value2 $1,136.4m Cash (as at 23 August 2024) $229.9m Debt - Fully Diluted
Slide 28: Important Notices and Disclaimer
Important Notices and Disclaimer This presentation is dated 27 August 2024 and has been prepared by DroneShield Limited ACN 608 915 859 ("DroneShield" or "Company"). This presentation contains summary information about DroneShield and its associated entities, and their activities current as at the d
Slide 29: Thank you
Thank you For personal use only Australia Office (Headquarters) U.S. Office DroneShield Limited DroneShield LLC Level 5, 126 Phillip St 7140-B Farm Station Rd, Sydney NSW 2000 Warrenton, VA 20187 www.droneshield.com investors@droneshield.com 29