Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Investor Presentation (November 2024)
23 slides from Electro Optic Systems's investor presentation, Nov 21, 2024
Slide 1: EM Solutions Divestment
EM Solutions Divestment Andreas Schwer, Managing Director & Chief Executive Officer Clive Cuthell, Chief Financial Officer & Chief Operating Officer 21 November 2024 Approved for release by the Board of Directors
Slide 2: Disclaimer and important notices
Disclaimer and important notices This investor presentation (Presentation) has been prepared by Electro Optic Systems Holdings Limited ACN 092 708 364 (Company or EOS) and is dated 21 November 2024. This Presentation has been prepared in connection with the binding share sale agreement (SSA) which h
Slide 3: Executive Summary (1 / 2)
Executive Summary (1 / 2) The announced divestment of EM Solutions (EMS) represents an important step in the evolution of EOS and provides the ability to recycle capital into opportunities aligned with EOS’ core competencies and high growth markets • EOS’ business was originally founded on electro-o
Slide 4: Executive Summary (2 / 2)
Executive Summary (2 / 2) The announced divestment of EM Solutions (EMS) represents an important step in the evolution of EOS and provides the ability to recycle capital into opportunities aligned with EOS’ core competencies and high growth markets Transaction • Over the past year EOS has undertaken
Slide 5: Market Conditions – Geopolitical Backdrop
Market Conditions – Geopolitical Backdrop Geopolitical uncertainty continues to create very supportive market conditions Global defence spending increased by 9% to a record US$2.4tn in 2023 Entrenched conflict in Ukraine and broadening conflict in Middle East Source: SIPRI Military Expenditure Datab
Slide 6: Market Conditions – Technological
Market Conditions - Technological Wide-ranging technological shifts in the defence industry are expected to continue THEME DESCRIPTION RECENT MEDIA • Low-cost, mass-produced drones Mass manufactured • Readily available and easy to operate drones • Difficult to detect and defeat with conventional def
Slide 7: Key Megatrend – Drone Warfare
Key Megatrend – Drone Warfare Drone Warfare has been a disruptive force in recent conflicts and is evolving at an accelerating pace Significant Ongoing Growth in Drone Warfare • Creating asymmetric conflicts, favouring more agile forces • Easy to attack high value targets – infrastructure, munitions
Slide 8: Effective counter-drone strategies require a layered response
Effective counter-drone strategies require a layered response EOS is developing products that form part of comprehensive, layered, counter-drone systems 0.5km 1km 2km 3km 4km 5km 6km 7km 8km 9km 10km Electronic Warfare (EW) EOS CURRENT FOCUS Remote Weapon System Directed Energy 50-100kW APKWS (Rocke
Slide 9: High Energy Laser Weapon Update
High Energy Laser Weapon Update EOS continues to pursue significant opportunities in the High Energy Laser Weapon market • Emerging and urgent market need for laser-based drone, rocket, artillery, mortar, air and missile defence • The rapid proliferation of drones and other unmanned warfighting syst
Slide 10: EOS Future Strategic Focus Areas
EOS Future Strategic Focus Areas The emergence of drone warfare on the battlefield is supporting a generational shift for counter-drone solutions. High RWS Defence Space Directed Energy Space Systems Control Systems Counter Drone Growth Outlook RWS Directed Unmanned Low Power High Power Space Space
Slide 11: Summary of Investment Opportunities
Summary of Investment Opportunities EOS has several attractive opportunities to accelerate business growth. These will be funded through EM Solutions divestment, and as far as possible, customer partnerships. We will continue to exercise strategic and capital discipline Investment Opportunity Focus
Slide 12: Conclusion
Conclusion EOS aims to become a global leader in Counter-Drone, High Energy Laser Weapons and Space Control. We will continue to exercise discipline Future Outlook • EOS is a growth business with a focus on value creation by capitalising on high growth opportunities • EOS will be in a strong financi
Slide 13: Appendix – Background to EMS
Appendix 1 – Background to EMS
Slide 14: Background to EMS
Background to EMS EMS primarily designs, builds, deploys and maintains on-the-move satellite communication equipment systems for defence forces Background EMS today • Acquired by EOS in 2019 in a scrip-based transaction • Supported by rapid pace of industry development which valued EMS at ~$26m • Gr
Slide 15: Appendix – EOS Background
Appendix 2 – EOS Background
Slide 16: Enabling Technologies and Synergies
Enabling Technologies and Synergies Software and Artificial Intelligence, closely integrated with complex hardware and optical solutions, will become key differentiators • EOS’ go-forward businesses share common RWS Defence technology platforms and create compelling Directed Energy Space Systems Sys
Slide 17: Remote Weapon Systems Product Range
Remote Weapon Systems Product Range EOS is developing a wider range of RWS products to meet evolving needs Sensor Unit Ultralight RWS Light RWS Medium RWS Heavy RWS Light Turret Multi-Mission R150 R400 R600 R800 T1600 Sensors Common Range of Platforms and Applications Common Control Interfaces MLRS
Slide 18: Update on EOS Transformation
Update on EOS Transformation Strong markets have supported our turnaround and continue to create significant future growth opportunities for EOS. Ongoing Ukraine and Middle East conflicts and need for NATO militaries to rearm creating an enduring growth driver Markets Products Sales Capability Order
Slide 19: Recent Product Developments and Growth Opportunities
Recent Product Developments and Growth Opportunities EOS has recently launched several products to capitalise on key macro drivers and enable future growth Forecast Indicative Macro Drivers Product Recent activity revenue timing * C-UAS • Formal production launch in 2023 R150 Light-weight Autonomy •
Slide 20: Market Development Update
Market Development Update Growing the order book continues to be our key focus; several opportunities are developing positively; European growth is targeted Potential Potential Geography Maturity Remote Weapon Systems Geography Maturity High Energy Laser Weapon Size (A$m) Size (A$m) Contract negotia
Slide 21: EOS Space Technologies
EOS Space Technologies EOS specialises in applying EOS developed optical sensors and 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
Slide 22: 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 LCMP
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