Coda Octopus Group, Inc. · NASDAQ:CODA
Coda Octopus — Investor Presentation (February 2020)
49 slides from Coda Octopus's investor presentation, Feb 11, 2020
Slide 1: Coda Octopus Group Corporate Presentation
Goda Octopgis-Broup, ne. CODA OCTOPUS GROUP, INC. World Leader in Sound Underwater Technology Corporate Presentation January 2020
Slide 2: Forward-Looking Statements
Goda OctopgisDroup, ne. Forward-Looking Statements This presentation contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, Those forward-
Slide 3: CEO Vision Statement
oda Ortop Drape CEO Vision Statement “To realize increased organic growth through the exploitation of, CODA’s revolutionary, proprietary subsea technology, and:continued advancements in customized, rugged defense engineering. To increase our value proposition for the benefit of all stakeholders, inc
Slide 4: Overview
Overview Established business with strong pedigree in marine technology and defense engineering Products Business Engineering Business Market tablished hip: imaging with L and UK, Defense Prime: roultip a as Raytheon, Northrop and ith a number af proprietary r sigrificant prograrns such ay ~ “seeing
Slide 5: Annual Revenues, Net Income, EBITDA
ANNUAL Revenues Net Income EBITDA Earnings per share — basic*® as FY 2017 $18,025,173 FY 2015 $19,234,396 FY 2016 $21,118,319 FY 2018 $18,019,429 $1,070,291 $4,930,548 $3,102,899 $2,309,215 $4,069,175 $0.16 .6 b $0.49 Se FY 2019 $25,056,934 $5,225,199
Slide 6: Marine Technology Business (Products Business)
Goda Octofas-Broup, ne. Product Design & 24/7 Support and Manufacturing 3D Field Experts Marine Technology Business (Products Business) Research Development Software Application and Custom Development and Innovation
Slide 7: COTS Products & Engineering Services
COTS Products & Engineering Services Products Services Commercial off-the-shelf (COTS) product sales occur primarily Our engineering services are primarily sold through: through two channels: + Prime Partnerships: We benefit from the small business allowance through our strategic relationships with
Slide 8: Echoscope Family of Volumetric Sonars
Goda! ne. Echoscope*©® Family of Volumetric Sonars — Visualization & Mapping for Widest Range of Applications Echoscope*®® Surface Echoscope*s® Deep Water Echoscope*6® Echoscope*® C500 Compact Edition SWaP (Size, Weight and Power) Seeing & Measuring in Real-Time 3D in Zero Visibility Conditions Unde
Slide 9: Echoscope Family of Volumetric Sonars
Coda Octo Broun, he. Echoscope® Family of Volumetric Sonars Continuation of Echoscope® Series SEs
Slide 10: Sample Echoscope Project ROI Snapshots
Coda Octofgs-Broup, he Coda Real-Time 3D Technology am Sample Echoscope Project RO! Snapshots Van Oord UTEC DEME TechnipiShell Port Construction Project Sleeper Placement Qilfield Development Rock Dumping Placement of 24000COREACC Was: sleopers paced in 2 hours ate Viibity Conditions “Zoro Visibilit
Slide 11: 3D Product Line Technology
3D Product Line 1 Technology is Ne Echoscope® 3D Real-Time Imaging Sonar Real-Time 3D Multibeam Goda! " ne.
Slide 12: 3D Product Line
3 \ D Product Line “I ingle Sensor, Multiple Parallel Processing Application, for Vision, apping and Measurement 3D Complex Mapping No Post Processing World’s most : and 3D sonar solution... 12
Slide 13: 3D Product Line: Delivering on Everyday Challenges Subsea
3D Product Line Delivering on Everyday Challenges Subsea Complex Asset Placement - Alaska Monopod Installation Survey and mapping of complex 3D 'Tendons' enabling fast and effective removal Conventional methods ineffective and displaced 13
Slide 14: 3D Product Line: Mineral Mining and Marine Construction
3D Product Line “ Delivering on Everyday Challenges Subsea Mineral Mining - Diamonds Marine Construction - Breakwaters + Echoscope® is the No. 1 preferred solution for subsea placement + Crane operator can “see” and "track" and “place” the moving block underwater + Complete scene awareness for opera
Slide 15: Strong Culture of IP
Strong Culture of IP otal Product Package + Multiple patents pending pertaining to recent technology innovations, such as 5D and 6D + Patents cover the spectrum of software and hardware capabilities of Coda Octopus Group's unique real-time aD technology + Proprietary hardware and software are the co
Slide 16: Defense Applications
Defense Applications ia. Real-Time 3D Decision Making a ql = us Wal Ege is wii ARN IF F . Complex Structure Real-lime,Hazards Rs i ee an i er . ee : _ = = : | Condition Survey and Salvage : P Target ID Hise CodaOctopus -
Slide 17: Commercial Applications
Goda Octofas-Broup, ne. Commercial Applications Marine and Port Construction, Renewables, Research, Educational Institutions, and Oil and Gas Dive Inspection Port Support Construction
Slide 18: Customers
Goda Octopgisroup, ne. Customers
Slide 19: 3D Real-Time Echoscope Technology Advantage
Coda 2 3D Real-Time Echoscope Technology Advantage ne. «Removes , thus : a significantly and of common tasks «Enhances Safety, again by removing «Facilitates near impossible missions without «Provides the vehicle for the ocean floor (far and wide) 19
Slide 20: Key Growth Market: Defense, Navy, Law Enforcement
Key Growth Market Defense, Navy Activities, Law Enforcement and Coast Guards + Search & Rescue and Recovery Missions + Asset Identification 8: Reacquisition i + See 8 Identify Targets and Hazards Real-Time + Record & Map to gather intelligence Decision and analyze threats & hazards, before Making ’
Slide 21: Momentum within the U.S. Navy community
Momentum has grown significantly within the U.S. Navy community for CODA’s industry-leading, real-time technology. The following groups are actively funding development, trials or purchases of Coda Octopus Echoscope® technology: Swim mer Delivery Vehicles + Salvage and Diver Support Mine Counter Mea
Slide 22: Project & Technology Outline
Project & Technology Outline Diver Augmented Vision Display (DAVD) Project Timeline @ cen 20 complete Gen 1.0 Productcompleted and @ = nsweand NAVSEA Collaboration acceptedin December 2019 Worked with NAVSEAPCD from 2016 on developing their prototype glass technology and embedding Coda Octopus 3D re
Slide 23: About the DAVD
About the DAVD Eo) (Ever cimemmenies visual Stsaleg a 23
Slide 24: About the DAVD
About the DAVD H Comms Penetrator — Custom Kirby Morgan Part with Fischer Connector DPP - Proposed Mounting Location DPP — Umbilical Main Line Connection 24
Slide 25: About the DAVD
About the DAVD VISIBILITY LOCATION COMMUNICATION SAFETY LOCATION Provide the Location of the Diver, the Diver Stage and Work Site and any hazards VISIBILITY Enhance the Liver experience with real-time Augmented and Mixed Reality scene awareness COMMUNICATION Communicate with rapid TEXT messaging for
Slide 26: About the DAVD
About the DAVD “ Diver Augmented Vision Display System DAVD- TC DAVD - DMU Bag one = Rat pal ed Beced Head Up The Diver Processing = ee Unit fuses sensordata “ ee _. and manages ultra low: 3 latency video display cy a atl DAVD - DPP
Slide 27: Echoscope PIPE Series Structure
Goda OctopgisDroup, ne. Echoscope® PIPE Series Structure New Breakthrough Echoscope® 5-Dimensional and 6-Dimensional Sonars Hazard Detection es Real-Time Monitoring single Sensor Multiple Applications Simultaneous Parallel Processing @ = Obstacle SEE Avoidance 27
Slide 28: Value Drivers
Value Drivers + First mover in innovating and f a . commercializing real-time 3D sonar ° technology for the subsea market + No other commercially available e real-time 3D sonar in the market $+ * > + Technically adept Group with strong brand as market leaders r) g in real-time visualization subsea,
Slide 29: Growth Catalysts
Coda Octo Broun, he. Growth Catalysts New Breakthrough Echoscope® 5- Dimensional and 6-Dimensional Sonars
Slide 30: Addressable Sonar Market
Addressable Sonar Market* ANNUAL F¥2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Revenues 5B : : 6 86 $3.081 Growth 6.9% 7.4% * Source: "Global SONAR Systems and Technology Market Size, Status and Forecast 2019-2026,” Maia Research (November 23, 2018) 30
Slide 31: Sonar Market by Application
Sonar Market by Application* REVENUE/MARKET 2018 ($B) Defense $1.251B + including UUV $0.186B Commercial $1.075B +including UUV $0.3944B +including Dredgers $0.0093M Total Market $2.326B $1.631B $0.357B $1.615B $0.7575M $0.0131M $3.246B * Source: "Sonar Systern Market, Global Forecast to 2023” Marke
Slide 32: Addressable Sonar Market
Addressable Sonar Market* REVENUE/ FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 SECTOR ($B) Scientific $0.598B $0.641B $0.687B $0.735M $0.792B $0.855B $0.913B $0.978B Commercial — $0.633B_- $0.679B $0.728B $0.780B $0.840B $0.907B $0.972B $1041B Military $1040B $1.113B $1.198B $1.278B $136
Slide 33: Addressable Sonar Market
Addressable Sonar Market* REVENUE/ SONAR TYPE ($B) 2018 Multi-Beam $1.020B Single Beam $0.467B Synthetic Aperture $0.254B Side Scan $0.596B TOTAL $2.337B 2019 $1.094B $0.498B $0.273B $0.638B $2.503B 2020 2021 $1.172B $1.254B $0.537B $0.566B $0.296B $0.319B $0.681B $0.730B $2.686B $2.869B 2022 $1.350
Slide 34: Competitor Companies
Raytheon Thales Unra Eketronks BAESystems Hanis Corporatin Nongsberg Gruppen Sonardyne R2Sonic ‘Western Marine Bee tronics ‘Inpormat Technologie Companies Lockheed Martin Ath Electronik B Asekan Naval Group Teledyne blue sas Norbit Grup
Slide 35: Engineering Business
Goda Octopas:Droup, ne. Customized Rugged Roltigns, ‘f Mission Critical Integrated Systems Software Engineering Mechanival Engineering Colmek Engineering Business Complete Product ec yole Electron Design Development Advanced Signal Processing Obsolescence Management of Légacy Defense Products
Slide 36: Key Markets
Coda Octofge-Broup, he Key Markets Sub-Contractor to the U.S. DoD Phalans® Cioge-in Weapor uay/ags-2a = ha system (CiWs) Mine Hunting Systems
Slide 37: Defense Customers
NORTHROP GRUMMAN x Raytheon Die] Q \ 7 i BOEING q US. AIR FORCE fing Ce are coy Sa Endeavor toe ERED MARTIN Sores
Slide 38: New Funded Defense Programs and Thermite Octal
Two Ther! new funded defense programs added to Colmek’s portfolio in FY 2018 Contracted to prototype two new parts for two significant programs. Value of contracted prototype is approximately $1.5M Once prototype phase is completed and manufacturing contracts awarded, these parts will yield long-tai
Slide 39: Thermite New Generation Octal Embedded Rugged Computer
+ Thermite® New Generation Octal? Embedded Rugged Computer Weapon Control Systems Dismounted Soldier Training Real Time Training and Simulation Mission Computer Mission Computer Sensor Processing Mission Computer Army Mobile Vehicles Virtual Reality Virtual Reality US. Military Ally US. Military All
Slide 40: Engineering Business: Product Design and Manufacturing
roduct Design-and Subsea and Harsh Environment Manufacturing Design Software Engineering Mechanieal Engineering Ss Martech Engineering Business Complete Product Lecyek Electron Design Development —— =a Test, Instrumentation and Control Obswiesgence Managemelit ot Legacy Defense Products 40
Slide 41: Engineering Customers
THALES SIEMENS Honeywell ATLAS ELE! aed > babcock' crunpros % *- <e ALISAFE
Slide 42: Long-tail recurring revenues from ongoing Defense Customer Programs
Long-tail recurring revenues from ongoing Defense Customer Programs + Proprietary Chemical Decontamination Systems + Component of the Eurofighter Tycoon’s Ground Equipment * Used to decontamin ate pilot helmets that have come in contact with chemical weapons Contracted for two new units, at approxim
Slide 43: Operations
Operations Brisbane, Australia ml
Slide 44: Management
Goda OctopgisDroup, ne. Coda Octopus Group Management Annmarie Gayle, LL.B, LLM — Chief Executive Officer and Chairman — Denmark Ms, Gayle has been our CEO and a member of the Board of Directors since 2011. She has also been the CEO of our flagship Products Business since 2012. Prior thereto, she sp
Slide 45: Management
Goda OctopgisDroup, ne. Coda Octopus Group Management Blair Cunningham -— President of Technology; Chief Executive Officer of Coda Octopus Products, Inc.— US. Mr, Cunningham has been with the company since July 200d and has had a number of roles including his current position of President of Technol
Slide 46: Board of Directors
Goda OctopgisDroup, ne. Coda Octopus Group Board of Directors Annmarie Gayle, LL.B, LLM — Chief Executive Officer and Chairman — Denmark Ms, Gayle was appointed Chairman of the Board in March 2017, and previously served as Director since 2011. Additionally, Ms. Gayle has been the Group CEO since 201
Slide 47: Board of Directors
Goda OctopgisDroup, ne. Coda Octopus Group Board of Directors Mary M. Losty — Director — U.S. Ms. Losty has been a member of Coda's Board of Direotors sinoe July 2017. Ms. Losty is a private investor in both U.S. ecuities and real estate. Her career includes serving as a Partner at Comwall Asset Man
Slide 48: Board of Directors
Goda OctopgisDroup, ne. Coda Octopus Group Board of Directors G. Tyler Runnels- Director— U.S. Mr. Funnels has been nominated by our board to be elected as a director at the 2018 annual meeting to fill a vacancy created by the departure of two of our directors. Mr. Runnels has nearly 30 years of inv
Slide 49: Coda Octopus Group Investor Relations Contact
Goda Octopgis-Broup, ne. CODA OCTOPUS GROUP, INC. World Leader in Sound Underwater Technology NASDAQ: CODA Investor Relations: MDC Group Contact: David Castaneda (414) 351-9758 / IR@codaoctopus.com
Coda Octopus Group — Investor Presentation (February 2020) on 6ix