Slide 1: World Leaders in Underwater Sensors & Robotics
World Leaders in Underwater Sensors & Robotics May 2020 KrakenRobotics.com
Slide 2: Forward Looking Statements
Forward Looking Statements Some statements herein contain forward-looking information. The use of any of the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "will," "plans," "project," "should," "target" and similar expressions are intended to identify forw
Slide 3: 6 Reasons to Invest
6 Reasons to Invest Canada’s Ocean Company™ | Actionable Intelligence™ TSXV:PNG KrakenRobotics.com
Slide 4: Capitalization Table
Capitalization Table Market Capitalization Table All figures in C$ million except per share values Share structure as of December 31, 2019 Share price (March 5, 2020) $0.43 Shares outstanding 147.2 Market Capitalization (basics) $63.3 Options 12.1 Warrants 0.6 Fully diluted shares outstanding 159.8
Slide 5: Strong Growth – EBITDA Positive
Strong Growth – EBITDA Positive 2017 2018 2019 Revenue 3,533,595 6,707,956 15,145,976 Y/Y% 56% 90% 126% Adj. EBITDA (876,653) (3,271,977) 418,832 • Guidance for Q1 2020 Adj. EBITDA 3% • Revenue between $6.0-$6.5M Margin % • Gross margins in line with 2019 results ~44% Revenue 2H/19 12,439,096 Adj. E
Slide 6: Kraken's Business Strategy
Kraken’s Business Strategy Canada’s Ocean Company™ | Actionable Intelligence™ TSXV:PNG KrakenRobotics.com
Slide 7: Kraken's Milestones
Kraken’s Milestones Canada’s Ocean Company™ | Actionable Intelligence™ TSXV:PNG KrakenRobotics.com
Slide 8: US$5B Maritime Robotics Market – Key Drivers
US$5B Maritime Robotics Market – Key Drivers MILITARY • Mine Warfare - 500,000 underwater mines • Anti-Submarine Warfare - 400 operational submarines • Intelligence, Surveillance, Recon - Special forces, covert operations, environmental assessment • Resurgence in underwater warfare and emergence of
Slide 9: Currently $300M+ of Contract Pursuits
Currently $300M+ of Contract Pursuits International Navy Sonar Upgrades US Navy AUV Upgrades Pressure Tolerant Batteries $125M+ $100M+ $50M+ Supercluster Seabed Mapping Offshore Wind Energy ASW Acoustic Signal Processing $19M+ $10M+ $10M+ Canada’s Ocean Company™ | Actionable Intelligence™ TSXV:PNG K
Slide 10: Synthetic Aperture Sonar Technology
Synthetic Aperture Sonar Technology Ultra High Image Resolution Constant along/across track resolution of 3cm x 3cm 15x better compared to Real Aperture Sonar Increased Area Coverage Rate Up to 4 km2/h Up to 600m swath 10x better compared to Real Aperture Sonar Operational Safety Ability
Slide 11: KATFISH - Tethered Underwater Towfish
KATFISH™ - Tethered Underwater Towfish Commercial & Military Certified Versions Key component in major foreign navy bids Recent surveys performed under CRADA with US Navy and NOAA Successful demonstrations at Advanced Naval Technology Expo (ANTX) in USA Successful integration on Elbit’s Seag
Slide 12: KATFISH - Tethered Underwater Towfish
KATFISH™ - Tethered Underwater Towfish NOAA Technology Demonstration - July 2019 - USS Bass Canada’s Ocean Company™ | Actionable Intelligence™ TSXV:PNG KrakenRobotics.com
Slide 13: US Navy Foreign Comparative Test
US Navy Foreign Comparative Test The US Navy has awarded Kraken a $900K FCT program to develop a Synthetic Aperture Sonar payload for man-portable AUVs. Successfully completed demo of prototype to USN’s EOD teams. NRE underway. Image above of a man-portable AUV being deployed Kraken’s Man-Portable S
Slide 14: Kraken Power - Subsea Batteries
Kraken Power - Subsea Batteries Ocean Infinity $9.0M contract Batteries being deployed in competitors AUV Four days w/o charging at 5000M 700 line kms per deployment Active in commercial and military markets Rated for 6000M Canada’s Ocean Company™ | Actionable Intelligence™ TSXV:PNG Krak
Slide 15: THUNDERFISH - Untethered System
THUNDERFISH® - Untethered System Canada’s Ocean Company™ | Actionable Intelligence™ TSXV:PNG KrakenRobotics.com
Slide 16: SeaVision 3D Laser System
SeaVision® 3D Laser System • Sub-sea 3D laser imaging • Real-time sub-millimeter reconstruction • Scan 1.2M points/ 4 seconds • Mount on multiple work vehicles (see next slide) • USS Baldwin – NOAA Tech Demonstration Canada’s Ocean Company™ | Actionable Intelligence™ TSXV:PNG KrakenRobotics.com
Slide 17: SeaVision Inspections – Mooring Chain, Ship Hull, etc.
SeaVision® Inspections – Underwater Mooring Chain, Ship Hull, etc. Crawler Work Class ROV Mooring chain and SeaVision® 3D model of mooring chain with measurements Inspection Class ROV Canada’s Ocean Company™ | Actionable Intelligence™ TSXV:PNG KrakenRobotics.com
Slide 18: Creating Recurring Revenue Model
Creating Recurring Revenue Model Collect and Process Data for Clients Stakeholder Test & Evaluation 2019 - 2021 Survey specified location with KATFISH™ GeoStore Baseline Database Development 2019 - 2021 Value Add Data Analytics Development 2019 - 2021 THUNDERFISH® KATFISH™ 2019/20 2021 Canada’s Ocea
Slide 19: Industry is Consolidating
DATE ACQUIRER TARGET TRANSACTION VALUE Huntington Ingalls $350 million, 24x 2019 February 2020 Hydroid Industries EBITDA Riptide Autonomous June 2019 BAE Systems Undisclosed Solutions assets September 2018 L3 ASV Global Undisclosed September 2017 L3 Ocean Aero $1-5 million (est.) Industry is Septemb
Slide 20: Management & Technical Team Depth
Management & Technical Team Depth Karl Kenny, President & CEO • Ex-Canadian Navy maritime surface officer and Microsoft employee pre-public company • 20-year history in imaging technologies having founded 3 companies Greg Reid, Chief Operating Officer • 20+ years of finance, investment, and business
Slide 21: Board of Directors
Board of Directors Karl Kenny, President & CEO Vice Admiral Mike Connor, Board of Directors • CEO of ThayerMahan and Former commander of U.S. submarine force from September 2012 until September 2015. • 35-year US Navy veteran Moya Cahill • CEO and co-founder of PanGeo Subsea, a technology and servic
Slide 22: Contact Us
Contact Us Karl Kenny Joe Mackay Chief Executive Officer, Kraken Robotics Chief Financial Officer, Kraken Robotics 709-757-5757 416-303-0605 kkenny@krakenrobotics.com jmackay@krakenrobotics.com Greg Reid Sean Peasgood Chief Operating Officer, Kraken Robotics Sophic Capital 416-818-9822 Investors Rel