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July 2025 Unlocking the Future of Uncrewed Connectivity Elsight Limited (ASX:ELS) Capital Raising Presentation For personal use only
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Not an offer or financial product advice The Presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in the Company nor does it constitute financial product advice. The Presentation is not a prospectus, product disclosure statement, pathfinder for the purposes of section 734(9) of the Corporations Act 2001 (Cth) or other offer document under Australian or New Zealand law or under any other law. The Presentation has not been filed, registered or approved by regulatory authorities in any jurisdiction. The Presentation is not intended to be relied upon as advice or a recommendation to investors and does not take into account the investment objectives, financial situation, taxation situation or needs of any particular investor. An investor must not act on the basis of any matter contained in the Presentation but must make its own assessment of the Company and conduct its own investigations and analysis. Investors should assess their own individual financial circumstances and consider talking to a financial adviser, professional adviser or consultant before making any investment decision. Information purposes only The Presentation is for information purposes only. It provides an overview of the Company but may not contain all information necessary to make an investment decision. The Presentation is of a general nature and does not purport to be complete or verified by the Company or any other person. The Company does not have any responsibility or obligation to inform you of any matter arising or coming to their notice, after the date of the Presentation, which may affect any matter referred to in the Presentation. The information in the Presentation is subject to change without notice. Past performance Past performance is not indicative of future performance and no guarantee of future returns is implied or given. No guarantee, representation or warranty While reasonable care has been taken in relation to the preparation of the Presentation, none of the Company or their respective directors, officers, employees, contractors, agents, or advisers nor any other person (Limited Party) guarantees or makes any representations or warranties, express or implied, as to or takes responsibility for, the accuracy, reliability, completeness or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in the Presentation. No Limited Party represents or warrants that the Presentation is complete or that it contains all information about the Company that a prospective investor or purchaser may require. To the maximum extent permitted by law, each Limited Party expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of or reliance on information contained in the Presentation including representations or warranties or in relation to the accuracy or completeness of the information, statements, opinions, forecasts, reports or other matters, express or implied, contained in, arising out or derived from, or for omissions from the Presentation including, without limitation, any financial information, any estimates or projections and anyother financial information derived therefrom. Forward-looking statements The Presentation includes forward-looking statements and comments about future events, including the Company’s expectations about the performance of its businesses. Forward- looking words such as “expect”, “should”, “could”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” or other similar expressions are intended to identify forward- looking statements. Such statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company and which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Forward-looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance. Given these uncertainties, recipients are cautioned to not place undue reliance on any forward-looking statement. Subject to any continuing obligations under applicable law, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in the Presentation to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statement is based. No Limited Party or any other person makes any representation, or gives any assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in the Presentation will occur. Important Disclaimers and Notices This disclaimer applies to this presentation and the information contained in it (Presentation). By reading this disclaimer you agree to be bound by it. The Presentation has been prepared by Elsight Limited and all related bodies corporate (Company). For personal use only
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Elsight Overview ›Proprietary, world-leading connectivity solution for Beyond Visual Line of Sight (BVLOS) unmanned systems that offers unhindered freedom of maneuver anywhere, anytime, without loss of communication. ›Flagship product, “Halo” is a core embedded communications solution in a wide range of high-growth drone platforms at early development stages. 1H CY25 Performance ›US$16.25m in new contracts won in 1H CY25 produces record 1H CY25 revenue of US$4.8m (+340% vs pcp) with backlog of US$11.45m to be delivered in 2H CY25. ›Cash flow positive in 1H CY25 and expected to achieve profitability in 2H CY25. Competitive Advantage ›The only multi-link solution intelligently bonding all available communications. ›Battlefield-proven, operational, and validated by leading defence drone OEMs in mission-critical deployments, where reliability, redundancy, and uptime are non-negotiable. ›High switching costs associated with Halo foster strong customer retention as the commercial drone market expands. Business Model ›High-margin Halo System - averaging ~78% gross margins. ›Data Usage, targeting ~51% gross margins. ›Cloud Services & SLAs, targeting ~71% gross margins. ›Targets defence primes and OEMs (e.g., Lockheed Martin) and global high-growth commercial drone companies. Pipeline & Outlook ›Booming global defence budgets have accelerated adoption of unmanned systems. ›Current opportunity in defence underpinned by medium-term growth in the commercial drone market and ongoing growth coming from new product development ›Existing contract manufacturers' production capacity supports US$70M in annual revenue. A growing pipeline of realizable direct sales opportunities outlines rapid growth. Capital Raising ›A$60.0m (US$39.0m) capital raising via an Institutional Placement. ›Net proceeds will be dedicated towards sales and marketing to capitalize on untapped market opportunities as well as product development opportunities and flexibility for inorganic growth. ›Upon completion, Elsight will have pro forma cash of A$71.5m (US$46.5m) Immediate strategic focus on drone defence market followed by expansion of sales through “design-win” strategy Executive Summary For personal use only
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Proprietary world-leading connectivity solution for Beyond Visual Line of Sight (BVLOS) unmanned systems Uniquely positioned to capitalise on growth in unmanned system usage, driven by a surge in global defence budgets, growing prominence of drone warfare, and commercial drone market advancement. Strong contract momentum: ›US$16.25m in new contracts won in 1H CY25 ›Record 1H CY25 revenue of US$4.8m (+340% vs pcp) ›Backlog of US$11.45m to be delivered in 2H CY25 Cash flow positive in 1H CY25 and expected to achieve profitability in 2H CY25 $151m Pipeline of Realisable Opportunities outlines rapid growth opportunity Existing production capacity supports US$70m in annual revenue. No additional capex investment required. High-margin business model; ›Halo Hardware (chip unit sales), averaging ~78% gross margins; ›Data Usage, targeting ~51% gross margins; and ›Cloud Services & SLAs, targeting ~71% gross margins Defence expected to underpin strong growth over the next 12 to 24 months followed by expansion of the larger commercial market opportunity High-margin sales pipeline with supporting structural tailwinds Investment Highlights For personal use only
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Commentary ›Revenue in 1H 2025 (US$4.8M) exceeds FY24 revenue by 137% ›US$11.45M of additional contracts in backlog to be delivered in CY25 ›No additional capex required to deliver backlog of contracts in CY25 ›677% increase in cash receipts in 1H25 vs pcp, driven significantly by contract payment terms and cash received ahead of delivery ›Positive operating cash flow in 1H CY25 driven by a combination of up-front payments, high operating leverage, and high margin products Source ›Unaudited numbers from the company accounts Cash Receipts (US$M) 1H CY25 results highlight strengths of Elsight’s business model. US$151M pipeline expected to drive high margin sales ongoing growth over 2025 and 2026 Rapid Profitable Growth Contract backlog to be delivered in 2H25 Revenue Growth (US$M) Operating Cashflow (US$M) $4.8 $0.6 $0.8 $1.5 $2.0 $16.25 $0 $5 $10 $15 $20 2021 2022 2023 2024 2025 1H Revenue 2H Revenue -$5.9 -$3.7 -$2.2 -$1.8 $5.95 -$5.9 -$3.7 -$8.0 -$6.0 -$4.0 -$2.0 $0.0 $2.0 $4.0 $6.0 2021 2022 2023 2024 2025 1H Operating Cash Flow 2H Operating Cash Flow $0.5 $1.3 $2.4 $9.2 $1.0 $0 $2 $4 $6 $8 $10 $12 2021 2022 2023 2024 2025 1H Cash Receipts 2H Cash Receipts $4.8 $0.6 $0.8 $1.5 $2.0 $16.25 $0.0 $5.0 $10.0 $15.0 2021 2022 2023 2024 2025 1H Revenue 2H Revenue Contract backlog to be delivered in 2H25 Revenue Growth (US$M) Cash Receipts (US$M) $9.2 $0.5 $1.0 $1.3 $2.4 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2021 2022 2023 2024 2025 1H Cash Receipts 2H Cash Receipts Cash Receipts (US$M) $9.2 $0.5 $1.0 $1.3 $2.4 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2021 2022 2023 2024 2025 1H Cash Receipts 2H Cash Receipts $5.95 -$5.9 -$3.7 -$2.2 -$1.8 -$8.0 -$6.0 -$4.0 -$2.0 $0.0 $2.0 $4.0 $6.0 2021 2022 2023 2024 2025 1H Operating Cash Flow 2H Operating Cash Flow Operating Cashflow (US$M) For personal use only
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Accelerating Commercialisation For personal use only
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Booming Global Defence Budgets Global military expenditure reached $2.7 trillion USD in CY24, the highest year-on-year growth since the Cold War—up 9.4% YoY. Accelerated Adoption of Unmanned Systems Russia-Ukraine conflict has demonstrated how uncrewed systems are THE game- changer Regulatory Tailwinds in the US Trump’s Executive Order (June 2025) requires the U.S FAA to accelerate the integration of commercial technologies and fully integrate UAS into the US national airspace 0% 1% 2% 3% 4% 5% 2014 2024e New Nato Target 5% Old NATO Target 2% NATO members' defence expenditure as a % of GDP Source ›NATO PUBLIC DIPLOMACY DIVISION Global budgets, accelerated adoption, rising demand and regulatory tailwinds Strong Global Tailwinds in Commercial and Defence Uncrewed Market For personal use only
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Challenge Communication loss from interference, jamming, distance & line-of-sight issues Need Continuous, fail-proof communication for operational freedom The Halo platform provides uninterrupted resilient communication for unmanned aerial systems (UAS) in the world’s most challenging environments Introducing Halo Solution Elsight Halo ›The only multi-link solution intelligently bonding all available communications networks to a single pipe: ›Cellular (5G/LTE private/public), Radio (MANET/RF), Satellite (SATCOM) ›Proprietary software algorithms utilize the entire spectrum of frequencies and technologies, eliminating single points of failure. ›Battlefield-proven, operational, and validated by leading defence drone OEMs in mission-critical deployments, where reliability, redundancy, and uptime are non- negotiable ›Unprecedented field-proven experience with more than 400,000 mission hoursYouTube Logo PNG Symbol for Video Platform Transparent For personal use only
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Key Enabler for Unmanned Systems ➢Expanded successful mission range ➢UAV operators to control the mission from a remote, safe HQ ➢Management and control of a fleet of unmanned vehicles simultaneously ➢Uninterrupted live feeds; critical to surveillance, inspections and situational awareness in defence Complimented with Strategic Tailwinds ➢Booming global demand for unmanned platforms ➢Market shift towardconnected, resilient uncrewed systems ➢Elsight's unmatched field-proven reliability becomes mission-critical The Impact Reliable, long-distance, real-time data transmission for UAS and UAV Recent advances in UAS technology and expanded use in defence and commercial environments provide generational tailwinds for ELS and the HALO platform For personal use only
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Elsight is positioning Halo as a core embedded communications solution in high growth drone platforms. Elsight targets defence primes and OEMs (e.g., Lockheed Martin) and global high-growth commercial drone companies Halo is deeply integrated through rigorous testing and validation cycles, fostering strong customer retention and revenue growth as the drone market expands. Business Model and Commercialization Strategy High-margin, embedded communications systems for defence primes and OEMs customers developing UAS platforms Halo System Sale (78% gross margins) ›One-time revenue from the initial sale of the Halo system ›Includes Halo Hardware and access to Elsight's proprietary software and aggregation algorithm Allsight Cloud Service (Recurring Annual Revenue – 71% gross margins) ›Recurring revenue via monthly or annual plans ›Mandatory for every unit sold ›Provides up-sell opportunity for premium features ›Usage-based fees for cellular bandwidth aggregated across carriers ›Integration with third-party networks (e.g., LTE, 5G, Satellite) Data Usage (App-based – 51% gross margins, usage-driven) For personal use only
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Total of US$14.7M secured in 1H ’25 from European Defence OEM Defence Case Study Constant ongoing discussion for further expansion and additional features Contract highlights 80% gross margin 40% down payment in contract signature/ order received The remaining 60% paid before HW delivery An off-the-shelf Elsight product, which does not require any special customizations or R&D work. Total of two orders $108K $300K $4.3M $5.35M$5.1M 2H 2024 20 March 2025 9 April 2025 29 May 2025 4 June 2025 Initial production order Supply agreement Additional order from European defence drone OEM (total $9.63M) Additional order from European defence drone OEM (total $14.7M) Unforeseen sales increase due to increased product capability driven by Elsight’s Halo Updated contract reflects the customer’s success in securing new downstream clients Initial ramp - up to support broad operational deployment Initial production order for a strategic supplier of unmanned aerial systems Followed four months of extensive testing, confirming the technological superiority of Elsight’s product and positioning as the connectivity backbone of choice in today’s defense deployments Initial order for testing and evaluation For personal use only
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Growing use case of drones as a first responder (DFR) to solve the human resources challenge Commercial Case Study Initial testing commenced $19K December 2024 $133K Q1 2025 Announced as a design win customer Production scale contract expected Expanding operations Use Cases Drone as a first responder. Flock is currently selling to US Law Enforcement agencies, Fire Departments & Search and Rescue Authorities System Flock – Aerodome (Quadcopter) Company Information U.S.-based company specialising in public safety technology, recently expanding into drone operations. Private company recently valued at ~$7.5b. 80% gross margin 40% down payment in contract signature/ order received The remaining 60% paid before HW delivery The product does not require any special customizations or R&D work. Case Study Wins for Elsight For personal use only
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Identified Opportunity (Identified opportunity within ELS capability) Qualification (Customer needs, budget, timeline assessed; Customer reviewing product) Commercial discussion (Successful evaluation complete; Pricing, quantity and contract negotiation) Evaluation in progress (ELS successfully qualified; Received initial PO, currently testing product) $151.1 m $79.8 m $30.6 m $18.1 m $11.45 m contracted(Order backlog) Pipeline of Realisable Opportunities Notes: ›All numbers are in USD ›The pipeline is cumulative (e.g., the projects atthe Qualificationstage are included as part of the projects at the Identified Opportunity stage) ›There is no assurance that any of the Company's sales opportunities will result in sales ›US$151M pipeline of opportunities built with limited investment in sales and marketing ›Majority of the revenue acceleration over the next 18–24 months to be defence-driven ›Longer term, commercial market opportunity expected to exceed the defence market ›Flock Safety contract proves viability of design-win commercial customer strategy ›Elsight expects additional repeat or short-cycle orders outside this pipeline from existing design win customers limited sales effort ›In response to customer demand and defence sector tailwinds, Elsight is now investing in additional sales and marketing resources in the US and EU ›Pipeline expected to expand significantly over short term driven by additional sales and marketing investment, sector tailwinds and proven HALO technology advantages For personal use only
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North America ›The U.S. DoD FY26 budget of $850b includes more than $13.4b dedicated to autonomy and autonomous systems ›The United States Government's push to onshore critical supply chains presents a significant opportunity for Elsight ›To capitalize on the US defense shift, Elsight is establishing a local presence to fast-track procurement, enhance customer intimacy, and position as a trusted domestic partner Expanding direct sales model to execute on high value defence opportunities Commercialization Strategy Europe ›NATO defence spending aiming to enhance capabilities in; unmanned systems, artificial intelligence, and counter-drone technologies, reflecting lessons learned from recent conflicts and evolving warfare ›UK’s new 20-40-40 doctrine, Germany-led “Drone Wall” & Poland’s €20b Homeland Defence Act underpin surging demand for unmanned systems ›High engagement from key European governments supports the case for building a dedicated regional sales team to complement existing distribution and deepen penetration in strategic markets In H2, Elsight will establish a local footprint in both the EU and US by expanding its sales and marketing teams, adding a dedicated team in each region For personal use only
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Ultra-Simple Hardware – Universally Manufacturable Hardware intentionally designed for simplicity, allowing virtually any qualified electronics manufacturer to produce the products. Redundancy Built-In through Three Contract Manufacturers Ensures supply chain resiliency and redundancy Existing Capacity Supports $70m+ in Annual Sales No additional capital expenditure needed, allowing for significant organic growth without constraint. Doubling Capacity with Zero Capex – New EU (NATO country) Manufacturer in H2 CY25 In CY25, Elsight will onboard a new European (NATO country) contract manufacturer. This will: ›Expand total production capacity to $150m annually to support sales growth ›Bring manufacturing closer to key defence and commercial customers ›Further de-risk supply continuity through geographic diversification ›And importantly, the process requires no capital investment Elsight IP protected by 13 patents Elsight core IP of the company lies in the software, which is protected by 13 patents The smarts of the Elsight system are its proprietary algorithms and software technology Scalable, Capital-light Manufacturing Capacity For personal use only
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Elsight’s development roadmap is designed to evolve the Halo from a premium connectivity system into a central platform for intelligent, secure, uncrewed operations — unlocking recurring revenue streams, third-party integrations, and new market verticals. A major hardware upgrade adds enhanced onboard processing and edge compute capabilities, enabling AI at the edge and laying the foundation for onboard applications and services. Development of the Halo application platform AI-Driven Features Integration of onboard vision, advanced navigation, and real- time threat detection adds high- value functionality — turning Halo into an intelligence layer for unmanned missions, beyond connectivity alone. A secure, modular framework will allow third-party applications to run directly on Halo, making Elsight the hub of future uncrewed systems, increasing stickiness, and opening new SaaS revenue channels. Halo V2.0 – Smarter, More Powerful, Platform-Ready Opportunities to leverage existing data and platforms Technology Roadmap For personal use only
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Elsight has a strategic data asset which can be leveraged by AI systems to drive additional products and revenue streams Elsight has captured over 400,000 hrs of operational flight and drive hours across diverse, high-demand environments, accumulating one of the most robust rich datasets in the uncrewed systems space. Elsight’s dataset enables advanced training and deployment of proprietary AI models — from autonomy to threat classification. Opportunity to convert operational data into differentiated products, opening entirely new markets and product categories. The Era of Reliable Structured DATA to Leverage AI Algorithms For personal use only
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Expected Upcoming Milestones Key Recent Achievements Elsight is well-positioned to invest sales and marketing expansion and build on design-win momentum Outlook & Catalysts ›$14.7m of defence contract wins in 1H CY25 from leading European defence drone OEM ›Record 1H CY25 revenue of US$4.8M (+340% vs pcp) ›Cashflow positive for Q2 CY25 ›Repeat orders from 74 design-win customers during 1H CY25 2H CY25 ›Expansion of sales team to North America and Europe to accelerate pipeline growth ›Execution of $151m pipeline of opportunities, including; ›Expansion of existing defence supply agreements ›New defence customers added ›New design-win customers ›Follow on orders from existing design win customers 1H CY26 ›Release of Halo V2.0 ›Additional software product releases For personal use only
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Capital Raising For personal use only
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Pro Forma Funding A$m (US$m1) Cash Balance (as of 30 June 2025) $11.5 ($7.5) Capital Raising $60.0 ($39.0) Pro Forma Cash Balance $71.5 ($46.5) Uses A$m (US$m1) Sales and Marketing $23.1 ($15.0) R&D Programs $15.4 ($10.0) Balance Sheet Flexibility $17.7 ($11.5) Costs of the Offer $3.8 ($2.5) Total $60.0 ($39.0) Sales and Marketing ➢Establish dedicated direct sales team to support pipeline of customer opportunities in; ➢United States ➢Europe ➢India ➢Rest of the World R&D Programs ➢Hardware Development: Development costs associated with “Smarter, More Powerful, Platform-Ready” Halo V2.0 ➢Software Development: Scaling of software engineering team to accelerate development of AI-Driven software features Balance Sheet Flexibility ➢Ability to pursue potential strategic bolt-on acquisitions Sources & Uses of Funds Investing in dedicated sales and marketing to capitalise swiftly on untapped market opportunities Sources A$m (US$m1) Placement $60.0 ($39.0) Total $60.0 ($39.0) Note 1: USD / AUD Conversion at approx. 1.5 (0.65). The above tables are a statement of current intentions as at the date of this Presentation. Investors should note that, as wi th any budget, the allocation of funds set out in the above tables may change depending on a number of factors, including the ou tcomes of sales per forman ce, operational and developmen t activities, reg ulator y developments, and market an d gen eral economic conditions. As such, Elsight reserves its right to alter the way funds are applied. Following the completion of the Offer, Elsight will be well-funded with pro forma cash of ~A$71.5m (US$46.5m) to pursue organic and inorganic growth opportunities and product development For personal use only
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Placement ➢Placement of new fully paid ordinary securities (“New Shares”) to raise up to ~$60.0 million (US$39.0 million)under the Company’s existing placement capacity via ASX Listing Rule 7.1 & 7.1A (“Placement”) ➢Approximately 35.3 million New Shares are to be issued under the Placement, representing approximately 19.4% of the Company’s current shares on issue Offer Price ➢New Shares issued under the Placement will be issued at a price of A$1.70 per New Share (“Offer Price”), representing a: ➢11.7% discount to the last close price on 18th July 2025 of $1.925 ➢0.5% premium to 15-day VWAP of $1.6908 ➢11.3% premium to the 20-day VWAP of $1.5277 Ranking ➢All New Shares issued under the Offer will rank equally with existing ELS shares from the date of issue Lead Manager and Bookrunner ➢Bell Potter Securities Limited (“Bell Potter”) is acting as Sole Lead Manager and Bookrunner to the Offer. Offer Details Elsight has raised ~A$60.0 million (US$39.0 million) via a Placement For personal use only
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Indicative Capital Raising Timetable Announcement of Capital Raising and Trading Halt Lifted Wednesday, 23 July 2025 Settlement of Placement Monday, 28 July 2025 Allotment of New Shares under the Placement Tuesday, 29 July 2025 The timetable is indicative only and subject to change by the Company and Lead Manager, subject to the Corporations Act and oth er applicable laws. All times are AEST. Timetable For personal use only
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Appendix For personal use only
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Example of CompanySolution Link resiliency Optimal SWaP Security Bandwidth BVLOS Compatible RF Satellite Single Cellular Cellular + RF (Failover) Full Full Full Full Full Partial Partial Partial Partial Partial None Full Partial Partial Partial Partial None Partial None Partial None Partial Partial Partial None Competitive Landscape Elsight is well-positioned with a full-suite product and capability offering for its customers For personal use only
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Horizon 2 Commercial Drone Market Strategic focus on drone defence market Expansion of sales through “Design-Win” strategy Horizon 3 Market and Product Expansion Platform & Market Expansion – Unlocking the Next Growth Frontier Current opportunity in defence complemented by medium-term growth in the commercial drone market and ongoing growth coming from new product development Elsight’s Growth Strategy Next 12 Months Defence Opportunity For personal use only
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➢Elsight has positioned Halo as a core embedded communications solution in a wide range of high-growth drone platforms at early development stages ➢Halo is deeply integrated through rigorous testing and validation cycles ➢High switching costs associated with Halo foster strong customer retention as the commercial drone market expands ➢This model enables scalable revenue growth aligned with customers’ production ramp-up ➢“Design-win" customer base of 114 customers across 6 jurisdictions comprising; ➢Small number of defence primes and OEMs (e.g. Lockheed Martin) ➢Large number of high growth drone startups ➢74 design-win customers made purchases in 1H 2025 Design-win Strategy Strategic Investment into growth customers to rapidly scale Elsight sales For personal use only
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Company Information: A global aerospace and defense leader, Lockheed Martin is heavily involved in unmanned systems, including drones for military applications. Targeting $804m revenue for drones in FY26 System: Indago 4 – Uncrewed Aerial System Use Cases: Military and security applications, including; disaster response, surveillance and remote inspections Status: In production integration, The Halo is part of Lockheed's offering with those drones. Company Information: Largest Japanese drone manufacturer. Listed on the Tokyo stock exchange with market capitalization of ~$200m System: Soten & PF2 Systems Use Cases: Aerial photography, delivery, inspection, and disaster relief/patrol Status: Production integration, still in small scale with potential for substantial growth Company Information: Flock Safety provides a comprehensive, maintenance-free technology platform used by over 3,700 communities—including cities, businesses, schools, and law enforcement—to prevent and solve crime, fostering safer communities across the US. System: Flock Drone Use Cases: Drone as a First Responder on the process to serve thousands of police departments Status: Starting production deployments of first units with promising growth trajectory Design-win Customer Examples Strategic Investment into growth customers to rapidly scale Elsight sales For personal use only
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From a pool of over 225 leading tech innovators, only 8 companies were selected, and Elsight is among them! Theprestigious Northrop Grumman Technology Accelerator is a program designed to empower the next generation of technologies with game- changing potential. Inroad with Top US Prime Contractors 2025 Northrop Grumman Technology Accelerator For personal use only
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Board & Senior Management Executing on growth strategy and capital efficient operating model Yoav Amitai (CEO) ➢8 years with ELS (previously COO & CIO) ➢Extensive technical experience by executing transition from project-to-product orientation ➢Mechanical engineering background and well-versed in product design and manufacturing. Roee Kashi (Co-Founder & CTO) ➢10 years specialising in building and developing digital video systems ➢Responsible for core software of digital video recorder for encoding and transmission ➢Ex-Israeli Defence Force Nimrod Blinder (VP of Sales) ➢More than 10 years of sales in B2B technology companies including Elbit and Mobileye ➢Served in IDF Elite Unit ➢Earned a bachelor’s degree in Economics Major General (ret) Ami Shafran (Non- Executive Chairman) ➢Former Head of Israeli Defence Force Information and Communications Technology Command ➢Held numerous executive positions across Defence and Intelligence of Israeli Defence Force David Furstenberg (Director) ➢Held various senior CEO, Chairman and board member positions of publicly and privately-owned companies, including Comverse (NASDAQ:CNSI) ➢Specialty in the turnaround of high-tech companies through product and market repositioning Joshua Landau (Non-Executive Director) ➢40 years specialising in technology entrepreneurship and mentoring. ➢Currently Chair for an Australian TEC group of managing directors from diverse industries Howard Digby (Non-Executive Director) ➢25 years managing technology-related businesses across Asia Pacific region ➢Hold numerous other current directorships, including 4DS Memory Ltd (ASX:4DS) and Singular Health Group Ltd (ASX:SHG) Dan Hilerowitz, CPA(CFO) ➢Vast experience as CFO in Hi-Tech companies ➢Previously worked in EY ➢Earned MBAin finance For personal use only
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International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia except to the extent permitted below. United States This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The New Shares have not been, and will not be, registered under the US Securities Act of 1933 or the securities laws of any state or other jurisdiction of the United States. Accordingly, the New Shares may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws. The New Shares may be offered and sold in the United States only to: ● “qualified institutional buyers” (as defined in Rule 144A under the US Securities Act); and ● dealers or other professional fiduciaries organized or incorporated in the United States that are acting for a discretionary or similar account (other than an estate or trust) held for the benefit or account of persons that are not US persons and for which they exercise investment discretion, within the meaning of Rule 902(k)(2)(i) of Regulation S under the US Securities Act. Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong pursuant to the Securities and Futures Ordinance (Cap. 571) of the Laws of Hong Kong (the “SFO”). Accordingly, this document may not be distributed, and the New Shares may not be offered or sold, in Hong Kong other than to “professional investors” (as defined in the SFO and any rules made under that ordinance). No advertisement, invitation or document relating to the New Shares has been or will be issued, or has been or will be in the possession of any person for the purpose of issue, in Hong Kong or elsewhere that is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to New Shares that are or are intended to be disposed of only to persons outside Hong Kong or only to professional investors. No person allotted New Shares may sell, or offer to sell, such securities in circumstances that amount to an offer to the public in Hong Kong within six months following the date of issue of such securities. The contents of this document have not been reviewed by any Hong Kong regulatory authority. You are advised to exercise caution in relation to the offer. If you are in doubt about any contents of this document, you should obtain independent professional advice. Israel The New Shares have not been registered, and no prospectus will be issued, under the Israeli Securities Law, 1968 (the “Securities Law”). Accordingly, the New Shares will only be offered and sold in Israel pursuant to private placement exemptions, namely to no more than 35 offerees who fall within a category of sophisticated investor as described in the First Addendum of the Securities Law. Neither this document nor any activities related to the Offer shall be deemed to be the provision of investment advice. If any recipient of this document is not the intended recipient, such recipient should promptly return this document to the Company. This document has not been reviewed or approved by the Israeli Securities Authority in any way. 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 “FMC Act”). The New Shares are not being offered or sold in New Zealand (or allotted with a view to being offered for sale in New Zealand) other than to a person who: • is an investment business within the meaning of clause 37 of Schedule 1 of the FMC Act; • meets the investment activity criteria specified in clause 38 of Schedule 1 of the FMC Act; • is large within the meaning of clause 39 of Schedule 1 of the FMC Act; • is a government agency within the meaning of clause 40 of Schedule 1 of the FMC Act; or • is an eligible investor within the meaning of clause 41 of Schedule 1 of the FMC Act. International Offer Jurisdictions For personal use only
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Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in connection with the offer or sale, or invitation for subscription or purchase, of New Shares, may not be issued, circulated or distributed, nor may the New Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore except pursuant to and in accordance with exemptions in Subdivision (4) Division 1, Part 13 of the Securities and Futures Act 2001 of Singapore (the “SFA”) or another exemption under the SFA. This document has been given to you on the basis that you are an “institutional investor” or an “accredited investor” (as such terms are defined in the SFA). If you are not such an investor, please return this document immediately. You may not forward or circulate this document to any other person in Singapore. Any offer is not made to you with a view to the New Shares being subsequently offered for sale to any other party in Singapore. On-sale restrictions in Singapore may be applicable to investors who acquire New Shares. As such, investors are advised to acquaint themselves with the SFA provisions relating to resale restrictions in Singapore and comply accordingly. 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 and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended (“FSMA”)) has been published or is intended to be published in respect of the New Shares. The New Shares may not be offered or sold in the United Kingdom by means of this document or any other document, except in circumstances that do not require the publication of a prospectus under section 86(1) of the FSMA. This document is issued on a confidential basis in the United Kingdom to “qualified investors” within the meaning of Article 2(e) of the UK Prospectus Regulation. This document may not be distributed or reproduced, in whole or in part, nor may its contents be disclosed by recipients, to any other person in the United Kingdom. Any invitation or inducement to engage in investment activity (within the meaning of section 21 of the FSMA) received in connection with the issue or sale of the New Shares has only been communicated or caused to be communicated and will only be communicated or caused to be communicated in the United Kingdom in circumstances in which section 21(1) of the FSMA does not apply to the Company. In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (“FPO”), (ii) who fall within the categories of persons referred to in Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the FPO or (iii) to whom it may otherwise be lawfully communicated (“relevant persons”). The investment to which this document relates is available only to relevant persons. Any person who is not a relevant person should not act or rely on this document. International Offer Jurisdictions For personal use only
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Key Risks This section comments on the risks associated with an investment in Elsight Ltd (Elsight) and in connection with the Placement and the associated transaction outlined in this presentation. Like any investment, there are risks associated with an investment in Elsight's shares. This section does not (and does not purport to) identify all of the risks related to the future operating and financial performance of Elsight. Here is your table of key risks revised and expanded using a professional third-party tone suitable for inclusion in an investor document or risk disclosure statement: Technology/Execution Risk Elsight’s business model is underpinned by the performance and continued evolution of its proprietary HALO multi-link bonding technology. Any failure to keep pace with technological advancements, or challenges in integrating HALO into increasingly complex unmanned aerial vehicle (UAV) systems, could hinder product performance and market acceptance. Such execution issues may compromise customer satisfaction, impair growth prospects, and affect the company’s reputation within critical verticals such as defence and commercial drones. Customer Concentration & Contract Risk Elsight derives a significant portion of its revenue from a limited number of key customers, particularly within the defence sector and among drone original equipment manufacturers (OEMs). A delay, reduction, non-renewal, or termination of any major contract—especially those underpinning recurring or SaaS-like revenue streams—could materially affect the company’s financial performance and future visibility. Supply Chain & Manufacturing Risk Elsight relies on a global supply chain for the sourcing of electronic components and manufacturing services. Disruptions caused by geopolitical tensions, supplier failures, logistics delays, or shortages in critical components could result in delivery delays, increased costs, or production bottlenecks. These challenges may necessitate contract renegotiations, trigger penalties, or erode customer confidence in the company’s ability to deliver on commitments. Regulatory & Certification Risk A key enabler of Elsight’s commercial strategy is the regulatory approval of beyond visual line of sight (BVLOS) drone operations. Any delays, denials, or changes to regulatory frameworks—such as those imposed by the U.S. Federal Aviation Administration (FAA), European Union Aviation Safety Agency (EASA), or other national aviation authorities—could restrict market adoption of UAV applications that rely on HALO technology, adversely impacting revenue potential. Competitive & Market Risk The UAV connectivity and data transmission market is characterised by rapid innovation and increasing competition. Large, well-resourced technology and defence companies continue to enter the space, intensifying competitive pressure. Elsight’s ability to maintain and grow market share will depend on sustained technological differentiation, pricing strategy, and customer acquisition. A failure to do so may result in revenue erosion or margin compression. Foreign Exchange Risk While Elsight reports its financials in U.S. dollars (USD), it operates and incurs expenses in multiple currencies, including Australian dollars (AUD). Adverse movements in foreign exchange rates may negatively impact reported revenue, cost structures, and debt servicing obligations, introducing variability in financial results. Share Price Volatility & Liquidity Risk Given its market capitalisation and public listing, Elsight’s share price may be subject to significant volatility in response to contract announcements, regulatory developments, or financial performance updates. Additionally, limited trading volumes may impact share liquidity, posing challenges for investors seeking to enter or exit positions without materially affecting the share price. Cybersecurity & IP Risk As a provider of secure communication technologies, Elsight is exposed to cybersecurity threats, including data breaches, hacking attempts, or unauthorised access to sensitive information. A material cybersecurity incident could result in reputational damage, loss of customer confidence, regulatory sanctions, or legal liabilities. Furthermore, failure to adequately protect intellectual property (IP) may lead to imitation by competitors, undermining the company’s competitive position. For personal use only
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Key Risks (continued) Intellectual Property & Competition Risk Elsight’s proprietary edge lies in its AI-driven multi-link bonding and communication technologies. The company’s ability to maintain its technological lead and enforce IP protections is critical to its market position. If competitors successfully replicate or circumvent Elsight’s innovations, it could erode pricing power, reduce margins, and threaten long-term sustainability. Reliance on Key Personnel Elsight’s success is closely linked to the expertise and retention of its senior leadership, engineering team, and technical personnel. The departure of any key individuals could disrupt strategic initiatives, delay product development, or diminish the company’s capacity to execute on complex client projects. Recruiting and retaining qualified talent remains a critical operational priority. Compliance with Laws, Regulations and Industry Standards Operating in highly regulated sectors such as telecommunications, defence, and aviation, Elsight must comply with a wide array of domestic and international laws, industry standards, and contractual obligations. Any non-compliance—whether intentional or inadvertent—could result in fines, contractual breaches, reputational harm, or loss of operating licences. Risk of Dilution Future equity capital raisings may be necessary to support growth, fund R&D, or meet working capital requirements. Existing shareholders who do not participate in such raisings may experience dilution of their ownership interest and voting power, which could impact the value and influence of their investment. For personal use only
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THANK YOU www.elsight.com ir@elsight.com For personal use only