Coda Octopus Group, Inc. · NASDAQ:CODA
Coda Octopus — Investor Presentation (November 2024)
60 slides from Coda Octopus's investor presentation, Nov 15, 2024
Slide 1: Corporate Presentation
EEE Coda Octopus Group, INC. World Leader in Sound Underwater Technology Corporate Presentation November 13, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements inclu
Slide 3: CEO Vision Statement
CEO Vision Statement To focus on our top priority to grow the Company through the exploitation of our disruptive underwater technologies (Echoscope PIPE®, DAVD and Voice HUB 4) and through selective value accretive acquisition of complementary technologies. On October 29, 2024 we completed our first
Slide 4: Investors' Overview
Investors ’ Overview Ad
Slide 5: Overview
Overview Established business with strong pedigree in introducing disruptive underwater technologies to both the Commercial and Defense Marine Offshore Sectors, and Defense Engineering where we operate as sub-contractors to the DoD Prime Contractors. Strong culture of IP ownership in Products Busine
Slide 6: New to the Group
New to the Group * Precision Acoustics was formed in 1990, is well established as a leading technical authority to the MHz ultrasound and acoustic measurement markets and are global leaders in the field of hydrophone design and other acoustic-related technologies which have wide application but are
Slide 7: Strong Culture of IP Security
Strong Culture of IP Security Underwater solutions (Imaging and Diving) Echoscope technology covered by several patents, some of these covering combined software and hardware capabilities of Coda Octopus Group's unique real-time 3D technology Multiple patents pending pertaining to recent technology
Slide 8: Annual Financial Snapshot
Annual Financial Snapshot Annual FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Revenues $25,056,934 $20,043,810 $21,331,527 $22,225,803 $19,352,088 Net Income $5,225,199 $3,343,585 $4,947,765 $4,301,221 $3,124,149 EBITDA $6,253,437 $4,278,437 $6,196,972 $5,879,609 $3,440,692 Earnings per share (Basic) $0.
Slide 9: TQ and YTD Financial Snapshot
TQ and YTD Financial Snapshot TQ & YTD Q3 2024 Q3 2023 YTD 2024 YTD 2023 (9 months) (9 months) Revenues $5,476,544 $4,890,532 $15,260,9413 $15,788,325 Net Income $1,274,658 $1,038,780 $3,319,784 $3,445,115 EBITDA $1,602,238 $1,044,207 $3,920,244 $3,606,726 Earnings per share (Basic) $0.11 $0.09 $0.3
Slide 10: Global Market Revenue Split
Global Market Revenue Split Growth Sector Defense (Moving Business from a single sale model to multiple repeat sale): * New Generation of Underwater Vehicles driving demand for smart sensors (Echoscope PIPE®) * New Generation of Diving Technology poised to change diving operations globally ( DAVD) *
Slide 11: Marine Technology Business
Marine Technology Business y
Slide 12: Marine Technology Business
24/7 Support and 3D Field Experts Product Design & Manufacturing Marine Technology Business (Underwater Technology Business) Software Application and Custom Development Research Development And Innovation
Slide 13: Snapshot of Customers
Snapshot of Customers Marine Products Business POLICE NYPD ‘eo: FBI .@, Military & Defense Including 40 US Ports & Enforcement Bodies ExonMobil Chevron a End User Customers tid \ Boskalis Technip —< fess: DEME nEPR jE Group > DEEPOCEAN subsea 7 Van Oord mtd Marine ingenuity Service Providers NAVBEA
Slide 14: Visualization & Mapping for Widest Range of Applications
Visualization & Mapping for Widest Range of Applications Echoscope PIPE® C500 Compact edition Double or Triple Frequency New Generation Addresses - SWaP (Size, Weight Power and Price) Echoscope PIPE® Family of Volumetric Sonars Seeing & Measuring in Real-Time 3D in Zero Visibility Conditions Underwa
Slide 15: Echoscope Family of Volumetric Sonars
Echoscope® Family of Volumetric Sonars NEW Echoscope PIPE® . : g * New Innovative Processing Engine: Parallel Intelligent Processing Engine (“PIPE”) Multiple Real Time 3D Images 16384 > UP to 40 Million | POINTS OF DATA om POINTS OF DATA . . , : Multiple parallel Single Real-Time ™ . . 3D image iis
Slide 16: 3D Product Line: Competing Technology is No Comparison
3D Product Line Competing Technology is No Comparison Pelican Island Causeway, Galveston TX Real-Time 3D Imaging AND Real-Time Mapping — see the shadows disappear! Client deliverables complete in 54 seconds... 3D Multibeam Produces static map after hours or days of processing NO Real-Time image 2D S
Slide 17: Commercial Marine Applications
Commercial Marine Applications Marine Technology Business Marine and Port Construction, Renewables, Research, Educational Institutions, and Oil and Gas Port Construction Channel Complex Survey Subse Completions & Renewables Clearance terven Tieback Dive Inspection Support Y
Slide 18: Sample Echoscope Project ROI Snapshots
200 Blocks placed per day Van Oord Port Construction Project Placement of 24,000 CORE-LOC Armour Units Record Production Rates Cost Saving: Priceless Duration: 1-2 Years ZADCO Sleeper Placement Was: 4 sleepers placed in 12 hours Now: 76 sleepers placed in 24 hour shifts Productivity: > 3,000% Cost S
Slide 19: 3D Product Line - Marine Technology Business
3D Product Line —- Marine Technology Business Complex Asset Placement — Alaska Monopod Installation Oilfield Disaster Recovery Four Echoscope® sonars used to provide real-time visualization of landing site and control stabilization for crane operators Software ‘models’ provided real-time indication
Slide 20: 3D Product Line - Marine Technology Business
3D Product Line —- Marine Technology Busines Delivering on Everyday Challenges Subsea Mineral Mining - Diamonds Marine Construction - Breakwaters * Echoscope® is the No. 1 preferred solution for subsea placement. Block Manufacturers recommend the Echoscope as the best solution for placement. * Opera
Slide 21: Defense Applications - Strategic Market
Defense Applications - Strategic Market Real-Time 3D Decision Making jin meniil ( omplex Structure Real-Time Hazards WO . Target ID Fi r
Slide 22: Real-Time 3D Imaging in Defense Applications
Real-Time 3D Imaging in Defense Applications Momentum has grown significantly within the U.S. Navy community for CODA’s industry-leading, real-time imaging technology solutions. The following groups are actively funding development, trials or purchases of Coda Octopus Echoscope® technology: * Swimme
Slide 23: About DAVD (Growth Pillar of Company)
About DAVD (Growth Pillar of Company) = a are tl VN
Slide 24: Summary of Growth Accelerators
Summary of Growth Accelerators * DAVD is a complete Diver Video, Media and Communication system * Diver uses transparent Augmented Reality (AR) display system * Connects the Diver and the Supervisor coherently (similar to a virtual Zoom or TEAMS Meeting) * DAVD, for the first time in diving, allows
Slide 25: Summary of Growth Accelerators
Summary of Growth Accelerators Who uses DAVD? * The DAVD system is fully compatible with all standard diving helmets full-face masks * DAVD focus is all diver markets excluding the leisure scuba market * DAVD addresses all high importance key challenges and problems Visibility — Diving is performed
Slide 26: Summary of Growth Accelerators
Summary of Growth Accelerators Why DAVD revolutionizes diving? PROBLEM - Diving Challenges Diving is regularly conducted in low to zero visibility environments in which standard visual displays, cameras and gauges are ineffective. Even in somewhat visible environments, situational awareness, navigat
Slide 27: Summary of Growth Accelerators
Summary of Growth Accelerators Current (Commercial) Diving Systems In current surface supplied diving, the DIVER only shares analog voice comms with the TOPSIDE. The TOPSIDE must also manage several independent systems for Video, Communications and Positioning. SUPERVISOR e nN TOPSIDE ini Dive Super
Slide 28: Summary of Growth Accelerators
Summary of Growth Accelerators New Generation DAVD Diving System: What have we changed? In addition to the revolutionary DAVD system features that are unique to this system, the DAVD system provides a fully integrated singular system for TOPSIDE Control and a fully connected Head Up Display system f
Slide 29: What is Management Trying to Do?
Echoscope Underwater Imaging Sonars Grow our Market Share for Imaging Sonars Focus on Defense Underwater Vehicles with the goal of yielding Multiple Recurring Sales in these Programs. Focus on Echoscope Solutions Into ongoing Offshore Renewables Programs, Infrastructure | Management and renewals. Wh
Slide 30: Years Performance Metrics Look Back
5 Years Performance Metrics Look Back We have had an outstanding track record of performance: (Products Business) ll (Engineering) 79.3% Less Than 1% Cumulative CASH GROSS PROFIT AVERAGE New issue SHARE NET INCOME Generated from MARGINS 5-YR EBITDA over PER ANNUM over last 5 OPERATIONS AVERAGE last
Slide 31: 5 Years Performance Operational Look Back
New Generation of ECHOSCOPE PIPE® Well Received in the Market and adoption ongoing New Diver Augmented Vision Display System (“DAVD”) Tethered System operational in US NAVY Commercial Marketing Process Underway Untethered System Adoption in process — Special Forces (Target Market) 5 Years Performanc
Slide 32: FY2024 Key Growth Markets
FY2024 Key Growth Markets Verticals into which we sell and their significance Underwater Imaging Sensors gig Diving Digital Communications Offshore Renewables @ Underwater Vehicles Diving Chamber ™ Medical Decompression Oil & Gas ™@ Construction m Surface Supplied lm Saturation Diving 20% 20% 25% 35
Slide 33: Value Drivers
Value Drivers Echoscope®
Slide 34: Value Drivers
Value Drivers + DAVD isa key technology and is set to change the way diving operations are performed globally ( real time information platform for diving). * Strong Patents and Intellectual Property Rights Portfolio. * Technically adept Group with strong brand as market leaders in real-time visualiz
Slide 35: Mission Critical
Mission Critical ite® Thermite® Octal Integrated Systems Rugged Embedded Computing Solutions Software Engineering Systems Engineering Electronic Design Manufacturing & Prototyping Advanced (omy Obsolescence Management Signal Processing ig of Legacy Defense Lore Products
Slide 36: Key Markets COLMEK
Key Markets COLMEK Coda Octopus Colmek — Engineering Business Trusted U.S. DoD Subcontractor — participating in several programs of record Phalanx® Close-in Weapon. System (CIWS) Mine Hunting Systern SeaRAM
Slide 37: Growth Catalysts
Growth Catalysts Coda Octopus Colmek - Engineering Business * Obsolescence management: Defense requirements for extended system/program life offer significant sustainment opportunity + Engineering services to re-design/upgrade + Production opportunity through program life . Ruggecized Embedded Compu
Slide 38: Thermite Embedded Computing Solutions
CODA OCTOPUS Thermite® Embedded Computing Solutions Y COLMEK e: | Applications | | Opportunities Thermite® Octal & Thermite® GPU yore Thermite® DPP
Slide 39: Product Design and Manufacturing
Product Design Subsea and and Manufacturing Harsh Environment eee Design ee Mechanical Engineering a Coda Octopus Company Complete Product Lifecycle Development Software Engineering Electronic Design ° oOo Obsolescence Management Test, Instrumentation ch of Legacy Defense and Control ooo Products
Slide 40: Coda Octopus Martech - Engineering Business
Coda Octopus Martech — Engineering Business Customers Martech Located in Portland, Dorset, UK. Martech follows the same model as Colmek. ‘BAESYSTEMS “> 5 SIEMENS Honeywell AA7SA4Z. o / Ni IY / : : a) 4 GRUNDEOSPAN
Slide 41: Acoustic Pressure and Intensity Custom Sensor development
Acoustic Pressure and Intensity Custom Sensor development Characterization a Transducer Optimisation Acoustic Performance Modelling PVDF Array Technology Acoustic Output Measurements . . . Fibre-optic and Piezo-polymer Acoustic Power Measurements hydrophones Piezo-poly (PVDF), pi and 1-3 piezo compo
Slide 42: Precision Acoustics
| PRECISION A global leader in ultrasonic and underwater acoustic technology ACOUSTICS Ultrasound Development and Acoustic services Acoustic pressure and Intensity Characterization Acoustic output measurements
Slide 43: Precision Acoustics Worldwide Sales Data
PRECISION Worlwide Sales Da ACOUSTICS Coda Octopus Precision Acoustics — Ultrasonic and Underwater Acoustic Technology Business Sales by regions Asia BUK South America @ North America @ Rest of Europe Middle East Israel m India Markets Do we Serve Medical Marine Aeronautical Academia
Slide 44: Transducer Design and Manufacture
Transducer Design and Manufacture Da PRECISION ACOUSTICS Needle Hydrophones Piezo Polymer Fibre-optic Transducers hydrophones Piezo-ceramic Transducers HIFU Transducers PVDF Arrays
Slide 45: Absorbers
Absorbers Transducer backings Encapsulants Syntactic foams Scanning Tanks Radiation Force Balances Field Characterization system Field i ield mapping Simulations and Modelling Materials Characterisation Materials Testing
Slide 46: Operations
? Operations ‘nde Z Group Headquarters and Marine DAP NYA Technology Business Coda Octopus Group, INC
Slide 47: Operations
? Operations Po Marine Technology Business Tk Za Coda Octopus Group, INC. Lows @ Edinburgh, UK Ht Copenhagen, Denmark it Brisbane, Australia rg
Slide 48: Operations
? Operations ‘pe Z. Defense Products & Engineering Business Va. aS Coda Octopus Group, INC. ze x oS - ase a= = « — B Portland, UK MARIEECH;
Slide 49: Operations
? Operations ‘nde a Ultrasonic and Underwater Acoustic Yam Technology Business Coda Octopus Group, INC x. <- m Dorset, UK RRECISSION. ACOUSTICS
Slide 50: Management
Coda Octopus Group Management Annmarie Gayle, LL.B, LLM (Qualified to practise law in England & Wales) — Chair and Chief Executive Officer — Denmark Ms. Gayle, a lawyer by training, has been our CEO and a member of the Board of Directors since 2011. She has also been the CEO of our flagship Products
Slide 51: Management
Coda Octopus Group Management Gayle Jardine— Interim Chief Financial Officer — UK — Edinburgh. Gayle Jardine joined the Company as European Director of Finance in September 1, 2015. She was appointed as the Interim CFO on February 14, 2024. From 2009 to 2015, Ms. Jardine was the Controlling Director
Slide 52: Management
Coda Octopus Group Management Blair Cunningham — President of Technology —US — Orlando, Florida Mr. Cunningham has been with the company since July 2004 and has held several roles including his current position of President of Technology and Divisional CEO of Coda Octopus Products, Inc. CTO of Coda
Slide 53: Board of Directors
Coda Octopus Group Board of Directors Annmarie Gayle, LL.B, LLM — Chief Executive Officer and Chairman — Copenhagen, Denmark Ms. Gayle was appointed Chairman of the Board in March 2017, and previously served as Director since 2011. She has been our CEO since 2011 and also serves as Managing Director
Slide 54: Board of Directors
Coda Octopus Group Board of Directors Michael Hamilton, Director — U.S. Mr. Hamilton served as Coda’s Chairman of the Board, June 2010-March 2017. He continues to serve as a Director. Since 2014, Mr. Hamilton has provided accounting and valuation services for a varied list of clients. His career inc
Slide 55: Board of Directors
Coda Octopus Group Board of Directors Brigadier General Anthony J Tata (Ret)— Director — U.S. Brigadier General Antony J Tata (ret) has been a member of the Board since June 26, 2023. Brigadier General Tata most recently performed the duties of Undersecretary of Defense for Policy, the number 3 posi
Slide 56: Board of Directors
Coda Octopus Group Board of Directors Mr. Robert Harcourt - Director — U.S. Mr. Robert Harcourt has been a member of the Board since June 26, 2023. Mr. Harcourt is a retired Audit and Advisory Partner of KPMG with a professional career spanning over 40 years where he executed a variety of roles at t
Slide 57: Board of Directors
Coda Octopus Group Board of Directors G. Tyler Runnels- Director- U.S. Mr. Runnels has been a member of our Board since 2018. He has over 30 years of investment banking experience including debt and equity financings, private placements, mergers and acquisitions, initial public offerings, bridge fin
Slide 58: Board of Directors
Coda Octopus Group Board of Directors Gwenael Rouy-Poirier - Switzerland. Mr. Rouy-Poirier was nominated to the Board on April 10, 2024. Since January 2024 Mr. Rouy-Poirier has been an independent consultant for companies in the Aerospace and Defense Sectors. From May to December 2023, he was interi
Slide 59: Board of Directors
Coda Octopus Group Board of Directors Dr. Angus McFadzean - Edinburgh. Dr. Angus McFadzean, PhD MENG, is one of the founders of our flagship products business, Coda Octopus Products Limited. He worked with the company from 1994 through to May 31, 2024. During this time he held several positions incl
Slide 60: Coda Octopus Group, Inc.
Coda Octopus Group, INC. World Leader in Sound Underwater Technology NASDAQ: CODA www.codaoctopusgroup.com { | p Investor Relations: <" coda.ir@codaoctopusgfoup. Corporate Presentation November 13, 2024
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