Coda Octopus Group, Inc. · NASDAQ:CODA
Coda Octopus — Investor Presentation (March 2020)
53 slides from Coda Octopus's investor presentation, Mar 27, 2020
Slide 1: Corporate Presentation March 2020
CODA OCTO World Leader in Sound Underwater Technology Corporate Presentation March 2020
Slide 2: Forward-looking statements
This presentation contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include, without limitation, sta
Slide 3: CEO Vision Statement
CEO Vision Statement oe “To realize increased i throu he ° ne ‘s revolutionary, proprietary subsea technology, and i a nts it o ged defense engineering. To increase our value p i i U nployees, to reward
Slide 4: Overview and Revenue by Entity
Coda cen Ine. f Ove rview Revenue by Entity 100% + Established business with strong pedigree in marine a6 technology and defense engineering: = Con 70% 60% 50% 40% Products Business Engineering Business 30% Market leader in real-time 3D Long-established relationships 20% imaging sonar technology for
Slide 5: Financial Snapshot
Financial Snapshot ANNUAL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Revenues $19,234,396 $21,118,319 $18,025,173 $18,019,429 $25,056,934 Net Income $1,070,291 $4,930,548 $3,339,663 $3,102,899 $5,225,199 EBITDA $2,309,215 $6,348,022 $4,771,643 $4,069,175 $7,278,307 Earnings per $0.16 $0.60 $0.37 $0.49
Slide 6: Marine Technology Business
Product Design & 24/7 Support and Manufacturing 3D Field Experts Marine Technology Business Software Application and Custom Development Research Development and Innovation
Slide 7: COTS Products & Engineering Services
COTS Products & Engineering Services Products Commercial off-the-shelf (COTS) product sales occur primarily through two channels: Direct Sales: Most sales occur through our Sales teams in both the U.S. and U.K. Agents: We also use a wide network of third party agents to expand our reach around the w
Slide 8: Echoscope Family of Volumetric Sonars
Coda Echoscope‘*®® Family of Volumetric Sonars Visualization & Mapping for Widest Range of Applications Echoscope*©® Surface Buney yideq Echoscope*¢® Deep Water <1 ee seat Echoscope4¢® Echoscope*©® C500 Compact Edition SWaP (Size, Weight and Power) Seeing & Measuring in Real-Time 3D in Zero Visibili
Slide 9: Echoscope Hardware and Processing Engine
Echoscope*¢® Hardware 4G Lightweight Housing Processing Engine 3rd Generation Processing Engine Coda Oct va Echoscope® PIPE Hardware Processing Engine 4G Lightweight Housing Brand New Processing Engine y) ) ») » FP JJ J JJ 40 Million Points of Data
Slide 10: Coda Real-Time 3D Technology: Project ROI Snapshots
Coda Real-Time 3D Technology Sample Echoscope Project RO! Snapshots 200 Blocks placed per day Van Oord Port Construction Project Placement of 24,000 CORE-LO Cost Saving: Priceless 76 Sleepers placed per day ZADCO Sleeper Placement Was: 4 sleepers placed in 12 hours Now: 76 sl 24 hou Productivity: >
Slide 11: 3D Product Line: Real-Time 3D Imaging Sonar
3D Product Line Echoscope® 3D Real-Time Imaging Sonar Real-Time 3D Imaging AND Real-Time Mapping — see the shadows disappear! Client deliverables complete in 54 seconds... 3D Multibeam Produces static map after hours or days of processing NO Real-Time image 2D Scanning Sonar Produces static map afte
Slide 12: 3D Product Line
3D Product Line a ingle Sensor, Multiple Parallel Processing Application, for Vision, apping and Measurement < — 3D Complex Mapping No Post Processing World's most , and 3D sonar solution... 12
Slide 13: Delivering on Everyday Challenges Subsea
3D Product Line Delivering on Everyday Challenges Subsea Complex Asset Placement - Alaska Monopod Installation * Four Echoscopes® used to provide real-time visualization of landing site and control stabilization for crane operators + Software ‘models’ provided real-time indication of distance and al
Slide 14: Mineral Mining and Marine Construction
3D Product Line Delivering on Everyday Challenges Subsea Mineral Mining - Diamonds Marine Construction - Breakwaters rs * Operator can “see” exactly where each Echoscope® is the No. 1 preferred solution for cut has taken place subsea placement + No overlapping of cuts Crane operator can “see” and “t
Slide 15: Strong Culture of IP
Codai Strong Culture of IP tal Product Package Multiple patents pending and covering recent technology innovations around 5D and 6D capability Patents cover the spectrum of software and hardware capabilities of Coda Octopus Group's unique real-time 3D technology Proprietary hardware and software are
Slide 16: Real-Time Hazards
Real-Time Hazards Condition Su ies Target ID
Slide 17: Commercial Applications
mec Commercial Applications Marine and Port Construction, Renewables, Research, Educational Institutions, and Oil and Gas 17
Slide 18: Military & Defense; Customers
Military & Defense Including 30 US Ports & Enforcement Bodies POLICE’ [oePART™E End User Customers ExonMobil b P Chevron ied © em . = iy Service Providers ti? i Boskalis | Van Oord | | Marine ingenuity Additional DE Birr Group oF COMPANIES BIBBY because we love this buses G [eee]
Slide 19: 3D Real-Time Echoscope Technology Advantage
CodaGtgpis Grow? Inc. a 3D Real-Time Echoscope Technology Advantage a *Removes , thus significantly and of common tasks *Enhances Safety, again by removing *Facilitates near impossible missions without *Provides the vehicle for the ocean floor (far and wide) 19
Slide 20: Key Growth Markets
Key Growth Market Hs * Obstacle Avoidance for manned & unmanned missions + Search & Rescue and Recovery Missions * Asset Identification & Reacquisition r ; » Seu ke ldoneiy tagatmand Mazandls Real-Time * Route Clearance Survey for foreign ports * Record & Map to gather intelligence Decision * Mine &
Slide 21: Real-Time 3D Imaging in Navy and Defense Applications
Coda Octogus'Group; Inc. Real-Time 3D Imaging in Navy and Defense Applications Momentum has grown significantly within the U.S. Navy community for CODA’s industry-leading, real-time technology. The following groups are actively funding development, trials or purchases of Coda Octopus Echoscope® tech
Slide 22: Diver Augmented Vision Display System
Diver Augmented Vison Display System = — Project and Technology Outline NAVSEA WARFARE CENTERS i GEN 1.0 Complete Panama City: Gen 1.0 Product completed and ‘Future Naval Capabilities (FNC} _——— NSWC and NAVSEA Collaboration accepted in December 2019 | li5i-A Worked with NAVSEA PCD from 2016 on " de
Slide 23: Diver Augmented Vision Display System
Diver Augmented Vison Display System LOCATION f Provide the Location of the Diver, the Diver Stage and Work Site and any hazards Enhance the Diver experience with real-time Augmented and Mixed Reality scene awareness COMMUNICATION Communicate with rapid TEXT messaging for instruction, guidance and a
Slide 24: DAVD System Components
DAVD - TC Dive Supervisor Workstation and Communication Hub ~~ Diver Augmented Vison Display System ~ DAVD-DMU DMU Dive Motion Unit handles Head Tracking and DAVD - DPP The Diver Processing Unit fuses sensor data and manages ultra low latency video display es Motion al Vv DAVD - HUD ¢ Transparent Le
Slide 25: DAVD Media Information Portal
Diver Augmented Vison Display System QIN DAVD Media Information Portal QIMMOMIAN Photos, Videos, Drawings and 3D Models Timers, Depth Profiling and Decompression
Slide 26: Dive Project Workflow
3D Area Scan Dive Project Workflow Diver Simulator Three options for 3D Area Data Collection - Detailed Survey, Fixed Scan and Rapid Response Diver Simulator allows Diver and Supervisor to pre- plan routes and divers to feel comfortable with data and environment Diver Augmented Vison Display System
Slide 27: DAVD Operational Use Scenarios
== we Vison Display System DAVD Operational Use Scenarios Vessel / AUV or ROV Static Rotational Scan Diver Hand Held Survey in advance of dive operations Scan from a fixed location Live Scan of area in real-time
Slide 28: 3D MATT diver positioning
‘enecat (31116736, 600436 820,11 3D MATT (Multiple Automated Target Tracking ce “¥Bs provides most accurate real-time 6 “ie diver positioning using Echoscope C500 real-time Imaging Sonar. Optional USBL positional input.
Slide 29: DAVD Live Dive Supervisor and Diver View
DAVD Live Dive Supervisor View Live Diver View
Slide 30: Summary of Benefits and Features from the DAVD system
Diver Augmented Vison Display System Summary of Benefits and Features from the DAVD system Transparent Glass Display capable of 2D Data, 3D Augmented Reality and Mixed Reality Diver DPP “Black Box” high performance processor for diver display, sensor fusion and real- time data recording and acquisit
Slide 31: Hazard Detection and Applications
Hazard Detection ROV Navigation Monitorii Dive Inspection Obstacle Avoidance Survey and Measurements Pipeline Leak Identification 27
Slide 32: Value Drivers
Coda cain Ine. a TEA Value Drivers re - + First mover in innovating and : commercializing real-time 3D sonar technology for the subsea market Strong and growing global customer base and expanding market applications, ant including precious gem mining and . . offshore renewables + No other commercial
Slide 33: World's only 5D & 6D real-time volumetric sonar
The world’s only 5D & 6D real-time volumetric sonar technology, Echoscope® PIPE Gen 1 Diver Augmented Vision Display (DAVD) is approved for Navy Use and ready for Fleet Issue Thermite® Octal All Fourth Generation (4G) Hardware Products Have Been Launched + Smart algorithms for the class-leading sona
Slide 34: Addressable Sonar Market
Addressable Sonar Market* * Source: “Global SONAR Systems and Technology Market Size, Status and Forecast 2019-2026,” Maia Research (November 23, 2018) 30
Slide 35: Sonar Market by Application
x Sonar Market by Application* ; REVENUE/MARKET / 2018 2023 CAGR (SB) Defense $1.251B $1.631B 5.44% + including UUV $0.186B $0.357B 13.95% Commercial $1.075B $1.615B 8.48% tincluding UUV $0.3944B $0.7575M 13.94% +including Dredgers $0.0093M $0.0131M 7.09% Total Market $2.326B $3.246B 6.89% * Source:
Slide 36: Addressable Sonar Market
Addressable Sonar Market* REVENUE/ FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 SECTOR ($B) Scientific $0.598B $0.641B $0.687B $0.735M $0.792B $0.855B $0.913B $0.978B Commercial $0.633B $0.679B $0.728B $0.780B $0.840B $0.907B $0.972B $1.041B Military $1.040B $1.113B $1.198B $1.278B $1.368
Slide 37: Addressable Sonar Market
Addressable Sonar Market* REVENUE/ SONAR TYPE ($B) 2018 Multi-Beam $1.020B Single Beam $0.467B Synthetic Aperture $0.254B Side Scan $0.596B TOTAL $2.337B 2019 $1.094B $0.498B $0.273B $0.638B $2.503B 2020 $1.172B $0.537B $0.296B $0.681B $2.686B 2021 $1.254B $0.566B $0.319B $0.730B $2.869B 2022 $1.350
Slide 38: Sonar market companies
Raytheon Thales Ultra Electronics BAE Systems Harris Corporatin Kongsberg Gruppen Sonardyne R2 Sonic Western Marine Electronics Innormat Technologie JRC FLIR Systems Garmin Companies Lockheed Martin Atlas Electronik B Aselsan Naval Group Teledyne Ixblue SAS Norbit Grup EdgeTech FURUNO Navico Johnson
Slide 39: Engineering Business: Rugged Solutions and Integrated Systems
Coda os up; Inc. \ me _ Customized Rugged Solutions Mission Critical Integrated Systems 7° Advanced Signal Processing ‘Obsolesce e Management of Legacy ss fense Products
Slide 40: Colmek Engineering Business Key Markets
Coda cane Inc. ft Key Markets Coda Octopus Colmek - Engineering Business Sub-Contractor to the U.S. DoD 36
Slide 41: Colmek customers
Raytheon §} ORBCCMM NortHAmerican —COAL~ ee ‘nevada LOCKHEED watTEZe . q ] re ©, Endeavor a . . @a coco
Slide 42: Two new funded defense programs added to Colmek's portfolio
Two new funded defense programs added to Colmek’s portfolio in FY 2018 + Contracted to prototype two new parts for two significant programs. Value of contracted prototype is approximately $1.5M * Once prototype phase is completed and manufacturing contracts awarded, these parts will yield long-tail
Slide 43: Thermite Octal applications
Weapon Control Systems Dismounted Soldier Training Real Time Training and Simulation Mission Computer Mission Computer Sensor Processing Mission Computer Army Mobile Vehicles Virtual Reality Virtual Reality U.S. Military Ally U.S. Military Ally, F16 Undisclosed U.S. Military Application Army/Marine
Slide 44: Product Design and Manufacturing
roduct Design and oa Manufacturing 1@| : eo Test, Instrumentation and Control a Subsea and Harsh Environment Design a naa he Defense Products “eh: Management of Lega ‘ ‘ a 40 fos
Slide 45: Coda Octopus Martech Customers
Coda Octogis'Group; Inc. 9A aN Customers Coda Octopus Martech — Engineering Business Located in Portland, Dorset, UK. Martech follows the same model as Colmek. THALES SIEMENS 7 ATLAS ELEKTRONIK lw GRUNDFOS’ s/\. a
Slide 46: Long-tail recurring revenues from ongoing Defense Customer Programs
Long-tail recurring revenues from ongoing Defense Customer Programs + Proprietary Chemical Decontamination Systems + Component of the Eurofighter Tycoon’s Ground Equipment + Used to decontaminate pilot helmets that have come in contact with chemical weapons Contracted for two new units, at approxima
Slide 47: Marine Technology Business Operations
Coda ou up) Inc. - FAN Operations Group neat a = Marine Technology Business
Slide 48: Management
Coda Octopus Group Management Annmarie Gayle, LL.B, LLM — Chief Executive Officer and Chairman — Denmark Ms. Gayle has been our CEO and a member of the Board of Directors since 2011. She has also been the CEO of our flagship Products Business since 2012. Prior thereto, she spent two years assisting
Slide 49: Management
Coda Octopus Group Management Blair Cunningham — President of Technology; Chief Executive Officer of Coda Octopus Products, Inc.— U.S. Mr. Cunningham has been with the company since July 2004 and has had a number of roles including his current position of President of Technology and CEO of Coda Octo
Slide 50: Board of Directors
Coda Octopus Group Board of Directors Annmarie Gayle, LL.B, LLM — Chief Executive Officer and Chairman — Denmark Ms. Gayle was appointed Chairman of the Board in March 2017, and previously served as Director since 2011. Additionally, Ms. Gayle has been the Group CEO since 2011; assisted with the res
Slide 51: Board of Directors
Coda Octopus Group Board of Directors Mary M. Losty — Director — U.S. Ms. Losty has been a member of Coda’s Board of Directors since July 2017. Ms. Losty is a private investor in both U.S. equities and real estate. Her career includes serving as a Partner at Cornwall Asset Management LLC, a U.S. por
Slide 52: Board of Directors
Coda Octopus Group Board of Directors G. Tyler Runnels- Director— U.S. Mr. Runnels has been nominated by our board to be elected as a director at the 2018 annual meeting to fill a vacancy created by the departure of two of our directors. Mr. Runnels has nearly 30 years of investment banking experien
Slide 53: Coda Octopus Group contact
hy Coda Oct yee aA ROUP, INC. l Peervcter Technology CODA OCTOP World Leader in Sou NASDAQ: CODA www.codaoctopusgroup.com
Coda Octopus Group — Investor Presentation (March 2020) on 6ix