Coda Octopus Group, Inc. · NASDAQ:CODA
Coda Octopus — Investor Presentation (June 2019)
39 slides from Coda Octopus's investor presentation, Jun 21, 2019
Slide 1: Coda Octopus Group, Inc. Corporate Presentation
of\ Coda Octopus G up; Inc. Z BEN CODA OCTO World Leader in Sound Underwater Technology Corporate Presentation June 2019
Slide 2: Forward-Looking Statements
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 inclu
Slide 3: Overview
Overview Established business with strong pedigree in marine products and defense engineering: Products Business Market leader in real-time 3D imaging sonar technology for ubsea defense and applications. World's real-time ) sonar Engineering Business established _ relationships US. and U.K. Defen: s
Slide 4: Financial Snapshot
Coda Octopus Group,ine: Financial Snapshot ANNUAL FY 2015 FY 2016 FY 2017 FY 2018 FQ1-2 2019 Revenues $19,234,396 $21,118,319 $18,025,173 $18,019,429 $12,541,780 Net Income $1,070,291 $4,930,548 $3,339,663 $3,102,899 $3,634,885 EBITDA $2,309,215 $6,348,022 $4,771,643 $4,069,175 $4,075,045 Earnings p
Slide 5: Coda Octopus Products - Marine Products Business
Product Design & Manufacturing 24/7 Support and 3D Field Experts Coda Octopus Products Marine Products Business Research Development and Innovation Software Application and | Custom Development
Slide 6: Commercial Off-The-Shelf Products & Engineering Services
Commercial Off-The-Shelf Products & Engineering Services Products 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 world Service
Slide 7: Echoscope volumetric sonar family
Ss a Senet led ees of Volumetric Sonars Echoscope““® Deep Water Echoscope**® Echoscope**® C500 Compact Edition SWaP (Size, Weight and Power) Seeing & Measuring in Real-Time 3D in Zero Visibility Conditions Underwater = 7
Slide 8: Coda Real-Time
Coda Real-Time Coda Octoptis Group; Inc. Improved process with faster deliverables to client Reduced project costs, including non-productive time Complete end-to-end workflow to capture, measure and document Increased safety and awareness Improved Quality Control Simplified subsea tasks Deskilling a
Slide 9: Coda Real-Time 3D Technology: Sample Echoscope Project ROI Snapshots
Coda Octopus Group, Inc. Coda Real-Time 3D Technology Sample Echoscope Project ROI Snapshots Ky >100% >100% Productivity rates & 76 >100% Productivity rates s 200 « N ire} eM Soopers placed Productivity rates Blocks placed per day per day UTEC DEME Rock Dumping Oilfield Development ditions lity and
Slide 10: 3D Product Line: Competing Technology is No Comparison
3D Product Line Competing Technology is No Comparison Pelican Island Causeway, Galveston TX Echoscope® 3D Real-Time Imaging Sonar Real-Time 3D Imaging AND Real-Time Mapping Click here to see the shadows disappear! Client deliverables complete in 54 seconds... 3D Multibeam Produces static map after h
Slide 11: 3D Product Line: What is the key USP?
3D Product Line What is the key USP?
Slide 12: 3D Product Line: 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 13: 3D Product Line: Mining and Marine Construction
3D Product Line Mineral Mining - Diamonds * Operator can “see” exactly where each cut has taken place + No overlapping of cuts * Significant productivity benefit Marine Construction - Breakwaters Echoscope® is the No. 1 preferred solution for subsea placement Crane operator can “see” and “track” and
Slide 14: Strong Culture of IP
Strong Culture of IP ‘al Product Package + Patents cover the spectrum of software and hardware capabilities of Coda Octopus Group's unique real-time 3D technology + Proprietary hardware and software are the complete system; components do not function independently + Further de-risked by trade-secret
Slide 15: Real-Time Hazards
Real-Time Hazards ii Condition Surv hie @ Target ID = : Coda
Slide 16: Commercial Applications
Commercial Applications Marine and Port Construction, Renewables, Research, Educational Institutions, and Oil and Gas 16
Slide 17: Marine Products Business
Marine Products Business Military & Defense Including 30 U.S. Ports & Enforcement Bodies End User Customers SN Mobil Chevron ual Orsece Bt SAE Service Providers (Hameema Technip eee th GRe i Boskalis - = ———— subsea 7 Van Oord "A ; Marine ingenuity Additional De Beers Group oF ComPANtes BIBBY OFFSHO
Slide 18: 3D Real-Time Echoscope Technology Advantage
Tal . 1 3D Real-Time Echoscope Technology Advantage A Removes , thus significantly and of common tasks *Enhances Safety, again by removing Facilitates near impossible missions *Provides the vehicle for the ocean floor — far and wide 18
Slide 19: Key Growth Market
Key Growth Market BS Defense, Navy Activities, Law Enforcement and Coast Guards + Search & Rescue and Recovery Missions + Asset Identification & Reacquisition + See & Identify Targets and Hazards + Record & Map to gather intelligence and analyze threats & hazards, before committing higher value asse
Slide 20: Real-Time 3D Imaging in Navy and Defense Applications
Coda Octopus/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 21: Navy Cooperative Research and Development Agreement
A Navy Cooperative Research and Development Agreement (CRADA) with Naval Surface Warfare Center, Panama City Division (NSWC PCD), for the multi-generation development of the Divers Augmented Vision Display-Head Up Display System (DAVD-HUD), in collaboration with NSWC PCD 21
Slide 22: coda Sa...
coda Sa... Zo Ba Case Example Survey Data and “TIRE” Test Target JSO Boat Dock Facility — , Concrete Pilings 22
Slide 23: Case Example
Case Example N |. 23
Slide 24: Value Drivers
Value Drivers esr 9 + First mover in innovating and 1 commercializing real-time 3D sonar technology for the subsea market ** Strong and growing global customer base and expanding market applications, including precious gem mining and : . = offshore renewables + No other commercially available : ‘ <
Slide 25: Fourth and Fifth Generation Sonar Products
+ Fourth Generation (4G) and Fifth Generation (5G) * Goal: Standardize proprietary real-time 3D imaging of Coda Octopus’ proprietary, industry-leading sonars, in different form factors, across existing and real-time 3D sonar technology new subsea markets + All 4G hardware products have been launched
Slide 26: Engineering Business: Defense Products
a ; - [EEN : ~ Customized Rugged: Solutions. "—__ Mission Critical Integrated Systems \O= ca =, ay c 9 Advanced Signal OCeeaed ° lObsolgaae e Management of Posey > fense Products
Slide 27: Key Markets
Key Markets Sub-Contractor to the U.S. DoD 27
Slide 28: OP GRUMM
OP GRUMM Raytheo ORBCGMM’ ; | wa) YY r | sierra la ~~ NortHAMERICAN ye U.S. AIR FORCE Ss Endeavor Saw ROSOTICS’
Slide 29: Two new funded defense programs added to Colmek's portfolio in FY 2018
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 recu
Slide 30: Engineering Business Product Lines
Fie Spier Watchdog © he " . Be i} | — _ Product Design and Subsea and Harsh Environment Manufacturing Design a 65 Test, Instrumentation and Control — Obsoles nce Management of Legacy Defense Products Ne I. Ae
Slide 31: Customers
oy Coda Octopts’ Inc. Customers Located in Portland, Dorset, UK. Martech follows the same model as Colmek. THALES SIEMENS Ri ATLAS ELEKTRONIK inv GRUNDFOS 7. 31
Slide 32: 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 33: Operations
Operations ae] Coda Octopus Products Pty Ltd. Perth (Australia) 33
Slide 34: 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 35: 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 Oc
Slide 36: 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 37: Management
Coda Octopus Group Management 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. portfolio ma
Slide 38: Management
Coda Octopus Group Management 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 experience inclu
Slide 39: Coda Octopus Group, Inc.
A of Coda Octoptis Group; Inc. Tf CODA OCTOPUS GROUP, INC. World Leader in Sound Underwater Technology NASDAQ: CODA www.codaoctopusgroup.com Investor Relations: MDC Group Contact: David Castaneda (414) 351-9758 / IR@codaoctopus.com
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