Kraken Robotics Inc · TSXV:PNG
Kraken Robotics — LD Micro (March 2018)
39 slides from Kraken Robotics's conference presentation, Mar 8, 2018
Slide 1: World Leaders in Underwater Sensors & Robotics
World Leaders in Underwater Sensors & Robotics Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF) March 2018
Slide 2: Forward Looking Statements
Forward Looking Statements Some statements herein contain forward-looking information. The use of any of the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "will," "plans," "project," "should," "target" and similar expressions are intended to identify forw
Slide 3: Sensors, Systems, Software, Services for the Digital Ocean
Sensors, Systems, Software, Services for the Digital Ocean Actionable Intelligence™ www.krakenrobotics.com 3
Slide 4: US$5B Maritime Robotics Market By 2020
US$5B Maritime Robotics Market By 2020 MILITARY COMMERCIAL Hydrography, Oil & Gas, Subsea IRM, Science and Emerging Sectors 40% 60% $2B $3B Mine Counter Cable & Pipeline Hydrography & Offshore Wind, Wave Measures Survey Seabed Mapping and Tidal Farms Intel, Surveillance and Subsea Infrastructure Sea
Slide 5: Military Applications
Military Applications § Mine Warfare 500,000 underwater mines § Anti-Submarine Warfare 400 operational submarines § Intelligence, Surveillance, Recon Special forces, covert operations, environmental assessment Resurgence in underwater warfare driving demand for unmanned systems for “dull, dirty, dan
Slide 6: Offshore Energy Applications
Offshore Energy Applications § >7,000 fixed platforms § >200 floating platforms § >4,000 subsea wells § >650 offshore drilling rigs § >200,000 km subsea pipelines § >4,000 offshore wind turbines § >600,000 subsea connectors Maintenance of existing infrastructure is a major driver for underwater sens
Slide 7: Corporate Overview
Corporate Overview § Kraken Is A Leader in Maritime Robotics - Founded in 2012. - Leveraging over C$30M in sensors & robotics IP, technology and products - Evolving for Sensors to Robotics as a Service (RaaS) § Advanced Technology & Proven Products - Validated by leading navies and defence contracto
Slide 8: Management & Technical Team Depth
Management & Technical Team Depth Karl Kenny, President & CEO • Ex-Canadian Navy maritime surface officer and Microsoft employee pre-public company • 20 year history in imaging technologies having founded 3 companies Greg Reid, Chief Financial Officer • 20+ years of finance, investment, and business
Slide 9: Reasons to Own Kraken Stock (TSX-V:PNG)
Reasons to Own Kraken Stock (TSX-V:PNG) § Strong technology offering in industry with high barriers to entry and few competitors § $150M+ active business pursuits with expected awards in next 12 months § Short listed as one of two suppliers for contract worth $70M+ to Kraken § Proven technology, hig
Slide 10: Capital Structure
Capital Structure • Management and insiders own ~ 38% of outstanding shares • $30+ million of subsea sensor and robotics intellectual property (organic, acquired, partnerships) § $1.5M in non repayable grant funds available to draw over 4 quarters Actionable Intelligence™ www.krakenrobotics.com 10
Slide 11: Business Strategy
Business Strategy ROBOTICS 2015 § KATFISH § A-LARS ROBOTICS 2017+ SENSORS 2012 § THUNDERFISH “A” § ACOUSTIC § THUNDERFISH 6000 § LASER § OPTICAL RaaS 2018+ § DATA ACQUISITION § ARTIFICIAL INTELLIGENCE § DATA ANALYTICS Actionable Intelligence™ www.krakenrobotics.com 11
Slide 12: Over $30M in Sensor & Robotics IP
Over $30M in Sensor & Robotics IP • Internal development funded by product sales, non-repayable grants ($5M); equity ($7M) • Creatively structured asset acquisitions and partnerships ($20M+ of value): MRI, Enitech, Fraunhofer Actionable Intelligence™ www.krakenrobotics.com 12
Slide 13: Sensors - Synthetic Aperture Sonar (SAS)
Sensors - Synthetic Aperture Sonar (SAS) Compared to conventional sidescan sonar systems: • SAS significantly improves the image resolution allowing for automatic detection and classification of small objects on the seafloor. § KATFISH Ultra High Image Resolution § A-LARS § Constant along/across tra
Slide 14: Kraken's SAS on US Navy Drone – Nov. 2017
Kraken’s SAS on US Navy Drone – Nov. 2017 Actionable Intelligence™ www.krakenrobotics.com 14
Slide 15: Sensors - World 1st: Full Colour 3D Underwater Laser
Sensors - World 1st: Full Colour 3D Underwater Laser Actionable Intelligence™ www.krakenrobotics.com 15
Slide 16: Evolving from Sensors to Systems and RaaS
Evolving from Sensors to Systems and RaaS ROBOTICS 2015+ § KATFISH § A-LARS § THUNDERFISH “A” § ACOUSTIC § THUNDERFISH 600 § LASER § OPTICAL Actionable Intelligence™ www.krakenrobotics.com 16
Slide 17: KATFISH – Tethered Underwater Towfish
KATFISH – Tethered Underwater Towfish Actionable Intelligence™ www.krakenrobotics.com 17
Slide 18: THUNDERFISH - Autonomous Underwater Vehicle
THUNDERFISH ® - Autonomous Underwater Vehicle Actionable Intelligence™ www.krakenrobotics.com 18
Slide 19: 2017/2018 Strategic Milestones
2017/2018 Strategic Milestones 2017 § Established Kraken Robotik GmbH in Bremen, Germany § Reached Exclusive Robotics IP Agreement with Fraunhofer Institute § Established Kraken Power GmbH in Rostock, Germany § OTCQB Stock listing in the U.S. § Took delivery of AUV from Fraunhofer and renamed Thunde
Slide 20: Historical Financials
Historical Financials • Historical financial represent various trial sales of SAS sensors to defense customers § > 80% of revs to date have been single unit AquaPix sales § Product gross margins 55% - 80% § $7M+ orders in last 12 months § Q3 2017: first multi unit SAS order (8 unit) • Q3 2017: $2M K
Slide 21: 2017/2018 Financial Milestones
2017/2018 Financial Milestones 2017 § $1.5M Grant from NRC and $0.75M Grant from RDC § Completed Private Placement of $2.1M; sold Non-Core Asset Proceeds $0.9M § $0.2M First contract for KRG for customized SeaVision for subsea crawler § $0.4M Repeat Contract from European Defence Contractor (ECA Rob
Slide 22: Financial Snapshot & Customers
Financial Snapshot & Customers § New products & partnerships will drive growth: § Revenues to date $9.0 million ($2.2M in 2016) mainly sensors with ASPs of $350K § Strong outlook for New Products: sensors (ASP $100k to $1M), KATFISH product (ASP of $2M commercial, $3M military standard), ALARS (ASP
Slide 23: US$150M+ Contract Pipeline – Defense Industry
US$150M+ Contract Pipeline – Defense Industry § In the Midst of an Industry Upgrade Cycle for Mine Counter Measures (MCM) Tech § Active Defense Industry Contract Pursuits § Far East Navy – $60M+ 12 (+6) KATFISH – Technical trials expected 2H/18. German partner § European Navy 1 – $20-$30M+ KATFISH (
Slide 24: US$150M+ Contract Pipeline – Commercial Market
US$150M+ Contract Pipeline – Commercial Market § Active Commercial Market Contract Pursuits § AquaPix SAS sensors § SeaVision 3D laser imaging system – More than 50 active leads. First commercial sales in Q2/2018 § Oil & Gas AUV Contract § $1M software development for European oil and gas service co
Slide 25: Financial Scenario Analysis
Financial Scenario Analysis NOTE: TABLE BELOW IS NOT A FORECAST § New products available in 2017/2018 drive growth § System sales just starting § Kraken Germany emerging § RaaS revenue emerging § Significant operating leverage in business model Actionable Intelligence™ www.krakenrobotics.com 25
Slide 26: Strong Upside Potential
Strong Upside Potential § Sub $20M market cap today yet $30M+ of sensor and robotics IP § Market leading technology, products, team in an industry with high barriers to entry § Kraken Organic Growth will be strong driven by new products, new partners, and industry upgrade cycles. § Accelerating M&A
Slide 27: Contact Details
Contact Details Greg Reid Chief Financial Officer Kraken Robotics Inc. 416-818-9822 greid@krakenrobotics.com Sean Peasgood Sophic Capital Investors Relations 416-565-2805 Sean@sophiccapital.com © Copyright 2012 - 2018 Kraken Robotics Inc. All Rights Reserved. Kraken Robotics, the Kraken Robotics log
Slide 28: Supplementary Slides
Supplementary Slides Actionable Intelligence™ www.krakenrobotics.com 28
Slide 29: Corporate Structure
Corporate Structure Actionable Intelligence™ www.krakenrobotics.com 29
Slide 30: German Activities Bearing Fruit
German Activities Bearing Fruit § Kraken Robotik GmbH (KRG) established in January and now staffed with 5 underwater robotics experts (ex DFKI) including 3 PHDs. § DFKI (German Center for Artificial Intelligence Research) § FlatFish AUV & precursor to SeaVision laser scanner § Fraunhofer IOSB AUV pa
Slide 31: THUNDERFISH® - Next Gen Hovering AUV
THUNDERFISH® - Next Gen Hovering AUV § Kraken acquired all AUV IP and technology assets from Marine Robotics Inc. (MRI) in 2015 § Former MRI engineering and software team work at Kraken. MRI assets and IP from KATFISH enable next-gen AUV development § Senior DFKI engineering and software team (Germa
Slide 32: THUNDERFISH® Technology Demo Platform
THUNDERFISH® Technology Demo Platform Actionable Intelligence™ www.krakenrobotics.com 32
Slide 33: Maritime Robotics as a Service (RaaS)
Maritime Robotics as a Service (RaaS) § Future underwater robotic intelligence will come in the form of Robotics as a Service (RaaS). § Instead of selling hardware, RaaS firms own their fleet and provide customers a recurring data acquisition and seabed intelligence service § Customers do not have t
Slide 34: Maritime RaaS Application: Pipeline Survey
Maritime RaaS Application: Pipeline Survey Shipboard Personnel: 40 - 60 people Daily Opex: $150,000 - $200,000 per day Speed of Advance: 2 knots max. Actionable Intelligence™ www.krakenrobotics.com 34
Slide 35: Maritime RaaS Offers Compelling Value Proposition
Maritime RaaS Offers Compelling Value Proposition Conventional RaaS Operator Benefit $150,000 per day $20K per day Significantly Lower Opex 60 Survey / Ops Personnel 4 Ops Personnel Mitigates Operational HSSE Emergency Response: Emergency Response: Mitigates Production Losses 72 Hours Immediate and
Slide 36: Avro Arrow – Q3 2017 – First RaaS Job
Avro Arrow – Q3 2017 – First RaaS Job Kraken ThunderFish® AUV § Wet-flooded payload section § Kraken MINSAS 120 Sonar § Kraken Real-Time SAS Processor § Reson T-20 MBES § Sonardyne Sprint INS § Full integration into control system Operational Area in Lake Ontario § 150+ hours of real world field tri
Slide 37: THUNDERFISH in Lake Ontario
THUNDERFISH in Lake Ontario Actionable Intelligence™ www.krakenrobotics.com 37
Slide 38: Avro Arrow – August 2017
Avro Arrow – August 2017 Actionable Intelligence™ www.krakenrobotics.com 38
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