Luna Innovations, Inc. · OTC:LUNA

Luna Innovations — Merger or Acquisition (December 2020)

21 slides from Luna Innovations's merger presentation, Dec 3, 2020

  1. Slide 1: Transformative acquisition creates global fiber optic leader and distributed fiber sensing powerhouse

    December 3, 2020 Transformative acquisition creates global fiber optic leader and distributed fiber sensing powerhouse

  2. Slide 2: Safe Harbor Statement

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 2 Safe Harbor Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This presentation includes information that constitutes “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Li

  3. Slide 3: Strong Strategic Fit: Transaction Highlights

    Strong Strategic Fit: Transaction Highlights

  4. Slide 4: Luna and OptaSense create a global market leader in distributed fiber sensing

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 4 The combination of Luna and OptaSense creates a global market leader in distributed fiber sensing (DFOS) technology Luna is already a global leader in fiber sensing with market leading products  ODiSI – short range, high resolution (fully distribut

  5. Slide 5: Summary Transaction Highlights

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 5 Summary Transaction Highlights Transformative, strategic acquisition allows Luna to enhance product / solution portfolio, adding access to larger, high-growth markets  Adds to existing U.S. leadership position; cost-effectively establishes strong o

  6. Slide 6: About OptaSense and Market Opportunity

    About OptaSense and Market Opportunity

  7. Slide 7: Introduction to OptaSense

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 Introduction to OptaSense OptaSense Ltd. manufactures, installs, maintains, and operates distributed acoustic sensing systems worldwide. Its advanced solutions enable data collection and management to deliver security, tracking, protection and other a

  8. Slide 8: About OptaSense

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 About OptaSense OptaSense is a global technology leader in distributed fiber optic sensing solutions  Founded in 2007 as R&D group within QinetiQ, OptaSense has transformed into a vertically integrated provider of fiber optic systems  In 2014, Qinet

  9. Slide 9: OptaSense is organized in three business units

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 9 OptaSense is organized in three business units, all of which have strong synergy with Luna’s Lightwave Division Infrastructure and Security Monitoring (ISM) and Transport Oilfield Services (OFS) RIO (Lasers) End Markets Pipeline Monitoring Perimeter

  10. Slide 10: Global DAS Market

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 10 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 2020 2025 DAS Global Market ($M) DAS is significant portion of total market for distributed fiber optic sensing; significantly expands Luna’s addressable market Global DAS market expected to experienc

  11. Slide 11: Geographic Reach

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 Geographic Reach Corporate Headquarters Other Offices Overlapping Sales Coverage – OptaSense Strength Roanoke, VA Farnborough, UK Corporate Headquarters Other Offices Overlapping Sales Coverage – LUNA Strength

  12. Slide 12: Strong Cultural Fit with Luna's Values

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 12 Strong Cultural Fit with Luna’s Values  Ownership – Dedicated to every customer’s success through personal accountability to meet business goals, improve systems and ultimately solve problems.  Integrity – Do the right thing by stressing honesty,

  13. Slide 13: Transaction Highlights and Financials

    Transaction Highlights and Financials

  14. Slide 14: Financial Highlights and Financing Details

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 14 Financial Highlights and Financing Details Financial Highlights Sign and close simultaneous; Luna Board of Director approval; no regulatory approvals required Acquisition expected to be accretive in 2021 Revenue synergies included; no expense syner

  15. Slide 15: Reaffirming 2020 Financial Outlook

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 15 Reaffirming 2020 Financial Outlook Maintaining FY2020 outlook:  Total revenues of $81M to $83M  Adjusted EBITDA1 of $10M to $12M Luna expects to provide further guidance as well as additional qualitative detail on its fourth quarter and year-end

  16. Slide 16: Conclusion: Acquisition of OptaSense is highly attractive and transformative

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 16 Conclusion: Acquisition of OptaSense is highly attractive and transformative for Luna Innovations • Highly complementary businesses; creates global fiber optic sensing leader with broad offerings for short- and long-range • Establishes strong prese

  17. Slide 17: Luna – Enabling the Future with Fiber

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 17 Luna – Enabling the Future with Fiber Proprietary, measurement technology, offering unprecedented combination of resolution, accuracy and speed Customers in attractive markets: Military and Defense, Communications, Infrastructure, Energy and Automo

  18. Slide 18: Appendix: More about OptaSense

    Appendix: More about OptaSense

  19. Slide 19: Filling the strategic product/technology gap

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 19 Filling the strategic product/technology gap Hyperion Interrogator Multiple, Discrete Sensor Points Per Fiber • Best when specific, known locations need to be monitored Hyperion: Luna’s Long Range, High-Speed Distributed Sensing Solution OptaSense

  20. Slide 20: Products/Technology

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 20 Products/Technology

  21. Slide 21: Markets and Applications

    NASDAQ: LUNA Luna Innovations Incorporated© 2020 21 Markets and Applications Pipelines Oil & Gas Transportation Borders Perimeters Power & Utility End Market Applications Select Customers  Real-time pipeline monitoring preventing disruption of flow — Pipeline leakage — Theft — Accidental damage  A

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