Coda Octopus Group, Inc. · NASDAQ:CODA
Coda Octopus — Investor Presentation (July 2019)
44 slides from Coda Octopus's investor presentation, Jul 26, 2019
Slide 1: Coda Octopus Group, Inc. Corporate Presentation July 2019
of\ Coda Octopus G up; Inc. Z BEN CODA OCTO World Leader in Sound Underwater Technology Corporate Presentation July 2019
Slide 2: 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-looking statements include, without limitation, sta
Slide 3: Overview
Overview Established business with strong pedigree in marine products and defense engineering: Products Business Market leader in real-time 3D imaging sonar technology for multiple subsea defense and commercial applications. World's only real-time sonar technology - “seeing both static and — moving
Slide 4: Financial Snapshot
Coda Octopus Group,ine: Financial Snapshot ANNUAL FY 2015 Fy 2016 FY 2017 FY 2018 FQ1-2 2019 Revenues $19,234,396 $21,118,319 $18,025,173 $18,019,429 $12,541,780 Net Income $1,070,291 $4,930,548 $3,339,663 $3,102,899 $3,634,885 EBITDA $2,309,215 $6,348,022 $4,771,643 $4,069,175 $4,093,565 Earnings p
Slide 5: Coda Octopus Products – Marine Products Business
Product Design & Manufacturing 24/7 Support and 3D Field Experts Coda Octopus Products Marine Products Business Research Development and Innovation Software Application and | Custom Development
Slide 6: Products sales channels and services
Products Product sales occur primarily through two channels: Direct Sales: Most sales occur through our Sales teams in both the U.S. and U.K. Agents: We also use a wide network of third party agents to expand our reach around the world Services Our engineering services are primarily sold through: Pr
Slide 7: Family of Volumetric Sonars
Ss a Senet led ees of Volumetric Sonars Echoscope““® Deep Water Echoscope**® Echoscope**® C500 Compact Edition SWaP (Size, Weight and Power) Seeing & Measuring in Real-Time 3D in Zero Visibility Conditions Underwater = 7
Slide 8: Coda Real-Time 3D workflow benefits
Coda Real-Time Coda Octoptis Group; Inc. Improved process with faster deliverables to client Reduced project costs, including non-productive time Complete end-to-end workflow to capture, measure and document Increased safety and awareness Improved Quality Control Simplified subsea tasks Deskilling a
Slide 9: Sample Echoscope Project ROI Snapshots
Coda Octopus Group, Inc. Coda Real-Time 3D Technology Sample Echoscope Project ROI Snapshots >100% $ Productivity rates In cost savings s 2 0] 0 y 7 6 N ire} © Sleepers placed Visibility Conditions Blocks placed per day per day UTEC DEME Rock Dumping Oilfield Development ditions lity and wired ZADCO
Slide 10: 3D Product Line: Competing Technology is No Comparison
3D Product Line Competing Technology is No Comparison Pelican Island Causeway, Galveston Echoscope® 3D Real-Time Imaging Sonar Real-Time 3D Imaging AND Real-Time Mapping — see the shadows disappear! Client deliverables complete in 54 seconds... 3D Multibeam Produces static map after hours or days of
Slide 11: 3D Product Line: What is the key USP?
3D Product Line What is the key USP? ba) a =< -eEv. =" 3D Complex “Mapping 3D Camera Mode “| No Post Processing Unique World's most diverse, functional and capable 3D sonar solution...
Slide 12: Delivering on Everyday Challenges Subsea
3D Product Line Delivering on Everyday Challenges Subsea Complex Asset Placement — Alaska Monopod Installation + Four Echoscopes® used to provide real-time visualization of landing site and control stabilization for crane operators + Software ‘models’ provided real-time indication of distance and al
Slide 13: Mineral Mining and Marine Construction
3D Product Line Mineral Mining - Diamonds * Operator can “see” exactly where each cut has taken place + No overlapping of cuts * Significant productivity benefit Marine Construction - Breakwaters Echoscope® is the No. 1 preferred solution for subsea placement Crane operator can “see” and “track” and
Slide 14: Strong Culture of IP
Strong Culture of IP ‘al Product Package + Patents cover the spectrum of software and hardware capabilities of Coda Octopus Group's unique real-time 3D technology + Proprietary hardware and software are the complete system; components do not function independently + Further de-risked by trade-secret
Slide 15: Real-Time Hazards
Real-Time Hazards Complex Structure wr mon , - 5 = ee Gi = Target ID
Slide 16: Commercial Applications
Commercial Applications Marine and Port Construction, Renewables, Research, Educational Institutions, and Oil and Gas 16
Slide 17: Marine Products Business customers
Marine Products Business Military & Defense Including 30 US Ports & Enforcement Bodies End User Customers SN Mobil Chevron ual Orsece Bt SAPEL Service Providers (Hameema Technip eee th GRe i Boskalis - = ———— subsea 7 Van Oord "A ; Marine ingenuity Additional De Beers Group oF ComPANtes BIBBY OFFSHO
Slide 18: 3D Real-Time Echoscope Technology Advantage
Tal 1 3D Real-Time Echoscope Technology Advantage , L io l ; | eRemoves _ thus significantly and of common tasks *Enhances Safety, again by removing *Facilitates near impossible missions without Provides the vehicle for the ocean floor (f 18
Slide 19: Key Growth Market: Defense and Law Enforcement
Key Growth Market BS Defense, Navy Activities, Law Enforcement and Coast Guards + Search & Rescue and Recovery Missions + Asset Identification & Reacquisition + See & Identify Targets and Hazards + Record & Map to gather intelligence and analyze threats & hazards, before committing higher value asse
Slide 20: Real-Time 3D Imaging in Navy and Defense Applications
Coda Octopus/Group, Inc. Real-Time 3D Imaging in Navy and Defense Applications 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® tech
Slide 21: Case Example: NAVSEA, NSWC PCD
Case Example QS Naval Sea Systems Command (NAVSEA), NSWC PCD A Navy Cooperative Research and Development Agreement (CRADA) with Naval Surface Warfare Center, Panama City Division (NSWC PCD), for the multi-generation development of the Divers Augmented Vision Display-Head Up Display System (DAVD-HUD)
Slide 22: Case Example
coda Sa... Zo Ba Case Example Survey Data and “TIRE” Test Target JSO Boat Dock Facility — , Concrete Pilings 22
Slide 23: Case Example
Case Example N |. 23
Slide 24: Value Drivers
Value Drivers esr 9 + First mover in innovating and 1 commercializing real-time 3D sonar technology for the subsea market ** Strong and growing global customer base and expanding market applications, including precious gem mining and : . = offshore renewables + No other commercially available : ‘ <
Slide 25: 4G and 5G sonar product generations
+ Fourth Generation (4G) and Fifth Generation (5G) * Goal: Standardize proprietary real-time 3D imaging of Coda Octopus’ proprietary, industry-leading sonars, in different form factors, across existing and real-time 3D sonar technology new subsea markets + All 4G Hardware Products Have Been Launched
Slide 26: Addressable Sonar Market: Drivers for growth
Addressable Sonar Market* Drivers for growth “With the development of computer information technology, the use of computer information technology to process SONAR signals has greatly improved the scope of SONAR technology. SONAR beamforming, signal processing, target tracking and identification, sys
Slide 27: Addressable Sonar Market by sector
Addressable Sonar Market* d FY 2022 Coda “Moder warfare has gradually evolved from mechanized warfare to informational warfare. The main task of information warfare evolved to acquire manage, use and control all kinds of information REVENUE/ FY2018 FY2019 FY2020 FY 2021 SECTOR Scientific $598M $641M
Slide 28: Addressable Sonar Market by sonar type
Addressable Sonar Market* REVENUE/ SONAR TYPE 2018 2019 2020 2021 2022 2023 2024 2025 2026 Multi-Beam $1.020B $1.094B $1.172B $1.254B $1.350B $1.468B $1.574B $1.679B $1.814B Single Beam S467M $498M $537M S566M S$604M S$641M $682M $727M $771M Synthetic Aperture $254M $273M $296M $319M $347M $376M $40
Slide 29: Main Competitors in Sonar Market
Main Competitors in Sonar Market "aN Main Players* Lockheed Martin Ultra Electronics L3 Harris Technologies Thales Group Raytheon Company ThyssenKrupp Marine Systems Kongsberg Gruppen Faruno Electric Northrop Grumman Teledyne Technologies Sonardyne 2.12% Japan Radio Co 2.06% “Source: “Global SONAR S
Slide 30: Engineering Business: Defense Products
a ; - [EEN : ~ Customized Rugged: Solutions. "—__ Mission Critical Integrated Systems \O= ca =, ay c 9 Advanced Signal OCeeaed ° lObsolgaae e Management of Posey > fense Products
Slide 31: Key Markets
Key Markets Sub-Contractor to the U.S. DoD 31
Slide 32: Defense customers
OP GRUMM Raytheo ORBCGMM’ ; | wa) YY wi Tada U.S. AIRFORCE NortHAMERICAN ye Endeavor ROBO hes.
Slide 33: Two new funded defense programs added to Colmek's portfolio
Two 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-tail recu
Slide 34: Thermite 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 USS. Military Ally
Slide 35: Martech product design and manufacturing
Fie Spier Watchdog © he " . Be i} | — _ Product Design and Subsea and Harsh Environment Manufacturing Design a 65 Test, Instrumentation and Control — Obsoles nce Management of Legacy Defense Products Ne Nee
Slide 36: Customers
oy Coda Octopts’ Inc. Customers Located in Portland, Dorset, UK. Martech follows the same model as Colmek. THALES SIEMENS Ri ATLAS ELEKTRONIK inv GRUNDFOS 7. 36
Slide 37: 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 decontaminate pilot helmets that have come in contact with chemical weapons Contracted for two new units, at approxima
Slide 38: Operations
Operations ae] Coda Octopus Products Pty Ltd. Perth (Australia) 38
Slide 39: Management
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 spent two years assisting
Slide 40: Management
Coda Octopus Group ~ Management Blair Cunningham — President of Technology; Chief Executive Officer of Coda Octopus Products, Inc.— U.S. Mr. Cunningham has been with the company since July 2004 and has had a number of roles including his current position of President of Technology and CEO of Coda Oc
Slide 41: Board of Directors
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 2011; assisted with the res
Slide 42: Management: Mary M. Losty
Coda Octopus Group Management Mary M. Losty - Director— U.S. Ms. Losty has been a member of Coda’s Board of Directors since July 2017. Ms. Losty is a private investor in both U.S. equities and real estate. Her career includes serving as a Partner at Cornwall Asset Management LLC, a U.S. portfolio ma
Slide 43: Management: G. Tyler Runnels
Coda Octopus Group Management G. Tyler Runnels- Director— U.S. Mr. Runnels 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 investment banking experience inclu
Slide 44: Coda Octopus Group, Inc.
A of Coda Octoptis Group; Inc. Tf CODA OCTOPUS GROUP, INC. World Leader in Sound Underwater Technology NASDAQ: CODA www.codaoctopusgroup.com Investor Relations: MDC Group Contact: David Castaneda (414) 351-9758 / IR@codaoctopus.com
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