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) April 2023 www.DroneShield.com Image: DroneGun counterdrone system
Slide 2: Business Update - Continued Strong Momentum into 2023
Business Update - Continued Strong Momentum into 2023 For personal use only • Strong financial position and rapidly rising cash receipts – 1Q23 cash receipts of $7 million, ▲180% over 1Q22 at $2.5 million – Cash balance of $45 million as of 14 April – Major inventory build (completed units and long
Slide 3: Executive Summary
Executive Summary DroneShield • Founded in 2014 and listed on the ASX in 2016, DroneShield (ASX:DRO) provides Artificial Intelligence platforms for protection against drones For personal use only Overview • Hardware and software solutions that detect and safely neutralise small drones used for high-
Slide 4: Continued Rapid Growth ($m, Dec YE)
Continued Rapid Growth ($m, Dec YE) Rapidly improving financials, as the business stands at an inflection point into 2023 For personal use only Strong Revenue Growth Rapid Cash Receipt Growth (Sales + Grants) 16.9 59% growth 15.6 14.8 10.6 180% growth over Q1 2022 5.6 5.4 3.6 3.7 1.8 7.0 1.2 2.5 201
Slide 5: DroneShield Investment Highlights
DroneShield Investment Highlights For personal use only Leader in World leading provider of state-of-the-art counterdrone solutions and electronic warfare systems Counterdrone used in a diverse array of critical end markets Proprietary Full-scale hardware and SaaS offering used to detect, assess, an
Slide 6: Business Overview
For personal use only Business Overview Image: RfPatrolTM during customer evaluation www.DroneShield.com
Slide 7: 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 8: AI-Enabled Platforms Protect Against Advanced Threats
AI-Enabled Platforms Protect Against Advanced Threats Multiple platforms in adjacent technologies and customers with a common theme of AI-based threat protection For personal use only Artificial Intelligence in Artificial Intelligence in computer Counterdrone Electronic Warfare vision and sensor fus
Slide 9: How a Counterdrone System Works
How a Counterdrone System Works 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 undertake
Slide 10: Geopolitical Environment Providing Market Tailwinds
Geopolitical Environment Providing Market Tailwinds For personal use only • Increased expenditure by Western Governments in response to the war in Ukraine – US DoD increasing 2023 budget to over US$800bn, a record peacetime amount1 – Germany increasing spending to over 2% of GDP (from 1.53% in 2021)
Slide 11: Addressable Market
For personal use only Addressable Market Image: US Department of Defense conference www.DroneShield.com
Slide 12: Counterdrone: Diverse Array of Critical End Markets
Counterdrone: Diverse Array of Critical End Markets Rapidly improving and easily available drone technology is driving demand for counterdrone solutions For personal use only Sources: Markets and Markets: https://www.marketsandmarkets.com/Market-Reports/anti-drone-market-177013645.html Factors & Fac
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: DroneShield Capability and Product Overview
For personal use only DroneShield Capability and Product Overview Image: DroneSentry-XTM atwww.DroneShield.com the Canadian Government Agency evaluation
Slide 15: DroneShield: Complete Hardware and Software Offering
DroneShield: Complete Hardware and Software Offering High IP, yet mass-production hardware, with a software subscription platform and Electronic Warfare work For personal use only • Company-owned production facility, supplemented by outsourced manufacturers, to ensure ability to manage large hardwar
Slide 16: Counterdrone Detection Solutions
Counterdrone Detection Solutions DroneShield uses multi-sensor drone detection for optimal results, unaffected by time of day or weather For personal use only Radio frequency Radar* Cameras* Acoustic* Imagery • Electro-Optical (EO), Infrared • Foundational layer • Compares noise of drone • Motion tr
Slide 17: 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 Large Defence Primes Exotic Tech, Dominance Area DroneSh
Slide 18: Competitor Analysis
For personal use only Competitor Analysis www.DroneShield.com
Slide 19: DroneShield's Counterdrone Competitive Advantage
DroneShield’s Counterdrone Competitive 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… Multi-sensor detection, ID and tracking Body-worn Be
Slide 20: Competitor Analysis
Competitor Analysis DroneShield is the only global provider of its own individual sensors, all integrated into a complete system, fully in-house For personal use only Country of Origin Integrator - - - In-House Detect Dismounted - - - - - - - - Vehicle Mounted - - - - - Fixed S
Slide 21: Key Execution Priorities and Growth Strategy
For personal use only Key Execution Priorities and Growth Strategy Image: DroneSentry-XTM in deployment www.DroneShield.com
Slide 22: 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 23: 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 23 www.DroneShield.com
Slide 24: Appendices
For personal use only Appendices Image:www.DroneShield.com Middle Eastern Defence agency brief at IDEX
Slide 25: Drones - A Critical and Growing Threat Vector
Drones - A Critical and Growing Threat Vector For personal use only 25 www.DroneShield.com
Slide 26: 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, For personal use only which are only practical for deployment in war-like scenarios Avoidance of Evidence for Legal Intelligence Mu
Slide 27: 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 28: 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 29: 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 30: 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 Tom James Vornik Marks Balanco McClintock Branstetter Independent CEO and Independent Sales U.S. Director CFO and Non- Managi
Slide 31: Industry and Media Recognition
Industry and Media Recognition For personal use only 31 www.DroneShield.com
Slide 32: Continuous Significant Momentum
Continuous Significant Momentum For personal use only www.DroneShield.com
Slide 33: Epirus Investment and Partnership
Epirus Investment and Partnership For personal use only • In November 2022, DroneShield announced a strategic partnership with Epirus, which included a $3.7 million investment at 20c (market price at the time) for a 4.1% stake • Epirus is a high-growth U.S. technology unicorn, developing software-de
Slide 34: Capital Structure
Capital Structure Capital Structure (approximately 10,000 shareholders) Research Coverage For personal use only DRO Shares on Issue 585,179,443 DRO Options on Issue1 38,995,001 Fully Diluted Shares on Issue 624,174,444 Fully Diluted Equity Value2 $190.4m Cash3 $42.4m Debt3 $nil Fully Diluted Enterpr
Slide 35: Disclaimer
Disclaimer 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 terms of this disclaime