Slide 1: AI-Enabled Platforms for Protection against Advanced Threats
For personal use only AI-Enabled Platforms for Protection against Advanced Threats DroneShield (ASX:DRO) July 2022 www.droneshield.com Image: DroneSentry-C2TM Command-and Control AI-powered system
Slide 2: July 2022 Update
July 2022 Update Continued progress towards inflection point in 2H22 For personal use only • $2.7 million customer and grant cash receipts for the 2Q22 quarter, up 11% on 1Q22 • $125 million sales pipeline for remainder of 2022 (further $230 million for 2023+), growing focus to the US and Australian
Slide 3: Investment Highlights
Investment Highlights For personal use only World leading Leverage to the global defence Sales pipeline of $125m for proprietary AI platform and security technology sector. remainder of 2022 and for protection against $10bn counterdrone $230m for 2023 drones addressable market, in addition to electr
Slide 4: Executive Summary
Executive Summary DroneShield • Founded in 2014 and listed on the ASX in June 2016, DroneShield (ASX:DRO) provides Artificial Intelligence based platforms for protection against For personal use only advanced threats such as drones and autonomous systems Overview • Hardware and software solutions th
Slide 5: Continued Rapid Growth
Continued Rapid Growth (A$m, Dec YE) Moving Towards Positive Cashflow Rapidly improving financials, as the business stands at an inflection point into 2022 For personal use only Strong Revenue Growth Rapid Cash Receipt Growth (Sales + Grants) 14.8 10.6 Majority of the 2022 cash 89% growth receipts a
Slide 6: Diversified and Mature 2022 Pipeline
Diversified and Mature 2022 Pipeline 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 Receipts 2022 Shortlisted P
Slide 7: Business Overview
For personal use only Business Overview www.droneshield.com Image: DroneSentry-X TM on SAIC’s vehicle at the Joint C-sUAS Office (JCO) CaaS event in Yuma Proving Ground, AZ
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 Electronic Warfare computer vision and sen
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 High-IP, yet mass-production enabled hardware, enabling a software subscription platform For personal use only Hardware with Embedded Software and Associated Services Software (SaaS and R&D contracts) Dismounted & Body-Worn Counterdrone Solutions Electronic Warfare an
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 large 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 software 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: Competitor Analysis
For personal use only Competitor Analysis www.droneshield.com
Slide 25: DroneShield's competitive counterdrone advantage?
DroneShield’s competitive counterdrone advantage? C-UAS market pioneer, with a culture of systematic innovation and understanding of channels to market For personal use only Market leading, differentiated technology… …across multiple platforms… ü Multi-sensor detection, ID and tracking ü Body-worn B
Slide 26: Competitor analysis
Competitor analysis DroneShield is the only global provider of own individual sensors, all integrated into a complete system, fully in-house For personal use only Country of origin Integrator ü ü ü ü ü - - - ü In-House Detect Dismounted ü - - - - - - - - Vehicle Mounted ü - ü - - - - ü ü Fixed Site
Slide 27: Key Execution Priorities and Growth Strategy
For personal use only Key Execution Priorities and Growth Strategy www.droneshield.com
Slide 28: 2022 Pipeline of $125m, with a further $230m tracked for 2023+
2022 Pipeline of $125m, with a further $230m of projects tracked for 2023+ USA continues to grow as the major contributor to the sales and pipelines For personal use only 2022 Pipeline: $72m / 47 projects 2022 Pipeline: $15m / 8 projects • Multiple military/Govt order discussions • Ukraine-related p
Slide 29: 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 30: 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 30 www.droneshield.com
Slide 31: Appendices
For personal use only Appendices www.droneshield.com
Slide 32: Drones - A Critical and Growing Threat Vector
Drones - A Critical and Growing Threat Vector For personal use only 32 www.droneshield.com
Slide 33: 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 34: 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 35: Industry Recognition
Industry Recognition For personal use only 35 www.droneshield.com
Slide 36: Never Standing Still
Never Standing Still For personal use only 36 www.droneshield.com
Slide 37: Capital Structure
Capital Structure For personal use only Enterprise Value (A$) DRO Shares 19.5c / share1 $84.3m2 Cash As at 30 June 2022 $6.7m Debt As at 30 June 2022 nil Enterprise Value $77.6m 1 Shareprice as at 27 July 2022. 432,541,985 ordinary shares outstanding 2 Excluding unlisted options. 50,325,001 unlisted
Slide 38: 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 39: 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