Slide 1: ASX Small and Mid-Cap Conference Presentation (ASX release)
14 September 2021 ASX RELEASE ASX Small and Mid-Cap Conference Presentation For personal use only DroneShield Ltd (ASX:DRO) (“DroneShield" or the “Company”) encloses its investor presentation at the ASX Small and Mid-Cap Conference to be given today by the DroneShield CEO Oleg Vornik at 2:30pm Sydne
Slide 2: Counterdrone, Electronic Warfare and Tracking Systems
For personal use only Counterdrone, Electronic Warfare and Tracking Systems ASX Small and Mid-Cap Conference Presentation (ASX:DRO) 14 September 2021 www.droneshield.com
Slide 3: 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 4: High profile drone incidents continue to escalate
High profile drone incidents continue to escalate For personal use only 3 www.droneshield.com
Slide 5: $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 4 www.droneshield.com
Slide 6: 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 5 www.droneshield.com
Slide 7: 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 8: DroneShield's competitive counterdrone advantage
DroneShield’s competitive counterdrone advantage? For personal use only Market leading technology… …across multiple platforms… ü Multi-sensor detection, ID and tracking ü Body-worn Best-in-breed detection range Vehicle/Ship mounted ü ü Best-in-breed defeat range Fixed site ü ü …underpinned by DroneS
Slide 9: 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 10: 1H21 Results | Key Highlights
1H21 Results | Key Highlights For personal use only ü HY21 Revenue up 87% on HY20, at $6.7m ü HY21 cash receipts up 600% on HY20, at $9.1m* ü Rapidly narrowing HY21 losses, 61% down on HY20, at $450k ü $14m cash on hand (as at 30 June 2021), no debt or convertibles ü $10m in inventory (by sale value
Slide 11: 600% Customer and Grant Cash Receipt Growth on 1H20
600% Customer and Grant Cash Receipt Growth on 1H20 Since 2016, DroneShield’s total revenue has grown materially each year, with 2021 shaping as the pivotal year For personal use only 600% cash Customer and Grant Cash Receipts since 2016 (A$m – December year end) receipt growth over 1H20 9.1 5.4 3.7
Slide 12: Continued Rapid Growth in 2H21
Continued Rapid Growth in 2H21 For personal use only $190m sales pipeline to Dec 2022, with growing focus towards the more business-transparent ü Australian and the US customer base. Rising repeat sales accounting for majority of cash receipts ü $3.8m contract with the Australian Department of Defen
Slide 13: 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 12 www.droneshield.com
Slide 14: Appendices
For personal use only Appendices www.droneshield.com
Slide 15: Strong Cash Receipts Pipeline of $190m to Dec 2022
Strong Cash Receipts Pipeline of $190m to Dec 2022 DroneShield maintains a significant and geographically diversified near term high conviction revenue For personal use only pipeline Pipeline: $43m Pipeline: $73m • Sales to a major European army and • Awarded preferred bidder status for two contract
Slide 16: Rapidly Growing Electronic Warfare Contracts in Hand
Rapidly Growing Electronic Warfare Contracts in Hand For personal use only Electronic Warfare (EW) / Signals Intelligence (SIGINT) area has a number of technology overlaps ü with counter-drone, as drones utilise radiofrequency spectrum in an increasingly complex and encrypted manner EW/SIGINT is gen
Slide 17: Australian Government is committed to building home-grown defence sector
Australian Government is committed to building home- grown defence sector The Australian Government’s defence spending commitment presents a large opportunity for the sector For personal use only Overview Capability investment funding profile (A$bn) $270bn in total • Australia has 12th largest defen
Slide 18: 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 19: 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 • Electro-Op
Slide 20: 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 21: 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 22: 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 23: Continuous Significant Momentum
Continuous Significant Momentum For personal use only www.droneshield.com
Slide 24: 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 25: Capital Structure
Capital Structure For personal use only Enterprise Value (A$) DRO Shares 20c / share1 $83.6m2 Cash As at 30 June 2021 $14.2m Debt As at 30 June 2021 nil Enterprise Value $69.4m 1 Shareprice as at 13 September 2021. 418,226,152 ordinary shares outstanding at the date 2 Excluding unlisted options. 24,
Slide 26: Global defence spending continues to rise
Global defence spending continues to rise For personal use only Overview Global defence spend (US$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 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