Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Investor Presentation (November 2010)
38 slides from Electro Optic Systems's investor presentation, Nov 15, 2010
Slide 1: EOS Company Update
EOS Company Update For personal use only 15 November 2010 This document contains proprietary and copyright material which may not be copied or distributed without the EOSconsent of EOS. Proprietary
Slide 2: Disclaimer
Disclaimer For personal use only This presentation and any related communication may contain statements that are forward looking with regard to the business and future performance of Electro Optic Systems Holdings Limited [“EOS”] and its subsidiaries. These statements reflect EOS’ current views, ass
Slide 3: For personal use only
For personal use only 1. Company Resume 2. Space Systems: Sector Overview 3. Remote Weapon Systems: Sector Overview 4. Market Size and Positioning Copyright EOS EOS Proprietary
Slide 4: EOS Overview
EOS Overview For personal use only Founded in 1983, Stock Exchange listed [ASX] 2003 Core business sectors: Remote weapon systems [RWS] Space surveillance [SS] and space situation awareness [SSA] Target markets to 2016 exceed US$6bn. Strong initial market positions Compelling technology.
Slide 5: Financial Resume
Financial Resume For personal use only Revenue. US$30-40 million. Profit. US$3-4m annual [nominal]. 3 years of profit since 2007. Cash. US$17m including liquid inventory. Net assets. US$10m approx. All technology development is expensed. Debt. None except normal trade creditors and operati
Slide 6: EOS Strategic Summary 2010
EOS Strategic Summary 2010 For personal use only EOS is a profitable technology company which is well positioned for high growth in markets initiated by its technology in two sectors: Remote weapon systems [RWS] Space surveillance and space situation awareness [SS/SSA] EOS is a market leader in
Slide 7: EOS is Focused in Sectors
EOS is Focused in 2 Sectors: RWS sector has 2 segments For personal use only Each of these sements has a specific capture strategy in place. Copyright EOS
Slide 8: EOS Space Systems Sector Overview
EOS Space Systems For personal use only Sector Overview: 15 November 2010 EOS Proprietary
Slide 9: Space Sector Overview
Space Sector Overview For personal use only 1. Space Business Heritage 2. Space Systems • Telescope and Observatory Products • Lasers and Adaptive Optics 3. Space Surveillance • Catalogue Operations and Space Debris • Space Situation Awareness 4. Directed Energy Applications: • Theatre and missile d
Slide 10: EOS Space Sector Heritage
EOS Space Sector Heritage For personal use only 1983: EOS established to privatise Australian laser space effort. 1993: EOS conducts first eyesafe (ANSI Class 1A) laser operations 2000: EOS implements operation of the first robotic laser tracker 2003: EOS discovers low intensity laser ablati
Slide 11: Space Products Lasers, Telescopes, Enclosures
Space Products Lasers For personal use only Telescopes Enclosures EOS Proprietary
Slide 12: Observatory Systems
Copyright EOS For personal use only Observatory Systems continue to be a core segment for EOS own applications and also for other customers.
Slide 13: Space Tracking Systems
Space Tracking Systems For personal use only Australia Germany Now provided only to strategic partners. Japan Saudi Arabia Copyright EOS
Slide 14: Giant Magellan Telescope [GMT]
Giant Magellan Telescope [GMT] For personal use only 26m diameter telescope (world’s largest). A$1bn international project with A$88m Australian participation through ANU. Success depends on “Adaptive Optics” technology. EOS and ANU have strong AO technology and will cooperate for GMT requir
Slide 15: Australian Space Research Program
Australian Space Research Program • ASRP is a $40M fund for space technology For personal use only • EOS is directly funded with approx. US$5m thru 2012 for: Operational enhancements to EOS space surveillance capability; Improving satellite orbit prediction; and Space flight hardware for NASA
Slide 16: EOS Space Research Centre
EOS Space Research Centre For personal use only This US$30m facility is used for development and testing of space surveillance and space situation awareness technology. EOS Proprietary Copyright EOS
Slide 17: SS/SSA Activities to Expand in AUS
SS/SSA Activities to Expand in AUS For personal use only The Australia-United States Ministerial Consultations [AUSMIN] for 2010 were held in Melbourne on 8 November, and were attended by US Secretary of State Hillary Clinton, US Secretary of Defence Robert Gates, Australian Foreign Minister Kevin R
Slide 18: Directed Energy Applications
Directed Energy Applications For personal use only Theatre and Missile Defence: Adaptation of EOS high power laser, laser tracking and sensor technologies for theatre defence has been subordinated to the deployment of SS/SSA capability. This market- driven re-focus of resources has slowed theatre de
Slide 19: EOS Remote Weapon Systems Sector Overview
For personal use only EOS Remote Weapon Systems: Sector Overview: 15 November 2010 EOS Proprietary
Slide 20: EOS Weapon System Heritage
EOS Weapon System Heritage: 20 years For personal use only 1989: EOS teams with MDC Boeing for small arms fire control 1992: EOS acquires joint weapon business from MDC/Boeing 1998: EOS teams with ROI for US Army CROWS development 2003: CROWS deploys to Iraq and enters production 2008: EOS
Slide 21: Remote Weapon Systems: Market Size
Remote Weapon Systems: Market Size For personal use only RWS Markets Applying Competitive Procurement and Accessible to EOS or its Partners EOS has already sold into every segment. EOS acts in most segments through partners who capture up to 50% of all revenue when EOS products succeed in a specific
Slide 22: The Impact of CROWS
The Impact of CROWS For personal use only The RWS business has effectively two separate growth elements: the global RWS market and the US Army CROWS market. CROWS is a large, single procurement that is addressed as a separate business segment. As a single opportunity it is larger than the total
Slide 23: Accessible RWS Market Size: EOS only
Accessible RWS Market Size: EOS only For personal use only This data excludes revenue allocated to local partners in various markets and is discounted for project risk. EOS RWS products are well-placed in this sector. Copyright EOS
Slide 24: EOS Remote Weapon Systems [RWS]
EOS Remote Weapon Systems [RWS] For personal use only 20 years of product development and extensive combat operations have resulted in: Wide range of RWS products, qualified and in production. Achieving a full product range is a barrier to entry to this market Wide range of different vehicles
Slide 25: Wide Range of RWS Products
Wide Range of RWS Products In a single family For personal use only R-600 Dual [400 kg] R-400 [CROWS 1] [200 kg] R-200 [100 kg] Copyright EOS
Slide 26: R-200 Lightweight RWS
R-200 Lightweight RWS For personal use only Copyright EOS
Slide 27: R-400 in service
R-400 in service For personal use only Copyright EOS
Slide 28: R-600 Weapon System
R-600 Weapon System For personal use only R-600 is the most advanced RWS in production Copyright EOS
Slide 29: Wide Range of Vehicles Adapted
Wide Range of Vehicles Adapted For personal use only Over 20 combat vehicles integrated and deployed. Product maturity is a significant market advantage Copyright EOS
Slide 30: R-400 in service with coalition in Afghanistan
R-400 in service with coalition in Afghanistan For personal use only EOS RWS continue to perform well in service with long-term customers. Copyright EOS
Slide 31: New Technology
New Technology For personal use only Access to new technology is important in this market. EOS and its partners now have substantial reserves of new technology specifically developed to anticipate the needs of this market. Current customer options include: 1. 360 degree remotely-viewable visibility
Slide 32: Remote weapon systems are becoming indispensable
CROWS scans the horizon for threats while soldiers take a break on patrol. For personal use only Remote weapon systems are becoming indispensable Copyright EOS in efforts to cut the cost of credible defence capability.
Slide 33: The Next Generation
The Next Generation WAN [Wireless, RWS : Autonomous, Networked] Wireless Remote Control For personal use only Northrop Grumman Camel robot EOS & Northrop Grumman are expanding the role of RWS with new technology
Slide 34: Market Size and Positioning
Market Size and Positioning: For personal use only 15 November 2010 EOS Proprietary
Slide 35: RWS: Market Size by Regional Segments
RWS: Market Size by Regional Segments For personal use only RWS Markets Applying Competitive Procurement and Accessible to EOS or its Partners Includes revenue to partners EOS has already sold into every segment. EOS acts in some markets through partners who capture 50% of revenue when EOS products
Slide 36: Space Sector: Market Segments
Space Sector: 4 Market Segments For personal use only Includes only programs where EOS is under contract, has completed trials, or is a supplier in good standing. Copyright EOS
Slide 37: Market Size: All Sectors
Market Size: All Sectors personal ForExcludes use only revenue to partners Space is last sector to mature but is also the largest by 2015. Copyright EOS CROWS is the earliest to mature but the smallest by 2014.
Slide 38: Summary
Summary For personal use only EOS is a stable, profitable hi-tech company that has created three powerful growth opportunities with technology, products, relationships and marketing: 1. RWS CROWS. The CROWS contract award is expected to be made in 2011 with revenue impact from 2012. EOS and its part
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