Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — FY2020 Earnings Presentation
23 slides from Electro Optic Systems's earnings presentation, Feb 26, 2021
Slide 1: 2020 Full Year Results
2020 Full Year Results Investor Presentation 26 February 2021
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY Forward-looking Statements This presentation may contain statements that are, or may be deemed to be, forward-looking statements. Such statements can generally be identified by the use of words such as ‘may’, ‘will
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer Preparation of Information All financial information has been prepared and reviewed in accordance with Australian Accounting Standards. Certain financial data included in this presentation is ‘non IFRS financial information’ noting that the financial information relat
Slide 4: Video
• Video 4
Slide 5: Leadership Team
Leadership Team Board of Directors Fred Bart Peter Leahy Ben Greene Kate Lundy Geoff Brown Ian Dennis David Black Chairman NED and Group Chief Non-Executive Non-Executive NED & Company Non-Executive Deputy Chair Executive Officer Director Director Secretary Director Executive Management Team Pete Sh
Slide 6: Overview
Overview EOS is Australia’s largest aerospace entity and the largest defence exporter in the southern hemisphere Reaching across countries 18 500 Employees around the world R&D spent on EOS IP over 20 yrs, $800m 75% from customers, most of this IP has not been exploited yet $190m Annual revenue (FY2
Slide 7: FY20 Review
FY20 Review
Slide 8: FY20 Key Operational Highlights
FY20 Key Operational Highlights Revenue growth constrained by COVID-19 impacts • Revenue from ordinary activities of $180m, up 9% on pcp , constrained by COVID-19 interruptions to deliveries • Net loss after tax of $25.6m as revenue and profit deferred into 2021 • Negative operating cash flow of $10
Slide 9: FY20 Financial Headlines
FY20 Financial Headlines 2019 Revenue growth despite deferrals caused by COVID-19 $millions 2020 % change (Restated) but well below earlier expectations • Delivery issues, including availability of international freight, import licensing Revenue 190.2 166.0 15% and access to firing ranges Revenue fr
Slide 10: FY20 Segment Performance
FY20 Segment Performance 2019 Defence revenue fell 1% due to COVID-19 interruptions $millions 2020 (Restated) • Delivery issues throughout the year and in December prevented delivery to Revenue & Other Income the contract schedule resulting in c. $40m of revenue pushed into 2021 Defence 156.6 158.5
Slide 11: FY20 Net Cash Flow Movements
FY20 Net Cash Flow Movements Cash flow impacted by COVID-19 350.0 107.4 • Disruption of the delivery chain deferred cash flow into 2021 300.0 • Contract assets increased to $138m. Will mostly unwind over next six months 250.0 Capital raising to support the business 139.2 • Institutional raising and
Slide 12: Update on Major Overseas Contract
Update on Major Overseas Contract 3rd Generation RWS technical performance setting new market standards • 25% better in range and accuracy than nearest competitor • Product testing achieving 78% hit rate including out to 2.2km and from a moving vehicle (previous industry best standard considered to
Slide 13: Strategic Outlook
Strategic Outlook
Slide 14: Strategic Ecosystem & Synergies
Strategic Ecosystem & Synergies Strategy: to use advanced technology to create new markets for the benefit of our customers, communities and shareholders Creating world Strategically releasing leading R&D technology - Laser physics - When customers have - Advanced optics - sufficient structural dema
Slide 15: Update on Pipeline and Backlog
Update on Pipeline and Backlog Backlog reflects committed contracts that are not yet fulfilled • Backlog currently consists largely of Defence products Defence underpinned by a number of key contracts Backlog1 $429m Communications • Includes EM Solutions backlog of $21m underpinning FY21 Space reven
Slide 16: FY2021 Growth Priorities
FY2021 Growth Priorities PRODUCT COMMENTS TAM / REV OPPORTUNITY RWS Strong pipeline of potential awards in 2021/22. Focus on market-leading accuracy, weight and US$10bn / 10 years lethality to accentuate technology lead Mopoke Counter-UAS System demonstration overseas from Q2+. Expect to be in contr
Slide 17: Mopoke Counter-UAS
Mopoke Counter-UAS Drones are one of a number of new technology threats • Asymmetric threat due to low cost for attackers and difficulty to defend • Recent conflicts have demonstrated the vulnerability of traditional assets to drone attack, driving strong demand for Counter-UAS solutions EOS already
Slide 18: C4EDGE
C4EDGE C4 EDGE = C4 Evolutionary Digital Ground Environment Communications Program • $34.4m (1) award to EOS as Prime Contractor for an all-Australian industry consortium to demonstrate Battlegroup and Below Battlefield Command System (battle management systems, radar, radio, cyber security etc.) •
Slide 19: SpaceLink Update
SpaceLink 1 SpaceLink Update SpaceLink management team completed • Led by SpaceLink CEO David Bettinger (previously OneWeb, iDirect, Hughes) • CTO Rob Singh (Maxar), COO Larry Rubin (Loral Space Systems), CSCO Tony Colucci (Loral, Boeing, Hughes), SVP Systems Engineering David Nemeth (OneWeb, iDirec
Slide 20: Communications: EM Solutions
Communications: EM Solutions EM Solutions is a key part of the Ground Segment for EOS Communications Systems and SpaceLink • Provides customers with a development pathway from RF (microwave) user terminals to hybrid RF-optical EM Solutions technology is world-leading • Closed-loop monopulse tracking
Slide 21: Space Systems: Securing Space
Space Systems: Securing Space Space Domain Awareness (SDA) • EOS laser sensors detect, track, classify, characterise and catalogue objects in space, far beyond the range of radar • EOS will seek to participate in Commonwealth program JP9360 which includes $2bn for SDA Space Protection • Collision av
Slide 22: Summary
Summary • FY20 loss due to COVID-19 deferral of revenue into 2021 • Defence inventory of $120m converting back to cash in H1 2021 • Global tailwinds to drive pipeline and conversion to order backlog in 2021+ • Directed energy technology is securing a strong position in the huge counter-drone market
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Electro Optic Systems Holdings — FY2020 Earnings Presentation on 6ix