Electro Optic Systems Holdings Limited · ASX:EOS
Electro Optic Systems — Investor Presentation (February 2018)
42 slides from Electro Optic Systems's investor presentation, Feb 6, 2018
Slide 1: Electro Optic Systems – Investor Update January 2018
For personal use only ELECTRO OPTIC SYSTEMS – INVESTOR UPDATE JANUARY 2018
Slide 2: Disclaimer
Disclaimer For personal use only This presentation and any related communication may contain statements that are forward looking with regard to the business and future performance of Electro Optic Systems Holdings Limited (“EOS”) and its subsidiaries. These statements reflect EOS’ current views, ass
Slide 3: Contents
Contents For personal use only Executive Summary Page 4 Company Background Page 9 EOS Defence Systems Page 15 EOS Space Systems Page 28 Appendix Page 37 3
Slide 4: Electro Optic Systems
Electro Optic Systems For personal use only EOS Defence Systems specialises in technology for weapon systems optimisation and integration, as well as ISR (Intelligence, Surveillance and Reconnaissance) for land warfare. Its key products are next-generation vehicle turrets and remote weapons systems.
Slide 5: Defence Systems Recent Milestones and Outlook
Defence Systems Recent Milestones and Outlook EOS has won A$600m in contracted orders in the last 12 months for its advanced RWS for delivery through For personal use only 2018-2022. Through 2017 the Company’s new RWS was selected as the preferred bidder for contract negotiations in every compet
Slide 6: Market Environment for EOS' R400S RWS
Market Environment for EOS’ R400S RWS Global RWS market size expected to double from 2016 to be worth US $12.7bn in 2022 (Janes Information For personal use only Group). Market growth underpinned by the looming first generation RWS replacement cycle anticipated to comprise up to 14,000 units ove
Slide 7: R400S Contracted and Current Pipeline Summary
R400S Contracted and Current Pipeline Summary 2017 2018 2019 2020 2021 Total For personal use only Total RWS units delivered 20 240 540 560 580 1,940 Contracts executed 20 240 424 224 100 Contracts in negotiation 0 0 116 336 480 (EOS preferred supplier but not executed) Potential cumulative units de
Slide 8: Company Background
For personal use only COMPANY BACKGROUND
Slide 9: Company Overview
Company Overview EOS is an Australian technology company with leading positions in the application of advanced electro-optic technologies for For personal use only the global Defence and Aerospace markets Founded in 1983 from the privatisation of Commonwealth of Australia space activity Listed o
Slide 10: Company Background
Company Background EOS has re-positioned itself and can again address multi-billion dollar programs, with more resilient products, processes and For personal use only management than ever before Recent Share Price Performance In 2004 EOS began production as the sole contractor for a US Army $5.0b
Slide 11: EOS Business Divisions Summary
EOS Business Divisions Summary EOS’ leading edge technologies are applied to global defence and aerospace markets through its two business divisions For personal use only EOS Defence Systems EOS Space Systems The EOS Defence Systems division specialises in The EOS Space System division focuses o
Slide 12: EOS Competitive Advantages
EOS Competitive Advantages EOS has a number of key competitive advantages that help provide a strong position in its niche markets of the global Defence For personal use only and Space industries Defence Systems Space Systems First-to-market with new technology that addresses Unique, vertically
Slide 13: EOS Financial Overview
EOS Financial Overview Commentary Financials For personal use only FY2017 unaudited loss of $9.1M due to approximately 35 29.9 30.5 equal losses in Space Systems division and Defence 30 25.8 Revenue (post corporate) ($m) Systems division. 23.5 23.3 25 Defence Systems unaudited loss of $4.6M was
Slide 14: EOS Defence Systems
For personal use only EOS DEFENCE SYSTEMS
Slide 15: Highly Mobile Cannon Concept – We Do It Better
Highly Mobile Cannon Concept – We Do It Better For personal use only 15
Slide 16: EOS Defence Systems Overview
EOS Defence Systems Overview EOS Defence Systems develops, markets, manufactures and supports remote weapon systems (RWS) and related products for For personal use only global military and defence What Is A Remote Weapon System? Features and Benefits of RWS RWS products involve “below-armour” cont
Slide 17: RWS Applications
RWS Applications Over 1,500 EOS remote weapon systems have been mounted on over 20 platforms, including those below. Advanced (next- For personal use only generation) RWS will be fitted to the same classes of vehicles and vessels Mounted to US Army Stryker Mounted to US Army JLTV Mounted to US River
Slide 18: EOS Defence Systems Products
EOS Defence Systems Products EOS expects significant growth during 2017-2019 to come from Advanced RWS orders For personal use only Conventional RWS Advanced RWS Remote Turrets Launch date: 2004 (legacy product) Launch date: Q1 2017 Launch date: 2018 Weapons: Small arms Weapons: Cannon, mi
Slide 19: RWS Market Overview
RWS Market Overview Market Segments EOS Key Competitors For personal use only Conventional RWS Conventional RWS (new international sales) Conventional RWS were developed by EOS under US Army Rafael Advanced Defense Systems Ltd (Israel). contract from 1994 to 2004. Production commenced in 2005.
Slide 20: EOS R400S: The Next Generation Remote Weapon System
EOS R400S: The Next Generation Remote Weapon System For personal use only R400S (below) deploys 30 mm firepower at 50% of the weight of all previous configurations, and with higher accuracy 20
Slide 21: EOS R400S: Key Features
EOS R400S: Key Features The R400S is EOS’ most advanced remote weapon system and incorporates dual weapon and cannon capability For personal use only Twin automatic weapon configurations including canon up to 30mm and missiles can be deployed. Fully stabilised, flexible configuration capable of
Slide 22: EOS R2000: Remote Turret System
EOS R2000: Remote Turret System EOS Remote Turret Systems will be launched in 2018 and are another example of EOS’ leading product development For personal use only Completed $30m development program aimed at new global market requirements for new turret technology. Turret is unmanned, using hig
Slide 23: EOS Defence Systems Product Sales
EOS Defence Systems Product Sales For personal use only Approx. Product Launch Current order Total number Total number Approx. price Product production cost date book sold still operational per product per product Remote Weapon Systems R-400 2004 20 1200 470 $200k $180k R-600 Dual 2010
Slide 24: EOS Defence Systems Market Barriers to Entry
EOS Defence Systems Market Barriers to Entry The Government defence nature of the RWS product creates multiple barriers of entry involving political and legislative hurdles For personal use only in addition to technological and manufacturing barriers “Known entity” to military users National sec
Slide 25: Key Partnership Arrangements
Key Partnership Arrangements EOS enters into partnership agreements with major aerospace entities globally to gain market access and to acquire qualified For personal use only suppliers with high-quality production capacity and support systems Northrop Grumman (NG, USA) NG is a strategic partner o
Slide 26: EOS Defence Systems Financial Overview
EOS Defence Systems Financial Overview Commentary Financials For personal use only 30 The Defence division has been break-even after very 24.2 25 significant R&D costs were fully expensed. Revenue ($m) 20.3 19.9 18.8 After 5 years of testing and qualification, EOS successfully 20 16.0 launched a
Slide 27: EOS Space Systems
For personal use only EOS SPACE SYSTEMS
Slide 28: EOS Space Systems Overview
EOS Space Systems Overview For personal use only Objects in space are currently tracked using radar, however, this only provides ~90% coverage and has limited accuracy in tracking small objects. EOS’s laser technology provides a more accurate, low cost solution that can track objects of all sizes.
Slide 29: EOS Space Systems Business Model
EOS Space Systems Business Model After a long period of R&D, testing and sensor qualification, Space Systems is now focused on the design, manufacture and For personal use only deployment of its space tracking and monitoring systems The value of satellites in orbit is now around US$900b. Space inv
Slide 30: EOS Space Systems Timeline
EOS Space Systems Timeline For personal use only Australia and EOS have leveraged climate, geography and innovation for 44 years of world leadership in laser tracking in space. EOS knows this business and the customer requirements 1973: USAF space laser program relocated to Australia under Commonw
Slide 31: Why Lasers & Why Australia?
Why Lasers & Why Australia? Most space data (90%) is collected by radar, but only lasers can provide the data inaccessible to radar. For personal use only Lasers are therefore a critical technology in Space Situational Awareness (SSA) and EOS is the industry leader in this field. Why is laser techno
Slide 32: EOS Space Systems Products & Services
EOS Space Systems Products & Services EOS provides products and services for Space Surveillance, Satellite Laser Ranging, Observatories and Telescopes For personal use only Product / Service Description Space Surveillance EOS employs sophisticated satellite laser ranging technologies to carry out
Slide 33: EOS Space Systems Products & Services (cont'd)
EOS Space Systems Products & Services (cont’d) EOS provides products and services for Space Surveillance, Satellite Laser Ranging, Observatories and Telescopes For personal use only Product / Service Description Observatories EOS provides complete observatory design, installation, commissioning an
Slide 34: Space Systems Outlook
Space Systems Outlook Existing Sources of Revenue Future Sources of Revenue For personal use only Equipment: Equipment: The EOS space tracking sensor comprises many advanced Equipment revenue will taper towards zero as production technology sub-systems operating beyond industry norms. resources
Slide 35: Key Partnership Arrangements – SERC
Key Partnership Arrangements – SERC SERC was established to build on Australian and international expertise in measurement, monitoring, analysis and For personal use only management of space debris and to develop technologies to preserve the space environment. Space Environment Research Centre (“SER
Slide 36: EOS Space Systems Financial Overview
EOS Space Systems Financial Overview Commentary Financials For personal use only Space Systems division revenue will come from data 14 11.6 delivery which requires sensors deployed on 3 sites to 12 Revenue ($m) generate reliable data. EOS currently has sensors 10 9.6 deployed at 2 sites. 8 EOS p
Slide 37: Appendix
For personal use only APPENDIX
Slide 38: Corporate Structure & Locations
Corporate Structure & Locations For personal use only Corporate Structure EOS Office and Manufacturing Locations Electro Optic Systems Holdings Limited Electro Optic Systems Pty Ltd EOS Defence Systems EOS, USA, EOS Optronics Pty Ltd Inc. GmbH EOS Space Systems EOS Technologies, EOS Defence Systems
Slide 39: EOS Senior Management
EOS Senior Management EOS has a strong leadership team comprised of individuals with strong technical, management and operational experience For personal use only Ben Greene – Chief Executive Officer of EOS Group Dr Greene established laser space tracking in Australia in 1974 and the US Army remot
Slide 40: EOS Senior Management (cont'd)
EOS Senior Management (cont’d) EOS has a strong leadership team comprised of individuals with strong technical, management and operational experience For personal use only Craig Smith – Chief Executive Officer Space Systems Dr Smith joined EOS in 1998 and was appointed CEO of Space Systems in 2003
Slide 41: EOS Board
EOS Board For personal use only Fred Bart – Chairman Fred Bart (age 62) has been Chairman and Director of numerous public and private companies since 1980, specialising in manufacturing, property, technology and marketable securities. Mr Bart is Chairman of Immunovative Therapies Limited, an Israe
Slide 42: EOS Board (cont'd)
EOS Board (cont’d) For personal use only Lt Gen (retired) Peter Leahy AC – Non-Executive Director Peter Leahy AC (age 64) retired from the Australian Army in July 2008 as a Lieutenant General in the position of Chief of Army. He holds a BA (Military Studies), a Master of Military Arts and Science
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