Coda Octopus Group, Inc. · NASDAQ:CODA
Coda Octopus — Investor Presentation (February 2022)
55 slides from Coda Octopus's investor presentation, Feb 25, 2022
Slide 1: World Leader in Sound Underwater Technology
World Leader in Sound Underwater Technology Corporate Presentation February 23 2022
Slide 2: Forward-Looking Statements
Coda Octopus Group, Inc. 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 for
Slide 3: CEO Vision Statement
Coda Octopus Group, Inc. CEO Vision Statement “To grow the Group through increased and sustained organic growth through the exploitation of our unique and revolutionary underwater sonar technologies and our continued advancements in customized rugged defense solutions. To increase our value proposit
Slide 4: 2022 Overview Business Strategy
Coda Octopus Group, Inc. 2022 Overview Business Strategy v Recent R&D gives the basis for three major sales. pushes: v Recent release of Echoscope PIPE® paves the way for us to increase our market share. ¥ DAVD (Diver Augmented Vision Display System) opens a new market and opportunity in both defens
Slide 5: Overview
Overview Established business with strong pedigree in marine technology and defense engineering: Products Business Market leader in underwater ima sonar technology. We have the wo only 4D, 5D and 6D sonar capability, he only sonar generating up to 40 million 3D data points with th ity to see in real
Slide 6: Financial Snapshot
Financial Snapshot ANNUAL FY 2018 FY 2019 FY 2020 FY 2021 Revenues $18,019,429 $25,056,934 $20,043,810 $21,331,527 Net Income $3,102,899 $5,225,199 $3,343,585 $4,947,765 EBITDA $4,069,175 $6,253,437 $4,278,437 $6,230,922 Earnings per share — $0.49 $0.49 $0.30 $0.44 basic* ¥EPS in 2019 reflects the r
Slide 7: Financial Snapshot
Financial Snapshot QUARTERLY Revenues $6,680,979 $5,050,459 $3,289,218 $5,373,076 $5,396,036 Net Income $1,346,773 $1,128,844 $(265,080) $2,207,933 $1,022,753 EBITDA $1,699,285 $1,376,625 $(220,363) $2,186,349 $1,682,404 Earnings per $0.13 $0.10 $(0.02) $0.20 $0.10 share — basic Coda Octopus Group,
Slide 8: Revenue by Quarter
Coda Octopus Group, Inc. Revenue by Quarter 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 ys fees va i = — Engineering Business a —- — — a Business wo |i a a uv E 2 Ee B = 4th 16 1st17 2nd17 3rd 17 4th17 1st18 2nd18 3rd18 4th18 1st19 2nd 19 3rd 19 4th19 1st20 2nd 20 3rd 20 4t
Slide 9: Marine Technology Business
Marine Technology Business (Products Business) — Research Development and Innovation § oftware Application and jemmemnee Development
Slide 10: COTS Products & Engineering Services
COTS Products & Engineering Services Products . Commercial off-the-shelf (COTS) product sales occur primarily through two channels: + Direct Sales: Most sales occur through our in-house sales resources based in both the U.S. and U.K. + Agents: We also use a wide network of third party agents to expa
Slide 11: Echoscope Family of Volumetric Sonars
\ Coda Octopus Group, Inc. Echoscope*©® Family of Volumetric Sonars RANGE O Echoscope*S® Buney yrdeq Echoscope*6® Echoscope*©® C500 SWaP (Size, Weight and Power) Seeing & Measuring in Real-Time 3D in Zero Visibility Conditions Underwater 11
Slide 12: Echoscope PIPE Series Structure
Coda Octopus Group, Inc. Echoscope PIPE® Series Structure : Real-Time| P Survey and Monitoring ‘ Measurements > Single Sensor Multiple Applications Simultaneous Parallel Processing ROV Navigation Identification | ~ Obstacle Nae Avoidance 12
Slide 13: Echoscope Family of Volumetric Sonars
—_— einen Echoscope® Family of Volumetric Sonars Continuation of Echoscope® Series 16,384 Up to 40 million Points of Data Points of Data Single Real-Time Image .-
Slide 14: New Technology Differences
New Technology Differences Real-Time Capability Angular Coverage (dual-frequency) Real-time Adaptive Frequency Capability Ping Rate Multiple Real-Time 4D Images Number of Data Points per Single Ping Number of Beams and Range values per Beam Multiple Sequential Configurations in Real-Time Full Time S
Slide 15: Echoscope PIPE Sequencer
Coda Octopus Group, Inc. Echoscope PIPE Sequencer Real-Time 3D . = Time ° PIPE-CORE and PIPE-SEQUENCER * 4D Volumetric images represent a true volume of spatial data x RIGA ee 5 collected and processed at the Up to 10 Sequential Ping: ‘same instant. PIPE-CORE provides co increased dyn. range, freque
Slide 16: Real-Time 3D Technology
Coda Real-Time 3D Technology 200 Blocks placed per day Van Oord Port Construction Project Placement of 24,000 CORI ‘Armour Units Record Production Rates Duration: 1-2 Years 76 Sleepers placed per day ZADCO Sleeper Placement in 12 hours Productivity: > 3,000% Cost Saving: > $3 million Duration: 3-6 m
Slide 17: Competing Technology is No Comparison
Competing Technology is No Comparison Pelican Island Causeway, Galveston TX
Slide 18: 3D Product Line
\ Coda Octopus Group, Inc. 3D Product Line Lip “3D Gar jera. Mode” 7,0) que i 3D Complex:Mapping No Post Processing World’s most advanced sonar technology — real-time 3D/5D/6D Subsea Imaging 1s
Slide 19: 3D Product Line
Coda Octopus Group, Inc. 3D Product Line = Delivering on Everyday Challenges Subsea Complex Asset Placement — Alaska Monopod Installation Oilfield Disaster Recovery + Four Echoscopes® used to provide real-time visualization of landing site and control stabilization for crane operators + Software ‘mo
Slide 20: 3D Product Line
e $= 3D Product Line Delivering on Everyday Challenges Subsea Mineral Mining - Diamonds Marine Construction - Breakwaters Echoscope® is the No. 1 preferred solution for cut has taken place subsea placement * Operator can “see” exactly where each + No overlapping of cuts Crane operator can “see” and
Slide 21: Strong Culture of IP
Strong Culture of IP ¥ Multiple patents pending pertaining to recent technology innovations, such as 5D and 6D Echoscope PIPE® v 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
Slide 22: Defense Applications
mee eS sth Defensa Applicatiags Complex Structure — Target ID CodaOctopus 22
Slide 23: Commercial Applications
Coda Octopus Group, Inc. Commercial Applications Clearance = "°* Ia LAs - ey \ ton Sf Placement & Breakwater Landing Construction & Rock ing Recovery & dging seer an 23
Slide 24: tiy
tiy ik Boskalis /echnip Dia Bikers Group OF COMPANIES G GRO — =) DEME Grou #8 Ps a © NAVAL SEA AND DEEPOCEAN subsea 7 Van Oord x * Marine ingenuity Penta Ocean.
Slide 25: 3D Real-Time Echoscope Technology Advantage
Coda Octopus Group, Inc. 3D Real-Time Echoscope® Technology Advantage | Unmanned Maritime Systems (PB13 and beyond) «Removes man out of the loop, thus reducing costs significantly and increasing repeatability of common tasks «Enhances Safety, again by removing man out of the loop *Facilitates near i
Slide 26: Key Growth Market
Coda Octopus Group, Inc. Key Growth Market * Obstacle Avoidance for manned + Search & Rescue and Recovery Missions & unmanned missions + Asset Identification & Reacquisition Real-Time Decision Making : See &dentity reer ancl meats * Route Clearance Survey for foreign ports + Record 64 Meaptoreethen
Slide 27: Real-Time 3D Imaging in Defense Applications
Coda Octopus Group, Inc. Real-Time 3D Imaging in Defense Applications Momentum has grown significantly within the U.S. Navy community for CODA’s industry-leading, real-time technology solutions. The following groups are actively funding development, trials or purchases of Coda Octopus Echoscope® tec
Slide 28: Project & Technology Outline
Coda Octopus Group, Inc. Project & Technology Outline GEN 1.0 Complete rq SoS Gen 1.0 Product completed and ae Nb y EA di i Future Naval Capabilities (FNC) —_ NSWC and NAVSEA Collaboration accepted in December 2019 So Worked with NAVSEA PCD from 2016 on developing their prototype glass technology an
Slide 29: About the DAVD
Coda Octopus Group, Inc. About the DAVD 29
Slide 30: About the DAVD
\ Coda Octopus Group, Inc. About the DAVD IO/ICE | iS C/ py Ls 7 <9 \t Nid ae! 9
Slide 31: About the DAVD
About the DAVD VISIBILITY LOCATION COMMUNICATION SAFETY DATA Cn) @. VISIBILITY Aa Va) Sof Un) hay) DATA e) Coda Octopus Group, Inc. 31
Slide 32: About the DAVD
bout the DAVD Diver Augmented Vision Display System Gen 1 —- Gen 3 DAVD - DMU DAVD - TC Dive Motion Unit Dive Supervisor handles Head Tracking Workstation and and Motion. Now with Communication Hub Depth Sensor and Integrated First Person Edge Imaging Camera (Gen 2) DAVD - DPP The Diver Processing U
Slide 33: Key DAVD Milestone Progress
Coda Octopus Group, Inc. Key DAVD Milestone Progress + DAVD is approved under Authorization for Navy Use (ANU) + DAVD GEN 2 is now being sold to US NAVY and we have around 25 systems in use in the field. Users include: + | MDSU-1 and 2 (Mobile Diving and Salvage Unit) * UCT 1 and 2 (Underwater Const
Slide 34: Value Drivers
Value Drivers + First mover in innovating and commercializing real-time 3D sonar technology for the subsea market * No other commercially available real-time 3D sonar in the market + As market requirements shift to real-time imaging our 5D/6D Innovation decisively puts CODA in the lead for real-time
Slide 35: DAVD and New Breakthrough Echoscope PIPE 5D and 6D Sonars
DAVD and New Breakthrough Echoscope PIPE® — 5D and 6D Sonars The world’s only 5-dimensional and 6-dimensional real-time volumetric sonar technology, Echoscope PIPE® — “Parallel Intelligent Processing Engine” Diver Augmented Vision Display (DAVD), Gen 1.0, is certified for fleet issue use by the U.S.
Slide 36: Addressable Sonar Market
Coda Octopus Group, Inc. Addressable Sonar Market* ANNUAL FY 2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Revenues $B $2.336 $2.503 $2.685 $2.869 $3.081 $3.313 $3.543 $3.786 $4.064 Growth 7.1% 7.3% 6.9% 74% 7.5% 6.9% 6.9% 7.3% * Source: “Global SONAR Systems and Technology Market Siz
Slide 37: Sonar Market by Application
Coda Octopus Group, Inc. Sonar Market by Application* REVENUE/MARKET ($B) Defense $1.251B $1.631B + including UUV $0.186B $0.357B Commercial $1.075B $1.615B +including UUV $0.3944B $0.7575M +including Dredgers $0.0093M $0.0131M Total Market $2.326B $3.246B * Source: “Sonar System Market, Global Fore
Slide 38: Addressable Sonar Market
Coda Octopus Group, Inc. Addressable Sonar Market* bas REVENUE/ FY2018 FY2019 FY2020 FY 2021 FY 2023 FY2024 FY2025 FY2026 SECTOR ($B) Scientific $0.598B $0.641B $0.687B $0.735M $0.792B $0.855B $0.913B $0.978B $1.053B Commercial $0.633B $0.679B $0.728B $0.780B $0.840B $0.907B $0.972B $1.041B $1.121B
Slide 39: Sonar Market by Sonar Type
REVENUE/ SONAR TYPE ($B) 2018 2019 2020 2021 2022 2023 2024 2025 Multi-Beam $1.020B $1.094B $1.172B $1.254B $1.350B $1.468B $1.574B $1.679B Single Beam $0.467B $0.498B $0.537B $0.566B $0.604B $0.641B $0.682B $0.727B syntheticAperture $0.254B $0.273B $0.296B $0.319B $0.347B $0.376B $0.407B $0.440B Si
Slide 40: Competitive Benchmarking
Competitive Benchmarki Companies Raytheon Thales Ultra Electronics BAE Systems Harris Corporation Kongsberg Gruppen. Sonardyne R2 Sonic Western Marine Electronics Innomar Technologie JRC FLIR Systems Garmin *Source: “Sonar Systems Market Global Forecast to 2023,” Lockheed Martin Atlas Electronik 13
Slide 41: Thermite Rugged Embedded Mission Critical Integrated Systems
Thermite® Rugged Embedded Mission Critical Integrated Systems Computing Solutions — Advanced Signal Processing ' Obsolescen e Management of Legacy _ efense Products =
Slide 42: A Coda Octopus Company
‘ACoda Octopus Company i COLMEK Coda Octopus Group, Inc. Se i Key Markets Trusted U.S. DoD Subcontractor Mine Hunting System in UAV/AQS-24 — Mine Hi ht Phalanx® Close-in Weapon System (CIWS) Thermite® 42
Slide 43: Customers
Customers NORTHROP GRUMMAN o- BOEING LOCKHEED MAR GENERAL IDYNAMICcS| U.S.ARMY w vy y COLMEK ‘ACoda Octopus Company Coda Octopus Group, Inc. 43
Slide 44: Obsolescence management: extended system/program life offers sustainment opportunity
Obsolescence management: Defense requirements for extended system/program life offer significant sustainment opportunity + Engineering services to re-design/upgrade + Production opportunity through program life peodedized Embedded Computing Logical companion to engineering services business Leverage
Slide 45: A Coda Octopus Company
‘A Coda Octopus Company Market: The ~$1B (estimated) embedded computing market shows strong growth, reflecting increasing demand for embedded computing capability on military platforms Thermite® Vision: Focus on small, low power applications. Offer standard products and provide rapid, low-cost custo
Slide 46: Design and Manufacturing
t Design and Manufacturing Af : he Obsolescence Management of Légacy Test, Instrumentation and Control
Slide 47: Customers
Coda Octopus Group, Inc. Customers Located in Portland, Dorset, UK. Martech follows the same model as Colmek. THALES SIEMENS sia ATLAS ELEKTRONIK yy GRUNDFOS 4. 47
Slide 48: 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 Increasing customer base via successful R&
Slide 49: Operations
Coda Octopus Group, Inc. Operations Group — ns. i i a Marine Technology Business Defense Products & Engineering Business
Slide 50: Group Management
Coda Octopus Group, Inc. 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 s
Slide 51: Group Management
Coda Octopus Group, Inc. Coda Octopus Group Management Blair Cunningham -— President of Technology 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 Octopus Products, Inc. CTO of Coda Octop
Slide 52: Board of Directors
Coda Octopus Group, Inc. 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 20
Slide 53: Board of Directors
Coda Octopus Group, Inc. Coda Octopus Group =X Board of Directors Mary M. Losty — Director — U.: Ms. Losty has been a member of Coda’s Board = July 201 K isa a Teal estate. Her career includes serving as a Partner at Cornwall Asset Manag 4 firm's investment i in numerous small- to medium- cap emergi
Slide 54: Board of Directors
Coda Octopus Group, Inc. Coda Octopus Group Board of Directors 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 in
Slide 55: Coda Octopus Group, Inc.
e/\ ‘Coda Octoptis Group; Inc. Tf INC. NASDAQ: CODA www.codaoctopusgroup.com Investor Relations: MDC Group Contact: David Castaneda (414) 351-9758 / IR@codaoctopus.com
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