Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Corporate Update (December 2005)
23 slides from Electro Optic Systems's corporate update, Dec 7, 2005
Slide 1: Raises $22.4 million through institutional placement and provides 2006 & 2007 forecasts
Electro Optic Systems Holdings Limited A.C.N. 092 708 364 ee a Smog Suite 2, Level 12, 75 Elizabeth Street, Sydney NSW 2000 Tel +61 2 9233 3915 Fax +61 2 9232 3411 http:/Awww.cos-aus.com 7 December 2005 ASX/MEDIA RELEASE RAISES $22.4 MILLION THROUGH AN INSTITUTIONAL PLACEMENT AND PROVIDES 2006 & 200
Slide 2: EOS Company Update December 2005
Slide 3: Agenda
EOS Proprietary 1. 2. Ecos Company Overview Military Sector Space Sector Corporate Strategy . Financial Overview 6. Strategic Relationships
Slide 4: Company Overview
Company Overview Space Sector Military Sector EOS Proprietary CORE COMPETENCIES Solid-state lasers Real-time software Systems engineering Femptosecond domains Complex systems Quantum devices Optical design EOS Future Programs
Slide 5: Military Sector
Military Sector LOS EOS products address the key emerging paradigms in the defense technology market: 1. Integration of surveillance and engagement operations 2. Automation of combat tasks 3. Proliferation of firepower via low cost, mobile platforms 4. Digitization of battlefield information Product
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Slide 7: EOS' Military Heritage
EOS’ Military Heritage 1990 1992 1993 1999 2003 2005 2006 EOS Boeing (USA) and EOS (Australia) team for the development of advanced fire control technology for direct-fire weapons EOS acquires this business from Boeing and development of autonomous weapons using advanced fire control commences EOS a
Slide 8: Capabilities provided by EOS
Capabilities provided by EOS: « Laser rangefinder * Fire control computer + Multi-spectral imaging & target ID * Image analysis & video tracking EOS Proprietary Attitude & environmental sensors Data logging & communications Remote control & robotic operations Soldier/operator control software
Slide 9: CROWS Program Status
CROWS Program Status 4 on — ¢ High quality production facilities established * Quality, reliability & performance meet customer requirements ¢« 2005 CROWS orders total A$35m, with A$22m in backlog « US$206m for CROWS production in 2006 US Defense bills » US$206m annual CROWS funding projected by US
Slide 10: Space Sector
iil Eos Space Sector Telescopes Domes Enclosures Space tracking systems instrumentation Space surveillance Directed energy "i Space ablation
Slide 11: Telescopes
Telescopes ‘Eos Advanced mobile telescope design for synthetic aperture optical imaging EOS dominates the market for 1-3m telescopes and enclosures Commercial revenue around $20m annually Growth potential in space and military markets This niche incubates unique capabilities applicable in large spac
Slide 12: Space Surveillance: EOS Heritage
Space Surveillance: EOS Heritage ~epe e 1973: United States Air Force [USAF] space laser program transferred to Aust facility [Ben Greene CTO] e 1983: EOS Group formed to privatize Federal effort e 1993: EOS demonstrates eyesafe space laser tracking e 1999: EOS proves robotic tracking and multi-site
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Slide 14: Space Applications
Space Applications Fos EOS’ technology addresses the following requirements of commercial, space agency and defense customers: * Precise tracking and characterization of known space objects * Detection, tracking and classification of new space objects * Surveillance and monitoring of space assets to
Slide 15: Space Surveillance
Space Surveillance — ae —) “Razor View” (USAF 2004) and “NEOT” (USAF/DoD 2005) projects demonstrated EOS’ unique operational capabilities to acquire and track small (<10cm) space objects. EOS systems have been proven to increase information about known objects in space, and to find objects currently
Slide 16: Space Ablation
Space Ablation LOS Ablation is the process of generating forces on objects by means of surface interactions with energy projected from a distant point. Laser beams directed from earth to intersect with objects in space generate significant forces if the interaction is carefully controlled. EOS has d
Slide 17: Corporate Strategy
Corporate Strategy ‘Eos * Consolidate EOS as a credible 1° tier subcontractor for large military programs such as CROWS Immediate + Initiate deployment of full-scale space surveillance capabilities and (2006) services utilizing EOS’ proprietary technology * Innovation in miltary and space sectors to
Slide 18: Orders Growth 2005-2006
Orders Growth 2005-2006 ‘eos Projected Orders 120 100 @ May-05 w Dec-05 fos] Oo A$ million 8 40 4 20 + 2005 2006 @ Orders growth is no longer limited by capacity. EOS Proprietary
Slide 19: Revenue Projections: 2005-2007
Revenue Projections: 2005-2007 “eos Revenue 160 140 Military m Space 120 100 A$ million 8 2005 2006 2007 Current projections exceed previous forecasts EOS Proprietary
Slide 20: Projections: 2005-2006 (A$m)
Projections: 2005-2006 (A$m) a ae —) 2005 2006 2007 Revenue 40.0 95.0 150.0 Profit on operations 6.8 15.5 25.5 Investments fully expensed (17.1) (13.5) (11.9) R&D Space 3.8 7.0 6.5 R&D Military 2.0 2.6 2.9 Process engineering 4.0 3.0 1.3 Training 1.6 0.5 0.7 Production expansion 5.7 0.4 0.5 Profit(L
Slide 21: 2005 Highlights
2005 Highlights Leos 1. Strategic relationship executed with Northrop Grumman Space Technology (NGST) 2. CROWS/EFCS contracts for 268 units — production capacity established levels required for 2006 [A$6m/mo] NEOT space surveillance success Process re-engineering (incl. ERP) at an advanced stage Maj
Slide 22: Strategic Relationships
Strategic Relationships LOS Northrop Grumman Corporation is a US$35 billion aerospace company, with a strong presence in space and laser technology sectors thru its subsidiary Northrop Grumman Space Technology (NGST). In Jan 2005 NGST acquired 12.5% of EOS equity @ $4.5/share and established a colla
Slide 23: Capital Raising
Capital Raising eos EOS has placed 6.6 million shares at $3.40 to raise $22.4 million (before costs) to institutional clients of Ord Minnett Limited. The $3.40 placement price represents a 8.9% discount to the previous close price of $3.70 and is within the 20 day trading range. The placement has in
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