Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — H1 2021 Earnings Presentation
29 slides from Electro Optic Systems's earnings presentation, Aug 30, 2021
Slide 1: Electro Optic Systems Holdings Limited H1 2021 Interim Results
Electro Optic Systems Holdings Limited H1 2021 Interim Results 1
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer CONTENT OF PRESENTATION FOR INFORMATION PURPOSES ONLY Forward-looking Statements This presentation may contain statements that are, or may be deemed to be, forward-looking statements. Such statements can generally be identified by the use of words such as ‘may’, ‘will
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer Preparation of Information All financial information has been prepared and reviewed in accordance with Australian Accounting Standards. Certain financial data included in this presentation is ‘non IFRS financial information’ noting that the financial information relat
Slide 4: H1 2021 Review
H1 2021 Review
Slide 5: H1 2021 Operational Highlights
H1 2021 Operational Highlights • COVID-19 Management: EOS maintained its prime focus on health and safety of personnel, with a high degree of success across global operations. • Revenue and Profit on Track: Despite slow H1 start and travel restrictions which constrain operations, both revenue and EB
Slide 6: H1 2021 Financial Headlines
H1 2021 Financial Headlines $ millions H1 21 H1 20 % movement Strong revenue growth despite COVID-19 disruptions Revenue 97.8 75.4 30% • Timing of revenue recognition results in H2 skew Underlying EBIT Before SpaceLink Costs & FX -2.1 -14.0 85% Small EBIT loss before SpaceLink costs due to % of reve
Slide 7: H1 2021 Segment Performance
H1 2021 Segment Performance $ millions H1 21 H1 20 % change Defence revenue growth of 25% Revenue (excluding other income) • Major overseas contract and CoA contracts provide bulk of revenue Defence 83.2 66.6 25% • Underlying profitability muted by P&L investment in new technologies and US capabilit
Slide 8: H1 2021 Net Cash Flow Movements
H1 2021 Net Cash Flow Movements Positive operating cashflow achieved • Cash inflows underpinned by overseas customers 200.0 and ongoing CoA contracts 117.0 180.0 • Slight increase in supplier and employee payments driven by investment in new business 160.0 Capex includes new technologies 140.0 • Inc
Slide 9: Update to Company Guidance
Update to Company Guidance Previous Revised • COVID-19 restrictions slowing customer decision $ Millions Guidance Guidance making Revenue $235M to $245M $230M to $240M • EOS production facilities deemed “essential work”, Underlying EBIT Before but double shift pattern impacts efficiency $20M to $25M
Slide 10: Defence Systems
Defence Systems
Slide 11: Defence Systems Overview
Defence Systems Overview Defence Systems is EOS’ core revenue driver providing a suite of remote weapon systems and manned systems that can be integrated on various vehicle platforms Overview Annual revenue • EOS’ Defence Systems develops and manufactures advanced fire $156.3M - FY 20 control, surve
Slide 12: Defence: Highlights
Defence: Highlights New business led by Australian sovereign capability • C4EDGE contract with the Australian Army with EOS as Prime. Capability demo in Q4 2021 • Sovereign Missile Alliance JV launched with Nova Systems • Completed multiple evaluation programs in the US International operations gain
Slide 13: Sovereign Missile Alliance (SMA)
Sovereign Missile Alliance (SMA) CoA plans a $1B Sovereign Guided Weapons Enterprise • Australia expected to spend $100B on missiles over the next 20 years • The SGWEO could produce $40B in local missiles and exports (according to Minister Defence Industry) • $1B funding available now to accelerate
Slide 14: Space Systems
Space Systems
Slide 15: Space Systems Overview
Space Systems Overview EOS Space Systems is a global leader in the design, manufacture and operation of sensors and systems for space domain awareness and space control Overview Annual revenue • EOS has been directing energy beams to space objects for tracking, characterization, identification, comm
Slide 16: Space Systems: Securing Space
Space Systems: Securing Space Space Domain Awareness (SDA) • EOS laser sensors detect, track, classify, characterise and catalogue objects in space, far beyond the range of radar. Commonwealth program JP9360 includes $2B for SDA Space Protection • Collision avoidance combining data with EOS’ Conjunc
Slide 17: Space Systems: Capabilities
Space Systems: Capabilities Extensive Ground-based Space Infrastructure • Seven operational telescopes across Australia • Dynamic catalogue of space objects • Unique capability in accuracy and coverage • Supporting United States space operations through operational exercises (SACT) Next Generation D
Slide 18: Communications Systems
Communications Systems
Slide 19: Communications Systems Overview
Communications Systems Overview EOS Communications Systems develops and provides global satellite communications products and services Overview Annual revenue • EOS Communications Systems specializes in innovative optical, microwave and on-the-move radio and satellite systems $19.5M - FY 20 $13.0M -
Slide 20: EM Solutions: Highlights
EM Solutions: Highlights • Cemented position as the world’s premier global maritime satellite communications terminal manufacturer • Completed a record number of deliveries for the Australian Navy and three European Navies • Secured ongoing orders for the Australian Navy Offshore Patrol Vessels (OPV
Slide 21: SpaceLink Management Team: Unparalleled Experience
SpaceLink Management Team: Unparalleled Experience 21
Slide 22: SpaceLink Solves LEO Limitations
SpaceLink Solves LEO Limitations Medium Earth Orbit Customers in Low Earth Orbit Continuous, • Serves connectivity needs of lower orbits, who can connect and download data at any time – On-Demand no need to be in range of ground station Connectivity • Optical links to deliver high speeds – 10x-100x
Slide 23: SpaceLink Update
SpaceLink Update Progress to date Next six months • Design phase optimized with four satellite constellation • Award space segment contract and commence construction (previously three satellites) yielding a dramatically improved (Q3 2021) architecture with superior technical performance and improved
Slide 24: SpaceLink Customer Update
SpaceLink Customer Update Risk-Weighted Pipeline Conversion to Revenue US$M pa 250 • Risk weighted pipeline now at US$200M per annum (un-risked 200 US$1.2B), well in excess of cash breakeven point 150 • Awarded contract by the manager of the International Space Station 100 (ISS), the Center for the
Slide 25: Strategic Outlook
Strategic Outlook
Slide 26: H2 2021 – Key Focus Areas
H2 2021 – Key Focus Areas 1. Major overseas contract performing strongly. Cash flow resuming. Full program reset and refresh • $30M already received from customer and >$100M of cash flow from contract asset to flow in H2 2021 • Contract scope increase to master contract agreed providing increased re
Slide 27: Australian Defence Pivots to Technology Focus
Australian Defence Pivots to Technology Focus Australian Defence capability investment Australian Defence Industry Priorities Australia’s ca $1 trillion defence budget for 2021-2030 combines with unprecedented focus on Australian providers. EOS is one of only 2-3 candidates ~$270B in total to qualif
Slide 28: Update on Pipeline and Backlog
Update on Pipeline and Backlog Backlog reflects committed contracts that are not yet fulfilled • Backlog1 currently consists largely of Defence products Defence ($375M) underpinned by a number of key contracts of which 30% is domestic and 70% international Backlog(1) $397M Communications Space • Bac
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