Ondas Inc · NASDAQ:ONDS
Ondas — Q2 2022 Earnings Presentation
43 slides from Ondas's earnings presentation, Aug 9, 2022
Slide 1: Second Quarter 2022 Earnings Release and Business Update
NASDAQ: ONDS Second Quarter 2022 Earnings Release and Business Update August 9, 2022
Slide 2: Disclaimer
DISCLAIMER This presentation may contain "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends,"
Slide 3: Leadership Team
LEADERSHIP TEAM ERIC BROCK DEREK REISFIELD STEWART KANTOR REESE MOZER Chairman & CEO President & CFO President CEO Eric is an entrepreneur Derek is an experienced Stewart brings over 20 Reese is an entrepreneur with over 25 years of executive with over 30 years years of experience in the and robotic
Slide 4: Business plans and product roadmaps on track at Ondas Networks and American Robotics
INTRODUCTION Business plans and product roadmaps on track at Ondas Networks and American Robotics Class I Rails progressing; American Robotics extends leadership Ondas is investing in technology, 900 MHz Network leading position with new customers, product people, and partners to win global to expan
Slide 5: Significant events signal business plan on track; creating value for shareholders
MAJOR DEVELOPMENTS Significant events signal business plan on track; creating value for shareholders Initial Volume Order Received from Agreement to Acquire Airobotics, a leading Siemens Mobility in 900 MHz automated UAS platform provider
Slide 6: Ondas Networks receives initial 900 MHz volume order
MILESTONE ORDER SECURED Ondas Networks receives initial 900 MHz volume order • Marks beginning of commercial deployments • Mix of NG-ATCS, Mercury and Venus base stations and remotes • Deliveries commencing in 2022
Slide 7: Challenging economy and volatile markets create opportunity to accelerate timelines
INVESTING FOR SCALE Challenging economy and volatile markets create opportunity to accelerate timelines… + Strong balance sheet + Investing in MC-IoT platform technologies + ATM supports value-creating investments
Slide 8: Agenda
AGENDA Overview of Airobotics Transaction Financial Review Strategic Update Outlook Investor Q&A
Slide 9: Leading Platforms Will Combine to Accelerate Next Generation of Commercial Drone Market
Leading Platforms Will Combine to Accelerate Next Generation of Commercial Drone Market
Slide 10: Landmark Acquisition: Definitive Merger Agreement to acquire Airobotics
LANDMARK ACQUISITION Reached Definitive Merger Agreement to acquire Creating the global Commercial UAS leader… + Adding world-class technology and talent + Significant financial benefits including new revenue opportunities with active customer + Offers technical, regulatory and go-to-market pipeline
Slide 11: Demo Video
DEMO VIDEO
Slide 12: Introducing Airobotics
INTRODUCING AIROBOTICS Airobotics is a world leading FOUNDED LOCATION SYSTEM CERTIFICATION 2014 Israel FAA Type Certification provider of end-to-end automated (in process) aerial data systems and services EMPLOYEES REVENUE/ ASSET SALES (1) INVESTED CAPITAL 40 $3.3M / $1.0M(2) >$130M Airobotics is pr
Slide 13: Creation of a global UAS solutions provider to lead consolidation of the commercial drone sector
STRATEGIC RATIONALE — SCALE FOR CUSTOMERS Creation of a global UAS solutions provider to lead the consolidation of the commercial drone sector Extend Technology Leadership Leading UAS and Robotics Talent Global Regulatory Success Global Marketing & Services Platform Financial Benefits
Slide 14: Acquisition — Key Terms
ACQUISITION — KEY TERMS +All share transaction; Exchange ratio = 0.16806 +Equivalent to ~ 2.8 million Ondas shares; valued at ~ $15.2 million (1) +Ondas may provide a Senior Secured $1.5 million loan prior to close +Close expected in 2H 2022 (2) (1) As of August 5, 2022. Excludes approximately 1.7 m
Slide 15: Airobotics Technology Platform
AIROBOTICS TECHNOLOGY PLATFORM Fully automated data capturing and analysis infrastructure for continues 24/7 drone operations without human intervention Battery Cabinet Payload Cabinet + ROBUSTNESS Rugged exterior and climate-controlled Drone shelter for harsh weather and industrial environments Aut
Slide 16: Complementary technology platforms for expanded opportunities
AUTONOMOUS PLATFORM LEADERSHIP Complementary FOCUS END MARKETS Oil & Gas, Rail, Bulk Materials, Mining, Agriculture Security, Public Safety, Defense, Construction, Smart Cities technology platforms for expanded opportunities REGULATORY Automated BVLOS Type Certification (In Process) in new markets a
Slide 17: Regulatory Leadership
REGULATORY LEADERSHIP Extending our Moat: + Dramatically increases TAM + Establishes head start – extends competitive advantage + Significant cost savings and time BVLOS TYPE CERTIFICATION to market advantages Approvals for UAS operation Rigorous process to obtain with no human intervention certific
Slide 18: Q2 and 1H Financial Results
FINANCIAL REVIEW Q2 and 1H Financial Results
Slide 19: Financial Review | Q2 2022
FINANCIAL REVIEW | Q2 2022 SELECT P&L DATA Three Months Ended June 30, Key Takeaways: (Unaudited) 2022 2021 Revenues, net $ 604,219 $ 887,432 + P&L reflects preparation for larger Cost of goods sold 285,638 580,675 commercial rollouts in 2022 and 2023 Gross profit 318,581 306,757 for Ondas Networks
Slide 20: Financial Review | 1H 2022
FINANCIAL REVIEW | 1H 2022 SELECT P&L DATA First Half June 30, Key Takeaways: (Unaudited) 2022 2021 Revenues, net $ 1,014,417 $ 2,052,196 + P&L reflects preparation for larger Cost of goods sold 573,571 1,136,025 commercial rollouts in 2022 for Ondas Gross profit 440,846 916,171 Networks and America
Slide 21: Financial Review | 1H 2022 Cash Flow
FINANCIAL REVIEW | 1H 2022 First Half SELECT CASH FLOW DATA Key Takeaways: June 30, (Unaudited) 2022 2021 + Balance sheet healthy Net cash used in operating activities $ (15,302,003) $ (7,088,688) + Investments reflect leasehold Net cash used in investing activities (3,538,148) (2,166,127) improveme
Slide 22: Financial Review | Q2 2022 Balance Sheet
FINANCIAL REVIEW | Q2 2022 SELECT BALANCE SHEET DATA June 30, 2022 December 31, 2021 Key Takeaways: (Unaudited) ASSETS + Strong balance sheet Cash and cash equivalents $28,014,077 $40,815,123 + $28 million of cash Total assets $113,920,301 $117,438,575 + Modest debt levels LIABILITIES AND STOCKHOLDE
Slide 23: Key Priorities and Accomplishments for Ondas Networks and American Robotics
STRATEGIC REVIEW Key Priorities and Accomplishments for Ondas Networks and American Robotics
Slide 24: Progress on Key Priorities
PROGRESS ON KEY PRIORITIES Siemens 900 MHz order is commercial adoption inflection point + Volume order with delivery commencing in 2022 + Launch activity advances; 900 MHz use case expanding beyond ATCS + MxV Rail engaged on MC-IoT Rail lab; expect expansion to other bands + Product development wit
Slide 25: Transition to Multi-Purpose 900 MHz Broadband
TRANSITION TO MULTI-PURPOSE 900 MHZ BROADBAND Today 2023/2025 2023 Onward 900 MHz (Legacy NB) 900 MHz ( ) MxV Crossings & Applications Wayside DEPLOYMENT STRATEGY ► Transition to NG-ATCS Legacy ATCS NG – ATCS MC-IoT ► Expand network capacity Single Multi-purpose Purpose ► Add Edge applications Yard
Slide 26: Pulling through demand with Siemens
STRATEGIC REVIEW — ONDAS NETWORKS Pulling through demand with Siemens + Secured initial 900 MHz volume order from Siemens for Class I Rails + Continuing to support 900 MHz launch customers • Production • Siemens packages • System Maintenance • Purchasing • Shipping • Customer Support • Delivery sche
Slide 27: New networks, New products, New markets
STRATEGIC REVIEW — ONDAS NETWORKS New networks, New products, New markets + Joint-product development with Siemens expands + Identified new network opportunities in North American Passenger & Transit market • Head-of-Train 450 MHz (HOT) programs (N.A. and Asia near completion + Maritime security net
Slide 28: American Robotics
AIR@BOTICS he BeEOTiCS ONRAS
Slide 29: Recap of market opportunity we are pursuing
STRATEGIC REVIEW — AMERICAN ROBOTICS Recap of market opportunity we are pursuing + Global commercial drone market opportunity estimated to be $127B at scale + We estimate 90% of this market requires automated drone-in-a-box (DIB) tech to be practical and scalable + We estimate over 10 million assets
Slide 30: Customer progress
STRATEGIC REVIEW Customer progress Customer Engagement thus far Next steps Potential ARR(1) Field testing, environmental testing, Field testing, additional use case discovery, requirements definition, new payload integration, analytics development, safety additional payload integration, analytics $2
Slide 31: New customers added
STRATEGIC REVIEW New customers added Customer Date Added Use Case(s) April 2022 Plant health analysis June 2022 Mine volumetrics Loss of containment, fugitive emissions, O&G Company Expected Q3 asset inspection, security Loss of containment, fugitive emissions, O&G Company Expected Q3 asset inspecti
Slide 32: Product roadmap progress
STRATEGIC REVIEW Product roadmap progress Customer Date Announced Justification Value to customers Requested by O&G customers, applicable Expanded use cases, High resolution RGB payload July 2022 to most markets more detailed imagery Requested by O&G customers, applicable Expanded use cases, High re
Slide 33: Regulatory progress
STRATEGIC REVIEW Regulatory progress Date Approval / Event Value Received First-in-history Automated BVLOS waiver and Unlocks scalable autonomous drone operations required by estimated Jan 2021 exemption package 90% of commercial drone market FAA BVLOS Aviation Rulemaking Committee July 2021 Invited
Slide 34: Strategic Rationale — Scale for Customers
STRATEGIC RATIONALE — SCALE FOR CUSTOMERS Extend Technology Leadership Leading UAS and Robotics Talent + Combines best-in-class platforms under single roof + Experienced management teams with long histories in industry + Autonomy, payloads, AI-powered data analytics + Hardware, software, and AI expe
Slide 35: Outlook Summary
Outlook Summary
Slide 36: Outlook — Key Business Targets
OULOOK — KEY BUSINESS TARGETS + Expect to secure orders from at least 5 Railroads in 2022 + Maintain $20 million bookings goal for 2022 + Pursuing multiple new development Rail programs; $3.5 million target for 2022 + Secure purchase order for International market + Expect to secure Scout System™ or
Slide 37: Continue to cement and extend leadership
SCALING INDUSTRIAL TECHNOLOGY PLATFORMS Continue to cement and extend leadership + Balance sheet remains healthy + Cash OPEX expected to be approximately $8.0 – $8.5 million for Q3 2022 + ATM is an efficient mechanism to fund growth
Slide 38: Airobotics Acquisition Accelerates Growth Plan
AIROBOTICS ACQUISITION ACCELERATES GROWTH PLAN Creation of a global UAS solutions provider to lead the consolidation of the commercial drone sector + Leading technology platforms and management teams emerging + Sophisticated customers driving market adoption need a scaled player • Automated systems
Slide 39: Leading UAS Platforms Are Valuable
LEADING UAS PLATFORMS ARE VALUABLE Consumer, Industrial, Agriculture, Package Urban Air MARKETS Infrastructure, Public Defense Security, Defense Delivery Mobility Safety, Defense BARRIERS TO ENTRY HIGH MEDIUM MEDIUM MEDIUM HIGH ESTIMATED MARKET $114B $64B $47B $20B $115B SIZE(1) VALUATION(2) ~ $200M
Slide 40: Closing Remarks
CLOSING REMARKS Business development on Delivering on 900 MHz track at Ondas Networks Network and expanded and American Robotics platform opportunities American Robotics Ondas is investing to win demonstrating industry with its partners and leadership for customers ecosystem
Slide 41: Investor Q&A
Investor Q&A
Slide 42: Important Disclosures
IMPPORTANT DISCLOSURES No Offer or Solicitation This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registrat
Slide 43: Thank You for Listening
Thank You for Listening www.ondas.com www.american-robotics.com www.linkedin.com/company/ondasnetworks/ www.twitter.com/AmericanRobotic www.twitter.com/OndasNetworks