Aerovironment, Inc. · NASDAQ:AVAV
Aerovironment — Investor Day (October 2022)
67 slides from Aerovironment's investor day presentation, Oct 5, 2022
Slide 1: Investor Day 2022: Beyond the Horizon
INVESTOR DAY 2022 Beyond the Horizon October 5, 2022 Slide 1 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 2: Today's Agenda
Today’s Agenda INVESTOR & ANALYST DAY // AGENDA DAY 2 OCTOBER 5 TIME AGENDA ITEM LOCATION 7:00 AM BREAKFAST Sheraton - Marina Room 8:00 AM SHUTTLE BUS: SHERATON TO PETALUMA FACILITY Sheraton Parking Lot 8:15 AM SECURITY CHECK-IN 8:45 AM WELCOME 9:00 AM AEROVIRONMENT TODAY & TOMORROW 9:30 AM FINANCIA
Slide 3: Welcome
WELCOME! Jonah Teeter-Balin Sr Director, Corporate Development & Investor Relations Slide 3 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 4: Watch the Video Here
WATCH THE VIDEO HERE Slide 4 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 5: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation may constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate o r im
Slide 6: Where We're at in Today's Agenda
Where We’re at in Today’s Agenda INVESTOR & ANALYST DAY // AGENDA DAY 2 OCTOBER 5 TIME AGENDA ITEM LOCATION 7:00 AM BREAKFAST Sheraton - Marina Room 8:00 AM SHUTTLE BUS: SHERATON TO PETALUMA FACILITY Sheraton Parking Lot 8:15 AM SECURITY CHECK-IN 8:45 AM WELCOME 9:00 AM AEROVIRONMENT TODAY & TOMORRO
Slide 7: AeroVironment Today and Tomorrow
AEROVIRONMENT Today and Tomorrow Wahid Nawabi CEO, President and Chairman Slide 7 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 8: Since Investor Day 2018
Since Investor Day 2018 We support a much larger set of international customers today - 55 countries and growing! We are a truly global company – not just “Simi Valley, CA centric”, but with staff in Germany, UAE, and 7 sites across the USA, plus forward- deployed and in harm’s way with customers an
Slide 9: Our Future State Evolving for our customers
Our Future State Evolving for our customers Integrated Portfolio of Intelligent, Multi-Domain Robotic Systems for Defense and Commercial Markets o Mission-centric solutions o Operate in the presence of near peer adversaries o Seamlessly integrating robotic systems with humans Slide 9 © 2022 AeroViro
Slide 10: Comprehensive Business Strategy
Comprehensive Business Strategy AV’s product portfolio is We operate different We have 6 product We stretch from below the shaped so that we serve business models - lines today, geared waves of Earth’s oceans our customers as the providing hardware toward customer to the red surface of Mars world’s
Slide 11: Since Investor Day 2018, Our Evolution Continues
Since Investor Day 2018, Our Evolution Continues Added to Our Portfolio Jun 2019 Feb 2021 Feb 2021 May 2021 Aug 2022 VTOL AI/ML MUAS/ UGV/ UAS SUAS Autonomy CO-CO Svc. EOD Navigation Pulse Aerospace Progeny Systems, ISG Arcturus UAV Telerob Planck Aerosystems Lawrence, Kansas Manassas, Virginia Peta
Slide 12: Long-Term Objectives
Long-Term Objectives Our aim is to double revenue by increasing: • Our presence internationally to better serve growing customer base • Our investments in R&D • The size of our team and our areas of expertise • The “resiliency” of our solutions (Contested airspace operations) • Our investments in AI
Slide 13: Lots of Positive Trends
Why do we believe this is achievable? Lots of Positive Trends The Ukraine war has US DoD & most of The Ukraine war has validated again “awoken” the US and our allies’ defense the importance and relevance of drones our Allies regarding spending should and loitering munitions. This is a the seriousnes
Slide 14: In Conclusion
In Conclusion one two three four The future for We have a We work hard to We are in the middle AeroVironment clear and remain of our transformation, We have has never compelling leaders which is positioning much to do! been plan for growth, in the markets us for decades of Understanding brighter sup
Slide 15: Where We're at in Today's Agenda
Where We’re at in Today’s Agenda INVESTOR & ANALYST DAY // AGENDA DAY 2 OCTOBER 5 TIME AGENDA ITEM LOCATION 7:00 AM BREAKFAST Sheraton - Marina Room 8:00 AM SHUTTLE BUS: SHERATON TO PETALUMA FACILITY Sheraton Parking Lot 8:15 AM SECURITY CHECK-IN 8:45 AM WELCOME 9:00 AM AEROVIRONMENT TODAY & TOMORRO
Slide 16: Financial Update
FINANCIAL UPDATE Long Term Growth Potential Kevin McDonnell CFO Slide 16 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 17: Business Segments Market Outlook
Business Segments Market Outlook SEGMENT GLOBAL TAM (1) OUTLOOK HIGHLIGHTS o Global Leader Position in Group 1– Over $2B of revenue over last 15 years SUAS $1B+ o Adding Group 2 to Target Market o Multiple New Product Introductions and Add-ons Group 1/2 UAVs Growing o Well Positioned for Future U.S.
Slide 18: Business Segments Market Outlook
Business Segments Market Outlook SEGMENT GLOBAL TAM (1) OUTLOOK HIGHLIGHTS o Global Leader Position in Group 1– Over $2B of revenue over last 15 years SUAS $1B+ o Adding Group 2 to Target Market o Multiple New Product Introductions and Add-ons Group 1/2 UAVs Growing o Well Positioned for Future U.S.
Slide 19: Long Term Growth Drivers
Long Term Growth Drivers ONE FOUR Increasing Defense Increasing International Demand for TMS and MUAS Products Budgets Globally FIVE TWO Upgrades and Replacements for SUAS Installed Base Increased Demand for Loitering Munitions (TMS) within U.S. DOD SIX Growth of U.S. DOD Classified Programs driving
Slide 20: Examples of Large $1 Billion+ Programs on Horizon
Examples of Large $1 Billion+ Programs on Horizon TMS MUAS SUAS o Long Range Precision Munition (LRPM) o Future Tactical UAS (FTUAS) o Long Range Reconnaissance (LRR) o Optionally Manned Fighting Vehicle (OMFV) o Medium Endurance UAS (MEUAS) o Medium Range Reconnaissance MRR) o Ground Organic Precis
Slide 21: Financial Performance
Financial Performance AVERAGE MID-POINT (1) FY18-FY22 FY23 LONG TERM Revenue Growth 14% 12% Growth should accelerate with Large Program Wins R&D Investment 12% 10% - 11% R&D Investment will Continue Adjusted EBITDA % (2) 17% 17% Growth is Priority (1) Mid-Point of Revenue and Adjusted EBITDA Guidanc
Slide 22: Financial Performance
Financial Performance AVERAGE MID-POINT (1) FY18-FY22 FY23 LONG TERM Revenue Growth 14% 12% Growth should accelerate with Large Program Wins Expect continued double digit organic revenue growth with R&D investment R&D Investment 12% percentages and Adjusted EBITDA 10% -in11% R&D Investment will Cont
Slide 23: Where We're at in Today's Agenda
Where We’re at in Today’s Agenda INVESTOR & ANALYST DAY // AGENDA DAY 2 OCTOBER 5 TIME AGENDA ITEM LOCATION 7:00 AM BREAKFAST Sheraton - Marina Room 8:00 AM SHUTTLE BUS: SHERATON TO PETALUMA FACILITY Sheraton Parking Lot 8:15 AM SECURITY CHECK-IN 8:45 AM WELCOME 9:00 AM AEROVIRONMENT TODAY & TOMORRO
Slide 24: Medium Unmanned Aircraft Systems (MUAS)
MEDIUM UNMANNED AIRCRAFT SYSTEMS (MUAS) FTUAS Program & Key Technologies Gorik Hossepian Vice President and Product Line General Manager Medium Unmanned Aircraft Systems Slide 24 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 25: Watch the Video Here
Insert MUAS Video WATCH THE VIDEO HERE Slide 25 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 26: FTUAS Program Purpose
FTUAS Program Purpose Shadow JUMP 20 Replacement for RQ-7B Shadow in US Army brigade combat teams • Seeking VTOL, runway-independent, reduced acoustic signature, easily transportable • Requires at least 6-hour duration and operating ability out to 100km • More than 500 shadows fielded globally Slide
Slide 27: FTUAS Program Details
FTUAS Program Details Increment 1 Increment 2 Final Award • Sole source $8m award for one • Fields systems that fully • Expected award in late Jump 20 system ➔ AV front runner comply with FTUAS program GFY24 with initial for full program with win requirements fielding in GFY25 o Each system includes
Slide 28: FTUAS Program Competitive Advantage
FTUAS Program Competitive Advantage AeroVironment JUMP 20™ is already best in class • 14+ hour flight duration with operating range of 185 km • Industry leading payload capacity and range trade-offs • Market share leader in MEUAS SOCOM contracts • Over 115,000 operational hours to date Planck Acquis
Slide 29: Planck Aerosystems - Products
Planck Aerosystems - Products OpTrack Automated Control Engine (ACE) AVEM - Tethered • Real-time, AI/ML-based object • Enabling technology for deployment • Fully-integrated, persistent aerial detection and geolocation of organic sUAS on vessels & vehicles sensor system for moving vehicles/vessels •
Slide 30: Vision-Based Launch & Landing
Vision-Based Launch & Landing Planck Aerosystems Automated Control Engine (ACE) Utilizes AprilTags for a visual fiducial navigation system o Developed originally for mobile-landing applications o Reworked to provide a position solution from a fixed target reference Slide 30 © 2022 AeroVironment, Inc
Slide 31: ACE & JUMP 20: Maritime Operations
ACE & JUMP 20: Maritime Operations o Enables ship-based ISR/SAR o Maritime logistics: Ship/Shore, Ship/Ship o Integrates with USN/NATO flight decks o Automated SAR when integrated with OpTrack Slide 31 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 32: Air-Launched Effects Concepts
Air-Launched Effects Concepts Switchblade® 300 • Under-wing launch of SB300 from standard launch tube Switchblade® 600 • Early concept modeling for under-belly, internal, and under-wing mounts Hatchet & BMS • Interior air-drop from standard deploy mechanism Slide 32 © 2022 AeroVironment, Inc. – Prop
Slide 33: Watch the Video Here
Insert SB300 J20 Video WATCH THE VIDEO HERE Slide 33 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 34: Facility Tour
FACILITY TOUR Please leave all electronic devices in this room. Photos and videos prohibited. Slide 34 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 35: Where We're at in Today's Agenda
Where We’re at in Today’s Agenda INVESTOR & ANALYST DAY // AGENDA DAY 2 OCTOBER 5 TIME AGENDA ITEM LOCATION 7:00 AM BREAKFAST Sheraton - Marina Room 8:00 AM SHUTTLE BUS: SHERATON TO PETALUMA FACILITY Sheraton Parking Lot 8:15 AM SECURITY CHECK-IN 8:45 AM WELCOME 9:00 AM AEROVIRONMENT TODAY & TOMORRO
Slide 36: Small Unmanned Aircraft Systems (SUAS)
SMALL UNMANNED AIRCRAFT SYSTEMS (SUAS) Next Gen Needs for Near Peer Conflicts Trace Stevenson Vice President and Product Line General Manager Small Unmanned Aircraft Systems Slide 36 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 37: Evolving AeroVironment's Portfolio
Evolving AeroVironment’s Portfolio Legacy AV Fixed Wing FoS • Reliable, Proven Group 1/2 sUAS • Common User Interface and GCS • Hand launched, fixed wing vehicles • Custom high-performance payloads P UMA 3 AE RQ-20 ® RAVEN RQ-11 • Gov’t waveform DDL radios PUMA LE WASP AE ™ ™ ™ RQ-12 Future AV eVTOL
Slide 38: Future System Product Philosophy
Future System Product Philosophy Enable the mounted or dismounted soldier to transport a system, quickly deploy, and easily control a medium/long endurance multi-payload VTOL UAS Key Performance Areas Develop flexible product architecture for the future EO/IR capability – take the best performance v
Slide 39: VTOL Benefits
VTOL Benefits No launch mechanism needed – launch anywhere in any environment ideal for confined environments No runway or open space required for launch and recovery Maintains all-weather capability – minus water landing Slide 39 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 40: Autonomy Process & Benefits
Autonomy Process & Benefits Actionable Data Onboard Monitoring & Response Flight Telemetry Fleet Manager Data Processing Feedback Cloud Server Machine Learning Maintenance Planning Reduce Cognitive Load on Operator Aircraft Health Monitoring • Pre-planned Mission Execution • Detect anomalies before
Slide 41: Watch the Video Here
WATCH THE VIDEO HERE Slide 41 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 42: VAPOR 55 MX Mission Options
VAPOR® 55 MX Mission Options Expeditionary Payload Mapping / Maritime Small Munition Scout Delivery Inspection Patrol Firing Forward operator, Ideal for emergency response Provide detailed Provide perch and Provide the ability to carry mechanized operations. Deliver life-saving position data and sta
Slide 43: New Puma Accessory
NEW PUMA ACCESSORY Slide 43 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 44: New Accessory Visual Navigation System
New Accessory Visual Navigation System Determines Precise Location without relying on GPS – accurately navigate in GPS denied environments Upgrade kit for Puma 2/3 AE SUAS includes suite of down- looking sensors that gather imagery and compute modules to determine location System transitions to and
Slide 45: Where We're at in Today's Agenda
Where We’re at in Today’s Agenda INVESTOR & ANALYST DAY // AGENDA DAY 2 OCTOBER 5 TIME AGENDA ITEM LOCATION 7:00 AM BREAKFAST Sheraton - Marina Room 8:00 AM SHUTTLE BUS: SHERATON TO PETALUMA FACILITY Sheraton Parking Lot 8:15 AM SECURITY CHECK-IN 8:45 AM WELCOME 9:00 AM AEROVIRONMENT TODAY & TOMORRO
Slide 46: Tactical Missile Systems (TMS)
TACTICAL MISSILE SYSTEMS (TMS) Family of Loitering Munitions Brett Hush Vice President and Product Line General Manager Tactical Missile Systems Slide 46 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 47: Family of Loitering Munitions
Family of Loitering Munitions Switchblade® 300 Blackwing Switchblade® 600 Jackal Man packable Launched from US Navy Man portable, Air Launched, Multi-pack Launcher Submarines In production sprint-loiter, In Production for over decade In production Integrates with ships, aircraft, teamed with NGC, Bu
Slide 48: Watch the Video Here
WATCH THE VIDEO HERE Slide 48 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 49: Switchblade Loitering Missiles
Switchblade® Loitering Missiles Soldier Portable Time Sensitive Operator-in-the-loop Precision Strike Low Collateral Damage All-in-one, man portable Quick response to troops in Wave-off/Recommit – FCU with target lock-on Wave-off capability enables missile system provides the contact and/or fleeting
Slide 50: Switchblade 300
® SWITCHBLADE 300 SPECS Wingspan 27 in (68.6 cm) and Length 19.5 in (49.5 cm) Weight 5.5 lb (2.5 kg) Link Range 10 km Standard GCS Endurance 15 minutes Cruise: 63 mph (24 kts) Speed Dash: 100 mph (41 kts) KEY CAPABILITIES Modular payload bay Battle-proven beyond line-of-sight precision strike loiter
Slide 51: Loiter or Direct Attack
LOITER OR DIRECT ATTACK Launch Multiple AURs Wave Off Defeat Multiple Targets Switchblade Munition Operator Eliminate Fuel Truck Payload Behind Cover Disable Engine Compartment Portable <12lbs Rapid Engagement <2 min Target ID or Orbit Target Lock and Engage Wave Off or Arm Re-engage or Destroy Slid
Slide 52: Sensor-to-Shooter
SENSOR-TO-SHOOTER Slide 52 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 53: Switchblade 600
SWITCHBLADE® 600 SPECS AUR Length: 60 in Dimensions Diameter: 7.55 in System System: 120 lb (54.4 kg) Weight 1 AUR, 1 FCS Threshold: 40 km Link Range Objective: 90+ km Endurance 40+ Min Cruise: 70 mph KEY CAPABILITIES Speed Dash: 115 mph Man portable, quick setup shoot and move Target ID - capable b
Slide 54: Slide 54 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 54 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 55: Slide 55 © 2022 AeroVironment, Inc. – Proprietary Information
® Slide 55 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 56: Northrop Grumman Jackal
Northrop Grumman Jackal Response to Army Program-of-Record (POR) to develop Long Range Precision Munition (LRPM) • Increase standoff distances of soldiers and aircraft/helicopters • Operate in Anti-access, Area-denial (A2AD) and GPS/PNT denied environments • 3-5 year development cycle beginning this
Slide 57: Where We're at in Today's Agenda
Where We’re at in Today’s Agenda INVESTOR & ANALYST DAY // AGENDA DAY 2 OCTOBER 5 TIME AGENDA ITEM LOCATION 7:00 AM BREAKFAST Sheraton - Marina Room 8:00 AM SHUTTLE BUS: SHERATON TO PETALUMA FACILITY Sheraton Parking Lot 8:15 AM SECURITY CHECK-IN 8:45 AM WELCOME 9:00 AM AEROVIRONMENT TODAY & TOMORRO
Slide 58: Where We're at in Today's Agenda
Where We’re at in Today’s Agenda INVESTOR & ANALYST DAY // AGENDA DAY 2 OCTOBER 5 TIME AGENDA ITEM LOCATION 7:00 AM BREAKFAST Sheraton - Marina Room 8:00 AM SHUTTLE BUS: SHERATON TO PETALUMA FACILITY Sheraton Parking Lot 8:15 AM SECURITY CHECK-IN 8:45 AM WELCOME 9:00 AM AEROVIRONMENT TODAY & TOMORRO
Slide 59: Q&A Panelists
Q&A Panelists Wahid Nawabi // CEO, Chairman & President Kevin McDonnell // Sr. Vice President & Chief Financial Officer Gorik Hossepian // Vice President and Product Line General Manager of Medium Unmanned Aircraft Systems Trace Stevenson // Vice President and Product Line General Manager of Small U
Slide 60: Where We're at in Today's Agenda
Where We’re at in Today’s Agenda INVESTOR & ANALYST DAY // AGENDA DAY 2 OCTOBER 5 TIME AGENDA ITEM LOCATION 7:00 AM BREAKFAST Sheraton - Marina Room 8:00 AM SHUTTLE BUS: SHERATON TO PETALUMA FACILITY Sheraton Parking Lot 8:15 AM SECURITY CHECK-IN 8:45 AM WELCOME 9:00 AM AEROVIRONMENT TODAY & TOMORRO
Slide 61: Closing Remarks
CLOSING REMARKS Wahid Nawabi CEO, President and Chairman Slide 61 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 62: Today's Key Messages
Today’s Key Messages Our Last 5 Years have been great We Have Very Attractive Opportunities in front of us We are Well Positioned to capitalize on these opportunities We Have High Expectations for ourselves and our teams We are Committed to strong returns for shareholders Slide 62 © 2022 AeroVironme
Slide 63: Demo Products You will See
Demo Products You will See o Intro of Field Operations Team o Puma AE flight demonstration • Cover standard Puma AE and Puma LE use cases • Discuss VNS capabilities and use cases • Demonstrate how Sensor to Shooter operates o UGV demonstration with Telemax Evo Plus • Demonstrate ease of control to s
Slide 64: Time for security check-out and shuttle bus to demo field
Time for security check-out and shuttle bus to demo field Slide 64 © 2022 AeroVironment, Inc. – Proprietary Information
Slide 65: Appendix A – Historical GAAP to Non-GAAP Reconciliation of Adjusted EBITDA
APPENDIX A – Historical GAAP to NON-GAAP Reconciliation of Adjusted EBITDA FY18 FY19 FY20 FY21 FY22 Net income from continued operations $ 21,750 $ 41,912 $ 41,339 $ 23,331 $ (4,188) Interest Expense (Income)/net (2,240) (4,672) (4,828) 618 5,440 Tax provision / (benefit) 9,800 4,641 5,848 539 (10,3
Slide 66: Appendix B – FY23 Forecasted GAAP to Non-GAAP Reconciliation of Adjusted EBITDA
APPENDIX B – FY23 Forecasted GAAP to NON-GAAP Reconciliation of Adjusted EBITDA Fiscal year ending (in millions) April 30, 2023 Net income (loss) $ 11 - 18 Interest expense, net 5 Benefit from income taxes (4) - (1) Depreciation and amortization 60 EBITDA (Non-GAAP) 72 - 82 Stock-based compensation
Slide 67: Investor Day 2022: Beyond the Horizon
INVESTOR DAY 2022 Beyond the Horizon October 5, 2022 Slide 67 © 2022 AeroVironment, Inc. – Proprietary Information