Slide 1: Artificial Intelligence For Multi-Mission C-UxS
For personal use only Artificial Intelligence For Multi-Mission C-UxS Capital Raise Investor Presentation (ASX:DRO) 18 April 2024 Not for release to US wire services or distribution in the United States Image: DroneSentry-X Mk2 on a vessel
Slide 2: Legal Disclaimer
Legal Disclaimer The following notice and disclaimer applies to this investor presentation (Presentation) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By accepting this Presentation
Slide 3: Legal Disclaimer (Cont.)
Legal Disclaimer (Cont.) Effect of rounding A number of figures, amounts, percentages, estimates and calculations of value in this Presentation are subject to the effect of rounding. Forward-looking statements For personal use only This Presentation contains certain “forward looking statements” that
Slide 4: Investment Highlights
Investment Highlights World leading provider of state-of-the-art counter-drone solutions and electronic warfare systems used Leader in Counter-drone in a diverse array of critical end markets For personal use only Proprietary AI-based Full-scale hardware and SaaS offering used to detect, assess, and
Slide 5: Executive Summary
Executive Summary • Founded in 2014 and listed on the ASX in 2016, DroneShield provides Artificial Intelligence platforms for protection against drones DroneShield • Hardware and software to detect and safely neutralise small drones used for warfare, terrorism, contraband delivery, Overview and airp
Slide 6: 1Q24: Continuing the Growth
1Q24: Continuing the Growth • 1Q24 revenues of $16.4 million, up 10x vs 1Q23 ($1.6 million) – Exceptional ongoing momentum, following reaching $9.3m profit after tax in 2023 • 1Q24 customer cash receipts of $7.1 million, up vs 1Q23 ($7 million) – Highest ever March quarter For personal use only • Th
Slide 7: Rapid Profitable Growth ($m, Dec YE)
Rapid Profitable Growth ($m, Dec YE) The business is accelerating its rate of growth, and is now profitable Strong Revenue Growth ($m) Cash Receipt Growth (Sales + Grants) ($m) For personal use only 55.1 73.5 ~10x growth over Q1 2023 16.9 16.5 10.6 14.8 15.6 3.6 5.6 5.4 7.0 7.1 1.2 1.6 1.8 3.7 2018
Slide 8: DroneShield "Secret Sauce"
DroneShield “Secret Sauce” C-UAS pioneer, full in-house suite of multi-mission products, culture of innovation and deep channels to market Market leading, differentiated technology Complete product, integration and geographic coverage For personal use only All hardware (except radar and camera) deve
Slide 9: Deep and High Quality Government Customer Pipeline
Deep and High Quality Government Customer Pipeline (as at 31 March 2024) Multiple projects at each development stage improve predictability of cashflows 6-18 months from lead to sale, but can be much shorter for repeat orders For personal use only P-Go vs P-Win Credible Lead (10%) Confirmed Probabil
Slide 10: 2024 Pipeline of $375m, with a further $145m tracked for 2025+
2024 Pipeline of $375m, with a further $145m of projects tracked for 2025+ (as at 31 March 2024) USA continues to be the major contributor to the sales and is the primary focus for the business, however the global pipeline is also growing rapidly For personal use only 2024 Pipeline: $226m / 43 proje
Slide 11: Explosive Growth Based on a Strong Foundation
Explosive Growth Based on a Strong Foundation 2014-2017 2018-2022 2023 2024-2028 Building the Foundation “Green Shoots” Explosive Growth Transforming to Next Level • Setting up in Australia and • Multiple $1m+ orders • $33m U.S. Govt sale • 5-year target*: For personal use only US • $3.8m 2-year R&D
Slide 12: Geopolitical Environment Providing Market Tailwinds
Geopolitical Environment Providing Market Tailwinds Increased expenditure by Western Governments in response to small drones being used in virtually all conflicts globally – Iran’s current attack on Israel reportedly using over 100 drones (details being confirmed) For personal use only – US DoD prop
Slide 13: DroneShield Overview
For personal use only DroneShield Overview
Slide 14: Market Pioneer in Counter-Drone Technology at the Forefront of Innovation
Market Pioneer in Counter-Drone Technology at the Forefront of Innovation Complete Multi-Mission Counter-Drone Arsenal with the Best Product for Every Scenario Body-Worn Vehicle / Stationary Fixed Site For personal use only DroneGun DroneSentry-X DroneGun Mk3 DroneGun Mk4 RfPatrol Mk2 DroneCannon Rf
Slide 15: How a Counter-Drone System Works
How a Counter-Drone System Works DroneShield Performs all steps of the Process Step 1 Step 2 Step 3 Step 4 For personal use only Detect Assess Respond Review Machine Learning and AI based Respond / defeat technologies offer Review by visualizing event data and Bespoke sensor solutions provide optima
Slide 16: Counter-Drone Detection Solutions
Counter-Drone Detection Solutions DroneShield uses Multi-sensor Drone Detection for Optimal Results, Unaffected by time of Day or Weather Radio Frequency Radar* Cameras* Acoustic* For personal use only Imagery • Electro-Optical (EO), Infrared • Foundational layer • Motion tracker - emits signals (IR
Slide 17: Counter-Drone Defeat Solutions
Counter-Drone Defeat Solutions DroneShield uses smart jamming which has advantages over other technologies, particularly, in its use across civil and military applications, and does not compete against large Defence Primes Large Defence Primes For personal use only Exotic Tech, Dominance Area Safe –
Slide 18: At a Critical Inflection Point, capitalizing on numerous Growth Vectors
At a Critical Inflection Point, capitalizing on numerous Growth Vectors For personal use only Continue Market Grow Adjacent Accelerate SaaS Expand into Adjacent Strategic Alliances & Future Contracts Leadership & Expand Electronic Warfare Subscriptions Markets Partnerships Wallet Share (EW) Capabili
Slide 19: Exceptional Brand and Differentiated Market Position
Exceptional Brand and Differentiated Market Position For personal use only Origin Integrator - - - - Most extensive DETECT product range on the market Dismounted - - - - - - - - Vehicle - - - - Unrivaled versatility Fixed Site - - from handheld to fixe
Slide 20: Capital Raising
For personal use only Capital Raising
Slide 21: Capital Raising Overview
Capital Raising Overview DroneShield is raising approximately $75 million via an approximately $70 million fully underwritten Placement and a non-underwritten $5 million SPP For personal use only • Fully Underwritten Placement to raise approximately $70 million under the company’s existing placement
Slide 22: Capital Raising and Use of Funds
Capital Raising and Use of Funds PRO-FORMA FUNDING $M CAPITAL RAISE USE OF FUNDS $M For personal use only Cash Balance1 $56.4 Inventory Build up of inventory to support strong pipeline of high-quality Capital Raised2 $75.2 customer opportunities, including: • Handheld detection systems (RfPatrol Mk2
Slide 23: Offer Timetable
Offer Timetable Indicative capital raising timetable1 Date (AEST) For personal use only Record date for SPP 7:00pm, Wednesday, 17 April 2024 Trading Halt, Announcement of Capital Raising and Bookbuild Opens Thursday, 18 April 2024 Trading Halt Lifted Monday, 22 April 2024 SPP Information Booklet and
Slide 24: Risk Factors
For personal use only Risk Factors
Slide 25: Key Risks
Key Risks For personal use only The Company’s growth and financial performance is dependent on its ability to successfully execute its growth strategy. Business Strategy If the Company fails to execute on its business strategy, its business, financial condition and results of operations could be Ris
Slide 26: Key Risks (continued)
Key Risks (continued) A portion of the Company’s revenues may depend on the Company’s ability to do business with the U.S. as well as foreign governments and their various agencies, whether directly or indirectly. Such customers may: • award or terminate contracts at their convenience; For personal
Slide 27: Key Risks (continued)
Key Risks (continued) The Company stores data in its own systems and networks and also with a variety of third-party service providers. Exploitation or hacking of any of these systems or networks could lead to corruption, theft or loss of the data which could Data Loss, Theft or have a material adve
Slide 28: Key Risks (continued)
Key Risks (continued) There are no limits on strategies that the Company may pursue. The strategy may evolve over time for reasons including but not limited to, market developments and trends, technical challenges, the emergence of new or enhanced technology, Strategies changing regulation and/or in
Slide 29: Key Risks (continued)
Key Risks (continued) Changes in the general economic climate in which the Company operates may adversely affect the financial performance of the Company and the value of its assets. Factors which contribute to that general economic climate include: • contractions in the world economy or increases i
Slide 30: Key Risks (continued)
Key Risks (continued) A substantial part of the Company's commercial success is dependent on its ability to establish and protect its intellectual property, maintain trade secret protection, and operate without infringing third party rights. There can be no guarantee that the Company ’s patents are
Slide 31: International Offer Restrictions
For personal use only International Offer Restrictions
Slide 32: International Offer Restrictions
International Offer Restrictions Cayman Islands No offer or invitation to subscribe for New Shares may be made to the public in the Cayman Islands or in any manner that would constitute carrying For personal use only on business in the Cayman Islands. European Union (excluding Austria) This document
Slide 33: International Offer Restrictions (Cont.)
International Offer Restrictions (Cont.) New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the For personal use only “FMC Act”). The New Shares are not being offered or sold in New Zealand (
Slide 34: International Offer Restrictions (Cont.)
International Offer Restrictions (Cont.) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom For personal use only and no prospectus (within the meaning of section 85 of the Financi
Slide 35: Placement Agreement Summary
For personal use only Placement Agreement Summary
Slide 36: Placement Agreement Summary
Placement Agreement Summary DRO has entered into an undesrwriting agreement with the Joint Lead Managers in respect of the Placement (Placement Agreement). The Placement Agreement contains representations and warranties and indemnities in favour of the Joint Lead Managers. Details of the fees payabl
Slide 37: Placement Agreement Summary (Cont.)
Placement Agreement Summary (Cont.) (b) ASIC (i) makes an application for an order under Part 9.5 of the Corporations Act in relation to the Placement; (ii) commences, or gives notice of its intention to commence, any investigation or hearing under Part 3 of the Australian Securities and Investments
Slide 38: Appendices
For personal use only Appendices
Slide 39: Urgent Need for Counter-Drone Solutions Across Both Military & Civilian Sectors
Urgent Need for Counter-Drone Solutions Across Both Military & Civilian Sectors The Rapid Proliferation of Drones has Escalated the Potential for Disruptive Incidents… For personal use only Commercial Airspace Payload Delivery Intel Gathering Swarms Nuisance Activity Cyber Attacks Deepening the Dema
Slide 40: Benefits and Applications of Safe, Layered, Counter-drone Systems over Kinetic Systems
Benefits and Applications of Safe, Layered, Counter-drone Systems over Kinetic Systems Safe Counter-drone Systems Have Many Advantages over Kinetic Counter-drone Systems, which are only Practical for Deployment in War-like Scenarios For personal use only Avoidance of Collateral Evidence for Legal Mu
Slide 41: 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 the densest parts of the Radio Frequency (“RF”) Spectrum with “noise” coming from all kinds
Slide 42: DroneOptID AI Software – Optical and Thermal Spectrum
DroneOptID AI Software – Optical and Thermal Spectrum Counter-drone Surveillance DroneShield’s DroneOptID 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 a
Slide 43: Cutting-Edge Proprietary AI-Based Software Capabilities
Cutting-Edge Proprietary AI-Based Software Capabilities For personal use only Advanced Computer Vision & ML to detect and track drones in complex environments Sophisticated, Proprietary Algorithms to enhance real-time threat analysis and response Substantial & Growing Threat Database leverages 35,00
Slide 44: 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 45: Visionary Team of Industry Veterans with Deep Industry Experience
Visionary Team of Industry Veterans with Deep Industry Experience Peter James Oleg Vornik Jethro Marks Carla Balanco Red McClintock Tom Branstetter For personal use only Independent Non-Executive CEO and Managing Director Independent Non-Executive CFO and Joint Company Sales Director U.S. Director o
Slide 46: Pro Forma Capital Structure
Pro Forma Capital Structure Pro Forma Capital Structure (excl. SPP Proceeds) Research Coverage DRO Shares on Issue 616,503,611 For personal use only Placement Shares to be Issued 87,776,916 Amount raised under the Placement $70,221,532.80 Shares on Issue (post-Offer) 704,280,527 DRO Options on Issue
Slide 47: DroneShield Limited
For personal use only Artificial Intelligence For Multi-Mission C-UxS DroneShield Limited (ASX:DRO) Investor Presentation Oleg Vornik CEO and Managing Director oleg.vornik@droneshield.com +61 2 9995 7280