Aerovironment, Inc. · NASDAQ:AVAV

Aerovironment — Investor Day (June 2024)

56 slides from Aerovironment's investor day presentation, Jun 27, 2024

  1. Slide 1: Leading the Defense Tech Sector

    1 1 | © 2024 AeroVironment, Inc. – Proprietary Information LEADING THE DEFENSE TECH SECTOR TECHNOLOGY // CAPACITY // EXPERIENCE NASDAQ // NEW YORK CITY 27 JUNE 2024

  2. Slide 2: Forward-looking statements

    2 2 | © 2024 AeroVironment, Inc. – Proprietary Information Certain words in this presentation may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predi

  3. Slide 3: Today's Agenda 2024 Investor Conference

    3 3 | © 2024 AeroVironment, Inc. – Proprietary Information Today’s Agenda 2024 INVESTOR CONFERENCE 8:00 am CHECK-IN AND BREAKFAST 8:30 am Jonah Teeter-Balin Welcome and Agenda Overview 8:35 am Wahid Nawabi Seizing Opportunity in High Growth Defense Tech Sector 8:50 am Church Hutton Meeting the Missi

  4. Slide 4: 4 4 | © 2024 AeroVironment, Inc. – Proprietary Information

    4 4 | © 2024 AeroVironment, Inc. – Proprietary Information

  5. Slide 5: Seizing Opportunity in High-Growth Defense Tech Sector

    5 5 | © 2024 AeroVironment, Inc. – Proprietary Information IN HIGH-GROWTH DEFENSE TECH SECTOR WAHID NAWABI CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT

  6. Slide 6: Corporate Snapshot

    6 6 | © 2024 AeroVironment, Inc. – Proprietary Information SEIZING OPPORTUNITY Corporate Snapshot 55+ customers in allied nations $367 $395 $446 $541 $716 2020 2021 2022 2023 2024 AVAV NASDAQ Arlington, VA HQ 1971 FOUNDED ~1,450 EMPLOYEES ANNUAL REVENUE (m) GLOBAL FOOTPRINT 35,000+ of AV platforms e

  7. Slide 7: Robust Global Defense Sector

    7 7 | © 2024 AeroVironment, Inc. – Proprietary Information “The use of autonomous systems is going to be a constant… which includes the first thousand feet of air above the land.” HEIGHTENED GLOBAL THREAT ENVIRONMENT DRIVING DEFENSE SPENDING SEIZING OPPORTUNITY Robust Global Defense Sector • Pre-Ukr

  8. Slide 8: Our Five Business Units

    8 8 | © 2024 AeroVironment, Inc. – Proprietary Information Uncrewed Systems Loitering Munitions MacCready Works AV in +$12B Markets UGV Uncrewed Ground Vehicles MUAS Medium Uncrewed Aircraft Systems SUAS Small Uncrewed Aircraft Systems LMS Loitering Munition Systems MW MacCready Works $.7B+ $2B+ $5B

  9. Slide 9: Long-Term Growth Drivers

    9 9 | © 2024 AeroVironment, Inc. – Proprietary Information Long-Term Growth Drivers Multiple Growth Drivers o Increasing Sales to Conflict Areas o U.S. DoD Programs of Record o Replenishment of Inventories o Growing International Sales o Integration of Autonomous Software Suite on Other Platforms o

  10. Slide 10: AV Core Differentiators

    10 10 | © 2024 AeroVironment, Inc. – Proprietary Information AV Core Differentiators STRONG GROWTH IN DEFENSE TECH // POISED TO CAPTURE MARKET SHARE 10 | © 2024 AeroVironment, Inc. – Proprietary Information Technology Scale and Manufacturing Readiness Multi-decade Track Record of Fielding Combat Pro

  11. Slide 11: Meeting the Mission in the Defense Tech Sector

    11 11 | © 2024 AeroVironment, Inc. – Proprietary Information IN THE DEFENSE TECH SECTOR CHURCH HUTTON VICE PRESIDENT, GOVERNMENT RELATIONS

  12. Slide 12: The View from Washington

    12 12 | © 2024 AeroVironment, Inc. – Proprietary Information The View from Washington AV Capabilities in Operational Environment o Strategic Competition o Military Modernization o Deterrence through Mass Growth Under a Flat Budget o DoD Topline limited by FRA caps o R&D and Procurement Flat o Autono

  13. Slide 13: Positioning AV in Washington

    13 13 | © 2024 AeroVironment, Inc. – Proprietary Information Positioning AV in Washington AV Heritage AV Differentiators vs Competitors 1. Full rate production – we are leading 2. Next generation of systems – in testing now 3. Our technology enables this space Maximizing Customer Success MEETING THE

  14. Slide 14: Loitering Munition Systems and Uncrewed Systems

    14 14 | © 2024 AeroVironment, Inc. – Proprietary Information Loitering Munition Systems and Uncrewed Systems LEADING AV’S GROWTH IN THE DEFENSE TECH SECTOR BRETT HUSH SENIOR VICE PRESIDENT, LOITERING MUNITIONS SYSTEMS TRACE STEVENSON SENIOR VICE PRESIDENT, UNCREWED SYSTEMS

  15. Slide 15: 15 15 | © 2024 AeroVironment, Inc. – Proprietary Information

    15 15 | © 2024 AeroVironment, Inc. – Proprietary Information

  16. Slide 16: Proven Track Record – Real World Experience

    16 16 | © 2024 AeroVironment, Inc. – Proprietary Information LOITERING MUNITIONS & UNCREWED SYSTEMS Proven Track Record – Real World Experience PUMA OPERATOR 67th Brigade in Ukraine 10 April 2024 “We flew a FH Puma 3 in an area that has never been able to be flown by any aircraft successfully for th

  17. Slide 17: Key Growth Opportunities

    17 17 | © 2024 AeroVironment, Inc. – Proprietary Information Key Growth Opportunities LOITERING MUNITIONS & UNCREWED SYSTEMS LOITERING MUNITIONS UNCREWED SYSTEMS • U.S. DoD Replicator Initiative • Army Long Range Precision Munition (LRPM) • Army Optionally Manned Fighting Vehicle (OMFV) • Army Low A

  18. Slide 18: Expanded Production Capacity

    18 18 | © 2024 AeroVironment, Inc. – Proprietary Information Expanded Production Capacity1 LOITERING MUNITIONS & UNCREWED SYSTEMS FY 24 $200M FY 25 $500M $1B FY 27+ LOITERING MUNITIONS FY 24 $500M FY 25+ $1B UNCREWED SYSTEMS (1) $ value based on capacity, not expected volume

  19. Slide 19: Leading the Future of Defense Tech Sector

    19 19 | © 2024 AeroVironment, Inc. – Proprietary Information LEADING THE FUTURE OF DEFENSE TECH SECTOR JEFF RODRIAN SENIOR VICE PRESIDENT, MACCREADY WORKS

  20. Slide 20: Future Challenges of UAS Warfare

    20 20 | © 2024 AeroVironment, Inc. – Proprietary Information Future Challenges of UAS Warfare DISRUPTIVE INNOVATIONS AV is well positioned to solve these problems as technology moves toward more Autonomous Solutions

  21. Slide 21: Solution – ARK: Autonomy Retrofit Kit

    21 21 | © 2024 AeroVironment, Inc. – Proprietary Information Solution – ARK: Autonomy Retrofit Kit DISRUPTIVE INNOVATIONS AV’s ARK allows for autonomous operation when datalinks are compromised Capable o Direct compatibility with Puma 3 AE, Puma LE and other UAS solutions Collaborative o Enables edg

  22. Slide 22: Solution – VNS: Visual Navigation System

    22 22 | © 2024 AeroVironment, Inc. – Proprietary Information Solution – VNS: Visual Navigation System DISRUPTIVE INNOVATIONS AV’s VNS allows products to operate in contested environments where GPS is not available VNS allows flight in GPS restricted environments o Onboard system makes estimates of t

  23. Slide 23: Solution – AV's Autonomy Software

    23 23 | © 2024 AeroVironment, Inc. – Proprietary Information Solution – AV’s Autonomy Software DISRUPTIVE INNOVATIONS AVACORE software suite enables swarms of uncrewed systems to complete complex missions in contested environments AVACORE Facilitates UAS Swarms o Combination of autonomy and computer

  24. Slide 24: Autonomy Suite Enables Key Capabilities Today

    24 24 | © 2024 AeroVironment, Inc. – Proprietary Information Autonomy Suite Enables Key Capabilities Today DISRUPTIVE INNOVATIONS AV’s Autonomy suite enables our customers to quickly adapt to changing conditions through rapid software upgrades ARK + AVACORE + SPOTR Edge deliver advanced AI and Auton

  25. Slide 25: Mass Overwhelms

    25 25 | © 2024 AeroVironment, Inc. – Proprietary Information MASS OVERWHELMS: Software defines how multiple systems can operate together to accomplish missions

  26. Slide 26: 26 26 | © 2024 AeroVironment, Inc. – Proprietary Information

    26 26 | © 2024 AeroVironment, Inc. – Proprietary Information

  27. Slide 27: Demonstration Overview

    27 27 | © 2024 AeroVironment, Inc. – Proprietary Information Demonstration Overview DISRUPTIVE INNOVATIONS Lawrence, KS Vapor 55 MX w/ ARK & AVACORE Sentry Mission Find Target Person Nasdaq, NYC Long-distance Command and Control Simi Valley, CA 2 Puma AEs w/ ARK & AVACORE Searching for Target Follow

  28. Slide 28: 28 28 | © 2024 AeroVironment, Inc. – Proprietary Information

    28 28 | © 2024 AeroVironment, Inc. – Proprietary Information

  29. Slide 29: Today's Agenda 2024 Investor Conference

    29 29 | © 2024 AeroVironment, Inc. – Proprietary Information Today’s Agenda 2024 INVESTOR CONFERENCE 8:00 am CHECK-IN AND BREAKFAST 8:30 am Jonah Teeter-Balin Welcome and Agenda Overview 8:35 am Wahid Nawabi Seizing Opportunity in High Growth Defense Tech Sector 8:50 am Church Hutton Meeting the Mis

  30. Slide 30: Tomahawk // Kinesis Technology

    30 30 | © 2024 AeroVironment, Inc. – Proprietary Information Tomahawk // Kinesis Technology BRAD TRUESDELL VICE PRESIDENT, PRODUCT LINE GM // SUAS

  31. Slide 31: Tomahawk Ecosystem

    31 31 | © 2024 AeroVironment, Inc. – Proprietary Information Tomahawk Ecosystem Tomahawk GCS provides “common control” for the warfighter and solves the battlespace network for robotics o Kinesis unlocks the power of 20+ air & ground uncrewed systems from over a dozen manufacturers o All systems are

  32. Slide 32: The Problem We are Fixing

    32 32 | © 2024 AeroVironment, Inc. – Proprietary Information The Problem We are Fixing COMMON CONTROL CAPABILTIES 32 Medium Range Recon 3,000 systems Short Range Recon 7,000 systems Long Range Recon 1,000 systems Soldier Borne Sensor 10,000 systems Logistics 1,000 systems Tethered 1,000 systems CRS(

  33. Slide 33: Our Solution – Kinesis

    33 33 | © 2024 AeroVironment, Inc. – Proprietary Information Our Solution KINESIS COMMON CONTROL CAPABILTIES Tomahawk Robotics GCS can integrate all the AV vehicles and Third Parties into a Cohesive Family of Systems Video & COT AV SUAS AI-Enhanced TACTICAL NETWORK Training & Simulation Enhanced Aut

  34. Slide 34: A Family of Products that Works Together

    34 34 | © 2024 AeroVironment, Inc. – Proprietary Information Grip S20 & Grip TA5 Samsung TE Controllers • Streamlined for light infantry, air assault, and special operations • Integrated USB-C for data transfer and charging without EUD removal • Extends EUD cold temp range with integrated heater ele

  35. Slide 35: Kinesis + Grip S20

    35 35 | © 2024 AeroVironment, Inc. – Proprietary Information Kinesis + Grip S20 SUPPORT ELEMENT Weapons Squad SRR & CRS-I Operator ASSAULT ELEMENT 1st & 2nd Squad SB300 Operator C2 ELEMENT PL & 3rd SQD SMET CRS-I MRR/LRR SRR SB300 ATAK/TAK, Kinesis pushed POI Data/Video Network Result - Effective Hu

  36. Slide 36: Positioning Aligns with Customer Needs

    36 36 | © 2024 AeroVironment, Inc. – Proprietary Information Positioning Aligns with Customer Needs COMMON CONTROL CAPABILTIES Customers include the largest buyers of robotics technology and leading robotics OEMs

  37. Slide 37: Examples of Customer Need

    37 37 | © 2024 AeroVironment, Inc. – Proprietary Information NAVY Examples of Customer Need COMMON CONTROL CAPABILTIES ARMY MARINE CORPS SOF INTERNATIONAL Tomahawk addresses RAC2 program needs by enabling common control of US Army tactical unmanned systems. Kinesis software unlocks over 20 air & gro

  38. Slide 38: 38 38 | © 2024 AeroVironment, Inc. – Proprietary Information

    38 38 | © 2024 AeroVironment, Inc. – Proprietary Information

  39. Slide 39: Benefit to AV of Tomahawk Ecosystem

    39 39 | © 2024 AeroVironment, Inc. – Proprietary Information Benefit to AV of Tomahawk Ecosystem COMMON CONTROL CAPABILTIES Kinesis and Tomahawk GCS will be the AeroVironment Software and Hardware solutions of the future o Provides AV with a multi-domain, common control solution across AV offerings

  40. Slide 40: MUAS Technology

    40 40 | © 2024 AeroVironment, Inc. – Proprietary Information MUAS TECHNOLOGY DR. TIM FALTEMIER VICE PRESIDENT, PRODUCT LINE GENERAL MANAGER, LEAP SHANE HASTINGS VICE PRESIDENT, PRODUCT LINE GENERAL MANAGER, MUAS

  41. Slide 41: JUMP LEAP Autonomy Onboard + LEAP Autonomy

    41 41 | © 2024 AeroVironment, Inc. – Proprietary Information JUMP LEAP AUTONOMY ONBOARD 20 + LEAP AUTONOMY JUMP 20 CONOPs

  42. Slide 42: Wildcat: CONOPS

    42 42 | © 2024 AeroVironment, Inc. – Proprietary Information WILDCAT: CONOPS

  43. Slide 43: Long-Term Financial Model

    43 43 | © 2024 AeroVironment, Inc. – Proprietary Information LONG-TERM FINANCIAL MODEL KEVIN MCDONNELL CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT

  44. Slide 44: Multiple Pathways for Sustained Growth

    44 44 | © 2024 AeroVironment, Inc. – Proprietary Information Multiple Pathways for Sustained Growth AV HAS SEVERAL OPPORTUNITIES FOR GROWTH OVER TIME New Products from MacCready Works Long Range ISR, Autonomous Platforms, Software, Space Robotics, Contested Logistics, etc... Ukraine Sales Sales of S

  45. Slide 45: Large Programs on Horizon

    45 45 | © 2024 AeroVironment, Inc. – Proprietary Information Large Programs on Horizon POISED FOR GROWTH LMS MUAS SUAS • ARMY Long Range Reconnaissance (LRR) • ARMY Medium Range Reconnaissance (MRR) • Multiple International Opportunities • Army Low Altitude Stalking and Strike Ordnance (LASSO) • Mar

  46. Slide 46: Fiscal 2025 Outlook

    46 46 | © 2024 AeroVironment, Inc. – Proprietary Information (1) Refer to Reconciliation of Fiscal Year 2024 Non-GAAP Diluted Earnings Per Share Expectations on Appendix A (2) Refer to Adjusted EBITDA reconciliation on Appendix B (3) Refer to Reconciliation of Fiscal Year 2024 Non-GAAP Diluted Earni

  47. Slide 47: Long Term Financial Performance

    47 47 | © 2024 AeroVironment, Inc. – Proprietary Information Long Term Financial Performance POISED FOR GROWTH AVERAGE FY20-FY24 MID-POINT1 FY25 LONG TERM Revenue Growth % 15% 10%-15% Organic Growth 10% to 15% Total Growth 20+% R&D Investment 13% 12%-13% 10% to 12% Near Term 8% to 10% Longer Term Ad

  48. Slide 48: Acquisition Strategy

    48 48 | © 2024 AeroVironment, Inc. – Proprietary Information Acquisition Strategy AV Strategy Build a portfolio of leading-edge solutions leveraging current market position in Uncrewed systems and AI/autonomy enabling software targeted at defense and public safety markets. AV Future State Integrated

  49. Slide 49: TAM Today $12B+

    49 49 | © 2024 AeroVironment, Inc. – Proprietary Information TAM Today $12B+ LOITERING MUNITIONS GROUP 2/3 UAS GROUP 1 UAS BATTLEFIELD COMMS MACHINE VISION SOFTWARE RDT&E US DOD UNCREWED GROUND VEHICLES CURRENT FOOTPRINT PROVIDES STRONG ORGANIC GROWTH RUNWAY (15%+)

  50. Slide 50: Target TAM $30B+

    50 50 | © 2024 AeroVironment, Inc. – Proprietary Information Target TAM $30B+ GROUP 1 UAS BATTLEFIELD COMMS UNCREWED GROUND VEHICLES COUNTER UAS PAYLOADS RADAR SYSTEMS BATTLEFIELD MANAGEMENT UNCREWED SURFACE VEHICLES OPPORTUNITY TO EXPAND TAM BASED UPON CORE CAPABILITIES & ADJACENT MARKETS BUILDING

  51. Slide 51: AVAV Investment Highlights

    51 51 | © 2024 AeroVironment, Inc. – Proprietary Information AVAV Investment Highlights POSITIONED FOR GROWTH OVER THE NEAR- AND LONG-TERM | © 2024 AeroVironment, Inc. – Proprietary Information Growth Platforms STRONG GROWTH IN DEFENSE TECH // POISED TO CAPTURE MARKET SHARE Technology Scale and Manu

  52. Slide 52: Panel Q&A Moderated by Jonah Teeter-Balin

    52 52 | © 2024 AeroVironment, Inc. – Proprietary Information MODERATED BY: JONAH TEEETER-BALIN SENIOR DIRECTOR, CORPORATE DEVELOPMENT & INVESTOR RELATIONS

  53. Slide 53: Appendix B – Reconciliation of FY2024 Non-GAAP Diluted EPS Expectations

    53 53 | © 2024 AeroVironment, Inc. – Proprietary Information APPENDIX B – RECONCILIATION OF FISCAL YEAR 2024 NON-GAAP DILUTED EARNINGS PER SHARE EXPECTATIONS (UNAUDITED)

  54. Slide 54: Appendix D – Historical Adjusted EBITDA Reconciliation

    54 54 | © 2024 AeroVironment, Inc. – Proprietary Information APPENDIX D – HISTORICAL ADJUSTED EBITDA RECONCILIATION

  55. Slide 55: Appendix F – Reconciliation of FY2024 Non-GAAP EPS

    55 55 | © 2024 AeroVironment, Inc. – Proprietary Information APPENDIX F – RECONCILIATION OF FISCAL YEAR 2024 NON-GAAP EARNINGS PER DILUTED SHARE (UNAUDITED) Fiscal Year Ended April 30, 2024 Earnings (loss) per diluted share $ 2.18 Acquisition-related expenses 0.06 Amortization of acquired intangible

  56. Slide 56: Appendix E – Reconciliation of FY2024 Adjusted EBITDA Expectations

    56 56 | © 2024 AeroVironment, Inc. – Proprietary Information APPENDIX E – RECONCILIATION OF NON-GAAP FISCAL YEAR 2024 ADJUSTED EBITDA EXPECTATIONS

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