Ondas Inc · NASDAQ:ONDS
Ondas — Investor Presentation (December 2020)
39 slides from Ondas's investor presentation, Dec 8, 2020
Slide 1: Moving Cloud to the Edge
Moving Cloud to the Edge December 2020
Slide 2: Disclaimer and forward-looking statements
This presentation is being provided for information purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any of Ondas Holdings Inc . ’s (“we,” “us,” “our,” “Ondas,” or the “Company”) securities . This presentation is not intended, nor should it be distribu
Slide 3: Company Overview
Company Overview 3
Slide 4: Company Overview
▪ Founded: 2006; OTC listing in 2018 ▪ Ticker: ONDSD (OTCQB) ▪ Headquarters: Sunnyvale, CA ▪ Patents: 14 patents (6 issued in the U.S., 7 pending in the U.S., 1 pending internationally) ▪ Industrial IoT Standards: 802.16s; 802.16t (pending) ▪ Rail / Transit ▪ Drones (UAS) ▪ Utilities ▪ Transportatio
Slide 5: Management team
Stewart Kantor Chief Financial Officer Systems engineer with over 30 years of operational experience in the communications sector Extensive software development, applications and operating experience including field deployments Guy Simpson Chief Operating Officer, Ondas Networks Inc. Ondas Networks
Slide 6: Ondas FullMAX investment highlights
▪ The Ondas FullMAX solution is a new and highly advanced/patented, Software Defined Radio (“SDR”) platform ▪ Ondas owns the critical IP supporting IEEE standards 802.16s and 802.16t (industrial wireless broadband) Highly strategic Siemens partnership validates technology solution 2 3 4 5 Disruptive
Slide 7: The Problem: Required Upgrade of Legacy Networks
Legacy Narrowband ▪ Land Mobile Radio / Push - to - Talk ▪ Supervisory Control and Data Acquisition (“SCADA”) ▪ Low - speed dial up ▪ Antiquated Ondas enables Next - Gen digital apps Standards - Based Broadband Point - to - Multipoint IoT and Edge Enabled Low Cost / High Performance Massive Private
Slide 8: FullMAX – Only Solution for Required MC-IoT Upgrade
FullMAX – Only Solution for Required MC - IoT Upgrade 8 Faster Application Speed / Response Time Slower Legacy Industrial WAN Ondas Intelligent WAN Disruptive FullMAX software platform – moving cloud to the edge Corporate Cloud Legacy NB Remote Legacy NB Remote Legacy NB Base Legacy NB Base Corporat
Slide 9: FullMAX – Coverage, Cost and Security Advantages
Note: Not drawn to scale. COVERAGE RELIABLE SECURE FullMAX platform – 1,000x greater coverage of current networks # Cells Cost 1,000 ~$50.0M 100 ~$10.0M 1 ~$0.1M 5G FullMAX 4G LTE Coverage 28 sq. miles 2,800 sq. miles 2.8 sq. miles Consumer Industrial FullMAX – Coverage, Cost and Security Advantages
Slide 10: FullMAX – High Value Industrial Connectivity Solution
Value Private / Licensed Range Speed (1) Low - Power Wide Area Network (“LP - WAN”). Unlicensed LP - WAN ( ¹ ) Narrowband IoT FullMAX Commodity No ½ Mile Narrowband Low No 1 – 3 Miles Narrowband High 30+ Miles Broadband Yes (e.g., Low - cost sensors) (e.g., Street lamps) (e.g., Train control) FullMA
Slide 11: The Wide Industrial Pipe Enables Fog Computing
300x + capacity Capacity upgrade enables Fog computing and other high value, MC - IoT applications Ondas technology enables aggregation of scarce, low frequency spectrum The WIDE Industrial PIPE Enables Fog Computing 11
Slide 12: Target Markets / Applications
Target Markets / Applications 12
Slide 13: Massive Private Industrial Network TAM
Market Opportunity Application Customer Segment Partners / Customers Transportation / Rail Signaling , PTC Sensor Networks, LMDR Class I Rail Class II Rail UAS / Drones Managed Service Critical Industries Government Utilities Smart Grid Sensor Networks Electric Gas Water Oil and Gas Pump Control Sen
Slide 14: Safer/Faster Trains – Significant Value Creation for Rails
~5% Productivity Increase ~$4.5 billion Additional Revenue for Railroad Companies Onboard Telemetry ATCS Voice PTC FullMAX Software Platform Onboard Telemetry ATCS Voice PTC Legacy System Ondas Intelligent Fog ▪ Multiple, siloed, single - purpose networks ▪ Narrowband capacity ▪ Not upgradable ▪ Leg
Slide 15: Class 1 Freight Rail – Required Infrastructure Upgrade
▪ 140,000 Miles of Track ▪ 65,000 equipped Rail Crossings ▪ 25,000+ locomotives / 1.6 million rail cars ▪ 900 MHz / 160 MHz Network total addressable market of >$1.5 billion ▪ Common network platforms across all 7 Class 1 Rails Key Class 1 Rail Statistics Source: Siemens Mobility; Ondas estimates. E
Slide 16: The Ondas / Siemens Partnership
▪ Siemens partnership validates Ondas FullMAX solution – Supports new rail applications – Advanced Grade Crossing Activation and Monitoring, Wayside Inspection, Railcar Monitoring, On - locomotive telemetry – Dual mode, backwards - compatible systems – High value Siemens applications integrated with
Slide 17: The Ondas / JVCKenwood Railroad Collaboration
Ondas and JVCKenwood actively working to establish broad Land Mobile Data Radio (LMDR) partnership beyond Rail Class 1 Rails NGR - 160 Joint LMDR Platform Disrupt Legacy LMR Voice The Ondas / JVCKenwood Railroad Collaboration 17 ▪ Attack Public Safety and Military ▪ > $32 billion market expected by
Slide 18: The Aura Networks Drone Navigation End-to-End Platform
▪ Solution to FAA bottleneck – Spectrum efficient, channelized software platform – BVLOS ( ² ) requires dedicated channel to each on - network drone ▪ FullMAX platform superior UAS economic model – Standards - based system with robust ecosystem – Avoids expensive, time consuming development of propr
Slide 19: C2 UAS Platform Commercialization
▪ Platform opportunity; Tier 1 Drone and Industrial partners ▪ Operating leverage via limited marketing costs ▪ Long - lived network leads to predictable rollout; recurring revenue and IP licensing ▪ IP licensing model for in - Drone Remote (drone OEMs) ▪ Broader opportunity beyond Industrial / gove
Slide 20: Products
Products 20
Slide 21: FullMAX – Software in the Fog
Corporate Cloud ▪ IP Packetization and Transport ▪ Docker / Container Integrated ▪ Edge Compute ▪ Multi Layer Encryption ▪ Authentication ▪ Virtual Firewall Ondas FullMAX Intelligent Base Station FullMAX Edge Remote FullMAX Edge Remote FullMAX – Software in the Fog FullMAX Edge Remote FullMAX Edge R
Slide 22: Ondas FullMAX MC-IoT Software Platform
(1) Automatic Equipment Identification (“AEI”). MC - Edge Appliance Secure firewall Storage at the edge AI/ML analytics capable Local decision making Ondas FullMAX MC - IoT Software Platform Software platform with configurable base station and remote edge settings Wayside Devices Sensor Gateway AEI
Slide 23: FullMAX – Software Defined Radio (SDR) Platforms
Operates as a Base Station or a Remote Radio Narrowband or Broadband Operation Mobile and Fixed Primarily Base Station Application Increased Processing Power (X12 ARM) for 1000s of remotes MIMO 2x2 (enhanced coverage, up to 2x throughput) Primarily Base Station Application Increased Processing Power
Slide 24: Financial Overview
Financial Overview 24
Slide 25: Financial Highlights
▪ Large deals with blue chip customers ▪ High margins; post - deployment expansion ▪ Integrated solution with Tier 1 Vendors System Sales ▪ Recurring revenue on growing installed base ▪ Networks are long - lived; 15+ years ▪ Entitle customers to software, security upgrades SaaS and System Maintenanc
Slide 26: Large Rail Opportunity Supports Near-Term Bookings
Class 1 Rail 900 MHz Siemens 900 MHz Drone C2 FCC Build JVCKenwood LMDR Network Rail (UK) 2020 Class 1 Rail 900 MHz Class 1 Rail 160 MHz Network Rail UK Siemens 450 MHz Drone C2 Expansion LMDR JV – Public Safety Defense / Security AeroMACS Class 1 Rail 900 MHz Class 1 Rail 160 MHz Network Rail UK Si
Slide 27: Where is Ondas Going?
Business Expansion Market / Global Expansion Investment Platform Development Commercialization IEEE standards OTC Listing 2020 2021 2022 2023 2024 2025 2008 - 19 Class 1 Rail Security Drone (UAS) Utilities Oil & Gas DoD Military Where is Ondas Going? 27 Create Penetrate Scale High Growth Installed B
Slide 28: Appendix
Appendix 28
Slide 29: FullMAX – Moving Cloud to the Edge
FullMAX – Moving Cloud to the Edge 29 FullMAX Edge Remote FullMAX Edge Remote FullMAX Edge Remote FullMAX Edge Remote Ondas FullMAX Intelligent Base Station Corporate Cloud Ondas Intelligent Fog FullMAX Embedded Software and Edge Processing Edge Sensors Faster Application Speed / Response Time Slowe
Slide 30: Flywheel – Ecosystem Accelerates Near-Term Adoption
▪ Rail ATCS ▪ LMR Data ▪ Drone C2 ▪ IoT Software ▪ Fog / Edge Compute ▪ Sensors Adoption Cycle Accelerating Flywheel – Ecosystem Accelerates Near - Term Adoption 30 Ecosystem Partner New MC - IoT Apps Emerging Tech Customer Adoption
Slide 31: FullMAX Enables Upgrading of Legacy Applications
▪ Law enforcement ▪ Fire safety ▪ Military ▪ Municipal ▪ Critical voice over IP (PTT) ▪ Provides IoT data pipe ▪ Smartphone - type data applications ▪ Carry sensor traffic Huge Global Installed Base FullMAX LMDR ▪ Rail / Transit ▪ Electric utility ▪ Oil & gas ▪ Industrial FullMAX Enables Upgrading o
Slide 32: FullMAX Solves Bandwidth Bottleneck
25 kHz 1 25 kHz 2 25 kHz 3 25 kHz 4 25 kHz 5 25 kHz 25 kHz 25 kHz 25 kHz 25 kHz Edge Remotes Legacy Radios Base Stations FullMAX Solves Bandwidth Bottleneck 32 Ondas’ Software Enables Intelligence at the Edge Ondas Intelligent Fog Legacy Conventional Narrowband Ondas FullMAX Platform FullMAX Softwar
Slide 33: Private Industrial Networks are High Value
Mesh LP - WAN FullMAX Wi - Fi NB - IoT LTE Unlicensed Licensed FullMAX MC - IoT COVERAGE RELIABLE SECURE Private Industrial Networks are High Value 33 Public Private
Slide 34: Freight Rail – Mission Critical Applications
Locomotive Voice and Data Crossings Head of Train End of Train Base Stations Wayside Signaling Defect Detectors Intratrain Communication Back Office Railcar MOTES Maintenance Vehicles / Personnel Drones Train Detection Circuits in Rail Freight Rail – Mission Critical Applications 34
Slide 35: FullMAX – Core, Tier 1 Software-defined Platform
Ondas FullMAX Base Station Ondas Edge Radio Ondas Edge Radio Ondas Edge Radio Ondas Edge Radio FullMAX – Core, Tier 1 Software - defined Platform 35
Slide 36: Large End-Markets in Need of Upgrade
Large, established global end - markets poised for growth, driven by next - gen IoT connectivity Technology Drivers Edge Computing $16bn global market by 2025 ( ¹ ) Wide Area IoT $33bn by 2022 ( ² ) Large, Established Markets Electric Utility $15bn global market by 2021 ( ³ ) Land Mobile Radio $32bn
Slide 37: Income Statement
Fiscal Year Ended December 31 st Nine Months Ended September 30 th ($ in millions) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Year ended December 31, 2019 Year ended December 31, 2018 $0.2 $0.9 $0.0 $0.5 $1.0 $1.5 $2.0 Gross Profit ($11.4) ($4.9) ($15.0) ($10.0) ($5.0)
Slide 38: Non-GAAP Financial Measures
Non - GAAP Financial Measures 38 ▪ As required by the rules of the Securities and Exchange Commission ("SEC"), we provide reconciliations of the non - GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP. Non - GAAP financial measures for the year
Slide 39: Moving Cloud to the Edge
N ET W O R kom) Moving Cloud to the Edge
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