Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Investor Presentation (April 2020)
26 slides from Electro Optic Systems's investor presentation, Apr 15, 2020
Slide 1: Company Update and Capital Raising Presentation
15 April 2020 ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED Company Update and Capital Raising Presentation NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 2: Important Notice and Disclaimer
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important Notice and Disclaimer NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES The material in this presentation has been prepared by Electro Optic Systems Holdings Limited (ACN 092 708 364) (EOS or the Company) and includes information abou
Slide 3: Important Notice and Disclaimer (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important Notice and Disclaimer (cont.) NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES This presentation is based on information available to the Company as at the date of this presentation (unless otherwise stated). The information in this
Slide 4: Important Notice and Disclaimer (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Important Notice and Disclaimer (cont.) NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES The basis of preparation of the earnings guidance included in this presentation is, to the extent applicable, consistent with that of the Historical Finan
Slide 5: Summary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Summary Equity raising to enhance liquidity and continue to fund ongoing growth • Backlog and pipeline expectations unchanged, with increased momentum of acquisition activity in key customer programs • Logistical issues causing delivery and paymen
Slide 6: Company Update
COMPANY UPDATE NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 7: Backlog and Pipeline Update
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Backlog and Pipeline Update As at 31 December 2019 Backlog • To date, no customer has indicated intent to cancel or diminish any contract in effect Defence • EOS considers contract cancellations or diminution unlikely as contracts support long ter
Slide 8: Business Update
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Business Update Relentless focus on absorbing and mitigating real and potential impacts of COVID-19 • Taking all reasonable precautions to protect health of EOS’ 450 strong global workforce Staff • With exception of production and IT staff, essent
Slide 9: Business Update (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Business Update (cont.) Relentless focus on absorbing and mitigating real and potential impacts of COVID-19 • USA: on schedule to commence production from mid-2020, which is unchanged and expected to ramp up to $400 million in annual capacity over
Slide 10: Outlook Update
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Outlook Update Protecting growth through a period of disruption to global logistics FY2020 guidance revised to $230 million revenue and $27 million EBIT, representing 25% growth over FY2019 EBIT prior to FX gains • As Australia’s largest defence e
Slide 11: Funding Update
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Funding Update Equity raising provides liquidity, ability to retain production capacity and pursue growth Assumes $15 million EFIC facility remains undrawn (1) • Following the ~$134 million $ million 128 171 Placement(2) EOS will have ~$171 millio
Slide 12: Sources and Uses of Funds
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Sources and Uses of Funds Use of Offer Proceeds: Sources $ million A. Working capital for inventory expansion ~$55 million of the proceeds will fund four months of production of goods and services for secure government contracts during a period
Slide 13: Capital Raising
CAPITAL RAISING NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 14: Equity Raising Overview
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Equity Raising Overview • EOS is undertaking a fully underwritten institutional Placement to professional and sophisticated investors to raise ~$134 million with ~28.3 million fully paid New Shares to be issued, representing 25% of current issued
Slide 15: Equity Raising Timetable
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Equity Raising Timetable Event Date(1) SPP Record Date 7:00pm, Tuesday, 14 April 2020 Trading halt and announcement of Placement and SPP Wednesday, 15 April 2020 Placement opens Wednesday, 15 April 2020 Announcement of results of Placement and tra
Slide 16: Key Risks & Foreign Selling Restrictions
KEY RISKS & FOREIGN SELLING RESTRICTIONS NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 17: Key Risks
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks 1. Manufacturing Facilities The EOS business plan relies on establishment of significant high technology manufacturing capacity. Notwithstanding the use of a large-scale pilot plant, there is risk associated with developing and maintaini
Slide 18: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) 6. Government Contracts A portion of EOS' revenues may depend on its ability to do business with the Australian government as well as the U.S. and other foreign governments and their various agencies, whether directly or indirect
Slide 19: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) 10. Product Liability As with all new products, even after the granting of regulatory approval, there is no assurance that unforeseen adverse events or manufacturing defects will not arise in EOS' products. Adverse events could e
Slide 20: Key Risks (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Key Risks (cont.) 16. Technical Risk A key requirement of modern aerospace markets is the rapid deployment of new technology. However product lifetimes in these markets may exceed 20 years. Accordingly, there are risks to EOS' financial performanc
Slide 21: Foreign Selling Restrictions
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Foreign Selling Restrictions NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Hong Kong WARNING: This presentation has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinanc
Slide 22: Foreign Selling Restrictions (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Foreign Selling Restrictions (cont.) NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES New Zealand This presentation has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act
Slide 23: Foreign Selling Restrictions (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Foreign Selling Restrictions (cont.) NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Singapore This presentation and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singap
Slide 24: Foreign Selling Restrictions (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Foreign Selling Restrictions (cont.) NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES United Kingdom Neither this presentation nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in t
Slide 25: Summary of Underwriting Arrangements
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Summary of Underwriting Arrangements Citigroup Global Markets Australia Pty Limited (Citi) is acting as sole lead manager and underwriter of the Placement. The Company entered into an underwriting agreement with Citi in respect of the Placement (A
Slide 26: Summary of Underwriting Arrangements (cont.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES Summary of Underwriting Arrangements (cont.) L. (*) any regulatory body commences any public action against an officer of the Company in his or her capacity as an officer of the Company or announces that it intends to take any such action or an of
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