Slide 1: AI-Enabled Platforms for Protection against Advanced Threats
For personal use only AI-Enabled Platforms for Protection against Advanced Threats DroneShield (ASX:DRO) 27 February 2023 www.droneshield.com Image: DroneGun counterdrone system
Slide 2: 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 • Strong cash bala
Slide 3: Business Overview
For personal use only Business Overview www.droneshield.com Image: RfPatrolTM during customer evaluation
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 For personal use only Payload delivery • Attacks: Dropping harmful / explosive payloads (including chemical or biological substances) or creating damage vi
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 For personal use only protection Counterdrone Artificial Intelligence in Artificial Intelligence in Electronic Warfare computer vision and sen
Slide 6: 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 7: Investment Highlights
Investment Highlights For personal use only 1 2 3 World leading Leverage to the global defence Sales pipeline of over proprietary AI platform and security technology sector. $200m with over 90 for protection against $10bn counterdrone standalone qualified drones addressable market, in addition proje
Slide 8: Executive Summary
Executive Summary DroneShield • Founded in 2014 and listed on the ASX in 2016, DroneShield (ASX:DRO) provides Artificial Intelligence platforms for protection against drones For personal use only Overview • Hardware and software solutions that detect and safely neutralise small drones used for high-
Slide 9: Continued Rapid Growth ($m, Dec YE)
Continued Rapid Growth ($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) 16.9 59% growth 15.6 14.8 10.6 5.6 5.4 3.6 3.7 1.2 1.8 2018 2019 2020 2021 2022 2018 2019 2
Slide 10: 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 11: Geopolitical Environment
Geopolitical Environment For personal use only • Increased expenditure by Western Governments in response to the war in Ukraine • US DoD increasing 2023 budget to over US$800bn, a record peacetime amount1 • Germany increasing spending to over 2% of GDP (from 1.53% in 2021), including a new EUR100bn
Slide 12: Addressable Market
For personal use only Addressable Market www.droneshield.com Image: DroneSentryTM system
Slide 13: 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: Markets and Markets: https://www.marketsandmarkets.com/Market-Reports/anti-drone-market-177013645.html Factors & Facto
Slide 14: US$10bn Total Addressable Market
US$10bn Total Addressable Market For personal use only Sources: https://www.droneshield.com/counterdrone-market 14 www.droneshield.com
Slide 15: 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 16: 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 17: 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 18: 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 19: Competitor Analysis
For personal use only Competitor Analysis www.droneshield.com
Slide 20: 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… ü Multi-sensor detection, ID and tracking ü Body-worn B
Slide 21: 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 ü ü ü ü ü - - - ü In-House Detect Dismounted ü - - - - - - - - Vehicle Mounted ü - ü - - - - ü ü Fixed Site
Slide 22: Key Execution Priorities and Growth Strategy
For personal use only Key Execution Priorities and Growth Strategy www.droneshield.com Image: DroneSentry-XTM in deployment
Slide 23: 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 24: 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 24 www.droneshield.com
Slide 25: Appendices
For personal use only Appendices www.droneshield.com
Slide 26: Drones - A Critical and Growing Threat Vector
Drones - A Critical and Growing Threat Vector For personal use only 26 www.droneshield.com
Slide 27: 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 For personal use only practical for deployment in war-like scenarios Avoidance of Evidence for legal Intelligence Mu
Slide 28: 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 For personal use only • Drones operate in arguably the densest parts of the Radio Frequency (“RF”) Spectrum with “noise” coming from a
Slide 29: 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 For personal use only • Drones are small, fast-moving objects, hard to detect with naked eye more than 50m
Slide 30: Artificial Intelligence in Electronic Warfare
Artificial Intelligence in Electronic Warfare DroneShield 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 spec
Slide 31: 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 CFO and Sales U.S. Director Non- Managi
Slide 32: Industry and Media Recognition
Industry and Media Recognition For personal use only 32 www.droneshield.com
Slide 33: Continuous Significant Momentum
Continuous Significant Momentum For personal use only www.droneshield.com
Slide 34: Capital Structure
Capital Structure For personal use only Capital Structure (approximately 9,500 shareholders) Research Coverage DRO Shares on Issue 487,308,651 DRO Options on Issue1 35,755,001 Fully Diluted Shares on Issue 523,063,652 Fully Diluted Equity Value2 $183.1m Cash3 $20.5m Debt3 $nil Fully Diluted Enterpri
Slide 35: 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