Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Investor Day (April 2025)
55 slides from Electro Optic Systems's investor day presentation, Apr 30, 2025
Slide 1: EOS Investor Day Presentation
EOS Investor Day Presentation 30 April 2025
Slide 2: Key Speakers
Key Speakers Today’s speakers include some of the key leaders responsible for driving the EOS turnaround Dr. Andreas Schwer, MD & CEO Clive Cuthell, CFO & COO • Over 30 years in global Defence, Manufacturing and • Over 15 years as CFO in global industrial Space businesses • Previously with Rheinmeta
Slide 3: Business Turnaround Update
Business Turnaround Update EOS is midway through a comprehensive program of change. Consistent execution of this strategy is delivering results Selected EOS ASX Announcements RESTRUCTURING PROGRAM 2022 • Organisational structure right-sized, with reduction of ~100 roles Aug/Sep New CEO and CFO comme
Slide 4: 2024 Highlights - Strategic and Operational
2024 Highlights - Strategic and Operational EOS has laid foundations for future growth, particularly Counter-Drone (RWS / High Energy Laser Weapons) and Space Control Focused • Review of strategic growth opportunities Strategy • Decision to focus on high growth opportunities – Counter-Drone and Spac
Slide 5: Global Markets & Growth
Global Markets & Growth Dr. Andreas Schwer - MD & CEO
Slide 6: Market Conditions
Market Conditions Geopolitical uncertainty and rapidly evolving technology continues to create supportive market conditions Geopolitical uncertainty and ongoing regional tensions Rapid technological changes are challenging defence forces 6
Slide 7: EOS is focused on growing its order book
EOS is focused on growing its order book Growing the order book continues to be our key focus; several opportunities are developing positively Markets Products Sales & Marketing Order Book • Global military spending • Recent launch of the R500, the • Step-change in sales • Contract backlog of $136m
Slide 8: Sales Strategy
Sales Strategy EOS continues to invest in its sales capabilities and has developed tailored go-to-market strategies for each region EUROPE MIDDLE EAST N. AMERICA ASIA PACIFIC • New EOS market since 2023 • Longstanding, deep relationships • Large and concentrated market • Australian home base & exist
Slide 9: Market Development Update – Trade Show Engagement
Market Development Update – Trade Show Engagement EOS continues to invest in trade show presence to ensure we are well positioned in the market EUROPE N. AMERICA OCEANIA MIDDLE EAST Eurosatory AUSA Land Forces IDEX PARIS - Jun 2024 WASHINGTON DC - Oct 2024 MELBOURNE - Sep 2024 ABU DHABI - Feb 2025 •
Slide 10: Market Development Update – Notable Demonstrations
Market Development Update – Notable Demonstrations In 2024 EOS participated in over 20 demonstrations across North America, Europe, the Middle East, Asia/Australia Long Range Counter-Drone Firing Demo US Army Project Convergence Capstone 4 • Demo with the Australian Robotic and Autonomous Systems •
Slide 11: Bushmaster User Conference – April 2025
Bushmaster User Conference – April 2025 Northrop Grumman selected EOS as launch partner to demo to new dual feed M230LF cannon. Our new R800 RWS was also exhibited SYSTEM SYSTEM SYSTEM 11
Slide 12: Market Development Update
As Reported 25 Feb 2025 Market Development Update Growing the order book continues to be our key focus; several opportunities are emerging • Significant investment in sales capability, marketing (trade shows Opportunity Maturity Product Estimated Opportunity Size and demonstrations) is focused on pi
Slide 13: Market Development Update - Ukraine
Market Development Update - Ukraine To date, over 190 EOS RWS have been sent to Ukraine. We continue to seek direct sales to Ukraine and donor nations Context Currently over 190 EOS RWS have been sent to Ukraine: • 110 x R400 with Mk19 Automatic Grenade Launchers donated by the Netherlands • 44 x R4
Slide 14: Drones & Counter-Drone Warfare
Drones & Counter-Drone Warfare Global demand for drones and counter-drone solutions is growing rapidly • The rise of drones in modern warfare in recent years is well documented – media attention is expected to continue • Low Cost - Drones provide both state and non-state actors the opportunity to di
Slide 15: Defending against the drone threat
Defending against the drone threat Effective counter-drone systems need to include comprehensive sensors and effectors, and intelligent C2 systems Counter-Drone Kill Chain Example Counter-Drone System Architecture Sensor Command & Defeat Systems Control Systems Systems Detect Cannons Electro Optical
Slide 16: Drone Defeat Systems - EOS Effectors
Drone Defeat Systems - EOS Effectors Historically EOS has focused on effectors, including RWS, Directed Energy and other systems 0.5km 1km 2km 3km 4km 5km 6km 7km 8km 9km 10km Electronic Warfare (EW) EOS CURRENT FOCUS Remote Weapon System Directed Energy 50-100kW APKWS (Rocket) SHORAD Missile Rapidl
Slide 17: Drone Detection and Identification
Drone Detection and Identification In a world of every increasing drone swarms, the ability to swiftly and accurately detect, track and identify drones is paramount In a process named “sensor fusion”, data from multiples sensors are fed into neural networks which have been trained to discriminate be
Slide 18: Product Development – Software and AI Opportunity
Product Development – Software and AI Opportunity EOS is focused on advanced software solutions as part of our emphasis on counter-drone opportunities Implications for EOS • EOS expects smaller, more distributed command and control systems (C2) to continue emerging, providing more resilience and fas
Slide 19: Counter-Drone Market Size – Example Army Brigade
Counter-Drone Market Size – Example Army Brigade Currently, an army brigade in a typical military has many vehicles and very limited drone protection Future Counter Drone Unit 19
Slide 20: Remote Weapon Systems Product Range
Remote Weapon Systems Product Range The EOS range of RWS products has wide application to the Counter-Drone market Remote Weapon Systems Platforms Effectors Range of Applications Truck R150 R400 Slinger Cannon Counter Drone Heavy Machine Gun Protected Vehicle Light Machine Gun Ground-to-Ground Mini
Slide 21: Product Development – R500
Product Development – R500 EOS is maintaining global product leadership by developing a next-generation AI-based RWS Context • EOS products consistently demonstrate greater accuracy than competitors • We remain committed to being the global product leader • The R500 RWS was launched in Feb 2025 at I
Slide 22: EOS Future Strategic Focus Areas
EOS Future Strategic Focus Areas The emergence of drone warfare on the battlefield is supporting a generational shift for counter-drone solutions High RWS Defence Space Directed Energy Space Systems Control Systems Counter-Drone Growth Outlook RWS Directed Unmanned Low Power High Power Space Space E
Slide 23: Growth Strategy
Growth Strategy EOS is positioned to grow sustainably in the short, medium and longer terms 1-3 Years 2-5 Years 3-10 Years • Significant organic growth opportunities: DEFEND NURTURE SEED • Remote Weapons Systems (RWS) & GROW • Counter-Drone products (specialised RWS) Space • Two large strategic oppo
Slide 24: Future Strategic Growth Opportunities
Future Strategic Growth Opportunities EOS is developing world-leading innovations with large addressable markets and is developing customer and partner opportunities High Energy Laser Weapon (HELW) Space Control • There is an urgent market need for • Satellites have become a key defence laser-based
Slide 25: Summary and Outlook
Summary and Outlook EOS aims to become a global leader in Counter-Drone, High Energy Laser Weapons and Space Control Summary • Market conditions remain supportive • Focused growth strategy - Counter-Drone and Space Control • Divestment of non-core activity (EM Solutions) • Strengthened balance sheet
Slide 26: High Energy Laser Weapons
High Energy Laser Weapons Dr. James Bennett - EVP Space Systems Dr. Andreas Schwer - MD & CEO
Slide 27: High Energy Laser Weapons - Background
High Energy Laser Weapons - Background The US Government spends >US$1bn per annum on developing high energy laser weapon technology • Emerging and urgent market need for laser-based drone, rocket, artillery, mortar, air and missile defence • The rapid proliferation of drones and other unmanned warfi
Slide 28: High Energy Laser Weapons – Market
High Energy Laser Weapons – Market EOS is focused on the 30-150kW power level and related use cases, particularly counter drone • High Energy Laser Weapons are extremely versatile, with emerging markets across a wide range of applications • The total addressable market for affordable solutions is ex
Slide 29: High Energy Laser Weapons – Competitive Landscape
High Energy Laser Weapons – Competitive Landscape The significant technical barriers mean that the global market is still relatively uncompetitive Source Country Competitive Threat United • Invest >$1bn per annum in laser weapons, including prototypes for Army, Navy & Air Force Low States • Strict r
Slide 30: High Energy Laser Weapons - Summary
High Energy Laser Weapons - Summary We see significant market opportunity over the next 5 years. We will exercise capital discipline. Market • Drone threat demonstrated in Ukraine & Middle East • Growing & new market interest in laser weapons • Significant market growth expected EOS • EOS advantages
Slide 31: Space Technologies
Space Technologies Dr. James Bennett, EVP – Space Systems
Slide 32: EOS Space Technologies
EOS Space Technologies EOS operates two Australian facilities, covering Australia, adjacent oceans & related space territory Learmonth (WA) Mt. Stromlo (ACT) 32
Slide 33: EOS Space Technologies
EOS Space Technologies EOS specialises in applying EOS developed optical sensors & effectors to detect, track and characterise objects in space Demonstrated Capability Summary • EOS designs and manufactures bespoke world-leading beam director telescopes • EOS has decades of experience in Satellite L
Slide 34: Space Control
Space Control Dr. James Bennett - EVP Space Systems Dr. Andreas Schwer - MD & CEO
Slide 35: Space Control - Background
Space Control - Background The space domain is now the most critical and contested environment for governments and militaries Conflict and the Space Domain • Modern conflict is highly reliant on surveillance and communications satellites • Market need for advanced defence systems that can detect, tr
Slide 36: Space Control - Market Need
Space Control - Market Need Governments are assessing options. EOS has all the key components to develop & provide solutions Market Need Planned EOS Solution Decisive advantage Earth-to-Space laser capabilities in the space domain Key features of the developing EOS solutions • Space Intelligence - O
Slide 37: Space Control - EOS Competitive Advantage
Space Control - EOS Competitive Advantage EOS has a unique mix of expertise required to develop this solution Telescopes & High Energy Adaptive Enclosures Lasers Optics Automated electronic Mission Tracking control systems Systems systems & software software 37
Slide 38: Space Control - Summary
Space Control - Summary The market opportunity is large and will take time to develop. EOS will exercise capital discipline • Space control is expected to be a significant market - strategic advantage during conflict • Opportunity expected to mature over 3 – 10 years • EOS uniquely offering a compel
Slide 39: Appendices
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Slide 40: 2024 Highlights - Financial
2024 Highlights - Financial In 2024 EOS continued to execute on its turnaround program and set the foundation for future growth Total Operations Strong Revenue Revenue $258.7m $39.4m (up 17%) vs. prior year Growth Gross Margin % 46% 2% vs. prior year Underlying EBITDA1 $13.0m $7.3m (up 128%) vs. pri
Slide 41: 2024 Divisional Performance
2024 Divisional Performance Revenue increased across all the business divisions, contributing to a strong financial performance in 2024 $m - continuing operations 2024 2023 Var Defence Revenue 165.7 155.4 10.3 Systems Underlying Divisional EBITDA1 (incl. corp allocations) (0.7) (0.0) (0.7) • Revenue
Slide 42: Reconciliation of Statutory Profit / (Loss) and non-IFRS measures
Reconciliation of Statutory Profit / (Loss) and non-IFRS measures The results for EM Solutions (divested in January 2025) have been treated as discontinued operations Total Operations (Continuing & Discontinued) 2024 2023 $m Loss for the year (19.7) (34.1) Profit after tax for the year from disconti
Slide 43: Recent Product Developments and Growth Opportunities
Recent Product Developments and Growth Opportunities EOS has recently launched several products to capitalise on key macro drivers and enable future growth Indicative revenue Macro Drivers Product Recent activity timing * • Formal production launch in 2023 C-UAS R150 Light-weight • Suitable for ligh
Slide 44: Slinger Counter-Drone System
Slinger Counter-Drone System The Ukraine conflict demonstrates the drone threat and the need for counter-drone solutions. We are pursuing a range of opportunities Context • Reported >10,000 Ukraine drone launches / month • Limited defence options: • technical requirements • economic sustainability E
Slide 45: R150 Remote Weapon System
R150 Remote Weapon System Lightest system on the market capable of deploying 12.7mm/14.5mm heavy machine guns Product • Ultra lightweight system • Under 150kg with 12.7mm machine gun and full ammunition load • Can be operated remotely • Non-ITAR Wide Range of Weapons, including: • 14.5 mm and 12.7 m
Slide 46: R800 Heavy Calibre System
R800 Heavy Calibre System EOS recently launched a heavy calibre R800 system, with an integrated counter-drone laser dazzler Product • Turret-level, heavy-calibre hitting lethality • Lightweight system • Operated remotely Wide range of weapons, including: • 1 x Javelin or 2 x Spike (pod) • Mk44S 30 x
Slide 47: Market Development Update
As Reported 25 Feb 2025 Market Development Update Growing the order book continues to be our key focus; several opportunities are developing Emerging Preliminary Evaluation Advanced Notable Opportunities Region Product Size Opportunity • Land 400-3 Project for ADF • Product specification / discussio
Slide 48: Market Development Update
As Reported 25 Feb 2025 Market Development Update Growing the order book continues to be our key focus; several opportunities are developing Emerging Preliminary Evaluation Advanced Notable Opportunities Region Product Size Opportunity • Existing customer, follow-on order Middle East R500 $500m+ • I
Slide 49: Market Development Update
As Reported 25 Feb 2025 Market Development Update Growing the order book continues to be our key focus; several opportunities are developing Emerging Preliminary Evaluation Advanced Notable Opportunities Region Product Size Opportunity • Opportunity to put RWS on large logistics vehicle fleet Europe
Slide 50: Market Development Update
As Reported 25 Feb 2025 Market Development Update Growing the order book continues to be our key focus; several initial opportunities are emerging Emerging Preliminary Evaluation Advanced Notable Opportunities Region Product Size Opportunity • Potential new customer nation in western Europe Europe R
Slide 51: Summary of Investment Opportunities
Summary of Investment Opportunities EOS is developing has several attractive opportunities to accelerate growth. We will continue to exercise strategic and capital discipline, using customer funding, partnerships and/or investing where appropriate Investment Opportunity Focus $m Timeframe • Artifici
Slide 52: Glossary
Glossary Term Description Term Description ADF Australian Defence Force ISR Intelligence, surveillance and reconnaissance Technique of precisely deforming a mirror in order to Adaptive Optics kW Kilo Watts compensate for (atmospheric) light distortion APKWS Advanced Precision Kill Weapon System MLRS
Slide 53: Disclaimer and important notices
Disclaimer and important notices CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY This presentation was prepared as at 30 April 2025 and is based on information available at that time, unless noted otherwise. Forward-looking Statements This presentation may contain statements that are, or may b
Slide 54: Disclaimer and important notices
Disclaimer and important notices Presentation of Information All financial information has been prepared in accordance with Australian Accounting Standards. Certain financial data included in this presentation is ‘non IFRS financial information’. The Company believes that this non IFRS financial inf
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