Defsec Technologies Inc. · TSXV:DFSC
Defsec Technologies — KWESST Micro Systems — Investor Presentation (April 2022)
31 slides from Defsec Technologies's investor presentation, April 2022
Slide 1: Next-Generation Tactical Systems
NEXT-GENERATION TACTICAL SYSTEMS APRIL2022 | INVESTOR PRESENTATION T SXV: K W E OT CQB: K W E M F
Slide 2: Disclaimer
Disclaimer Non-Reliance This presentation does not provide full disclosure of all material facts relating to KWESST Micro Systems Inc., or its securities, and future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such is not subjec
Slide 3: Mission & Management
MISSION & MANAGEMENT KWESST develops and commercializes proprietary next-generation technologies that deliver a tactical advantage for military, security forces, and personal defense. 3
Slide 4: One company focused where it counts
OVERVIEW C$82.4* Billion Dollar World Market. Three Niche Segments. One company focused where it counts. NON-LETHAL DIGITIZATION COUNTER-THREAT Products for personal defense, Real-time situational awareness Protection against lasers, electronic public safety, & realistic training. and targeting for
Slide 5: Management
MANAGEMENT Jeff MacLeod Founder, President, CEO & Board Member Jeff is a former Canadian RCEME officer and served as System Engineer for three major Army Crown Projects before moving to the private sector. For almost twenty years he was General Manager of Diemaco/Colt Canada. He is an expert in the
Slide 6: Management
MANAGEMENT Steve Archambault CFO Mr. Archambault began his career as a CPA, CA, with Ernst & Young LLP, followed by senior finance positions at AXIS Capital, a global insurer and reinsurer, and more recently had CFO roles with small-cap public Canadian companies listed on the TSX Venture Exchange an
Slide 7: Non-Lethal
NON-LETHAL KWESST develops and commercializes proprietary non-lethal products for personal defense, public safety, and close quarters combat simulation. 7
Slide 8: PARA OPS
NON-LETHAL PARA OPS TM Non-lethal products for personal defense, public safety and close quarters combat simulation. A next-generation replacement for most legacy systems on the market today A patent pending, non-lethal low-energy cartridge-based system that fires from a dedicated device that can lo
Slide 9: PARA OPS: legacy systems have major flaws
NON-LETHAL PARA OPS TM A replacement for dated legacy systems on the market today that are either high-energy and can be lethal or are air-gun based and often unreliable. Legacy systems have major flaws High-Energy Cartridge Systems = Fatalities Air Guns = High Maintenance and Unreliability RIOT CON
Slide 10: PARA OPS: how it works and compares
NON-LETHAL PARA OPS TM How it works and compares to high-energy cartridge systems and air guns Low Energy Cartridge Case • Low energy actuator disc in rear • No gunpowder or compressed gas • Specifically configured interior mates with projectile to generate self-stabilizing spin for accuracy and dis
Slide 11: PARA OPS firing device launchers
NON-LETHAL PARA OPS TM Firing device launchers Low-cost personal and professional series launchers in various patterns that fire only the PARA OPS cartridge • Mini single-shot and five-shot flashlight for personal security • High-capacity automatic pistols and carbines for non-lethal operations and
Slide 12: PARA OPS Brand Ambassador strategy
NON-LETHAL PARA OPS TM Brand Ambassador strategy "PARA OPS is a potential game changer for law enforcement, and it adds to a family's ability to diversify home and personal defense. ● Brandon Tatum is a quality example of one of our best As a former police officer, I understand the value of having a
Slide 13: Commercialization model – outsourced production plan
NON-LETHAL PARA OPS TM Commercialization model – outsourced production plan In House Product development and demonstration samples. Initial short-run production plan Launchers – planned manufacturing runs of up to 250/week for single shot launcher and 50/week for the five shot, employing additive ma
Slide 14: Sales and order fulfillment plan: law enforcement
NON-LETHAL PARA OPS TM Commercialization model – sales and order fulfillment plan Law Enforcement and Security Market Sales plan ● Direct to law enforcement and security e-Commerce module at para- ops.com by summer 2022. ● Law enforcement dealers and third-party e-Commerce sites. Order Fulfillment p
Slide 15: Sales and order fulfillment plan: personal defense
NON-LETHAL PARA OPS TM Commercialization model – sales and order fulfillment plan Personal Defense Market Sales ● e-Commerce module at para-ops.com by summer 2022. ● Specialized third-party e-Commerce sites for direct-to-consumer. Order Fulfillment ● Ramp-up pilot with established industry partners.
Slide 16: 2022 industrialization capacity plan
NON-LETHAL PARA OPS TM 2022 industrialization capacity plan for fiscal year ending 30 th September Ongoing Development (in-house) April 2022 May – June 2022 July – Sept 2022 Optimization • Civilian 5-shot flashlight Optimization Automatic cartridge Automatic firing device optimization optimization •
Slide 17: ARWEN non-lethal product line
NON-LETHAL ARWEN TM Non-lethal product line ● Complementary acquisition, completed December 2021. ● Iconic brand with established yet underexploited customer base of law enforcement in North America and overseas. ● Used primarily for riot control and by police tactical teams during high-risk arrests
Slide 18: Digitization
DIGITIZATION KWESST develops and commercializes proprietary next-generation real-time situational awareness and targeting technologies for military and security forces. 18
Slide 19: Real-time situational awareness for military and security forces
DIGITIZATION Real-time situational awareness for military and security forces A top priority for NATO is to modernize the soldier on the ground with a networked common operating picture to reduce combat casualties and enable greater operational effectiveness. KWESST’s signature product – its proprie
Slide 20: TASCS targeting – Integrated Fire Module
DIGITIZATION TASCS targeting – Integrated Fire Module (“IFM”) Extends the TASCS app to “Joint Fires” on indirect fire weapons like mortars, grenade launchers, heavy machine ManTech guns, rocket launchers, artillery and more. Converts these ”dumb” legacy weapon systems to “smart” weapons without any
Slide 21: Digitization Center of Excellence
DIGITIZATION Digitization Center of Excellence Integration of TASCS and TASCS IFM into U.S. TAK battlefield management software for a major U.S. military customer led to requests from Tier 1 defense contractors and others to facilitate the integration of their systems into the new digital ecosystem
Slide 22: Counter-Threat
COUNTER-THREAT KWESST develops and commercializes proprietary next-generation Counter-Threat technologies that deliver a tactical advantage in Electromagnetic Spectrum Operations, or “EMSO”. 22
Slide 23: Phantom miniaturized Electronic Warfare device
COUNTER-THREAT “PhantomTM” miniaturized Electronic Warfare (“EW”) device Instances in modern conflicts show that deployed forces must defend against detection of Electromagnetic Spectrum Operations, or “EMSO” their electronic communications, or they can be easily located and annihilated, and have ha
Slide 24: Battlefield Laser Detection System (BLDS)
COUNTER-THREAT Battlefield Laser Detection System (BLDS) Defending against laser targeting and laser weapons Personnel Worn Version NATO is seeking a solution to the growing threat of lasers used to “paint” or “lase” ground personnel to target them for attack, or weaponized to cause direct injury to
Slide 25: GhostNet
COUNTER-THREAT “GhostNet ” TM Counter-measure against hostile drones including loitering munitions Hostile small drones continue to be a growing worldwide problem for military forces and domestic targets*. Larger versions are now being deployed as powerful, even decisive weapon as “loitering munitio
Slide 26: Highlights
HIGHLIGHTS KWESST develops and commercializes proprietary next-generation technologies that deliver a tactical advantage for military and security forces, and personal defense. 26
Slide 27: Electronic Warfare Market & Drivers
MARKET Electronic Warfare Market & Drivers Global Market Size Market Drivers KWESST Advantage C $ 48.9 B The vast, growing & evolving ● Proprietary and patented threat from: technologies with no by 2028 (1) ● Lasers known equivalent today ● Strategic partnerships ● Electronic Detection with Tier 1 d
Slide 28: Operating model: manufacturing and go-to-market
OPERATING MODEL MANUFACTURING Internal development of technologies and demonstration samples. Outsourced production to a ready supply chain of proven vendors. GO-TO MARKET Direct engagement with marquee customers to seed KWESST products, which then attracts OEMs. Customer demonstrations, marketing a
Slide 29: Business attributes
BUSINESS ATTRIBUTES Proprietary Accomplished Board Top-Tier Industry Outsourced Diversified Technologies & Management Partners Scalable Model Addressing niche Long-standing high growth + Products, markets With more With operating customer value defense & & customers, with partnerships in leverage as
Slide 30: Capitalization
CAPITALIZATION CAPITALIZATION TABLE As of 3/18/22 Common Shares Outstanding 51,204,343 Options (WAEP $1.38) 4,575,975 Warrants (WAEP $0.79) 13,310,256 Restricted stock and performance stock units 1,451,474 TOTAL 70,542,048 27
Slide 31: Thank You / Contact
Thank You Contact David Luxton, Executive Chairman EMAIL: dluxton@dluxton.com PHONE: (613) 769-5353 Locations KWESST — NORTH AMERICA KWESST — INTERNATIONAL HEAD OFFICE EUROPE 155 Terence Matthews Cr., Ottawa, ON Rex House, 4th Floor, 4-12 Regent Street, Canada K2M 2A8 London SW1Y 4PE U.S. MIDDLE EAS
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