Palladyne Ai Corp. · NASDAQ:PDYN
Palladyne Ai — Rotor Acquisition — SPAC Merger (August 2021)
22 slides from Palladyne Ai's SPAC merger presentation, Aug 4, 2021
Slide 1: The Premier High-Growth, Pure Play Industrial Robotics Investment
THE PREMIER HIGH-GROWTH, PURE PLAY INDUSTRIAL ROBOTICS INVESTMENT Investor Presentation August 2021
Slide 2: Disclaimer
SARCOS PROPRIETARY 2 DISCLAIMER • Legal Disclaimer •This presentation is for informational purposes only to assist interested parties in making their own evaluation with respecttothe potential business combination between SarcosCorp. (“Sarcos”) and Rotor Acquisition Corp. (“Rotor”) (the “Potential B
Slide 3: Disclaimer
SARCOS PROPRIETARY 3 DISCLAIMER •The information contained herein is provided only as of the date on which this presentation is made and is subject to change.However, while Sarcosand Rotor may elect to update these forward-looking statements in the future, each of Sarcosand Rotor is not under any ob
Slide 4: Disclaimer: Additional Information
SARCOS PROPRIETARY 4 DISCLAIMER • Additional Information • In connection with the Potential Business Combination, Rotor has filed with the SEC a preliminary proxy statement on August 2, 2021 (and amendments thereto) and intends to mail a definitive proxy statement relating to the Potential Business
Slide 5: How Does Work Get Done When There Aren't Enough Workers to Go Around?
SARCOS PROPRIETARY 5 HOW DOES WORK GET DONE WHEN THERE AREN’T ENOUGH WORKERS TO GO AROUND? Barrons.com, Census.gov, CNN.com, IndustryWeek.com
Slide 6: The Answer: A Fleet of Industrial Robots That Augment Instead of Automate
SARCOS PROPRIETARY 6 Sarcos is developing a fleet of highly dexterous mobile industrial robots, that it will own and manage, to deliver multiples of productivity and enhanced safety across a wide range of industries for the annual cost of a single FTE THE ANSWER: A FLEET OF INDUSTRIAL ROBOTS THAT AU
Slide 7: 30+ Years of Development: Sarcos Evolution
SARCOS PROPRIETARY 7 30+ YEARS OF DEVELOPMENT SARCOS EVOLUTION Air Force XO contract XO program begins (DARPA) 2nd XO hydraulic(DARPA) 1stXO hydraulic(DARPA) US SOCOMXO contract XO debut at CES GS multi-unit sale to US DoD US Navy XT contract Raytheon buys Sarcos Industry Advisory Group established
Slide 8: Global Need Drives Demand
SARCOS PROPRIETARY 8 GLOBAL NEED DRIVES DEMAND WORKER SHORTAGE, INJURY, AND FATIGUE = KEY DRIVERS OF OPPORTUNITY $100 billion spent annually on back injuries in the U.S. Spine Research Institute & OSHA $136 billion annual costs in lost production due to fatigue OSHA, 2007 Falls from height #4 most d
Slide 9: $147 Billion Annual Target Market in the US Alone
$147 BILLION ANNUAL TARGET MARKET IN THE US ALONE SCALE & EFFICIENCY TRANSCEND INDUSTRIES & APPLICATIONS, OFFERINGBLUE OCEAN OPPORTUNITY LARGE ADDRESSABLE MARKET1 END MARKETS & APPLICATIONS Total Addressable US Market: $147b Serviceable Obtainable US Market:$15b >16 million people employed in the U.
Slide 10: Innovation, Experience, and IP Enable a True Blue Ocean Opportunity
SARCOS PROPRIETARY 10 INNOVATION, EXPERIENCE, AND IP ENABLE A TRUE “BLUE OCEAN” OPPORTUNITY PROPRIETARY INNOVATIONS DEEP ROBOTICS PATENT PORTFOLIO COMPETITIVE STRENGTHS Energetic Autonomy Reduced power from 6,800 to 500 watts Optimized power utilization –elastic recovery Modelled after human movemen
Slide 11: Guardian XO: An Industry 4.0 Workforce Multiplier
SARCOS PROPRIETARY 11 GUARDIAN®XO®:AN INDUSTRY 4.0 WORKFORCE MULTIPLIERWITH REDUCED RISKS OF INJURY EXPONENTIAL PRODUCTIVITY FOR THE FULLY-BURDENED COST OF A SINGLE EMPLOYEE Up to 200 lblift capacity Hot-swap batteries, near-continuousoperation Capable of up to 100% load relief < 30 seconds to don o
Slide 12: Guardian XO: An Exoskeleton in a Class of Its Own
SARCOS PROPRIETARY 12 GUARDIAN®️ XO®️: AN EXOSKELETON IN A CLASS OF ITS OWN INDUSTRIAL PARTIAL BODY UNPOWERED FORTIS EKSO ZERO G INDUSTRIAL PARTIAL BODY POWERED SAMSUNG PANASONIC REHABILITATION HONDA REWALK CYBERDYNE EKSO BIONICS FULL-BODY POWERED
Slide 13: Guardian XT: Highly Dexterous Robotic Avatar
SARCOS PROPRIETARY 13 GUARDIAN®️ XT™: HIGHLY DEXTEROUS ROBOTIC AVATAR Optimize productivity for precise tasks in dangerous environments Reduce at-height and overhead fatigue, Reduce injury & exposure to hazardous conditions Mitigate risks and associated costs Reduce insurance premiums & hazard pay B
Slide 14: Robot-as-a-Service (RaaS) Model Expected to Accelerate Adoption
SARCOS PROPRIETARY 14 ROBOT-AS-A-SERVICE (RAAS) MODEL EXPECTED TO ACCELERATE ADOPTION AND DELIVER RECURRING REVENUES RAAS INTENDED TO OFFER ECONOMIC ADVANTAGES AND A UNIQUE VALUE PROPOSITION B E NE F I T S OF RA A S RAASVS. BUY Maintenance and servicing covered by Sarcos Lowers barriers to deploymen
Slide 15: Target Industries and Customers
SARCOS PROPRIETARY 15 TARGET INDUSTRIES AND CUSTOMERS LEAD PROSPECTIVE CUSTOMERS HAVE IDENTIFIED INITIAL NEEDS RANGINGFROM 100-TO-3,000 UNITS PER CUSTOMER L O G I S T I C S FOOD SERVICES RE PRE S ENTAT IV E TARGE T CUS TOMERS Beta Unit Trials(2-4 weeks) Mid-2022 EXPECTED CUSTOMER JOURNEY AND TIMING
Slide 16: Illustrative Per Unit Economics
SARCOS PROPRIETARY 16 nSetupnRepairnAmortization ILLUSTRATIVE PER UNIT ECONOMICS (6-YEAR SERVICE LIFE, AS OF 2026) XO DX / XT REVENUE COST CASH F LOW nSetupnRepairnAmortization $600 Cumulative $175 Cumulative $425 Cumulative REVENUE $360 Cumulative COST $90 Cumulative CASH FLOW $270 Cumulative PAYBA
Slide 17: Financial Projections (as of January 2021)
SARCOS PROPRIETARY17 FINANCIAL PROJECTIONS (AS OF JANUARY 2021) *PANDEMIC EFFECT ON SUPPLY CHAIN AND STAFFING NOW ANTICIPATED TO DELAY COMMERCIAL LAUNCH BY ~6 MONTHS, IMPACTING MEDIUM-TERM FINANCIAL METRICS IN 2021-2023 PERIOD. LONGER TERM OUTLOOK REMAINS UNCHANGED Projections as of January 2021 and
Slide 18: Transaction Structure and Pro Forma Equity Ownership
SARCOS PROPRIETARY18 TRANSACTION STRUCTURE AND PRO FORMA EQUITY OWNERSHIP TRANSACTION STRUCTURE The transaction is expected to close in Q3 2021 Post-closing, the combined company will be listed on the Nasdaq, will be named “Sarcos Technology and Robotics Corporation” and will trade under the symbol
Slide 19: An Attractive Valuation Paradigm for Investors
SARCOS – AN ATTRACTIVE VALUATION PARADIGM FOR INVESTORS SARCOS PROPRIETARY19 7.4x 32.7x 1.0x 2.7x 35.4x 11.5x 1.6x 4.4x 0.5x 1.1x 8.6x 3.4x 5.6x 24.6x 0.7x 1.7x 28.6x 11.7x Pro forma Value (2026E) Pro forma Value (2026E) SARCOS – AN ATTRACTIVE VALUATION PARADIGM FOR INVESTORS Pro Forma Enterprise Va
Slide 20: Q&A
Q&A
Slide 21: Appendix
APPENDIX
Slide 22: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ($ IN MILLIONS) Note: EBITDA includes amortization expense for RaaS units which is included in the respective COGS lines. Adjusted EBITDA 2020A 2021E 2022E 2023E 2024E 2025E 2026E Net Income/(Loss) ($17.9) ($51.6) ($63.8) $3.6 $126.1 $352.4 $929.6 Depreciation and Amortizatio