Coda Octopus Group, Inc. · NASDAQ:CODA
Coda Octopus — Investor Presentation (July 2020)
50 slides from Coda Octopus's investor presentation, Jul 21, 2020
Slide 1: Coda Octopus Group, Inc. Corporate Presentation July 2020
of\ Coda Octopus G up; Inc. Z BEN CODA OCTO World Leader in Sound Underwater Technology Corporate Presentation July 2020
Slide 2: 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 include, without limitation, sta
Slide 3: CEO Vision Statement
CEO Vision Statement 2 “To grow the Group thr unique and revolu customized
Slide 4: Coda Octopus Group, Inc. Overview
we ya \ Coda Octopus Group, Inc. Overview ae Revenue by Entity Established business with strong pedigree in marine 00% technology and defense engineering: 90% 80% 70% 60% 50% 40% Products Business Engineering Business 30% Market leader in underwater Long-established relationship sonar technology. We
Slide 5: Financial Snapshot
Financial Snapshot ANNUAL FY 2016 FY 2017 FY 2018 Revenues $21,118,319 $18,025,173 $18,019,429 Net Income $4,930,548 $3,339,663 $3,102,899 EBITDA $6,348,022 $4,771,643 $4,069,175 Earnings per share — $0.60 $0.37 $0.49 basic* *EPS in 2019 reflects the recording of a tax expense of $1,007,354 compared
Slide 6: Quarterly revenue by business
7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 Ast15 2nd15 3rd15 4th15 1st16 2nd 16Grd 16 4th, *2017/18 Engineering Business revenues impacted by delays in appropriation of U.S. defense budget. = Engineering Business Products Business
Slide 7: Marine Technology Business (Products Business)
Product Design & 24/7 Support and Manufacturing 3D Field Experts Marine Technology Business (Products Business) = Research Development | Software Application and and Innovation : | Custom Development
Slide 8: 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 Sales teams in both the U.S. and UK. Agents: We also use a wide network of third party agents to expand our reach around the wo
Slide 9: Echoscope Family of Volumetric Sonars
QS 4 Echoscope“©® Family of Volumetric Sonars | Visualization & Mapping for Widest Range of Applications Echoscope*®® Surface Buney yideq Echoscope*S® Deep Water ee Echoscope*®® Echoscope*®® C500 Compact Edition SWaP (Size, Weight and Power) Seeing & Measuring in Real-Time 3D in Zero Visibility Cond
Slide 10: Echoscope
Echoscope‘*¢® Hardware 4G Lightweight Housing 16,384 Points of Data Processing Engine 3rd Generation Processing Engine Echoscope® PIPE Hardware Processing Engine 4G Lightweight Housing Brand New Processing Engine CFI J 40 Million Points of Data
Slide 11: Sample Echoscope Project ROI Snapshots
Coda Octopus Group, Inc. Coda Real-Time 3D Technology Sample Echoscope® Project ROI Snapshots 200 76 0 $1M >100% Blocks placed Sleepers placed Visibility Productivity rates per day per day Conditions In cost savings Van Oord Technip/Shell Port Construction Project ZADC Sleeper Placement UTEC Oilfiel
Slide 12: 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 — see the shadows disappear! Client deliverables complete in 54 seconds... 3D Multibeam Produces static map after hours or days
Slide 13: 3D Product Line
3D Product Line } ingle Sensor, Multiple Parallel Processing Application, for Vision, apping and Measurement ua KD) Complex Mapping = 3D Camera No Post Processing : Uniqt World's most ; and 3D sonar solution... 43
Slide 14: 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 15: Mineral 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 16: 6D Echoscope PIPE
6D Echoscope® PIPE 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 optimization techniques Str
Slide 17: Condition Survey
Condition Surv a lag Target ID
Slide 18: Commercial Applications
Commercial Applications Marine and Port Construction, Renewables, Research, Educational Institutions, and Oil and Gas 18
Slide 19: Military & Defense; End User Customers
Military & Defense Including 40 US Ports & Enforcement Bodies End User Customers ExxonMobil Service Providers th = i. Boskalis /echnip a” o~ wy = DEME Group TEP! DEEPOCEAN|sU0s257 Van Oord #1) ff Marine ingenuity Additional De Beers Group oF ComPANies
Slide 20: 3D Real-Time Echoscope Technology Advantage
Ye a1 il 3D Real-Time Echoscope® Technology Advantage eRemoves _ thus significantly and of common tasks *Enhances Safety, again by removing *Facilitates near impossible missions without Provides the vehicle for the ocean floor (far and wide) 20
Slide 21: Key Growth Market
Key Growth Market BS Defense, Navy Acti s, Law Enforcement and Coast Guards + Search & Rescue and Recovery Missions + Asset Identification & Reacquisition x + See & Identify Targets and Hazards Real-Time . + Record & Map to gather intelligence Decision . and analyze threats & hazards, before committ
Slide 22: Real-Time 3D Imaging in Navy and Defense Applications
Coda Octoptis 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® tec
Slide 23: Project & Technology Outline
Project & Technology Outline ® GEN 1.0 Complete Gen 1.0 Product completed and @ Nswe and NAVSEA Collaboration accepted in December 2019 Worked with NAVSEA PCD from 2016 on developing their prototype glass technology and embedding Coda Octopus 3D real-time and visualization platforms Sci ' S ence & T
Slide 24: About the DAVD
About the DAVD 24
Slide 25: About the DAVD
Codal Pine. About the DAVD Comms Penetrator — Custom Kirby Morgan Part with Fischer Connector DPP — Proposed Mounting Location DPP — Umbilical Main Line Connection 25
Slide 26: About the DAVD
About the DAVD ~S- Diver Augmented play System LOCATION Provide the Location of the Diver, the Diver Stage and COMMUNICATION Work Site and any hazards VISIBILITY VISIBILITY Enhance the Diver experience with real-time Augmented and Mixed Reality scene awareness COMMUNICATION Communicate with rapid TE
Slide 27: About the DAVD
About the DAVD Pe- Diver Augmented Vision Display System DAVD - DMU Dive Motion Unit handles Head Tracking and Motion Se al DAVD - HUD DAVD - DPP Taipan tone Based Head Up Display Magee DAVD - TC Dive Supervisor Workstation and Communication Hub The Diver Processing Unit fuses sensor data and manage
Slide 28: Navigation
Navigation Hazard Detection Scour Monitoring Obstacle Avoidance © survey and Measurements Pipeline Leak Identification 28
Slide 29: Value Drivers
Value Drivers ee ® + First mover in innovating and 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 _ real-time 3
Slide 30: World's only 5D and 6D real-time volumetric sonar
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. Navy and is being presented to NAVY Fleet for introduction a
Slide 31: Addressable Sonar Market
Addressable Sonar Market* * Source: “Global SONAR Systems and Technology Market Size, Status and Forecast 2019-2026,” Maia Research (November 23, 2018) 3
Slide 32: Sonar Market by Application
Sonar Market by Application* REVENUE/MARKET 2018 2023 ($B) Defense $1.251B $1.631B + including UUV $0.186B $0.357B Commercial $1.075B $1.615B tincluding UUV $0.3944B $0.7575M +including Dredgers $0.0093M $0.0131M Total Market $2.326B $3.246B * Source: “Sonar System Market, Global Forecast to 2023,”
Slide 33: Addressable Sonar Market
Addressable Sonar Market* a REVENUE/ FY 2018 FY2019 FY2020 FY2021 FY2022 ~~ FY 2023 FY2024 FY2025 FY2026 SECTOR ($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 Military $1.040B
Slide 34: Addressable Sonar Market
Addressable Sonar Market* REVENUE/ SONAR TYPE ($B) 2018 Multi-Beam $1.020B Single Beam $0.467B Synthetic Aperture $0.254B Side Scan $0.596B TOTAL $2.337B 2019 $1.094B $0.498B $0.273B $0.638B $2.503B 2020 $1.172B $0.537B $0.296B $0.681B $2.686B 2021 $1.254B $0.566B $0.319B $0.730B $2.869B 2022 $1.350
Slide 35: Competitive Benchmarking
Raytheon Thales Ultra Electronics BAE Systems Harris Corporatin Kongsberg Gruppen Sonardyne R2 Sonic Western Marine Electronics Innormat Technologie JRC FLIR Systems Garmin Companies Competitive Benchmarking Lockheed Martin Atlas Electronik B Aselsan Naval Group Teledyne Ixblue SAS Norbit Grup EdgeT
Slide 36: Customized Rugged Solutions
b AN, _ Customized Rugged'Solutions. ‘as Mission Critical Integrated Systems _*, a Seer Q "y Advanced Signal Processing . lObsolgaae e Management of Legacy _ F fense Products
Slide 37: Key Markets
Key Markets Sub-Contractor to the U.S. DoD 37
Slide 38: a vy
a vy TEXTRON U.S.ARMY NortHAMERICAN bea 4 a * | “nevaday~_ Us. AIRFORCE Ss Endeavor Saw ROSOTICS'
Slide 39: Adding new defense programs yielding long-tail recurring revenues
Adding new defense programs yielding long-tail recurring revenues + Thermite® New Generation Octal® Next Generation Product Line Extension for additional growth Colmek’s rugged, configurable, versatile, high performance mission computer Successfully completed its Military Specification (Milspec) env
Slide 40: Thermite New Generation Octal Embedded Rugged Computer
Thermite® New Generation Octal® Embedded Rugged Computer Weapon Control Systems Dismounted Soldier Training Real Time Training and Simulation Mission Computer Mission Computer Sensor Processing Mission Computer Army Mobile Vehicles Virtual Reality Virtual Reality US. Military Ally USS. Military Ally
Slide 41: Product Design and Subsea and Harsh Environment
roduct Design and ~ Subsea and Harsh Environment Design _ ae , rn > Test, Instrumentation and Control , Obsolescence Managemeiit of _Legacy Defense Products Ne DT .. e
Slide 42: Martech Customers
oy Coda Octopts’ Inc. Customers Located in Portland, Dorset, UK. Martech follows the same model as Colmek. THALES SIEMENS ATLAS ELEKTRONIK S GRUNDFOS ' 27. 42
Slide 43: 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 44: Operations
ib Coda Octopiis Group; Inc. Operations 4 MARTEC!
Slide 45: 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 46: 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 47: 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 48: Board of Directors
Coda Octopus Group Board of Directors 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. por
Slide 49: Board of Directors
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 investment banking experien
Slide 50: Coda Octopus Group, Inc. Contact
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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