Slide 1: Counterdrone, Electronic Warfare and Tracking Systems
For personal use only Counterdrone, Electronic Warfare and Tracking Systems ASX:DRO October 2021 www.droneshield.com
Slide 2: 3Q21 Results | Key Highlights
3Q21 Results | Key Highlights For personal use only 3Q21 Cash Receipts up 800% on 3Q20, at $1.7m Total cash receipts for the quarter of $2.8m, including $1.1m in grants received Jan-Sep 21 total cash receipts up 600% on 1Q20-3Q20, at $10.8m $12.1m cash on hand (as at 30 September 2021), no deb
Slide 3: Outlook
Outlook For personal use only $230m sales pipeline, focus on the US and Australian Government customers Major US milestones reached, including integration with the US Air Force MEDUSA system, and working towards an acquisition Program of Record Executing on the $3.8m Electronic Warfare contract
Slide 4: Strong Cash Receipts Pipeline of $230m
Strong Cash Receipts Pipeline of $230m A significant and geographically diversified pipeline, approx. 85 projects at different maturity stages For personal use only Pipeline: $75m / 5 projects Pipeline: $27m / 10 projects • Awarded preferred bidder status for two • Various defence/special forces maj
Slide 5: Pipeline Breakdown by Project Stage
Pipeline Breakdown by Project Stage Multiple projects at each development stage improve predictability of cashflows For personal use only Credible Lead Confirmed Scope Firm Bid Submitted DroneShield Shortlisted Purchase Conditionally Customer Confirmed Final stage of PO received/ advised they (Budge
Slide 6: Accelerating Cash Receipts
Accelerating Cash Receipts Since 2016, DroneShield’s total revenue has grown materially each year, with 2021 shaping as the pivotal year For personal use only Customer and Grant Cash Receipts since 2016 (A$m – December year end) 400% cash receipt growth 12.2 over Q1-Q3 2020 5.4 3.7 1.8 3.0 Consisten
Slide 7: 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 Sector • The counterdrone market is growing rapidly, especially in the US • DroneShield is well positioned as the industry pioneer, wi
Slide 8: Rapidly Growing Electronic Warfare Contracts in Hand
Rapidly Growing Electronic Warfare Contracts in Hand For personal use only Electronic Warfare (EW) / Signals Intelligence (SIGINT) area has a number of technology overlaps with counter-drone, as drones utilise radiofrequency spectrum in an increasingly complex and encrypted manner EW/SIGINT is gen
Slide 9: A new, technology based, asymmetric threat
A new, technology based, asymmetric threat The widespread adoption of drone technology has increased the risk and prevalence of disruptive use For personal use only Why is the malicious use of drones a threat? Payload delivery • Attacks: Dropping harmful / explosive payloads (including chemical or b
Slide 10: High profile drone incidents continue to escalate
High profile drone incidents continue to escalate For personal use only 10 www.droneshield.com
Slide 11: $6bn Total Addressable Market by 2026
$6bn Total Addressable Market by 2026 Increasing drone use is driving demand for counterdrone technology across a number of sectors For personal use only 11 www.droneshield.com
Slide 12: What do DroneShield's counterdrone products do?
What do DroneShield’s counterdrone products do? For personal use only Step 1 Step 2 Step 3 Detect Assess Respond 12 www.droneshield.com
Slide 13: DroneShield Capability Overview
DroneShield Capability Overview Rapidly evolving capabilities in response to customer requirements For personal use only Hardware with Embedded Software and Associated Services Subscription and R&D Based Software Dismounted & Body-Worn Counterdrone Solutions Electronic Warfare and Signals Intelligen
Slide 14: DroneShield's competitive counterdrone advantage
DroneShield’s competitive counterdrone advantage? For personal use only Market leading technology… …across multiple platforms… Multi-sensor detection, ID and tracking Body-worn Best-in-breed detection range Vehicle/Ship mounted Best-in-breed defeat range Fixed site …underpinned by DroneS
Slide 15: Contact details
Contact details For personal use only Email: info@droneshield.com Sydney, NSW (Headquarters) Level 5, 126 Phillip St Sydney, NSW 2000 Australia Phone: +61 2 9995 7280 Warrenton, Virginia 7140-B Farm Station Rd, Warrenton, VA 20187 USA Phone: +1 (540) 215-8383 15 www.droneshield.com
Slide 16: Appendices
For personal use only Appendices www.droneshield.com
Slide 17: Australian Government is committed to building home-grown defence sector
Australian Government is committed to building home- grown defence sector The Australian Government’s defence spending commitment presents a large opportunity for the sector For personal use only Overview Capability investment funding profile (A$bn) $270bn in total • Australia has 12th largest defen
Slide 18: Global defence spending continues to rise
Global defence spending continues to rise For personal use only Overview Global defence spend (US$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 • Total military spend is primarily 1,753 1,789 1,794
Slide 19: Defeat and mitigation solutions in the counter-drone market
Defeat and mitigation solutions in the counter-drone market DroneShield defeat solutions utilise radio frequency jamming as the core safe defeat component which has For personal use only advantages over other technologies, particularly, in its use across civil and military applications Safe – “soft
Slide 20: Counterdrone detection solutions offered by DroneShield
Counterdrone detection solutions offered by DroneShield DroneShield detection solutions utilise layered technology to create highly capable counterdrone systems For personal use only Radio frequency Radar Cameras1 Acoustic2 Imagery • Foundational layer of an • Systems that act as motion effective co
Slide 21: Benefits and applications of safe, layered, counterdrone systems over kinetic 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 22: 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 23: Increasing Predictability of Cash Receipts via Growing Repeat Business
Increasing Predictability of Cash Receipts via Growing Repeat Business Defence and Government Agencies often have a long acquisition cycle to first purchase, but are loyal and For personal use only collaborative customers, once on board. DroneShield has been increasing its repeat customer business R
Slide 24: Continuous Significant Momentum
Continuous Significant Momentum For personal use only www.droneshield.com
Slide 25: 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 Sales CFO and Non- Managing Non- Dire
Slide 26: Capital Structure
Capital Structure For personal use only Enterprise Value (A$) DRO Shares 18c / share1 $75.3m2 Cash As at 30 September 2021 $12.1m Debt As at 30 September 2021 nil Enterprise Value $63.2m 1 Shareprice as at 25 October 2021. 418,226,152 ordinary shares outstanding at the date 2 Excluding unlisted opti
Slide 27: 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 28: 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