Defsec Technologies Inc. · TSXV:DFSC
Defsec Technologies — KWESST Micro Systems — Investor Presentation (June 2023)
23 slides from Defsec Technologies's investor presentation, Jun 26, 2023
Slide 1: Next-Generation Tactical Technologies for Military and Public Safety
NASDAQ and TSX.V: KWE NEXT-GENERATION TACTICAL TECHNOLOGIES FOR MILITARY AND PUBLIC SAFETY INVESTOR UPDATE JUNE 26, 2023
Slide 2: Disclaimer
Disclaimer Non-Reliance ‘This presentation does not provide full disclosure of all material facts relating to KWESST Micro Systems Inc, or its securities, and is not subject to liability for misrepresentations under applicable securities legislation. General ‘This presentation is property of KWESST
Slide 3: Focused on three high-growth niche global market segments
Focused on three high-growth niche global market segments. New breakthrough technology for public safety and realistic training. In each segment KWESST has a technology advantage, deep experience and a history of engagement with customers and industry partners. 2
Slide 4: Leadership
LEADERSHIP JeffMacLeod Jeff MacLeod Founder, President, CEO and Board Member Jeff MacLeod is a former Canadian RCEME officer and served as Systems Engineer for three major Army Crown Projects before moving to the private sector. For almost twenty years he was General Manager of Diemaco/Colt Canada.
Slide 5: Leadership
LEADERSHIP Sean Homuth Chief Financial Officer and Chief Compliance Officer Sean Homuth is a senior financial executive with more than 20 years of experience working with both Canadian and U.S. public companies across a broad range of industries. He has experience with a variety of financing (equity
Slide 6: Key customer engagement, go-to-market partners, and operating model
Key customer engagement, go-to-market partners, and operating model Portable, outsourced manufacturing model. ITAR free*. • International Traffic in Arms Regulations is a United States regulatory regime to restrict and control the export of defense and military related technologies to safeguard U.S.
Slide 7: Next-generation shared, real-time situational awareness technologies
Next-generation shared, real-time situational awareness technologies for military and public safety agencies.
Slide 8: General Dynamics Mission Systems-Canada engaged KWESST's digitization Center of Excellence
§ General Dynamics Mission Systems-Canada subsequently engaged KWESST’s digitization Center of Excellence to help develop a showcase next-generation digitized soldier system for the Canadian Army, first demonstrated at CANSEC 2022. 76
Slide 9: Digitization – extended to weapons systems
DIGITIZATION – extended to weapons systems § Military “Joint Fires” programs throughout NATO entail networked digital fire control systems on legacy weapon platforms, and on new ones. § Above – KWESST’s digital fire control system on 81mm mortar for USMC, converts many legacy weapons into modern pre
Slide 10: Digitization – public safety market
DIGITIZATION – public safety market Lack of shared real-time information the missing piece in Critical Incident Management. KWESST digitization system connects all personnel and assets to each other, integrated into TAK for automatic interoperability within and between agencies. 8
Slide 11: Next-generation counter-measures against electro-optical threats
Next-generation counter-measures against electro-optical threats in the modern battlefield
Slide 12: Counter-Threat – Battlefield Laser Detection System (BLDS)
COUNTER-THREAT – Battlefield Laser Detection System (BLDS) Modern armored vehicles typically carry an electro optical pod on the turret. Above: KWESST compact vehicle mounted or tripod laser detection system: § Detects, discriminates and locates battlefield lasers. At left: miniaturized, proprietary
Slide 13: Counter-Threat – Electro Magnetic Spectrum Operations (EMSO)
COUNTER-THREAT – Electro Magnetic Spectrum Operations (EMSO) PhantomTM patented EMSO device Version 1.0 portable electronic decoy and Electronic Warfare (EW) trainer. Emulates Radio Frequency (RF) communications to spoof adversaries with ”phantom” signals. § Selected by General Dynamics Land Systems
Slide 14: Non-Lethal
NON-LETHAL Breakthrough in new, proprietary non-lethal munitions system for public safety and close quarters combat simulation.
Slide 15: Non-Lethal PARA OPS – launched at SHOT Show 2023
NON-LETHAL PARA OPSTM NEW – launched at SHOT Show 2023, January, Las Vegas A universal non-lethal system for public safety and close-quarters combat simulation training. A next-generation replacement for most less-lethal systems on the market today A patent-pending (U.S. # 16/669,420) non-lethal low
Slide 16: Solves the problem of dated legacy systems
NON-LETHAL Solves the problem of dated legacy systems on the market today that are either high-energy and potentially lethal or are air-gun based and can be unreliable. 12
Slide 17: Leveraging KWESST's expertise in non-lethal systems
NON-LETHAL Leveraging KWESST’s deep expertise, proprietary technology, industry knowledge and global distribution relationships in non-lethal systems. Current status § Out-sourced production facilities in place, Youngsville, NC and Rochester, NY. § Low Rate Initial Production (LRIP) underway for fir
Slide 18: Contracts and Outlook
CONTRACTS AND OUTLOOK Transitioning from $35M investment in technology development to commercialization, with revenue ramp-up this year and multi-year contracts in place by year-end (Sep 30) primarily from Digitization.
Slide 19: Key Contracts to Date
KEY CONTRACTS TO DATE § $136M 5-year contract with joint venture partners Thales Canada and Modis Canada for digitization software development for Canadian Department of Defence (“DSEF” contract), with 5 additional option years. KWESST’s component of the contract estimated at $4M+ per year (awarded
Slide 20: Key Opportunity Pursuits
KEY OPPORTUNITY PURSUITS Further to general business updates as press released December 12th, 2022 and April 3rd, 2023. § Teaming agreement signed with global prime defense contractor and tender submitted for contract similar to DSEF, for digital Command, Control, Communications, Computers, Intellig
Slide 21: Capital Structure
CAPITAL STRUCTURE
Slide 22: Cap Table as at June 26th, 2023
CAP TABLE As at June 26th, 2023 Warrants listed on Nasdaq, symbol KWESW and on TSX Venture Exchange, symbol KWE.WT.U 16
Slide 23: David Luxton, Executive Chairman; Sean Homuth, Chief Financial Officer
David Luxton, Executive Chairman Sean Homuth, Chief Financial Officer EMAIL: luxton@kwesst.com EMAIL: homuth@kwesst.com PHONE: (613) 769-5353 PHONE: (613) 863-1255 FEBRUARY
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