Slide 1: Investor Presentation 23 October 2023
For personal use only Artificial Intelligence For Multi-Mission Threat Protection and C-UAS Defence DroneShield Limited (ASX:DRO) Investor Presentation 23 October 2023
Slide 2: 3Q23 Update
3Q23 Update • Record contracts and rapidly growing cash receipts – $48.2 million cash receipts YTD to 20 Oct 2023, up 3x vs entire FY22 – $43.3 million revenue YTD to 20 Oct 2023, up 2.5x vs entire FY22 For personal use only – $10.2 million record quarterly cash receipts (incl $2.5 million in grants
Slide 3: Continued Rapid Growth
Continued Rapid Growth ($m, Dec YE) The business stands at an inflection point Strong Revenue Growth (A$m) Rapid Cash Receipt Growth (Sales + Grants) (A$m) For personal use only ~7x growth 43.3 over Q3 2022 ~2.5x growth 48.2 over Q3 2022 16.9 39.7 14.8 15.7 25.5 10.6 5.6 5.4 3.6 3.7 1.2 1.8 10.9 5.7
Slide 4: DroneShield "Secret Sauce"
DroneShield “Secret Sauce” C-UAS pioneer, full in-house suite of products, with a culture of innovation and deep channels to market Market leading, differentiated technology Complete product, integration and geographic coverage For personal use only All hardware (except radar and camera) developed a
Slide 5: Problem and Opportunity: Drones as a Threat
For personal use only Problem and Opportunity: Drones as a Threat
Slide 6: Drones - A Critical and Growing Threat Vector
Drones - A Critical and Growing Threat Vector For personal use only 6
Slide 7: Why is the Malicious Use of Drones a Threat?
Why is the Malicious Use of Drones a Threat? The widespread adoption of drone technology has increased the risk and prevalence of disruptive use For personal use only Payload Delivery • Attacks: Dropping harmful / explosive payloads (including chemical or biological substances) or creating damage vi
Slide 8: Counterdrone: US$10bn Diverse Addressable Market
Counterdrone: US$10bn Diverse Addressable Market Rapidly improving and easily available drone technology is driving demand for counterdrone solutions For personal use only Sources: Addressable market: https://www.DroneShield.com/counterdrone-market Markets and Markets: https://www.marketsandmarkets.
Slide 9: How a Counterdrone System Works
How a Counterdrone System Works DroneShield performs all 3 steps of the process Step 1 Step 2 Step 3 For personal use only Detect Assess Respond • State of the art, multi-sensor drone • Respond / defeat technologies offer • Machine learning and AI based detection and detection products provide optim
Slide 10: Geopolitical Environment Providing Market Tailwinds
Geopolitical Environment Providing Market Tailwinds • Increased expenditure by Western Governments in response to the war in Ukraine – US DoD increasing 2023 budget to over US$800bn, a record peacetime amount1 For personal use only – Germany increasing spending to over 2% of GDP (from 1.53% in 2021)
Slide 11: DroneShield Overview
For personal use only DroneShield Overview
Slide 12: Executive Summary
Executive Summary DroneShield • Founded in 2014 and listed on the ASX in 2016, DroneShield provides Artificial Intelligence platforms for protection Overview against drones • Hardware and software to detect and safely neutralise small drones used for warfare, terrorism, contraband delivery, For pers
Slide 13: Investment Highlights
Investment Highlights Leader in World leading provider of state-of-the-art counterdrone solutions and electronic warfare systems Counterdrone used in a diverse array of critical end markets For personal use only Proprietary Full-scale hardware and SaaS offering used to detect, assess, and safely cou
Slide 14: DroneShield: Complete Proprietary Hardware and Software
DroneShield: Complete Proprietary Hardware and Software High IP, yet mass-production hardware, with a software subscription platform and Electronic Warfare work • Company-owned production facility, supplemented by outsourced manufacturers, to ensure ability to manage large hardware orders For person
Slide 15: Explosive Growth Based on a Strong Foundation
Explosive Growth Based on a Strong Foundation 2014-2017 2018-2022 2023 2024-2028 Building the Foundation “Green Shoots” Explosive Growth Transforming to Next Level For personal use only • Setting up in Australia and US • Multiple $1m+ orders • $33m U.S. Govt sale • 5-year target*: • ASX IPO (raising
Slide 16: Competitor Analysis
For personal use only Competitor Analysis
Slide 17: Competitor Analysis
Competitor Analysis DroneShield is the only global provider of its own individual sensors, integrated into a complete system, fully in-house Origin Integrator ü ü ü ü ü - - - - - For personal use only Detect Dismounted ü - - - - - - - - - Vehicle ü - ü - - - - ü ü ü Fixed Site ü ü ü - ü - - ü ü ü De
Slide 18: Key Execution Priorities and Growth Strategy
For personal use only Key Execution Priorities and Growth Strategy
Slide 19: Leadership in Counterdrone, Grow Adjacent Capabilities and SaaS
Leadership in Counterdrone, Grow Adjacent Capabilities and SaaS Mission: Making the world a safer place through mass deployments of drone detection and neutralization systems Three-part Strategy For personal use only Continue Leadership in the Counterdrone/Unmanned Threat Sector • The counterdrone m
Slide 20: Appendices
For personal use only Appendices
Slide 21: Counterdrone Detection Solutions
Counterdrone Detection Solutions DroneShield uses multi-sensor drone detection for optimal results, unaffected by time of day or weather Radio frequency Radar* Cameras* Acoustic* For personal use only Imagery • Electro-Optical (EO), Infrared • Foundational layer • Compares noise of drone • Motion tr
Slide 22: Counterdrone Defeat Solutions
Counterdrone Defeat Solutions DroneShield uses smart jamming which has advantages over other technologies, particularly, in its use across civil and military applications, and does not compete against large Defence Primes For personal use only Large Defence Primes Exotic Tech, Dominance Area DroneSh
Slide 23: Benefits and Applications of Safe, Layered, Counterdrone Systems
Benefits and Applications of Safe, Layered, Counterdrone Systems over Kinetic Systems Safe counterdrone systems have many advantages over kinetic counter-drone systems, which are only practical for deployment in war-like scenarios For personal use only Avoidance of Multi-Platform Evidence for Legal
Slide 24: DroneShield AI Software Sees Through Noise – Radiofrequency Spectrum
DroneShield AI Software Sees Through Noise – Radiofrequency Spectrum World leading proprietary RF AI platform for protection against advanced threats, such as drones For personal use only • Drones operate in the densest parts of the Radio Frequency (“RF”) Spectrum with “noise” coming from all kinds
Slide 25: DroneOptID AI Software – Optical and Thermal Spectrum
DroneOptID AI Software – Optical and Thermal Spectrum Counterdrone Surveillance DroneShield’s DroneOptID AI engine detects and tracks complex threats such as drones in cluttered environments For personal use only • Drones are small, fast-moving objects, hard to detect with naked eye more than 50m aw
Slide 26: Artificial Intelligence in Electronic Warfare
Artificial Intelligence in Electronic Warfare DroneShield is favourably exposed to the fast-growing Electronic Warfare business segment For personal use only • Electronic warfare (EW) is any action involving the use of the electromagnetic spectrum (EM spectrum) or directed energy to control the spec
Slide 27: Seasoned Senior Team
Seasoned Senior Team DroneShield’s experienced team carries a solid track record of delivering growth For personal use only Peter Oleg Jethro Carla Red Tom James Vornik Marks Balanco McClintock Branstetter Independent CEO and Independent CFO and Sales U.S. Director Non- Managing Non- Joint Director
Slide 28: Industry and Media Recognition
Industry and Media Recognition For personal use only 28 28
Slide 29: Capital Structure
Capital Structure Capital Structure (approximately 10,000 shareholders) – as at 20 October 2023 Research Coverage DRO Shares on Issue 611,403,611 For personal use only DRO Options on Issue 11,290,000 Fully Diluted Shares on Issue 622,693,611 Fully Diluted Equity Value $165m Cash $50.1m Debt $nil Ful
Slide 30: Legal Disclaimer
Legal Disclaimer These presentation materials (the Presentation Materials) have been prepared by DroneShield Limited (the Company). By receiving the Presentation Materials, you acknowledge and represent to the Company that you have read, understood and accepted the terms of this disclaimer. It is th
Slide 31: Artificial Intelligence For Multi-Mission Threat Protection and C-UAS Defense
For personal use only Artificial Intelligence For Multi-Mission Threat Protection and C-UAS Defense DroneShield Limited (ASX:DRO) Investor Presentation Oleg Vornik CEO and Managing Director oleg.vornik@droneshield.com +61 2 9995 7280