Slide 1: AI-Enabled Platforms for Protection against Advanced Threats
For personal use only AI-Enabled Platforms for Protection against Advanced Threats ASX:DRO March 2022 www.droneshield.com Image: DroneSentry-XTM AI-powered C-UAS device
Slide 2: Investment Highlights
Investment Highlights For personal use only World leading Leverage to the global defence Sales pipeline of $140m for proprietary AI platform and security technology sector. 2022 and $175m for 2023 for protection against $10bn counterdrone drones addressable market, in addition to electronic warfare
Slide 3: Executive Summary
Executive Summary DroneShield • Founded in 2014 and listed on the ASX in June 2016, DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against For personal use only advanced threats such as drones and autonomous systems Overview • Offers hardware and software solut
Slide 4: 2021 Full Year Summary
2021 Full Year Summary (A$m, Dec YE) Rapidly improving financials, as the business stands at an inflection point into 2022 For personal use only Strong Revenue Growth Rapid Cash Receipt Growth 14.8 10.5 94% growth 174% growth 5.4 5.4 3.3 3.7 1.0 1.8 2018 2019 2020 2021 2018 2019 2020 2021 FY FY Impr
Slide 5: 2021 Key Achievements
2021 Key Achievements 2021 has been a major step forward for DroneShield, despite the COVID pandemic challenges For personal use only On track for another order of magnitude all-time record year for revenues ü and cash receipts Expanded past counterdrone into two AI-powered adjacent areas of ü Elect
Slide 6: Diversified and Mature Pipeline
Diversified and Mature Pipeline (Cash Receipts to Dec 2022 only) Multiple projects at each development stage improve predictability of cashflows For personal use only 6-18 months from lead to sale, but can be much shorter for repeat orders Credible Lead Confirmed Scope Firm Bid Submitted DroneShield
Slide 7: Business Overview
For personal use only Business Overview www.droneshield.com
Slide 8: Why is the Malicious Use of Drones a Threat?
Why is the Malicious Use of Drones a Threat? The widespread adoption of drone technology has increased the risk and prevalence of disruptive use For personal use only Payload delivery • Attacks: Dropping harmful / explosive payloads (including chemical or biological substances) or creating damage vi
Slide 9: AI-Enabled Platforms for Protection against Advanced Threats
AI-Enabled Platforms for Protection against Advanced Threats Multiple platforms in adjacent technologies and customers with a common theme of AI-based threat For personal use only protection Counterdrone Artificial Intelligence in Artificial Intelligence in Command-and-Control (C2) Electronic Warfar
Slide 10: How does a counterdrone system work?
How does a counterdrone system work? For personal use only Step 1 Step 2 Step 3 Detect Assess Respond • State of the art, multi-sensor drone • Machine learning and AI based detection and • Respond / defeat technologies offer detection products provide optimal classification software is used to under
Slide 11: Addressable Market
For personal use only Addressable Market www.droneshield.com
Slide 12: Counterdrone: Multi-Billion Dollar Market by 2024
Counterdrone: Multi-Billion Dollar Market by 2024 Rapidly improving and easily available drone technology is driving demand for counterdrone solutions For personal use only Sources: MarchWatch: https://www.marketwatch.com/press-release/counter-uas-market-size-share-growth-business-scenario-insights-
Slide 13: US$10bn Total Addressable Market
US$10bn Total Addressable Market For personal use only Sources: https://www.droneshield.com/counterdrone-market 13 www.droneshield.com
Slide 14: AI Generally: US$58bn in 2021, US$310bn in 2026
AI Generally: US$58bn in 2021, US$310bn in 2026 AI in Military: US$6bn in 2020, US$12bn in 2025 2021 has seen a major step forward for DroneShield, despite the COVID pandemic challenges For personal use only ü A new high-tech area, substantially open to disruption by smaller companies like DroneShie
Slide 15: DroneShield Capability and Product Overview
For personal use only DroneShield Capability and Product Overview www.droneshield.com
Slide 16: DroneShield Capability Overview
DroneShield Capability Overview Rapidly evolving capabilities in response to customer requirements For personal use only Hardware with Embedded Software and Associated Services Subscription and R&D Based Software Dismounted & Body-Worn Counterdrone Solutions Electronic Warfare and Signals Intelligen
Slide 17: Counterdrone detection solutions
Counterdrone detection solutions DroneShield uses multi-sensor drone detection for optimal results For personal use only Radio frequency Radar* Cameras* Acoustic* Imagery • Electro-Optical (EO), • Foundational layer • Motion tracker - emits • Compares noise of drone Infrared (IR) and Thermal • Detec
Slide 18: Counterdrone defeat solutions
Counterdrone defeat solutions DroneShield uses smart jamming which has advantages over other technologies, particularly, in its use For personal use only across civil and military applications, and does not compete against large Defence Primes Exotic tech, Large Defence Primes limited reliability do
Slide 19: Proprietary AI Technology
For personal use only Proprietary AI Technology www.droneshield.com
Slide 20: DroneShield AI Software Sees Through Noise – Radiofrequency Spectrum
DroneShield AI Software Sees Through Noise – Radiofrequency Spectrum World leading proprietary RF AI platform for protection against advanced threats, such as drones For personal use only • Drones operate in arguably the densest parts of the Radio Frequency (“RF”) Spectrum with “noise” coming from a
Slide 21: DroneOptID AI Software – Optical and Thermal Spectrum
DroneOptID AI Software – Optical and Thermal Spectrum Counterdrone Surveillance DroneShield’s DroneOptIDTM AI engine detects and tracks complex threats such as drones in cluttered environments For personal use only • Drones are small, fast-moving objects, hard to detect with naked eye more than 50m
Slide 22: Technology Roadmap – SaaS, underpinned by owned datasets and AI algorithms
Technology Roadmap – SaaS, unpinned by owned large datasets and AI algorithms Expanding on the current work with Australian DoD, DroneShield’s offering will increasingly become For personal use only hardware-agnostic hardware for detecting, identifying and tracking threats through noise § Ability to
Slide 23: Artificial Intelligence in Electronic Warfare
Artificial Intelligence in Electronic Warfare DroneShield is favourably exposed to the fast-growing Electronic Warfare business segment For personal use only • Electronic warfare (EW) is any action involving the use of the electromagnetic spectrum (EM spectrum) or directed energy to control the spec
Slide 24: Key Execution Priorities and Growth Strategy
For personal use only Key Execution Priorities and Growth Strategy www.droneshield.com
Slide 25: 2022 Key Priorities
2022 Key Priorities For personal use only Multiple large ($5m+) contracts across multiple countries and customers Another order of magnitude year of increase in customer cash receipts Winning contracts adjacent to current core capability, within Artificial Intelligence domains – such as Command-and-
Slide 26: 2022 Pipeline of $140m, with a further $175m tracked for 2023+
2022 Pipeline of $140m, with a further $175m of projects tracked for 2023+ A significant and geographically diversified pipeline, approx. 80 projects at different maturity stages to Dec 2022 For personal use only 2022 Pipeline: $23m / 6 projects 2022 Pipeline: $59m / 5 projects • Ukraine-related pro
Slide 27: Strategy | Continue Leadership in Counterdrone, Grow Adjacent Capabilities and SaaS
Strategy | Continue Leadership in Counterdrone, Grow Adjacent Capabilities and SaaS For personal use only Three-part Strategy Continue Leadership in the Counterdrone/Unmanned Threat Sector • The counterdrone market is growing rapidly, especially in the US • DroneShield is well positioned as the indu
Slide 28: Contact details
Contact details For personal use only Email: info@droneshield.com Sydney, NSW (Headquarters) Level 5, 126 Phillip St Sydney, NSW 2000 Australia Phone: +61 2 9995 7280 Warrenton, Virginia 7140-B Farm Station Rd, Warrenton, VA 20187 USA Phone: +1 (540) 215-8383 28 www.droneshield.com
Slide 29: Appendices
For personal use only Appendices www.droneshield.com
Slide 30: Drones - A Critical and Growing Threat Vector
Drones - A Critical and Growing Threat Vector For personal use only 30 www.droneshield.com
Slide 31: Proven Progression and Pathway to North Star
Proven Progression and Pathway to North Star Cutting edge proprietary products, powered by AI engine and carrying SaaS pricing, in a rapidly growing market, For personal use only via multiple proven go-to-market strategies, substantial existing deal pipeline and a world class team “North Star” 5-Yea
Slide 32: DroneShield's competitive counterdrone advantage?
DroneShield’s competitive counterdrone advantage? C-UAS market pioneer, with a culture of systematic innovation For personal use only Market leading, differentiated technology… …across multiple platforms… ü Multi-sensor detection, ID and tracking ü Body-worn Best-in-breed detection range Vehicle/Shi
Slide 33: Australian Government is committed to building home-grown defence sector
Australian Government is committed to building home- grown defence sector The Australian Government’s defence spending commitment presents a large opportunity for the sector For personal use only Overview Capability investment funding profile (A$bn) $270bn in total • Australia has 12th largest defen
Slide 34: Global defence spending continues to rise
Global defence spending continues to rise For personal use only Overview Global defence spend (US$bn)1 Dip attributable to end of large scale combat • Global military spending in 2019 operations in Afghanistan represented 2.2% of GDP 1,849 1,914 1,753 1,789 1,794 1,778 1,748 1,743 1,766 1,779 1,800
Slide 35: Benefits and applications of safe, layered, counterdrone systems
Benefits and applications of safe, layered, counterdrone systems over kinetic systems Safe counterdrone systems have many advantages over kinetic counter-drone systems, which are only For personal use only practical for deployment in war-like scenarios Avoidance of Evidence for legal Intelligence Mu
Slide 36: Increasing Predictability of Cash Receipts via Balancing Geographies
Increasing Predictability of Cash Receipts via Balancing Geographies Increasing focus towards the more business-transparent Australian and the US customer base, with deep For personal use only track record of successfully conducting business (and being paid) in the Middle East Cash Receipts in 2017
Slide 37: Seasoned senior sales and engineering teams
Seasoned senior sales and engineering teams DroneShield’s experienced team carries a solid track record of delivering growth For personal use only Peter Oleg Jethro Carla Red Katherine James Vornik Marks Balanco McClintock Stapels Independent CEO and Independent CFO and Sales Non- Managing Non- Dire
Slide 38: Industry Recognition
Industry Recognition DroneShield is well regarded across defence industry, winning multiple awards and media focus in 2021 For personal use only 38 www.droneshield.com
Slide 39: Capital Structure
Capital Structure For personal use only Enterprise Value (A$) DRO Shares 18.3c / share1 $79.2m2 Cash As at 31 December 2021 $9.5m Debt As at 31 December 2021 nil Enterprise Value $69.7m 1 Shareprice as at 22 March 2022. 432,541,985 ordinary shares outstanding at the date 2 Excluding unlisted options
Slide 40: Growing and Cohesive Team with Deep Capability
Growing and Cohesive Team with Deep Capability Continued growth of the global team since inception in 2015, across sales, engineering and support roles For personal use only 40 www.droneshield.com
Slide 41: Disclaimer
Disclaimer For personal use only These presentation materials (the Presentation Materials) are confidential and have been prepared by DroneShield Limited (Company). By receiving the Presentation Materials, you acknowledge and represent to the Company that you have read, understood and accepted the t
Slide 42: Disclaimer
Disclaimer For personal use only FORWARD LOOKING STATEMENTS Certain statements contained in the Presentation Materials, including information as to the future financial or operating performance of the Company and its projects, are forward looking statements. Such forward looking statements: a) are n