Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Shareholder Meeting (May 2021)
27 slides from Electro Optic Systems's shareholder meeting presentation, May 28, 2021
Slide 1: Electro Optic Systems Holdings Limited Annual General Meeting
Electro Optic Systems Holdings Limited Annual General Meeting | 28 May 2021 1
Slide 2: Proxy Votes Received
2, RE-ELECT PETER LEAHY AC. For 48,368,134 94.45 32.08 ‘Against 1,684,597 3.29 1.12 Open-Usable 1,156,850 2.26 077 Board] (987,551 1.93] 0.66] . ‘Non-Board] 169,299) 0.33] 0.17 Open-Cond i) 0.00 0.00 eceive cern ] oR ves ‘Abstain 73,128 NA 0.05 Excluded oO N/A 0.00 3, RE-ELECT KATE LUNDY For 49,100,
Slide 3: Disclaimer
Disclaimer This presentation and any related communication may contain statements that are forward-looking with regard to the business and future performance of Electro Optic Systems Holdings Limited (“EOS”) and its subsidiaries. These statements reflect EOS’ current views, assumptions and projectio
Slide 4: 2020 Review
2020 REVIEW 4
Slide 5: Milestones of 2020
Milestones of 2020 Although 2020 was a difficult year, resulting in an underlying loss of $14.2 million and an operating loss of $29.9 million after forex, there were several highlights as EOS maintained its growth momentum: 1. Revenue 98% CAGR. In 2020 we completed three years of revenue growth wit
Slide 6: Financial Performance: Revenue
Financial Performance: Revenue Revenue A$ (millions) 200 • Revenue was severely impacted after Q1 2020 by COVID-19 150 • Revenue growth was reduced to 100 9% which impacted profitability • CAGR from 2017 reduced to 98% 50 • Key initial revenue target of $240 million pushed back to 2021 0 2017 2018 2
Slide 7: Financial Performance: Profit/Loss
Financial Performance: Profit/Loss • As usual, most investments in new technology or business growth are expensed. These were not slowed in 2020 • COVID-19 delays resulted in an underlying loss before FX of $14.2 million • Non-cash FX loss represents the non- cash adjustment to the contract asset va
Slide 8: Financial Performance: Cash
Financial Performance: Cash Cash A$ (millions) • $130 million of new funds raised 80 in April 2020, principally to allow an increase in inventory while export 60 delivery processes were unblocked 40 • At 31 December 2020 the company’s cash was as expected 20 • Cash will remain strong through 2021 as
Slide 9: COVID-19 Delivery Issues
COVID-19 Delivery Issues EOS derives 95% of revenue from exports which are air freighted. Exports ceased in March 2020 due to: 1. Severe reductions in air freight capacity 2. Loss of public sector resourcing for mandatory export and import documentation 3. COVID-19 shutdown of substantial EOS facili
Slide 10: Defence Systems
DEFENCE SYSTEMS 10
Slide 11: Defence: Highlights
Defence: Highlights New business led by Australian sovereign capability • Executed ADF contract for 251 R400 RWS • Executed the C4EDGE contract with the Australian Army • Delivered first remote lethality solutions for NATO robotic combat vehicles – deploying on operational service in 2021 • Complete
Slide 12: C4 - Evolutionary Digital Ground Environment (EDGE)
C4 - Evolutionary Digital Ground Environment (EDGE) Australian Industry initiative led by EOS Defence Systems working collaboratively with 23 other Australian Industry partners and the Australian Army headquarters –$35 million Objectives • By December 2021 develop and document a sovereign C4 archite
Slide 13: T2000 Turret for Land400 Phase 3
T2000 Turret for Land400 Phase 3 • EOS is part of the Hanwha “Redback” consortium for Land400 Phase 3 (one of two remaining competitors) • World-class manned medium weight turret incorporating; • modern anti tank missiles • active protection systems • counter drone defence • see through armour visio
Slide 14: Counter Uninhabited Aerial Systems
Counter Uninhabited Aerial Systems • Rapidly evolving USD$30 billion market • Creating significant demand for novel application of new and existing technologies • Challenge due to asymmetric cost and scale advantages of commercial and military drones • Hardest technologies to optimize are the kill s
Slide 15: Space Systems
SPACE SYSTEMS| Suan ER |, WINNI rua
Slide 16: Space Systems: Securing Space
Space Systems: Securing Space Space Domain Awareness (SDA) • EOS laser sensors detect, track, classify, characterise and catalogue objects in space, far beyond the range of radar Space Protection • Collision avoidance combining data with EOS’ Conjunction Analysis and Threat Warning System to provide
Slide 17: Space Systems: Capabilities
Space Systems: Capabilities Extensive Ground-based Space Infrastructure • Seven operational telescopes across Australia • Dynamic catalogue of space objects • Unique capability in accuracy and coverage • Supporting United States space operations through operational exercises (SACT) Next Generation D
Slide 18: Space Sector: Key Achievements
Space Sector: Key Achievements • Awarded multiple minor space tracking contracts and delivered over 100,000 space object tracks under contract in 2019 • Awarded an international space equipment contract • Awarded a domestic contract for the development of advanced test and measurement instrumentatio
Slide 19: Communications Systems
COMMUNICATIONS SYSTEMS 19
Slide 20: Communications Systems: Accelerating
Communications Systems: Accelerating • Conceived to provide EOS optical communications technologies access to $100 billion annual revenue segment • A credible presence requires both ground segment and space segment capabilities - Ground Segment: Established 1 October 2019 with the acquisition of EM
Slide 21: EM Solutions: Highlights
EM Solutions: Highlights • Cemented position as the world’s premier global maritime satellite communications terminal manufacturer • Completed a record number of deliveries for the Australian Navy and three European Navies • Secured ongoing orders for the Australian Navy Offshore Patrol Vessels (OPV
Slide 22: SpaceLink System Architecture
SpaceLink System Architecture: A High Value Proposition to Space Users Without SpaceLink: Hours-long Link Gaps With SpaceLink: Continuous & Secure Downlink Capability • Animation below shows a spacecraft in orbit • Realtime Downlink: The faster you can downlink your satellites’ data, performing its
Slide 23: SpaceLink – Roadmap
SpaceLink – Roadmap Achieved Current Activities Future • SpaceLink Corporation (US) • Soliciting Firm Fixed Price quotations • 2021 established as subsidiary of EOS from key suppliers (e.g. satellites, – Close financing ground systems) – Issue key supplier contracts • IP completed with acquisition o
Slide 24: Company Outlook
aS COMPANY OUTLOOK -” @~»
Slide 25: 2021 Growth Outlook
2021 Growth Outlook 1. EOS’ current charter is to rapidly create a highly resilient and profitable aerospace company that supports the national security interests of Australia and its allies. This requires a company that: exceeds critical mass in scale, is diversified in markets and products; and
Slide 26: 2021 Key Factors Crystallising Value
2021 Key Factors Crystallising Value 1. SpaceLink Funding SpaceLink funding for initial constellation of satellites in Q3 2021 will create an initial value event for EOS shareholders 2. Contract Awards Anticipated Over $1 billion of contract award in advanced stages of development with existing EOS
Slide 27: 2021 Financial Guidance
2021 Financial Guidance The following guidance is provided on the basis that market conditions do not materially change, adversely impacting operations, and noting that considerable uncertainty continues in relation to the potential impacts of COVID-19, EOS also notes the potential for material cont
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