Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Investor Day (May 2024)
40 slides from Electro Optic Systems's investor day presentation, May 20, 2024
Slide 1: EOS Investor Day Presentation
EOS Investor Day Presentation 20 May 2024 Authorised for release by the Board of Electro Optic Systems Holdings Limited
Slide 2: Disclaimer and important notices
Disclaimer and important notices CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY Forward-looking Statements This presentation may contain statements that are, or may be deemed to be, forward-looking statements. Such statements can generally be identified by the use of words such as ‘may’, ‘wil
Slide 3: Disclaimer and important notices
Disclaimer and important notices Presentation of Information All financial information has been prepared in accordance with Australian Accounting Standards. Certain financial data included in this presentation is ‘non IFRS financial information’. The Company believes that this non IFRS financial inf
Slide 4: Welcome, Introductions and Safety
Welcome, Introductions and Safety Dr Andreas Schwer - MD and CEO Clive Cuthell - CFO & COO
Slide 5: Key Speakers
Key Speakers Dr. Andreas Schwer, MD & CEO Clive Cuthell, CFO & COO • Over 30 years in global Defence, Manufacturing and • Over 15 years as CFO in global industrial Space businesses • Previously with Rheinmetall AG, Manitowoc and • Previously with Rinker Group / Holcim 9 years, Airbus Nuplex 3 years
Slide 6: Recap: 2023 Financial Performance
Recap: 2023 Financial Performance In 2023 EOS generated a positive Underlying EBITDA1 result driven by record 2H Revenue and Underlying EBITDA1 $m Full Year 2023 Result 2023 2022 Var Continuing Operations • Revenue increased $81.3m (59%) on prior year, with across the board growth Revenue 219.3 137.
Slide 7: Recap: 2023 Market, Customer & Revenue Development
Recap: 2023 Market, Customer & Revenue Development Significant progress was made in 2023 in expanding and diversifying the customer base; we are working to continue this Contract Backlog, $m Key Points 700 622 600 • Significant progress made in 2023 in expanding and diversifying the 181 customer bas
Slide 8: Recap: Our Commitments: 2022 & 2023
Recap: Our Commitments: 2022 & 2023 We delivered on our commitments made in 2022 and 2023; we are working to grow in 2024, including order book & cash flow We said… We delivered… • Focus on core businesses and strengths of point & track Formulate new strategy • Exit SpaceLink in 2022. Exit Australi
Slide 9: 2024 Year-to-Date Highlights
2024 Year-to-Date Highlights In 2024 we have grown revenue (Q1), continued to develop growth capacity and reduced debt levels Financial Results Q1 2024 (unaudited) Revenue1 $77.3m up $43.3m on prior year Cash receipts $52.1m down $10.0m on prior year Cash balance $72.4m at 31 March 2024 Key Developm
Slide 10: Recent Business Wins
Recent Business Wins We recently demonstrated a track record in winning contracts - including for new products; we are working to continue this Contract Expected Contract Revenue announcement Revenue 13 Nov 2023 R600 RWS customer in Southeast Asia $28m 2024-26 RWS follow-on order Western European 27
Slide 11: Global Markets & Growth
Global Markets & Growth Dr. Andreas Schwer - MD & CEO
Slide 12: EOS is focused on organic growth opportunities
EOS is focused on organic growth opportunities Growing the order book is our key focus for 2024 - several opportunities are developing positively; European growth is targeted Markets Products Sales Capability Order Book • Global military spending grew • Commercialising existing IP • New commercial l
Slide 13: Market Update
Market Update Global defence markets are buoyant and this is expected to continue Market Update EOS Focus Defence • Defence spending priorities now more certain following ‘22/’23 delays • Continue Hanwha negotiations for Land 400-3 (RWS for 129 x IFVs) Australia • DSR, NDS and IIP completed and anno
Slide 14: Growth Strategy
Growth Strategy EOS is positioned to grow sustainably in the short, medium and longer terms 1-3 Years 2-5 Years 3-10 Years DEFEND NURTURE SEED • Significant organic growth opportunities: & GROW • Remote Weapons Systems (RWS) • Counter-Drone Products (specialised RWS) • Naval Satcom (EM Solutions) Sp
Slide 15: Defence Systems
Defence Systems Ian Cook – EVP, Defence Systems Australia Dr Andreas Schwer – MD & CEO
Slide 16: Remote Weapon Systems Product Range
Remote Weapon Systems Product Range EOS has a wide range of RWS products on the market and in development Sensor Unit Ultralight RWS Light RWS Medium RWS Heavy RWS Light Turret Multi-Mission R150 R400 R600 R800 T1600 Sensors Common Range of Platforms and Applications Common Control Interfaces MLRS T
Slide 17: Identified Growth Opportunities
Identified Growth Opportunities Current market demand expected to be filled through the innovative products launched by EOS during 2023 Indicative revenue timing * • Formal production launch in 2023 R150 Lightweight • Suitable for light vehicles 2023-25 System • Future UGV opportunity • Launched “Sl
Slide 18: Drones & Counter Drone Warfare
Drones & Counter Drone Warfare Global demand for drones and counter-drone solutions is growing rapidly • The rise of drones in modern warfare in recent years is well documented – media attention is expected to continue. • Low Cost - Drones provide both state and non-state actors the opportunity to d
Slide 19: Slinger Counter-Drone System
Slinger Counter-Drone System The Ukraine conflict demonstrates the drone threat and the need for counter-drone solutions. We are pursuing a range of opportunities Context • Reported >10,000 Ukraine drone launches / month • Limited defence options: • technical requirements • economic sustainability E
Slide 20: R150 Remote Weapon System
R150 Remote Weapon System Lightest system on the market capable of deploying 12.7mm/14.5mm heavy machine guns Product • Ultra lightweight system • Under 150kg with 12.7mm machine gun and full ammunition load • Can be operated remotely • Non-ITAR Wide Range of Weapons, including: • 14.5 mm and 12.7 m
Slide 21: R800 Heavy Calibre System
R800 Heavy Calibre System EOS recently launched a heavy calibre R800 system, with an integrated counter-drone laser dazzler Product • Turret-level, heavy-calibre hitting lethality • Lightweight system • Operated remotely Wide range of weapons, including: • 1 x Javelin or 2 x Spike (pod) • Mk44S 30 x
Slide 22: EM Solutions
EM Solutions Dr. Andreas Schwer - MD & CEO
Slide 23: EM Solutions
EM Solutions EM Solutions is a market leader in Naval SatCom achieving strong growth in Australia and Europe. We are targeting continued growth Summary • Multiband frequency • Multiband Satcom (X, Ku, Ka Band Com, Ka Band Mil) • Ship-to-Shore E Band (70/86GHz) • Continued delivery and growth to six
Slide 24: High Energy Laser Weapons
High Energy Laser Weapons Dr. James Bennett - EVP Space Systems Dr. Andreas Schwer - MD & CEO
Slide 25: High Energy Laser Weapons - Background
High Energy Laser Weapons - Background The US Government spends >US$1bn per annum on developing high energy laser weapon technology • Emerging and urgent market need for laser-based drone, rocket, artillery, mortar, air and missile defense • The rapid proliferation of drones and other unmanned warfi
Slide 26: High Energy Laser Weapons - Market
High Energy Laser Weapons – Market EOS is focused on the 30-150kW power level and related use cases, particularly counter drone • High Energy Laser Weapons are extremely versatile, with emerging markets across a wide range of applications • The total addressable market for affordable solutions is ex
Slide 27: High Energy Laser Weapons - Competitive Landscape
High Energy Laser Weapons – Competitive Landscape The significant technical barriers mean that the global market is still relatively uncompetitive Competitive Threat United • Invest >$1bn per annum in laser weapons, including prototypes for Army, Navy & Air Force Low States • Strict restrictions pro
Slide 28: High Energy Laser Weapons - Summary
High Energy Laser Weapons - Summary We see significant market opportunity over the next 5 years. We will exercise capital discipline. Market • Drone threat demonstrated in Ukraine & Middle East • Growing & new market interest in laser weapons • Significant market growth expected EOS • EOS advantages
Slide 29: Space Technologies
Space Technologies Dr. James Bennett, EVP – Space Systems
Slide 30: EOS Space Technologies
EOS Space Technologies EOS operates two Australian facilities, covering Australia, adjacent oceans & related space territory Learmonth (WA) Mt. Stromlo (ACT) 30
Slide 31: EOS Space Technologies
EOS Space Technologies EOS specialises in applying EOS developed optical sensors & effectors to detect, track and characterise objects in space Demonstrated Capability Summary • EOS designs and manufactures bespoke world-leading beam director telescopes • EOS has decades of experience in Satellite L
Slide 32: Space Control
Space Control Dr. James Bennett - EVP Space Systems Dr. Andreas Schwer - MD & CEO
Slide 33: Space Control - Background
Space Control - Background The space domain is now the most critical and contested environment for governments and militaries Conflict and the Space Domain • Modern conflict is highly reliant on surveillance and communications satellites • Market need for advanced defence systems that can detect, tr
Slide 34: Space Control - Market Need
Space Control - Market Need Governments are assessing options. EOS has all the key components to develop & provide solutions Market Need Planned EOS Solution Decisive advantage Earth-to-Space laser capabilities in the space domain Key features of the developing EOS solutions • Space Intelligence - O
Slide 35: Space Control - EOS Competitive Advantage
Space Control - EOS Competitive Advantage EOS has a unique mix of expertise required to develop this solution Telescopes & High Energy Adaptive Enclosures Lasers Optics Automated electronic Mission Tracking control systems Systems systems & software software 35
Slide 36: Space Control - Summary
Space Control - Summary The market opportunity is large and will take time to develop. EOS will exercise capital discipline • Space control is expected to be a significant market - strategic advantage during conflict • Opportunity expected to mature over 3 – 10 years • EOS uniquely offering a compel
Slide 37: Appendices
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Slide 38: Glossary
Glossary Term Description Term Description ADF Australian Defence Force ISR Intelligence, surveillance and reconnaissance Technique of precisely deforming a mirror in order to Adaptive Optics kW Kilo Watts compensate for (atmospheric) light distortion APKWS Advanced Precision Kill Weapon System MLRS
Slide 39: Reconciliation of Statutory Profit / (Loss) and Non-GAAP measures
Reconciliation of Statutory Profit / (Loss) and Non-GAAP measures Total Operations (Continuing & Discontinuing) 2022 2022 2022 2023 $m Continuing Discontinuing Total Loss for the year (34.1) (53.6) (81.7) (135.3) Gain on assignment and effective disposal of SpaceLink - - 19.7 19.7 Net loss for the y
Slide 40: Nh a4
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