Slide 1: Investor Presentation | October 2017
For personal use only Hon Christopher Pyne (Australian Minister for Defence Industry) with DroneGun MkI Drone security systems | A first-mover in a global industry | Sydney, Australia and Virginia, USA ASX:DRO (shares) and ASX:DROO (options) Investor Presentation | October 2017
Slide 2: The Issue
THE ISSUE For personal use only Click here to watch an ISIS video of ISIS drone attacks 1
Slide 3: The Issue (Continued)
THE ISSUE (CONTINUED) For personal use only Click here to watch a two minute video of FBI director Christopher Wray and Nicholas Rasmussen, Director of the National Counterterrorism Center testify on drone threats before the U.S. Senate Committee on Homeland Security & Governmental Affairs in Washin
Slide 4: The Issue (Continued)
THE ISSUE (CONTINUED) September 25, 2017, Daily Mail – Pentagon reported to have launched US$700 million drone-fighting For personal use only program to combat ISIS using drones on the battlefield. September 28, 2017, Washington Examiner – Former Secret Service agent: drone ”swarm attacks” pose
Slide 5: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS An established player in the market – has made early U.S. and For personal use only international sales: Limited competition Land grab is on, significant first mover advantage Complete drone defence solution: DroneGun – portable rifle style drone jammer DroneSen
Slide 6: Key Investment Highlights (Continued)
KEY INVESTMENT HIGHLIGHTS (CONTINUED) Governmental procurement cycles are long; however, the Company believes it is well advanced in For personal use only those given its early mover advantage Global network of 60 distributors in 50 countries High calibre management, Board of Directors and Adv
Slide 7: A New, Large and Unserved Global Market
A NEW, LARGE AND UNSERVED GLOBAL MARKET DroneShield’s Target Markets in the Defence Vertical Alone – For personal use only 2016 Global Defence Sector Spending (US$ billions) by Country U.K. $48 Germany $41 South U.S. France Italy Korea Japan Saudi $611 $56 $28 Israel $37 $46 Arabia $18 $64 India UAE
Slide 8: Examples of Recent Sales
EXAMPLES OF RECENT SALES For personal use only Middle Eastern military Deployment against ISIS and other terrorists organisations Intended as an initial in-field evaluation unit for a larger order Special forces of a G7 NATO country Deployment against ISIS and other terrorists organisation
Slide 9: Short-Term Sales Pipeline
SHORT-TERM SALES PIPELINE* Expected Value of the Specific Current For personal use only End User Opportunity if Consummated (USD) United States - multiple military and national security agencies Cannot be quantified United Kingdom - multiple military and national security agencies Cannot be quantifi
Slide 10: Short-Term Sales Pipeline
SHORT-TERM SALES PIPELINE* Expected Value of the Specific Current For personal use only End User Opportunity if Consummated (USD) Middle Eastern Country #3 – Royal Court $1,000,000 Middle Eastern Country #4 – National Security Agency Between $500,000 and $1,000,000 South East Asian Country #5 – Army
Slide 11: DroneGun – Competitive Advantages
DRONEGUN – COMPETITIVE ADVANTAGES Universally targets a wide range of drones: For personal use only Effective against over 99% of commercial drones on the market today Avoids “arms race” with drone manufacturers Does not require a separate “hack” program for each individual drone type Safe
Slide 12: DroneSentinel / DroneSentry – Competitive Advantages
DRONESENTINEL / DRONESENTRY – COMPETITIVE ADVANTAGES 360 degree radar, detection up to 1.5km away For personal use only RadarOne RfOne 360 degree RF, detection up to 1km away Acoustic detection up to 500m away, as well as WideAlert and FarAlert at close range DroneOpt, DroneHeat, DroneBeam O
Slide 13: Additional Corporate Considerations
ADDITIONAL CORPORATE CONSIDERATIONS The counter-drone industry has a number of similarities to well established sectors like the For personal use only pharmaceutical and oil & gas industries: Large established companies limit investment in R&D to enhance short-term profitability Larger defence
Slide 14: Market Comparable
MARKET COMPARABLE DroneShield Limited Department 13 International Limited For personal use only (ASX:DRO) (ASX:D13) Market capitalisation A$29 million A$55 million (September 27, 2017 - undiluted) Jamming – universal to all drone models Detection – multiple detection methods “Hacking” tech
Slide 15: Capital Structure
CAPITAL STRUCTURE 855 shareholders For personal use only A$8.2 million in market liquidity over the recent 12 months Shares Listed Options Performance Shares and Shareholders (ASX:DRO) (ASX:DROO) Unlisted Options Shareholders 144,785,892 30,659,004 45,000,000 Options - - 28,650,000 Total 144,785
Slide 16: Board of Directors
BOARD OF DIRECTORS Peter James, Independent Non-Executive Chairman For personal use only Mr. James has over 30 years’ experience in the Technology, Telecommunications and Media Industries, and has extensive experience as Chair, Non-Executive Director and Chief Executive Officer across a range of pub
Slide 17: Board of Directors
BOARD OF DIRECTORS Dr. Samantha Ravich, Independent Non-Executive Director For personal use only Dr. Samantha Ravich is the former Deputy National Security Advisor for Vice President Cheney and served in the White House for 5½ years where she was the Vice President’s representative on Asian and Midd
Slide 18: Board of Advisors
BOARD OF ADVISORS Hon. Jay M. Cohen, Rear Admiral, United States Navy (Ret.), Member For personal use only Admiral Jay M. Cohen is a former Chief of Naval Research (United States Navy) and has served as the Department of the Navy Chief Technology Officer. Admiral Cohen is a graduate of the United St
Slide 19: Management
MANAGEMENT Claire Newey, Chief Financial Officer For personal use only An experienced Chartered Accountant with 12 years of international financial reporting, management and advisory experience, across public and private companies spanning various industries. Prior to joining DroneShield, Ms. Newey
Slide 20: Management
MANAGEMENT Casey Betzold, Vice President Sales For personal use only Mr. Betzold brings over 15 years of experience in US and International business development and sales. Mr. Betzold has extensive experience working with all major market segments world-wide specific to the defense and outdoor indus
Slide 21: Why Invest in DroneShield
WHY INVEST IN DRONESHIELD For personal use only A brand new, cutting-edge industry at the forefront of the robotics revolution A leader in that industry Unique proprietary products A large and untapped market A skilled and motivated team Ability to sell has been validated by early prior
Slide 22: Appendix - More on the Issue
APPENDIX - MORE ON THE ISSUE For personal use only About Witnessing An ISIS Drone Attack | The New York Times DJI Phantom 3 Drone used to DROP ISIS Uses Weaponized Drones Against About Witnessing An ISIS Drone Attack | BOMBS in Syria Iraqi Forces The New York Times ISIS reportedly using weaponized d
Slide 23: Drone Security | A First-Mover in a Global Industry
DRONE SECURITY | A FIRST-MOVER IN A GLOBAL INDUSTRY For personal use only 22
Slide 24: Important Cautionary Note
IMPORTANT CAUTIONARY NOTE For personal use only The information contained in this document is for information purposes only and does not constitute financial product advice, legal advice, an offer to sell, or a solicitation of an offer to purchase, any securities. This document contains "forward-loo