Aerovironment, Inc. · NASDAQ:AVAV
Aerovironment — Investor Presentation (October 2013)
42 slides from Aerovironment's investor presentation, Oct 4, 2013
Slide 1: Q1 Fiscal 2014 Investor Overview Presentation
0 © 2013 AeroVironment, Inc. Sept. 2013 AeroVironment, Inc. Q1 Fiscal 2014 Investor Overview Presentation September 2013
Slide 2: Safe Harbor Statement
Certain statements in this document may constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of current expectations, forecasts and assumptions that involve risks and uncertainties, including,
Slide 3: Important Additional Information
AeroVironment and its directors, executive officers and certain employees may be deemed to be participants in the solicitation of proxies in respect of the Annual Meeting. AeroVironment has filed with the SEC a definitive proxy statement and WHITE proxy card in connection with the Annual Meeting (th
Slide 4: Table of Contents
Table of Contents 3 © 2013 AeroVironment, Inc. Sept. 2013 AEROVIRONMENT OVERVIEW ////////////// UNMANNED AIRCRAFT SYSTEMS ////////////// EFFICIENT ENERGY SYSTEMS ////////////// NEW VENTURES AND OPPORTUNITIES ////////////// FINANCIAL OVERVIEW //////////////
Slide 5: Management Team Brings Proven Experience, Market Leadership and Track Record of Success
Management Team Brings Proven Experience, Market Leadership and Track Record of Success 4 © 2013 AeroVironment, Inc. Sept. 2013
Slide 6: AeroVironment Highlights: A History of Adapting to Change While Continuously Innovating
AeroVironment Highlights: A History of Adapting to Change While Continuously Innovating 5 © 2013 AeroVironment, Inc. Sept. 2013 Profitable Growth through Technology Based Innovation 20% Revenue CAGR FY ‘04 – ’13 Proprietary IP portfolio underpins success Proven and experienced management team Strong
Slide 7: AeroVironment Overview
AeroVironment Overview 6 © 2013 AeroVironment, Inc. Sept. 2013
Slide 8: AeroVironment is a Multi-Disciplinary Technology Innovator
AeroVironment is a Multi-Disciplinary Technology Innovator 7 © 2013 AeroVironment, Inc. Sept. 2013 Founded: 1971 in Pasadena, CA Public company since 2007 $520m market cap as of 9/12/13 $240m revenue in Fiscal 2013 2004-2013 Performance: Sales CAGR: 20% Average return on net operating assets: 41% Pr
Slide 9: An Enduring Success Story of Innovation, Flexibility and Entrepreneurship
AeroVironment: An Enduring Success Story of Innovation, Flexibility and Entrepreneurship 8 © 2013 AeroVironment, Inc. Sept. 2013 1977 1979 1981 1985 1986 1987 1989 1999 GM Impact First modern EV Gossamer Condor First controlled human powered flight Sunraycer Winner 1st solar car race Industrial Rapi
Slide 10: We Target Global, Long-Term Trends with Innovative New Solutions
We Target Global, Long-Term Trends with Innovative New Solutions 9 © 2013 AeroVironment, Inc. Sept. 2013 Delivering Unique, High-Quality and Innovative Products and Services to Our Customers Around the World UAS EES Networked Information and Communication Alternative Transportation Fuel Solutions Fo
Slide 11: Business Segment Overview
Business Segment Overview 10 © 2013 AeroVironment, Inc. Sept. 2013 Unmanned Aircraft Systems (UAS) Efficient Energy Systems (EES) Develops and supplies UAS, tactical missile systems and related services primarily to organizations within the U.S. Department of Defense Roy Minson, General Manager Supp
Slide 12: Diverse Product and Service Revenue Mix
Diverse Product and Service Revenue Mix 11 © 2013 AeroVironment, Inc. Sept. 2013 Revenue by Function FY 2013 Revenue by Contract Type FY 2013 Unmanned Aircraft Systems Efficient Energy Systems
Slide 13: Profitable Historical Revenue Growth with Efficient Asset Utilization
Profitable Historical Revenue Growth with Efficient Asset Utilization 12 © 2013 AeroVironment, Inc. Sept. 2013 EES UAS In Millions 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CAGR (FYE 4/30) Revenue $48 $105 $139 $174 $216 $248 $250 $293 $325 $240 20% % International NM NM NM 5% 6% 7% 7% 7% 5%
Slide 14: High Level of Short-Term Visibility with Strong and Balanced Long-Term Pipeline
High Level of Short-Term Visibility with Strong and Balanced Long-Term Pipeline 13 © 2013 AeroVironment, Inc. Sept. 2013 Q1 Revenue (Actual) $44 Q1 Ending Funded Backlog (executable in FY14) $72 Final U.S. Government FY12 Raven Booking in Q2 $13.5 Other Q2 Bookings as of 8/27/13 $8 Additional EES re
Slide 15: Positioned for Multi-Market Growth Across Varying Timeframes and Investment Levels
Positioned for Multi-Market Growth Across Varying Timeframes and Investment Levels 14 © 2013 AeroVironment, Inc. Sept. 2013 Potential Investment Near-term (1 year) Mid-term (1-3 years) Long-term (3-5 years) – Position of arrow represents potential initiation of meaningful adoption $10s of millions $
Slide 16: Unmanned Aircraft Systems
15 © 2013 AeroVironment, Inc. Sept. 2013 Unmanned Aircraft Systems
Slide 17: Small UAS are Embedded in the Fabric of U.S. Security
Small UAS are Embedded in the Fabric of U.S. Security 16 © 2013 AeroVironment, Inc. Sept. 2013 81% of total FY’13 company revenue 23% revenue CAGR FY’04 – ’13 85% of all unmanned aircraft in U.S. Dept. of Defense inventory Diversify imaging -> Immigration, drug trafficking, highway chases etc.
Slide 18: AeroVironment is a Trusted Partner to its Customers
AeroVironment is a Trusted Partner to its Customers 17 © 2013 AeroVironment, Inc. Sept. 2013 “Soldiers and leaders have readily embraced (Switchblade) as an invaluable tool,” - Army Times, August 14, 2013 “The Raven has made more of a difference than any other single system the Defense Department ha
Slide 19: UAS Segment Update and Fiscal 2014 Priorities
Customer contracting delays continue, driven by sequestration and continuing resolution; previously delayed orders are being released GFY12 Raven, Marine Corps Puma, Switchblade orders received in Q1 and early Q2 Continue to focus on three priorities for Fiscal 2014: Staying number one with our cust
Slide 20: Efficient Energy Systems
19 © 2013 AeroVironment, Inc. Sept. 2013 Efficient Energy Systems
Slide 21: Products and Services Supporting EVs
Products and Services Supporting EVs 20 © 2013 AeroVironment, Inc. Sept. 2013 Leading test systems for EV and advanced battery development Leading advanced charging systems for industrial EVs Leading provider of EV charging solutions 19% of total FY 2013 company revenue
Slide 22: Broad Adoption of EVs Requires Comprehensive Infrastructure
Broad Adoption of EVs Requires Comprehensive Infrastructure 21 © 2013 AeroVironment, Inc. Sept. 2013 Workplace charging Cordsets in every battery and plug-in hybrid car Fast charging stations on the interstate Chargers for fleets Home charging stations refuel EVs overnight Chargers at the mall, supe
Slide 23: AeroVironment is a Trusted Partner to its Customers
AeroVironment is a Trusted Partner to its Customers 22 © 2013 AeroVironment, Inc. Sept. 2013 Ecosystem Networks NRG Energy – Houston, Dallas/Ft. Worth, TX comprehensive charging and data network Consumer Retail Channels Amazon.com Company website Auto dealerships Automakers Nissan - Preferred provid
Slide 24: EES Outlook
Industrial and passenger EV charging systems sales and development drive revenue for EES Industrial EV charging systems continue to benefit from the economic recovery in North America Plug-in electric vehicle sales are up quarter-over-quarter in North America: Delivered more than 13,000 Level 2 char
Slide 25: New Ventures and Opportunities
24 © 2013 AeroVironment, Inc. Sept. 2013 New Ventures and Opportunities
Slide 26: UAS: Domestic Opportunities Represent Large Potential Market
UAS: Domestic Opportunities Represent Large Potential Market1 in the United States and Abroad 25 © 2013 AeroVironment, Inc. Sept. 2013 1 AUVSI The Economic Impact of Unmanned Aircraft Systems Integration in the United States: http://www.auvsi.org/econreport Catalyst - FAA Scheduled to Integrate UAS
Slide 27: UAS: Increasing International Adoption of Small UAS
UAS: Increasing International Adoption of Small UAS 26 © 2013 AeroVironment, Inc. Sept. 2013 25 international AeroVironment UAS customers – most with additional procurement potential, and many other countries evaluating small UAS Sample of International UAS Activity Other Customers
Slide 28: Switchblade Tactical Missile Systems – Accelerating Adoption by U.S. Military
UAS: Switchblade Tactical Missile Systems – Accelerating Adoption by U.S. Military 27 © 2013 AeroVironment, Inc. Sept. 2013 Rapid and highly accurate backpackable weapon system designed to avoid collateral damage $52 million in orders received by AeroVironment since August 2012 $36.7 million since A
Slide 29: UAS: Mission Services Deliver Valuable Situational Awareness to Customers
AeroVironment employees operate company-owned UAS at customer locations to provide information on a fee-for-service basis In 2012 the U.S. Department of State issued a request for proposals (RFP) for UAV support services with a maximum value of up to $1 billion over five years Supporting this tender
Slide 30: UAS: Global Observer Offers Valuable Capabilities for Affordable Communications
U.S. government is projected to purchase $3 to $5 billion1 annual commercial satellite capacity within ten years $132 million customer-funded development program 2007-2011 Developed two aircraft, ground control system, supply chain and mfg. system Successfully completed eight test flights AeroVironm
Slide 31: EES: Increasing Adoption of EVs Could Stimulate Large Demand for Charging Systems
EES: Increasing Adoption of EVs Could Stimulate Large Demand for Charging Systems 30 © 2013 AeroVironment, Inc. Sept. 2013 New Light Vehicle Sales Forecast Assumed Cost of Home Charging System (with Installation) Potential Market Value (Based on 5% adoption) United States 2013 sales projection 15 mi
Slide 32: Financial Overview
31 © 2013 AeroVironment, Inc. Sept. 2013 Financial Overview
Slide 33: Focused on Successfully Executing Business Model
Strong, profitable, organic growth across a diversifying customer base Balance sheet management reflects focus on competitiveness and efficiency; in-line with peers Dynamic and highly attractive portfolio mix consisting of mature cash generators and new innovations supporting ongoing success Flexibi
Slide 34: Significant Growth and Profitability Driven by Technological Innovation
Significant Growth and Profitability Driven by Technological Innovation 33 © 2013 AeroVironment, Inc. Sept. 2013 ($ in millions) Revenue EBITDA1 ’04–’13 Revenue CAGR: 20% ’04–’13 EBITDA CAGR: 16% Consistent financial performance over the long-term, despite a turbulent environment ($ in millions) 1 S
Slide 35: Q1 FY 2014 Quarterly Results and Market Perspectives
Q1 FY 2014 Quarterly Results and Market Perspectives 34 © 2013 AeroVironment, Inc. Sept. 2013 Sell-Side Analyst Comments: “In spite of near-term timing uncertainty; we believe AV remains in a strong position to grow from multiple opportunities including the Switchblade, Mission Services, Puma upgrad
Slide 36: Focus on Cost Structure is Reflected in Q1 FY 2014 Results
AeroVironment’s Focus on Cost Structure is Reflected in Q1 FY 2014 Results 35 © 2013 AeroVironment, Inc. Sept. 2013 Q1 FY 2014 Restructuring Initiatives Summary of restructuring measures Addressed overhead and expenses, eliminated approximately 60 full-time positions and most temporary positions in
Slide 37: Strong Balance Sheet is Essential to our Growth Strategy
Strong Balance Sheet is Essential to our Growth Strategy: Confidence, Speed, Conviction 36 © 2013 AeroVironment, Inc. Sept. 2013 Large customers are more likely to work with a proven partner that has a track record of success and a strong and liquid balance sheet $196 million in cash, short and long
Slide 38: Focused on Executing Our Fiscal 2014 Plan to Drive Long-Term Value
Profitable growth through technology-based innovation Strong and balanced pipeline with multiple high-value market opportunities Consistent financial performance Differentiated solutions with industry-leading positions across multiple markets Solid track record of performance Focused on Executing Ou
Slide 39: Appendix
38 © 2013 AeroVironment, Inc. Sept. 2013 Appendix
Slide 40: Appendix A - EBITDA Reconciliation and Free Cash Flow
Appendix A - EBITDA Reconciliation and Free Cash Flow 39 © 2013 AeroVironment, Inc. Sept. 2013
Slide 41: Appendix B - Weighted Average Return on Net Operating Assets Reconciliation
Appendix B - Weighted Average Return on Net Operating Assets Reconciliation 40 © 2013 AeroVironment, Inc. Sept. 2013
Slide 42: Appendix C - AeroVironment's Board Has Implemented Numerous Governance Changes
Appendix C - AeroVironment’s Board Has Implemented Numerous Governance Changes 41 © 2013 AeroVironment, Inc. Sept. 2013 Implemented Independent Lead Director board leadership structure Steve Page, independent director with experience serving as lead director of Liberty Mutual Holding Company, Inc.,