Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Investor Presentation (January 2024)
36 slides from Electro Optic Systems's investor presentation, Jan 31, 2024
Slide 1: Investor Update
Investor Update For personal use only January 2024 Andreas Schwer, CEO & Managing Director Clive Cuthell, CFO & COO Approved for ASX release by CFO / COO Clive Cuthell
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY This presentation has been prepared as at 30 January 2024. All information herein has previously been published on the Australian Securities Exchange (“ASX”). For personal use only Forward-looking Statements This p
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer Presentation of Information The financial data in this presentation is provided on a statutory basis but in a non-statutory presentation format (unless otherwise stated). For personal use only • Currency: all amounts in this presentation are in Australian dollars unle
Slide 4: EOS Leaders
EOS Leaders For personal use only Andreas Schwer, CEO & Managing Director Commenced • Over 30 years in global Defence, Manufacturing and Space industries August 2022 • Aeronautical engineer, PhD • German citizen • Airbus 14 years, Rheinmetall International 5 years Clive Cuthell, CFO & COO Commenc
Slide 5: Q4 Activity Update – Contents
Q4 Activity Update – Investor Call 31 January 2024 Contents For personal use only 1. Market Update & Recent Business Wins 2. Q4 & 2023 Cash Flow & Current Debt Profile 3. Conclusion & Scheduled Future Announcements Appendices – Introduction to EOS 5
Slide 6: Market Update
Market Update For personal use only Ukraine conflict and increased geo-political tensions are resulting in higher Defence spending Market Situation • Ukraine war • Geopolitical tensions - including Middle East • Significant increases in global Defence activity and planned spending • Technology is a
Slide 7: Recent Business Wins
Recent Business Wins EOS has continued to diversify the product and customer base Revenue Timing For personal use only 13 Nov 2023 R600 Remote Weapon System A$28m 2024-26 Customer in South East Asia Announcement - New $28m RWS contract for R600 27 Dec 2023 Remote Weapon Systems Follow-on order A$25m
Slide 8: Q4 Update - Cash Flow
Q4 Update - Cash Flow Q4 Net Operating Cash Inflow was $34.5m for Q4 2023, up $48.4m on Q4 prior year For personal use only Clear Focus On Cash Flow Key Cash Flows (Unaudited) Q4 Q4 In(Out)flows 2023 2022 • Focus on Customer Receipts $m $m $m • Renegotiated key Middle East contract (Feb 23) & reduce
Slide 9: 2023 Update - Cash Flow
2023 Update - Cash Flow 2023 Net Operating Cash Inflow was $113.1m, up $164.6m on prior year For personal use only Clear Focus On Cash Flow Full Year (Unaudited) Cash In(Out)flows 2023 2022 • Operating Cash Flow • Focus on Customer Receipts $m $m $m • Contract discipline • Cost Control – 2022 headco
Slide 10: Debt Summary
Debt Summary The focus on Cash Flow ensured that the Sep 23 debt repayment occurred as planned For personal use only A$m Principal Term Maturity Total Rate Repayment Working Capital Facility 20.0 12m Repaid Sep 23 19% 26.9 Working Capital Facility 15.0 18m 11 Apr 24 19% 20.5 Term Loan Facility 35.0
Slide 11: Our Promises
Our Promises We have delivered on our promises We said… We delivered… For personal use only Focus on core businesses & strengths of point & track Exit SpaceLink in 2022. Exit Australian Satellite Manufacturing proposal (2023) Formulated new strategy 2023 Capex focused on core business & seeking t
Slide 12: Conclusion – Scheduled Future Announcements
Conclusion – Scheduled Future Announcements Full Year Results For personal use only ASX Appendix 4E (including Income Statement) To publish on 28 February 2024 • Q&A • Thank You 12
Slide 13: Appendices – Introduction to EOS
Appendices – Introduction to EOS For personal use only Introduction Product Range Summary of Strategic Growth Outlook – Four Pillars Financial Data - 2023 Half Year Results • The 2023 Full Year Income Statement and Segment results will be published with full year results on 28 February 2024 • This A
Slide 14: Business Overview
Business Overview For personal use only STRATEGIC POSITIONING OUR STRENGTHS KEY PRODUCT AREAS >75% export Accuracy revenue and tracking RWS and Turrets High Energy Laser Weapons Global Non- Technology ITAR market and Innovation (non-US) Established Growing >2,500 RWS market size in service Space EM
Slide 15: EOS Introduction – markets we serve
EOS Introduction – markets we serve EOS has a strong position in three growing markets, with advanced technology Defence Satellite Communications Space Systems Remote Weapons and CUAS For personal use only • Remote Weapon Systems (RWS) leader for over 30 • Leading naval satcom terminal manufacturer
Slide 16: Remote Weapon Systems Product Range
Remote Weapon Systems Product Range EOS is developing a wider range of RWS products to meet evolving needs For personal use only Sensor Unit Ultralight RWS Light RWS Medium RWS Heavy RWS Turret Light Turret Multi-Mission R150 R400 R600 R800 T2000 T1600 Sensors Common Range of Platforms and Applicati
Slide 17: New Product Growth Opportunities
New Product Growth Opportunities EOS has unique advantages in point & track technology Revenue timing * For personal use only R150 Lightweight Formal production launch in 2023 2024-25 System Suitable for light vehicles Future UGV opportunity Counter Drone Launched “Slinger” in 1H 2023 2024-25 Kineti
Slide 18: R150 Remote Weapon System
R150 Remote Weapon System Lightest system on the market capable of deploying For personal use only 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
Slide 19: Slinger Counter-Drone CUAS System
Slinger Counter-Drone CUAS System The Ukraine conflict has realised the drone threat, For personal use only and created CUAS demand Context • Reported >10,000 Ukraine drone launches / month • Limited defence options: ▪ technical requirements ▪ economic sustainability Market Demand • Global interest
Slide 20: R800 Heavy Calibre System
R800 Heavy Calibre System EOS recently launched a heavy calibre R800 system, with For personal use only 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 Sp
Slide 21: Unmanned Ground Vehicle System
Unmanned Ground Vehicle System Western forces have started to test & deploy For personal use only Unmanned Ground Vehicles in different theatres Product • Lightweight system • Operated remotely Wide Range of Weapons, including: • 7.62 mm and 12.7 mm machine gun • 30 mm cannon • APKWS laser guided la
Slide 22: Integrated Laser Dazzler
Integrated Laser Dazzler EOS launched an integrated For personal use only Counter-Drone Laser Dazzler in October 2023 Context • Dazzlers can disrupt incoming drones • Combines unique EOS capabilities: ▪ Integrated with existing RWS ▪ Advanced tracking & accuracy • First to market Launch Process • AU
Slide 23: High Energy Laser Weapon
New Product Growth Opportunities High Energy Laser Weapon For personal use only EOS has developed a 36-54kW laser weapon and demonstrated it during August 2023 EOS Prototype • Currently available 36-54kW class (36kW in trial operation) • Two test ranges – indoor and outdoor • Class 1 and 2 drone cap
Slide 24: Space & Space Warfare
New Product Growth Opportunities Space & Space Warfare For personal use only Space Warfare is a rapidly evolving military need, and EOS has the key capabilities in house Market Evolution • Space Warfare is a significant growth market – growing need for capability to disrupt enemy space operations •
Slide 25: Growth Opportunities - EM Solutions
Growth Opportunities - EM Solutions For personal use only EM Solutions is a market leader in Naval SatCom, achieving strong growth in Australia and Europe EM Solutions Business • Multiband frequency ▪ Multiband Satcom (X, Ku, Ka Band Com, Ka Band Mil) ▪ Ship to Shore E Band (70/86GHz) • Continued de
Slide 26: Summary of Growth - Four Pillars
Summary of Growth - Four Pillars EOS is product-led with growth focused in four key areas For personal use only RWS and Turrets High Energy Laser Weapons Space EM Solutions R400 Family Titanis CUAS Commercial Space Intelligence Naval Terminals World Market Leader Grow in 2024 World Market Leader Mar
Slide 27: 1H 2023 Performance Overview
1H 2023 Performance Overview Improved cash flow, For personal use only signed new contracts, and launched new products New products launched: • Slinger Counter-Drone • R150 lightweight production launch Signed new contracts >$400m incl. conditional Ukraine $181m Focus on contract management Net rea
Slide 28: 1H 2023 Finance Results
1H 2023 Finance Results Significant improvement in Revenue, Cash Flow and Order Backlog For personal use only 1H 1H Key Results 2023 2022 $m $m $m Revenue 74.3 53.8 20.5 Underlying EBITDA (14.8) (24.2) 9.4 Finance cost (16.0) (6.1) (9.9) Net loss before tax (35.4) (33.0) (2.4) Net cash flow from ope
Slide 29: Defence
Defence For personal use only Solid revenue growth % of Total EOS 68% with positive market outlook Revenue Customer receipts Divisional 1H 1H 200 Results 2023 2022 $m $m % 150 A$ Millions 100 Revenue 50.7 38.2 33% Loss before (17.5) (25.7) 32% 50 tax - Customer 109.3 52.7 107% 2020 2021 2022 2023 re
Slide 30: Space
Space For personal use only High growth EM Solutions naval satcom % of Total EOS 32% activity, and Space data services Revenue Divisional 1H 1H Revenue Results 2023 2022 45 A$ Millions 40 $m $m % 35 30 25 Revenue 23.6 15.6 51% 20 Loss before (0.4) (3.4) 88% 15 10 tax 5 Customer 13.9 21.8 -36% - 2020
Slide 31: New Order Intake & Backlog - June 2023
New Order Intake & Backlog - 30 June 2023 For personal use only Record order backlog provides a strong base for future growth Significant New Orders Secured Order Backlog 700 • A$51m for RWS to Western Europe, delivered July 2023 Millions 600 181 500 • Up to A$202m EM Solutions for Australian Navy (
Slide 32: Our Approach
Our Approach We will maintain focus For personal use only 1. Manage Cash Flow • Realise working capital • Continue to repay debt on schedule in 2024 and 2025 2. Diversify Product Base • Maintain leadership in accurate pointing • Commercialise technology 3. Diversify Customer Base • Go to market in E
Slide 33: Recent Media Articles & Media Releases
Recent Media Articles & Media Releases– Last 6 Months Subject Date Article For personal use only New Slinger Counter-Drone contract 29 Jan 24 New $15m contract for Slinger Counter-Drone Systems New customer contract – Western Europe 27 Dec 23 New $25m contract for RWS supply Update re Lender Fee Cla
Slide 34: EOS Segments
EOS Segments Defence For personal use only Defence Systems specialises in technology for weapon systems optimisation and integration, as well as ISR (Intelligence, Surveillance and Reconnaissance) and C4 systems for land warfare. Its key products are next-generation remote weapon systems, vehicle tu
Slide 35: Glossary
Glossary Term Description Term Description For personal use only 1H First Half of the financial year IP Intellectual Property International Traffic in Arms Regulation (a 2H Second Half of the financial year ITAR USA regulatory regime) ADF Australian Defence Force MOD Ministry of Defence ASMH Austral
Slide 36: For personal use only
For personal use only
Electro Optic Systems Holdings — Investor Presentation (January 2024) on 6ix