Ondas Inc · NASDAQ:ONDS
Ondas — Q3 2022 Earnings Presentation
36 slides from Ondas's earnings presentation, Nov 14, 2022
Slide 1: Third Quarter 2022 Earnings Release and Business Update
MISSION-CRITICAL DATA and SERVICES Third Quarter 2022 Earnings Release and Business Update Nasdaq : ONDS November 14, 2022 Copyright 2022. All rights reserved.
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 with Derek is an experienced executive Stewart brings over 20 years of Reese is an entrepreneur and over 25 years of management with over 30 years experience wit
Slide 4: Introduction
Introduction Business plans and product roadmaps on track at Ondas Networks and American Robotics Class I Rails progressing; 900MHz Network American Robotics extends leadership Airobotics acquisition progressing; leading to expand opportunities globally position with new customers, product customer
Slide 5: Agenda
Agenda Funding & Airobotics Update Financial Review Strategic Update Outlook Investor Q&A Nasdaq : ONDS 5
Slide 6: Balance Sheet Supports Growth Plan
Balance Sheet Supports Growth Plan Funding removes overhang and provides KEY TERMS: growth capital 2-Year Maturity (1) (October 2024) 3% interest rate • $34.5 million Convertible Note (unsecured) $4.25 conversion price • $30 million gross proceeds • Investor option for additional investment Monthly
Slide 7: Airobotics Update
Airobotics Update Deal and Airobotics business development progressing KEY EVENT: • Acquisition expected to close in Q1 2023 Airobotics shareholder vote • Integration planning advanced on December 18th • Positive customer response Nasdaq : ONDS 7
Slide 8: Airobotics Update
Airobotics Update Optimus platform is ready to scale; customer pipeline is seasoned UAE government entity plans city-wide fleet deployment of autonomous Optimus drone platform by 2025 • Dubai begins first urban deployment of fully autonomous drones • High value applications: Homeland security, publi
Slide 9: Financial Review
Financial Review Q3 And YTD Financial Review Nasdaq : ONDS 9
Slide 10: Financial Review | Q3 2022
Financial Review | Q3 2022 SELECT P&L DATA Three Months Ended September 30, KEY TAKEAWAYS: (Unaudited) 2022 2021 • P&L reflects preparation for larger Revenues, net $ 632,489 $ 283,329 commercial rollouts in 2023 for Cost of goods sold 233,001 269,716 Ondas Networks and American Gross profit 399,488
Slide 11: Financial Review | Q3 2022
Financial Review | Q3 2022 SELECT BALANCE SHEET DATA KEY TAKEAWAYS: September 30, December 31, 2022 2021 (Unaudited) • Cash position enhanced by recent ASSETS $30.0 convertible offering Cash and cash equivalents $15,283,557 $40,815,123 • Pro forma Cash(1): $43.0 million Total assets $103,015,982 $11
Slide 12: Strategic Review
Strategic Review Key Priorities and Accomplishments for Ondas Networks and American Robotics Nasdaq : ONDS 12
Slide 13: Progress On Key Priorities
Progress On Key Priorities Siemens 900 MHz order is commercial adoption inflection point • Volume order for 900 MHz with delivery commencing in Q4 • Received initial volume HOT order from Siemens for a major Asian railway network • Expanded into homeland security market with ICSS(1) network in Asia
Slide 14: Nasdaq : ONDS
Nasdaq : ONDS 14
Slide 15: Strategic Review — Ondas Networks
Strategic Review — Ondas Networks Pulling Through Demand With Siemens Scaling production for volume order in 900 MHz for Class I Rails in Two rails have completed internal launch activities North America • Class 1’s pursuing variety of new use cases for 900 MHz • Siemens to build inventory for custo
Slide 16: dot16 Adoption Broadening
dot16 Adoption Broadening SIEMENS INDIA HOMELAND SECURITY OPPORTUNITY PIPELINE JOINT-PRODUCT NEW END MARKET EXPANDED MARKETS DEVELOPMENT • First volume order for Asian HOT • Follow-on order from Caribbean • Advanced Radio Module (ARM) Jointly-developed product project program with Siemens UK • Launc
Slide 17: American Robotics
ONRAS AMERICAN ROBOTICS
Slide 18: Q3 and Recent Highlights
Q3 and Recent Highlights M&A & Partnership Activity • Signed definitive agreement to acquire Airobotics, a leading Israeli developer of autonomous unmanned aircraft systems. • Acquired the assets of Field of View LLC enhancing our capabilities to integrate new, industrial payloads with the Scout Sys
Slide 19: What is Happening Behind the Scenes?
What is Happening Behind the Scenes? Laying foundation for exponential growth via early adopter partnerships. Focus on increasing product stickiness through co- design, workflow integration, and customer service. • New payload integration • Legal evaluations • New analytics development • Data collec
Slide 20: Customer Pilot Program
Customer Pilot Program PHASE 1 PHASE 1 PHASE 2 PHASE 3 PROOF OF CONCEPT PAYLOADS & ANALYTICS FLEET OPERATIONS • Deep engagement with • Integrate customer-requested • Duplicate success across all Innovation Teams payloads applicable asset sites • Demonstrate autonomous data • Integrate analytics to m
Slide 21: What is the Expected Path to Revenue Growth for Scout System?
What is the Expected Path to Revenue Growth for Scout System? Step function phases within each customer account. Shortening sales cycles as early adopter design partnerships conclude. Initial POC Initial Fleet Rollout Regional Fleet Rollout National Fleet Rollout Early Adopter Cycle Current Cycle Q4
Slide 22: Fleet Deployment Outlook
Fleet Deployment Outlook Fleet readiness depends on sector and associated payload integration for Scout System. To build inventory in preparation for this, manufacturing for 35 systems is in currently progress and expected to complete in Q2 2023. BULK MATERIALS OIL & GAS RAIL & MINING Estimated TAM:
Slide 23: The Airobotics Acquisition
The Airobotics Acquisition Recap of rationale, and updates on progress and outlook Nasdaq : ONDS 23
Slide 24: 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 Robotic Arm Data Capture & Delivery Payloads Real-Time User Interface Data Platform FULL AUTOMATION 24/7 MULTIPLE R
Slide 25: Fleet Deployments Have Started
Fleet Deployments Have Started Smart city infrastructure is first big win for Optimus System. UAE CITY • Announced on November 9, 2022: The first-in- history commercial fleet deployment of autonomous drone systems in a city SMART CITY APPLICATION • Initial order for 4 Optimus Systems, with plans to
Slide 26: What is the Expected Path to Revenue Growth for Optimus System?
What is the Expected Path to Revenue Growth for Optimus System? Now in “Accelerated Cycle”, with fleet deployments occurring for early adopter customers. Initial POC Initial Fleet Rollout Regional Fleet Rollout National Fleet Rollout Early Adopter Cycle Q1 2020 – Q3 2022 Months: 12-18 Months: 6-12 •
Slide 27: Autonomous Platform Leadership
Autonomous Platform FOCUS END Oil & Gas, Rail, Bulk Materials, Security, Public Safety, Defense, Leadership MARKETS Mining, Agriculture Construction, Smart Cities PRICE OF PRODUCT $$ $$$$ TOTAL ADDRESSABLE $$$$ $$$ MARKET (TAM) Complementary Technology Platforms REGULATORY Automated BVLOS Type Certi
Slide 28: Outlook Summary
Outlook Summary Nasdaq : ONDS 28
Slide 29: Outlook – Key Business Targets
Outlook – Key Business Targets Deliver revenue growth starting with 900 MHz • Scale production; begin fulfilment of 900 MHz commercial order • Drive additional 900 MHz orders; build backlog • Enhanced awareness of dot16 standard adoption by Class I Rails • Advance new product and end market developm
Slide 30: Outlook
Outlook Continue to Cement and Extend Leadership • Balance sheet healthy; addressed funding overhang • Cash OPEX expected to be approximately $9.5 million(1) for Q4 2022 • Prioritize delivering revenue growth with wireless and drone platforms Nasdaq : ONDS (1) Excludes professional and advisory fees
Slide 31: Opportunity Lead
Opportunity Lead Vendor Map Highlights Opportunity to Define Market Solutions • Fragmented; subscale solutions • Confused customers Source: Drone Insight • Investor capital spread thinly Market requires scaled end-to-end solutions providers Nasdaq : ONDS 31
Slide 32: Leading UAS Platforms Are Valuable
Leading UAS Platforms Are Valuable Consumer, Industrial, Agriculture, Package Urban Air Markets Infrastructure, Public Defense Security, and Defense Delivery Mobility Safety, and Defense Barriers to Entry HIGH MEDIUM MEDIUM MEDIUM HIGH Estimated Market Size $114B $64B $47B $20B $115B (1) Valuation (
Slide 33: Closing Remarks
Closing Remarks Business development on American Robotics Delivering on 900 MHz Ondas is investing to win with track at Ondas Networks and demonstrating industry Network and expanded its partners and ecosystem American Robotics leadership for customers platform opportunities Nasdaq : ONDS 33
Slide 34: Investor Q&A
Investor Q&A Nasdaq : ONDS 34
Slide 35: Important Disclosures
Important 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 registrati
Slide 36: Thank You for Listening
NASDAQ: ONDS Thank You for Listening www.ondas.com www.american-robotics.com www.linkedin.com/company/ondasnetworks/ www.twitter.com/americanrobotic www.twitter.com/ondasnetworks www.linkedin.com/company/american-robotics-inc/