Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — H1 2020 Earnings Presentation
22 slides from Electro Optic Systems's earnings presentation, Aug 31, 2020
Slide 1: 1H 2020 Interim Results Investor Presentation
For personal use only 1H 2020 Interim Results Investor Presentation 31st August 2020
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY For personal use 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 word
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer Preparation of Information For personal use only All financial information has been prepared and reviewed in accordance with Australian Accounting Standards. Certain financial data included in this presentation is ‘non IFRS financial information’ noting that the finan
Slide 4: Overview
Overview EOS is Australia’s largest aerospace entity and the largest defence exporter in the southern hemisphere For personal use only Reaching across countries 12 450+ Employees around the world R&D spent on EOS IP over 20 $800m years, 75% from customers, most of this IP has not been exploited yet
Slide 5: Key Milestones
Key Milestones 1993 1998 2006 2018 For personal use only Defence Space Defence Defence EOS selected by US Research Satellite ADF RWS LAND400 ARDEC as developer EOSCOM Contract Award Phase 2 for remote weapons launched RWS Selected stations 1983 2002 2020 Electro Optic ASX: EOS Communications Systems
Slide 6: Leadership Team
Leadership Team Board of Directors For personal use only Fred Bart Peter Leahy Ben Greene Kate Lundy Geoff Brown Ian Dennis Chairman Non-Executive Group Chief Non-Executive Non-Executive NED & Company Director Executive Officer Director Director Secretary Executive Management Team Pete Short Scott L
Slide 7: Strategic Ecosystem & Synergies
Strategic Ecosystem & Synergies For personal use only Strategy: to use advanced technology to create new markets for the benefit of our customers, communities and shareholders Creating world Strategically releasing leading R&D technology - Laser physics - When customers have - Advanced optics - suff
Slide 8: 1H20 Review
For personal use only 1H20 Review
Slide 9: 1H20 Key Operational Highlights
1H20 Key Operational Highlights Revenue growth of 31% For personal use only 01 Revenue of $75m, up 31% on pcp despite COVID-19 interruptions to deliveries Net loss after tax of $14m as revenue and profit deferred into H2 2020 and 2021 H2 strong revenue growth and positive profit forecast. Guidance r
Slide 10: 1H20 Financial Headlines
1H20 Financial Headlines % $millions 1H20 1H19 For personal use only movement Strong revenue growth despite deferrals caused by Revenue 75.4 57.4 31% COVID-19 • Revenue deferred into H2 2020 and 2021 EBITDA - excluding FX gains/(losses) -11.0 10.6 -204% % of revenue -14.6% 18.5% Short term profitabi
Slide 11: 1H20 Segment Performance
1H20 Segment Performance $millions 1H20 1H19 Defence revenue growth of 17% despite COVID-19 For personal use only Revenue (excluding other income) interruptions • Revenue recognition based on the milestones completion approach Defence 66.6 56.6 Communications 8.1 - Communications division newly form
Slide 12: 1H20 Net Cash Flow Movements
1H20 Net Cash Flow Movements For personal use only Cash flow impacted by COVID-19 300.0 53.0 • Disruption of the delivery chain deferred cash flow from H1 into H2 and 2021 250.0 • Contract assets increased by $50.6m and inventory 138.6 increased by $22.7m. Will unwind over next 12 months 200.0 Capit
Slide 13: FY2020 Guidance and Growth Priorities
FY2020 Guidance and Growth Priorities For personal use only FY2020 Guidance (Reaffirmed) Growth Priorities Defence 1 EBIT of $20-30m Defence sector has strong growth beyond 2020 locked into its large contract backlog and conversion of pipeline opportunities to backlog contributes further 2 Underlyin
Slide 14: Strategic Outlook
For personal use only Strategic Outlook
Slide 15: Update on Pipeline and Backlog
Update on Pipeline and Backlog Backlog reflects committed contracts that are For personal use only not yet fulfilled • Backlog currently consists largely of Defence products Defence underpinned by a number of key contracts Backlog1 $570m Communications • Communications backlog is expected to grow st
Slide 16: Commonwealth Defence Strategic Update
Commonwealth Defence Strategic Update 2020 Defence Strategic Update released 1 July 2020 (1) For personal use only • Increase in spending from $200bn to $270bn over next 10 years • Three new strategic objectives (2) • to shape Australia’s strategic environment; • to deter actions against Australia’s
Slide 17: Counter Unmanned Aerial Systems
Counter Unmanned Aerial Systems For personal use only Drones are one of a number of new technology threats • Asymmetric threat due to low cost for attackers and difficulty to defend EOS already selected as preferred tenderer to major program • EOS unique in having several different weapons systems w
Slide 18: Remotely Operated Combat Vehicles
Remotely Operated Combat Vehicles For personal use only EOS products have the two essential performance requirements for ROCV • Accuracy: no reload is possible, enhanced lethality • Reliability: no manual interval is available EOS is participating in multiple ROCV tender programs around the world 18
Slide 19: Space Systems: Securing Space
Space Systems: Securing Space For personal use only Space Domain Awareness (SDA) • EOS laser sensors detect, track, classify, characterise and catalogue objects in space, far beyond the range of radar • EOS will seek to participate in Commonwealth program JP9360 which includes c.$2bn for SDA Space P
Slide 20: Communications: SpaceLink
Communications: SpaceLink SpaceLink designed to exploit EOS optical technology For personal use only • EM Solutions (ground segment), Audacy (spectrum licenses), Collinear (hybrid technology) + EOS optical technology • Will deliver first 10X and later 100X increases in bandwidth Three satellites (+1
Slide 21: Battlefield of the Future
Battlefield of the Future Satellite Communications Space For personal use only Protection Battlegroup Communications Space Awareness Counter-UAS Directed Energy Remotely Operated Combat Vehicles Containerised Weapon Systems Remote Weapon Systems
Slide 22: For personal use only
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Electro Optic Systems Holdings — H1 2020 Earnings Presentation on 6ix