Slide 1: Artificial Intelligence For Multi-Mission Threat Protection and C-UAS Defence
For personal use only Artificial Intelligence For Multi-Mission Threat Protection and C-UAS Defence Investor Presentation (ASX:DRO) February 2024 Image: DroneShield RfPatrol drone detector
Slide 2: Rapid Profitable Growth
Rapid Profitable Growth ($m, Dec YE) The business is accelerating its rate of growth, while becoming profitable Strong Revenue Growth (A$m) Cash Receipt Growth (Sales + Grants) (A$m) For personal use only ~3x growth 55.1 73.5 ~5x growth over 2022 over 2022 16.9 10.6 14.8 15.6 3.6 5.6 1.2 3.7 5.4 1.8
Slide 3: Strong 2023 Creating a Solid Base for 2024
Strong 2023 Creating a Solid Base for 2024 • FY23: record contracts and rapidly growing cash receipts – FY23 $73.5 million cash receipts, up 5x vs FY22 – FY23 $55.1 million revenue, up 3x vs FY22 – 80% of revenues are from repeat customers For personal use only – The revenue vs cash receipt differen
Slide 4: DroneShield "Secret Sauce"
DroneShield “Secret Sauce” C-UAS pioneer, full in-house suite of multi-mission products, culture of innovation and deep channels to market Market leading, differentiated technology Complete product, integration and geographic coverage For personal use only All hardware (except radar and camera) deve
Slide 5: Deep and High Quality Government Customer Pipeline
Deep and High Quality Government Customer Pipeline Multiple projects at each development stage improve predictability of cashflows 6-18 months from lead to sale, but can be much shorter for repeat orders For personal use only P-Go vs P-Win Credible Lead (10%) Confirmed Scope/ Probability weighting o
Slide 6: 2024 Pipeline of $388m, with a further $123m tracked for 2025+
2024 Pipeline of $388m, with a further $123m of projects tracked for 2025+ USA continues to be the major contributor to the sales and is the primary focus for the business, however the global pipeline is also growing rapidly For personal use only 2024 Pipeline: $231m / 41 projects 2024 Pipeline: $10
Slide 7: Problem and Opportunity: Drones as a Threat
For personal use only Problem and Opportunity: Drones as a Threat
Slide 8: Drones - A Critical and Growing Threat Vector
Drones - A Critical and Growing Threat Vector For personal use only 8
Slide 9: Rising Tides of Military and C-UAS Spend Present Tailwinds
Rising Tides of Military and C-UAS Spend Present Tailwinds for Continued, Accelerated Growth Key Market Drivers For personal use only Rising Global Conflicts & Proliferation of Cheap Geopolitical Tensions Combat & Consumer Drones Escalation of Advancements in AI & Drone-Based Offensives Autonomous W
Slide 10: Driving an Urgent Need for Counter-Drone Solutions Across Military & Civilian Sectors
Driving an Urgent Need for Counter-Drone Solutions Across Both Military & Civilian Sectors The Rapid Proliferation of Drones has Escalated the Potential for Disruptive Incidents… For personal use only Commercial Airspace Payload Delivery Intel Gathering Swarms Nuisance Activity Cyber Attacks Deepeni
Slide 11: Vast and Growing TAM of >US$10b
Vast and Growing TAM of >US$10b The C-UAS market penetration today is negligible at <1% For personal use only Note: All dollar figures are in US$ 11
Slide 12: DroneShield Overview
For personal use only DroneShield Overview
Slide 13: The DroneShield Story: Emergence of an Industry Leader
The DroneShield Story: Emergence of an Industry Leader 1 2 3 4 For personal use only MARKET PIONEER IN COUNTER- …UNDERPINNED BY CUTTING-EDGE …VALIDATED THROUGH TOP EXCEPTIONAL BRAND AND DRONE TECHNOLOGY AT THE PROPRIETARY AI-BASED SOFTWARE TIER CUSTOMER BASE DIFFERENTIATED MARKET POSITION FOREFRONT
Slide 14: Summary
Summary • Founded in 2014 and listed on the ASX in 2016, DroneShield provides Artificial Intelligence platforms for protection against drones DroneShield • Hardware and software to detect and safely neutralise small drones used for warfare, terrorism, contraband Overview delivery, and airport disrup
Slide 15: Market Pioneer in Counter-Drone Technology at the Forefront of Innovation
Market Pioneer in Counter-Drone Technology at the Forefront of Innovation Complete Multi-Mission Counter-Drone Arsenal with the Best Product for Every Scenario Body-Worn Vehicle / Stationary Fixed Site For personal use only DroneGun DroneSentry-X DroneGun Mk3 DroneGun Mk4 RfPatrol Mk2 DroneCannon Rf
Slide 16: Explosive Growth Based on a Strong Foundation
Explosive Growth Based on a Strong Foundation 2014-2017 2018-2022 2023 2024-2028 Building the Foundation “Green Shoots” Explosive Growth Transforming to Next Level • Setting up in Australia and • Multiple $1m+ orders • $33m U.S. Govt sale • 5-year target*: For personal use only US • $3.8m 2-year R&D
Slide 17: At a Critical Inflection Point, capitalizing on numerous Growth Vectors
At a Critical Inflection Point, capitalizing on numerous Growth Vectors For personal use only Strategic Future Contracts Alliances & Expand into Partnerships Adjacent Markets • Forge strategic Accelerate SaaS alliances with defence Grow Adjacent Subscriptions contractors and • Increase penetration E
Slide 18: Competitor Analysis
For personal use only Competitor Analysis
Slide 19: Exceptional Brand and Differentiated Market Position
Exceptional Brand and Differentiated Market Position For personal use only Origin Integrator ü ü ü ü ü - ü - - - þ Most extensive DETECT product range on the market Dismounted ü - - - - - ü - - - Vehicle ü - ü - - - ü ü ü ü þ Unrivaled versatility Fixed Site ü ü ü - ü - ü ü ü ü from handheld to fixe
Slide 20: Appendices
For personal use only Appendices
Slide 21: Geopolitical Environment Providing Market Tailwinds
Geopolitical Environment Providing Market Tailwinds Increased expenditure by Western Governments in response to the war in Ukraine – US DoD proposed 2024 budget of over US$840bn, a record peacetime amount1 – Germany increasing spending to over 2% of GDP (from 1.53% in 2021), including a new EUR100bn
Slide 22: How a Counterdrone System Works
How a Counterdrone System Works DroneShield Performs all 3 steps of the Process For personal use only DETECT ASSESS RESPOND State of the art, multi-sensor drone Machine learning and AI based detection and Respond / defeat technologies offer detection products provide optimal classification software
Slide 23: Counterdrone Detection Solutions
Counterdrone Detection Solutions DroneShield uses Multi-sensor Drone Detection for Optimal Results, Unaffected by time of Day or Weather Radio Frequency Radar* Cameras* Acoustic* For personal use only Imagery • Electro-Optical (EO), Infrared • Foundational layer • Motion tracker - emits signals (IR)
Slide 24: Counterdrone Defeat Solutions
Counterdrone Defeat Solutions DroneShield uses smart jamming which has advantages over other technologies, particularly, in its use across civil and military applications, and does not compete against large Defence Primes Large Defence Primes For personal use only Exotic Tech, Dominance Area Safe –
Slide 25: Benefits and Applications of Safe, Layered, Counterdrone Systems
Benefits and Applications of Safe, Layered, Counterdrone Systems over Kinetic Systems Safe Counter-drone Systems Have Many Advantages over Kinetic Counter-drone Systems, which are only Practical for Deployment in War-like Scenarios For personal use only Avoidance of Collateral Evidence for Legal Mul
Slide 26: DroneShield AI Software Sees Through Noise - Radiofrequency Spectrum
DroneShield AI Software Sees Through Noise – Radiofrequency Spectrum World Leading Proprietary RF AI Platform for Protection Against Advanced Threats, such as Drones For personal use only • Drones operate in the densest parts of the Radio Frequency (“RF”) Spectrum with “noise” coming from all kinds
Slide 27: DroneOptID AI Software - Optical and Thermal Spectrum
DroneOptID AI Software – Optical and Thermal Spectrum Counterdrone Surveillance DroneShield’s DroneOptID AI engine detects and tracks complex threats such as drones in cluttered environments For personal use only • Drones are small, fast-moving objects, hard to detect with naked eye more than 50m aw
Slide 28: Cutting-Edge Proprietary AI-Based Software Capabilities
Cutting-Edge Proprietary AI-Based Software Capabilities For personal use only Advanced Computer Vision & ML to detect and track drones in complex environments Sophisticated, Proprietary Algorithms to enhance real-time threat analysis and response Substantial & Growing Threat Database leverages 35,00
Slide 29: Artificial Intelligence in Electronic Warfare
Artificial Intelligence in Electronic Warfare DroneShield is Favourably Exposed to the Fast-growing Electronic Warfare Business Segment For personal use only • Electronic warfare (EW) is any action involving the use of the electromagnetic spectrum (EM spectrum) or directed energy to control the spec
Slide 30: Visionary Team of Industry Veterans with Deep Industry Experience
Visionary Team of Industry Veterans with Deep Industry Experience Peter James Oleg Vornik Jethro Marks Carla Balanco Red McClintock Tom Branstetter For personal use only Independent Non-Executive CEO and Managing Director Independent Non-Executive CFO and Joint Company Sales Director U.S. Director o
Slide 31: Capital Structure
Capital Structure Capital Structure (approximately 11,000 shareholders) - 27 February 2024 Research Coverage DRO Shares on Issue 612,153,611 For personal use only DRO Options on Issue1 61,969,000 Fully Diluted Shares on Issue 674,122,611 Fully Diluted Equity Value2 $509.0m Cash (as at 31 December 20
Slide 32: Industry and Media Recognition
Industry and Media Recognition For personal use only 32
Slide 33: Legal Disclaimer
Legal Disclaimer These presentation materials (the Presentation Materials) have been prepared by DroneShield Limited (the Company). By receiving the Presentation Materials, you acknowledge and represent to the Company that you have read, understood and accepted the terms of this disclaimer. It is th
Slide 34: DroneShield Limited contact
For personal use only Artificial Intelligence For Multi-Mission Threat Protection and C-UAS Defence DroneShield Limited (ASX:DRO) Investor Presentation Oleg Vornik CEO and Managing Director oleg.vornik@droneshield.com +61 2 9995 7280