Good morning, everybody. On behalf of Electro Optic Systems, I'd like to welcome you to our 2021 interim results presentation. I'm in Sydney, in lockdown, but Dr. Ben Greene, Michael Lock, our CFO, and Morgan Bryant, our Company Secretary and Legal Counsel, are in Canberra, and will be going through the presentation with you this morning. First of all, we have two pages of disclaimer, which I'll leave to your pleasure. Now I'll hand over to Dr. Ben Greene to start with. Thank you, Neil. Welcome, everybody, welcome to our first half results review. Can we proceed immediately to? Yes. Thank you. This is the slide summarizing the first half and our posture going into the second. These key six points are summarized here. Obviously, the primary asset of the company is its people, and we need to take care of our staff very, very much so. Our primary focus is always on safety of personnel and their sustainability in the high-level function they provide. During this first half, of course, we still had to take quite strong precautions. Everyone knows that the lockdowns across most of the areas where we operate in Australia have impacted from pretty much the end of the first half. Even so, the COVID-19 management program in the first half succeeded in keeping COVID at bay across all of our global operations. The second key point here is revenue and profit, as at the first half and as we sit here now, are pretty much on track. Despite the usual slow start, which is endemic to our customers in the first half of calendar year, and some constraints on our operations, both revenue and profit are tracking within the range of prior guidance. Third point, which is, I think, quite important to the market in terms of the feedback we get from our shareholders, cash recovery from our contract asset is now flowing. We made a quite distinct announcement in April 2020 that we were going to invest around AUD 120 million, maybe a bit more, in contract asset to keep working through what was a serious COVID lockdown globally. AUD 30 million of that has unwound back to cash, another AUD 100 million will be converted back to cash through the balance of 2021. I'll be talking in more detail about that as we get to the sector. SpaceLink has made spectacular progress. We have been in several months of redesign of the satellite and the constellation. We've modified the constellation a little bit. Satellites have been upgraded in design, so we have now stronger performance from the constellation at a lower cost than originally forecast. Customer buy-in at this stage, and I'll talk again in detail about this when we get to the sector, customer buy-in is also running ahead of our program. The tenders for the satellite have been called and we expect to have a contract in place for those satellites within 30 days. Capital flexibility. This is something that is new for EOS. EOS has essentially avoided debt almost entirely for the last 20 years. We're now cautiously moving back into embracing debt. Clearly, equity is a very expensive capital when debt is at the interest rates, available interest rates that are in the market today. We've got quite strong engagement with what we would call Tier 1 lenders for financing of SpaceLink or a significant proportion of SpaceLink. We also have recently engaged executed agreements for a AUD 35 million working capital facility as the first step in our re-engagement with debt to change the equation in terms of capital raisings versus debt to fund operations and expansion going forward. The last point is a point that was made quite strongly at the AGM in May. There is a logjam of contract awards that is unwinding now, and we have quite strong responses and momentum in the global market and in Australia as these contracts move. They're not so much moving back onto schedule, but resume the op tempo that they would have had without COVID-19. Also, we have significant announcements in Australia in the last few months, which I'll talk about, illustrating the scale of the opportunity in this sector. Those are, I think, the highlights for EOS. In summary, results delivering the expected performance and momentum building as we go forward. On the financial headlines, I guess I'm only going to hit three points on this slide. Revenue, profit, and cash. Revenue, obviously, is up 30%. Profit is still negative, but it is on track. This is pretty much exactly where we would have expected to be at the half-year. The second half has some additional headwinds, but nothing that's of major concern. The additional headwinds I'm talking about are really the COVID-19 lockdowns, which hit us at the end of June. The cash position of AUD 51 million, I'll talk about in more detail in two slides. I'm going to pass on the segment performance because my intention here is to leave a significant amount of time today to answer questions. The net cash flow movements on this slide show cash in the half dropping from AUD 66 million to AUD 51 million. We expect this cash position to strengthen through the second half towards in excess of AUD 90 million at the end of the second half, notwithstanding some significant other expenditure that we're planning to make towards our expansion. In terms of the reporting cycle, I think the AUD 51 million should represent the nadir or the low point of our cash reporting, in terms of the half year results. Company guidance on the next slide. There is an adjustment to guidance, given there is a very small setback in terms of profitability, which is running at about 1%-1.5% of revenue reduction in profit. That's simply because we've moved back to our 2020 configuration of production. We've got split shifts running in the plant. If we have an outbreak in the workplace, and most people listening to this will know that the principal concern from COVID at the moment from the Delta strain is outbreaks in the home, being community transmission in the home and in the workplace. The workplace precautions are as stringent as they were last year, and that splitting of shifts so that we, at worst, will only lose one half of production, has been implemented from in July. The impact of that has been quite successful. We've had a number of positive tests within our plants, and we're riding that out. I think we have, in isolation, roughly 10 people at a time within EOS that are involved in the production process. We think as long as that situation maintains as it is, we have no reason to believe it won't because of the precautions we're taking. Because the balance of risk in the population in Australia is decreasing every week significantly, we see a downgrade, well, of the guidance by effectively 1.5% of revenue from the bottom line, AUD 3.8 million underlying EBIT to AUD 1 million-AUD 4 million. As we sit here today, that's the guidance we're going to update to. I'll move now to the sector descriptions. Defense Systems. Defense Systems has had a very, very rapid expansion of its pipeline because customers have accelerated the requirements for some of the newer products we have. C4 EDGE is growing quickly. The T2000 turret is maturing fast. The counter-drone programs are in full test now. We've been testing subsystems for the last five years in the U.S. with the U.S. Army programs, but now we're doing full system tests involving radar, kinetic engagement, direct kinetic engagement, and what we call soft kill electronic warfare engagement, all included in a suite of command and control that's been spun out of the C4 EDGE program for our application. Most recently, of course, we've got the missile program, which I'll talk to shortly as well. The highlights in defense, obviously, most of the revenue growth, we see that 30% growth in revenue is defense surging back into production. Again, further momentum into the second half. We're a third of the way through the second half and that momentum is continuing. Notwithstanding the split shift operation for our plants, that momentum is continuing. You can infer from that that the revenue guidance that we've given is going to be reasonably sustained. The new product area is probably most exciting because this is drawing a lot of small scale initial contract funding right now. We have, on the counter-drone programs, several funded, and customers don't fund demonstrations unless they're quite interested, several funded demonstrations at the level of AUD 5 million-AUD 15 million per demonstration running through the balance of this year and early into next year. That product is performing really well. T2000 is performing well in its testing. The current upgrades to our remote weapon system and remote lethality programs are also doing exceptionally well. Across the, I guess, the development, the technology, production, and delivery, all of those elements of EOS are in a rhythm which reflects the lessons learned in 2020 and coming to terms with COVID, notwithstanding Delta is a little bit more aggressive. The next page is the Sovereign Missile Alliance. This is a program which EOS had anticipated engaging in in 2022. However, the Commonwealth of Australia brought forward by about six months its requirement to surge forward in what the Commonwealth calls its missile enterprise, capital E enterprise. The enterprise concept from Commonwealth is they anticipate spending about AUD 100 billion over 20 years in missiles, generally. There are some other smaller categories. It's not well known. EOS is probably the leading company in Australia in terms of, A, the technology for missiles, and B, the relationships with the current missile providers, in terms of technology exchanges that would allow us to acquire the technologies we don't already have. I'll just quickly explain here because this is the right place. If you look into a missile, there's a propulsion unit at the back and there's a warhead at the front. They're in fact the easiest parts of a missile to make. The hard parts are all in the middle. They're the guidance and control, the seeker systems, the navigation, stabilization, and ultimately the command and control systems, which include an ecosystem around the missile that allows it to be managed to the target. All of those things that I just mentioned as being the harder parts are strengths of EOS. When our own government proceeds towards spending AUD 100 billion in missile enterprise over 20 years, of course, EOS is going to be engaged. Within the company, we determined that this was a matter of scale. Clearly, AUD 100 billion is a lot of money, and EOS, even though we're the largest defense aerospace listed entity in Australia and the largest defense exporter and arguably the largest defense aerospace company that's sovereign in this country with probably the exception of Nova Systems. Nova Systems is comparable in scale to EOS. We took the decision that a joint venture between Nova and EOS, called the Sovereign Missile Alliance, was the appropriate corporate vehicle to address this new market. You'll be hearing more about Sovereign Missile Alliance, but it is, in simple terms, a 50/50 JV with Nova Systems, who are very welcome partners to us. We're finding Nova is an exceptional company to work with. We'll be addressing this market through a tender process which will begin in about 60 days. This is one of the opportunities that I would've been referring to in previous reports when I was talking about an explosion of demand. Briefly to Space Systems. It's always easy to underestimate Space Systems looking at the pure numbers. Not all of the business of this sector can be reported in quite this way. For example, there's several contracts that Space Systems has originated, which are being executed and are reported under the other sectors, which is the proper way to do it. What we're finding with Space Systems is, every year that passes now, as these technologies mature, space becomes operationally closer to the other two sectors. Probably one of the best examples I can give here is that the space domain awareness and the space asset protection services of Space Systems are fundamental in the value equation for SpaceLink. The SpaceLink satellites can capture a particular tier of customers that will not buy data or communication services from anyone that doesn't have secure constellations. At this point in time, we are the only company in the world that can secure their own satellites. In terms of the securing space aspects of Space Systems, this is a progress year-on-year from activities we've been doing for some time. Not a significant headline here other than within alliance programs, within Five Eyes, which is, I think, well-known to all our shareholders. The Five Eyes alliance will spend about AUD 1 billion over the next five years on space security contracts and programs. EOS is well-placed for a share of that. Not a majority share, but a share of that, because our technology is uniquely suited to deliver a particular part of that solution. Those programs have been held up through 2020 because they're quite complex, and they require coordination, which cannot easily be managed through COVID-19. They're all recovering their own schedules as well. Of course, in space, we continue to be a hub for the other sectors in EOS. I think shareholders will be pretty familiar. I'm restating here the capabilities that we have in space. Probably the most important element here is we've unveiled and moved forward in a public area with our guide star laser application, our inverse propagation technology, which allows us to propagate lasers from ground to space with typically at least 100 times the efficiency of the normal process of propagating lasers from the ground to space. That technology has matured over the last five years in EOS. We've made an announcement earlier this year, and we're continuing to commercialize that technology, both for communication and for space control and satellite defense purposes. In communication systems, the overview here. This area is surging for EOS. At the moment, we're talking about an AUD 17 million order backlog, which is only from the antenna division of space communications in Brisbane. That business is growing at a terrific rate. That business is developing antennas which are compatible with our SpaceLink, as well as all the current satellite constellations that our defense users are accustomed to using. We announced, I think, last week on Friday that our communication sector had won major contracts to deliver these antenna to NATO navies. We will, fairly soon, on a year-on-year basis, be the largest supplier of antennas to European navies as well, pre-configuring those navies to be customers for SpaceLink as well. I want to highlight here the risk sales pipeline on this slide, where we're talking about just for the antenna business, AUD 209 million in total of risk pipeline. More interestingly, AUD 269 million a year annually in SpaceLink. Again, we'll talk about that in just a moment. The EM Solutions highlights, again, in the interest of efficiency. This speaks to itself. The EM Solutions business is a cornerstone of our communications business in space, is performing exceptionally well. We have record revenues and record profits in that sector. I want to briefly highlight, before I move to talk about SpaceLink as a whole, one of the things we're particularly proud of is the way that SpaceLink has been constructed from the human resources point of view. Of course, SpaceLink is part of the communication sector in EOS, which is run by Chief Executive Glen Tindall, who reports to me. Glen has put together an exceptional team in the U.S., to manage the SpaceLink opportunity. What we're looking at here is just a brief summary of over 100 years of C-suite experience in multi-billion dollar space entities in the U.S. This is representative of the quality of the organization that we've put together in the U.S. It is pretty much a who's who of satellite communications in this sector, that we've put together to address this opportunity. Look, the key point I want to make about SpaceLink here is that it is something completely new. I guess everyone, if they've got revenue, they're delivering a service which is of value to the market. What we're doing here is we're breaking through to deliver a capability and to meet a demand that has been, until this point, not met. There are three tiers of communications in space: LEO, MEO, and GEO. Low earth orbit, medium earth orbit, and very high earth orbits. Our customers have been clamoring for a medium earth orbit capability for almost a decade. It's been quite difficult to manage the technology, but now we have technology that can deliver this, which is literally space-qualified and proven, and can be integrated into satellites that can meet this requirement immediately. There are no other providers meeting this market. We're overcoming LEO limitations as well as GEO limitations. Most people involved in investing in space will be familiar with SpaceX, Elon Musk's company, which is providing effectively a low earth orbit, thousands of satellites, providing a mesh communication around the world in low earth orbit. This is a very valuable commercial service. It's not particularly useful for our customers. De-conflicting in the marketplace, our offering from other people's offering is relatively easy because the buyers know what they want. The next slide is the update on SpaceLink, and look, the key point here is the first bullet where we talk about the next six months. We've got fantastic interest in SpaceLink, and to use a very old expression, interest and AUD 3 will get you a cup of coffee. We've got a couple of 100 MOUs that have been signed. I want to explain briefly here how this business works. When you have a great idea, lots of people will subscribe at no cost and no commitment. That's the MOU stage, which we've just completed. Obviously, we're quite picky about who we sign MOUs with. If they're not entities that are fully funded, that have a program requirement, and we can see the alignment of our offering with their business requirements and their business models. If we don't see all that, we don't even start the engagement. We have 200 MOUs signed. The next step starts in 30 days. We will sign within 30 days a contract for give or take half a billion AUD, a bit more, to deliver the SpaceLink constellation block 1, which is the first capability in space. I want to be clear, as I said here, there's no impediment to us signing that contract. We could sign it today. It's just got a few weeks of tidying up the negotiation to finish, obviously, if I'm saying within 30 days, it's obvious to anyone with experience on half billion dollar contracts that we must be getting pretty close. We've conducted international tenders months ago. We've down selected, we've been in negotiation with key parties for some time. I want to dispel immediately and preempt maybe one or two questions later, we can sign this contract without diluting any capital within the EOS shareholder register. There's no reason at all why we couldn't sign that contract today. Once that contract is signed and we're committed to the constellation, I should say SpaceLink is committed to the constellation, the MOUs go into a different process because once you've committed to put the satellites up, it is then a service which is coming. I think everyone who's in commercial arena will know how that works. The MOUs convert to contracts which have specific fee scales and so on. Obviously, we've had preliminary engagement with probably our 20 leading customers already about what those fee scales would look like, because that feeds into the whole satellite pricing and value analysis that we do before we would sign contracts. We're just about at the point where we've finished the first phase of SpaceLink, and we're pivoting into a really critical and interesting, and exciting phase. If you read through the other bullets that follow below the first bullet, over the next six months, it will be really a very interesting six months period. We've made all of the key steps in market acceptance and commitment that we expected to get from here, including being selected for the ISS on a contract basis to demonstrate ISS commercial communications capability. I've probably preempted a little this slide. The under-risk sales pipeline of $1.2 billion. That's the snapshot of a proportion of the MOU set that we've signed. As I said, that moves now. Within 30 days, we'll pivot into contract negotiations with those, because the moment we sign the contract for the satellites, we have our launch dates. They'll all be locked in. They're locked in for early 2024. Again, those who follow the company closely will know that we'll meet all of our statutory requirements and licensing requirements under the very broad spectrum licenses that we hold today. Everything in this area is going exceptionally well. Moving quickly now to the strategic outlook and the focus areas. Lost some, here it is. It's coming up now. We're in the last stages now of converting back the AUD 120 million contract asset back to cash. First 25%'s been converted, and we're in the process now of converting the balance of that contract asset investment back to cash. What's happened in the last, I guess two months since the 30th of June this year, we've now agreed a set of amendments to the delivery contract that's in question here that we're talking about. There's been an increase in scope, an increase in value, and a reset of the delivery schedule to effectively erase from history the fact that, on the customer side and on the EOS delivery side, there was some hiatus due to COVID-19 in 2020. That full contract has been reset on a proper go-forward footing. It's slightly enhanced in scale and, under that domain, we will, within this quarter, be submitting the next tranches of invoices. We're very comfortable with the position of that contract. SpaceLink funding, I think I've talked enough about that on the previous slide, we're on track in terms of scheduled SpaceLink. We're probably well ahead of where we expected to be in terms of business models, the costs, and the return on investment that we can expect from block 1 of the constellations. Converting defense pipeline to order book. I have to say that the second half of 2020 and the, I guess, the first half of 2021 were a bit disappointing in terms of pipeline conversion because of various program delays that our customers have faced all around the world, and including in Australia. I think most of our Australian programs are running about six months behind schedule in award. Most of the contracts that we have been discussing with customers to close contracts on, most of those in dollar values, so most of that AUD 1 billion of contract award, is still expected to close in this calendar year. The fourth thing, which is a key focus, which is, in some sense, stressing the resources of EOS, and still driving our expansion is this massive growth in demand. It sounds like a ridiculous number, but we talk about the AUD 100 billion of missile outlays. By the way, EOS does not expect to be even a majority shareholder in terms of that market share of AUD 100 billion over that 20 years. We have a very strong value proposition for a significant slice of that market. There are opportunities like that erupting, whether it's in counter drones, whether it's in missiles, whether it's in our space asset defense programs. We continue to see rising demand and particularly rising demand in sectors which we are specialized in. I think I can talk to that, in fact, on the next slide. If we go quickly to the next slide. Just by way of example, on the 26th of August, so four days ago, the Commonwealth announced through Minister for Defence Industry, Melissa Price, and I'm quoting her directly here. They just announced four priority areas for the Commonwealth of Australia to focus government expenditure and defence spending and program priorities. These are robotics, autonomous systems, artificial intelligence, precision-guided munitions and hypersonic weapons, et cetera, space and information warfare and cyber capabilities. EOS is a very significant Australian entity in all of those priority sectors, and in fact, we're dominant in some of them. We don't have to go into which ones we're particularly dominant in, but we've got exquisite technologies in all of those areas and some of them quite dominant technologies. This is just a snapshot, very recent, taken from last week, of the emphasis on the technologies that we're invested in. I want to remind everyone who's listening here that we have well over AUD 1 billion worth of IP outlays, which we've aggregated under EOS, which are all falling under these priority areas. Most of that is yet unexploited. When you see EOS engage in a missile enterprise, what I can tell you is that's based on our access to more advanced technology for the high-tech elements of that missile than most companies in most countries would have access to. If you look at just the Australian defense capability investment, there's a significant compound annual growth rate of 8%. Our share, on a year-by-year basis, we expect our share to grow as well because the emphasis is changing from the old technology platforms to the new technology platform. There's an underlying 8% compound annual growth rate, but there's also a change in emphasis on more high technology capability through space, remote weapon systems, command and control systems, counter-drone capabilities, and so on, hypersonic weapons. Those are the areas that are growing fastest within that overall growth as well. Moving to the last slide. Just to discuss briefly the outlook. This is what drives the outlook of EOS. We still see AUD 3 billion of fully risked pipeline. That's AUD 3 billion worth of business we expect to be competitive for, and that's fully rated with probability of win from existing customers. This is not taking industry surveys from those companies that go out and do market surveys, what the global market might be for X, Y, or Z. This is our own direct report from our customers that say we have AUD 16.8 billion worth of business. We internally in EOS, we rate our chances against winning that AUD 16.8 billion, with probabilities based on our own capabilities and our own resources. We believe about AUD 3 billion of that is still, on probability-weighted basis, accruable to EOS. That's still a significant growth pipeline in the next few years. We continue to commit to meet that growth. We're obviously still funding growth, investing in growth areas, and SpaceLink is a perfect example. SpaceLink is not just a highly profitable business in its own right, but SpaceLink is a fundamental enabler to two or three other space areas which are comparable in value to SpaceLink itself. It is well-known in the industry. The 200 companies that have signed MOUs with us generally refer to SpaceLink as essential space infrastructure, as important in space as roads are on the Earth's surface. That infrastructure can be used by EOS, other parts of EOS, deploying space capabilities that can use that communications infrastructure themselves and use it in ways that are nuanced to leverage the very best performance out of it. We continue to invest quite strongly in these growth opportunities. At the same time as obviously wanting to deliver profitability going forward and maintain guidance. I think I am exactly on time to stop for questions there, Neil. Thank you, Ben, for that presentation. We'll now go into questions and answers. If anyone would like to ask a question, please put it in the chat facility. I've got a question from Owen Humphries at Canaccord. Nick, can we unmute Owen, please? Owen, if you could put your question into the chat, maybe we'll do it that way. Can you guys hear me now? I think I've got it. There we go. Okay. Good day, team. Just targeting on a few questions, but obviously an exciting six months coming up for you guys. Just targeting the second half just around the margin profile. Obviously, you're expecting a revenue pickup in the second half and call it AUD 100 in the first half to AUD 140 call it in the second half. The margins to go from neutral in the first half to 16% in the second half. Can you just talk me through the drivers of that uplift? Both the revenue and the margins. It sounds like the defense systems, but just maybe divulge that if that's possible. Yeah. Can you hear me? Most of that is in defense systems, it really comes down to scale. The scale of operations is back to a profitable level. As I said in my commentary, notwithstanding we're working split shifts, we still have scale, and we're very sensitive to volume above breakeven in the plants, as most companies are. As the scale moves up, profitability goes up significantly. That would be the single largest factor, I think. Sorry, I can't hear you. There you go. I have to ask to be unmuted. Okay, good one. Yeah, that makes sense. Just talking about Titanis for a second. You said just with COVID lockdowns, just talk me through how many funded developments have been completed to date, how many are expected to be completed in the second half, and basically just understand how much this COVID and Delta and lockdowns will slow down the pipeline for that opportunity. Okay. In reverse order, the COVID lockdowns are hurting us a bit on Titanis in ways that a bit unexpected, I guess if you can't see the internal operations of the company. Our test facility is in Western New South Wales, not far from the South Australian border. The human resources that we use for Titanis are spread across Melbourne, Sydney, Canberra, Queanbeyan. We've got staff in lockdown in three different places. Yes, because some of the demonstrations are for allied governments, we do get lockdown relief by government directive for some of those processes, but not all of them. It's really not that well coordinated yet. We've probably had to slip by a month, all our test programs at the EOS test facility in the outback. The funded demonstrations, I think you asked me what's the progress in terms of current contracts. The key contracts we have now are what I call leading contracts. Customers funding between, I think it's between about AUD 7 million and AUD 15 million for demonstrations. In some cases, the demonstration costs we're quoting are higher than that. These are expensive systems, of course, and sometimes you have to fly them a long way to meet the requirement. Those are also about one month behind schedule because the pre-qualification process through our own facilities has slowed. Having said that, there is no current prospect of any competitor surging into those markets and into the arms of those customers. The TITANUS program, yes, it's slipped, but no, its prospects haven't dimmed. Ben, thanks for that question. Sam Teeger from Citi says, "Can you provide some color around the final ratification process regarding the amendment to the major overseas contract? Does that happen at a committee meeting, and when is it scheduled for? We're dealing with one of the largest defense buyers on the planet, and as you'd expect, and this is a half billion dollar program, and in any country, even in Australia, well, Australia's a smaller defense buyer, I guess, in material than this country. There is a process, and the process has run for, I guess, some months. The amendments include technical changes to the product going forward to bring it up to the current configuration. Remembering that this contract was signed in 2018, and EOS is moving the technology fairly quickly. The pause, if you like, caused by COVID shipment delays, has allowed us to make upgrades for some customers, and this customer in particular wanted to be upgraded to the same standard for ongoing deliveries. There's been a process running some months for testing in that country of those improvements and changes. There's been a whole detailed set of alignments of our delivery schedule along with the delivery schedules of the other contractors independent of us who have to deliver the same capability. Again, in parallel with that, there's the fielding schedule with the COVID restraints on the customer's own forces. All of that's been completed. From end user through contracts managers, and all legal authorities in country have signed off on it. It's literally in Australia, we'd say it's moved up to the Minister's desk. It's scheduled for ratification this month. Sorry. Great, Ben. Early next month. Early September, correct. What's the probability the next batch of cash collection falls in September versus Q4? Q3 versus Q4 for cash collection. I guess 50/50. Now that the contract amendments are agreed, we're in the process right now of amending all our invoices for a slightly larger value to be able to submit those under the new contract. The expectation is they will be submitted in September. Because it's a letter of credit process, that normally would obviate the, I guess, 30 - 60 days delay in country if we were not operating under an LC. Again, our letter of credit is confirmed by an Australian bank, we actually get paid in Australia on submission of documents. Look, that's a hard question, but let's say 50/50. The invoices will definitely go in September. Whether the process through the bank will be fast enough to fall within the quarter, I'm not sure. Okay. Great, Ben. And the. We'd be highly confident we'd be reporting it in our 4C. Yeah. Even if it was a post-30 September event. Okay. The adjustment to profit was a AUD 3 million reduction. How much of that relates to inefficiencies at the ACT plant versus other locations? Almost all of it. Okay. A question from Javon Muminov. From the 2020 half yearly reports, EOS said that you were shortlisted in over AUD 250 million of potential space sensor procurements globally. Where are we with this contract? Lost or deferred? Space sensor contracts. That would be Five Eyes programs. Space sensors, we have a very short list of customers we're allowed to sell to. Those programs, the key program there was deferred for 12 months. It's now coming back on, well, maybe more like 15 months. The discussion with the customer is That was not awarded to anyone. Of course, if it was deferred, that contract is being brought forward in Q4 this year to be progressed. It's really a matter of Look, it's an Australian program. That program, if you look at what's happening with Australian Defence expenditure, it's escalating really quickly. There've been some controversial programs from Australian Defence, which have made Defence more cautious and more prudent, and a bit more circumspect about how quickly they move forward on programs of that scale. We're not talking about an AUD 30 billion submarine program here, but I guess, the additional diligence required for the processes has delayed a lot of programs, and this is one of them. Okay. Thank you, Ben. A question from Andrew Nestor and a similar question from Sean Rapley about SpaceLink. Can we get an update on the likely equity share for EOS in SpaceLink? Previously, it was over 50% with no capital funding required from ASX shareholders. Is that still the case? That is still the case. As I sit here now, that's still the case. One of the things that the company will have to come to terms with over the next 30 days is that current indications we have from SpaceLink is its value is being appreciated more and more each month. We've just come out of face-to-face, which is quite rare, face-to-face customer engagements, in Colorado at a very special space meeting, for the space defense community, in the last two weeks. It's quite clear that the market demand and the market appreciation for the offering of the services and capability from SpaceLink is growing very quickly, and therefore the implied value of the asset, the SpaceLink asset to EOS is growing quite quickly. There's no question at the moment that we can get it funded. We now have, I think almost, I don't want to speak too soon, but once we have the contract signed and on foot, I think we will have the luxury of being able to choose what we do in the EOS shareholders' best interests. There are a whole range of options, including, as we've said in this document I've put out today, we've got quite advanced discussions with debt facilities available. Yes, we're engaged with the investment community in the U.S. about providing all the funds directly into SpaceLink one way or another. Right now, the team here at EOS is just assessing which is going to deliver the biggest bang for the buck for the ASX shareholders. Ben, you said that AUD 800 million capital requirements to SpaceLink and let's say 40% debt. Does that mean that SpaceLink is raising AUD 480 million in equity? That's from Tony Vucic. In a nutshell, yes. Yeah. Whether we need to do that all in one go or not. Well, I can tell you, we don't have to do it all in one go. The best example I'll give you is if we only needed AUD 100 million to get moving, then in six months from now, we will have enough customers signed up to deliver almost a break-even position for SpaceLink, and therefore it will be risk-free. Well, there's no such thing as risk-free, I guess, but it will be heavily de-risked, and its valuation will go up. Raising equity capital in tranches, and raising the minimum equity that's prudent to do, is obviously what we're gonna do. Great. Thank you. Sean Rapley again, does phase II of the Middle East contract have the same payment terms that have been problematic on phase I? No. The entire contract process has been moved onto a commercial basis, through a commercial entity. This is public knowledge in that country. I'll talk in Australian terms. The Defense Department's procurement arm has been completely dissolved in that country, and it's been replaced by a commercial entity, which is performing the role, as the number 13 buyer in the world of defense equipment. That commercial entity is a very professional outfit, which frankly has been a delight to work with over the last six months. Okay. Can you provide an update on the NATO Remotely Operated Combat Vehicle contract? Only that it's progressing. The entire NATO position with EOS, as you track our announcements, we're strengthening very quickly in NATO. We have the relationship executed with Diehl, which is rolling out our products into the German market. We already are a major provider of lethality products for the Dutch forces. We are on the verge of completing a contract in the Netherlands for what will be the first of their next generation, fully remotely controlled, semi-autonomous combat vehicles. That process involves a complete change in doctrine. The way I would comment on that is. There's nothing about the contractual relationship between us and the customer that's holding things up. It's the fact that the customer now has to address quite significant changes in their structure, their training, and their doctrine, because we're talking about deploying vehicle-mounted combat systems that have no people in them, and that's a big step for any army to take. Yep. Okay. On the defense business, carrying on there, Kongsberg was awarded the CROWS contract in May. What are the implications for EOS for future U.S. Army contracts? Look, the May contract, that's part of an ongoing support maintenance program that the U.S. runs on the Kongsberg weapon systems. It's not material to any of our future plans in the U.S. Ben Greene, would you just like to comment on the prospect for the U.S. defense business? Look, there are two elements to the U.S. defense business. One is the future programs, which I'll come to shortly, but the other one is, I guess, programs on foot. The U.S. has requirements for quasi-conventional technology, which is the sort of thing we can deliver now, in standard weapon systems, special forces, combat lethality systems and so on. These are not large contracts. They're typically AUD 40 million or AUD 50 million at a time, sometimes a little less, sometimes a little more. Those contracts continue to be brought forward, and I think we've bid on two of those already, with awards expected with next year's money. The U.S., next year's money comes from 1 October, that would be a Q4, Q1 type award, and I think we're well-placed to start picking up those. Although the U.S. plant, of course, is already producing some of our Middle East requirements, as a backup plant for Australia. In the advanced programs, the U.S. has got a very strong appetite for the directed energy programs, the counter-drone programs, the more advanced remote weapon systems that actually can shoot down drones. The U.S. has been through a fairly comprehensive test program the last three years, where EOS has been probably the largest single participant, but they've tested just about every weapon system they can get their hands on. This is proven by other customers as well. It's the only system that can bring down drones with kinetics. That's not by itself a panacea because shooting down drones with bullets or explosive rounds is, under U.S. doctrine, extremely difficult to deploy because the military code in the U.S. and in Australia requires one to know where the round will land if it misses and what damage it will cause before you engage even a drone. If you could imagine shooting bullets, 1,000 bullets at drones, and having to know where all those rounds will land three miles away, whether it lands in a village or in a town. There's a sophistication in the command and control of this, which EOS is overlaying. Again, I think we're one of the very few companies in the world that can do this. It's not quite as simple as just, can we kill drones? Of course, we can, and we've proven we're the only ones that can do that. Can we kill drones safely? That's the next level of gaining this market. The prospects in the U.S. continue to be strong, but our investment there is modest and quite sustainable. Great. Thanks. Another question from Owen. The risk pipeline is down AUD 500 million over six months from AUD 3.6 billion to AUD 3.1 billion. I understand COVID's had an impact. I'm keen to learn whether contracts have been lost or are now unlikely. I think I might answer that one, Ben. Owen. Yes. If you look at the unrisked pipeline, the unrisked pipeline has expanded from about AUD 12 billion to around AUD 16 billion. The total scope of opportunity has expanded by about a third. We have applied more conservative assumptions in terms of our PGO assumptions. That's the probability that projects go ahead. We have seen a number of projects deferred due to COVID-19, we've effectively just taken some more conservative assumptions for how we go from unrisked to risked pipeline. I think, it's kind of a bit of a change of flavor rather than any program being lost. None have been lost, but a number have been deferred. Another question on SpaceLink. How much leeway, Ben, is there between the launch of the SpaceLink satellite constellation and the FCC regulatory deadline? What options are there if the deadline is not met? We have a buffer in the schedule already. We have a fair amount of confidence in that buffer because we're using proven technology, so there's nothing about the satellites from whichever vendor we choose in the next two weeks. There's nothing about the satellites that is new technology or unproven technology. We have reasonable confidence that we will be able to meet the launch deadlines. That said, if they were to slip beyond the notional use-by date on our licenses, we already have a sufficient buffer in the COVID exemptions that would cover that anyway. Okay, great. Question from Sam Teeger of Citi. Any comments around why Fred stepped down from the board? I would've thought that was self-evident. Fred was a very heavily occupied director in ASX terms, with more than one chairmanship and so on. Fred's got some very interesting interests. EOS is rapidly maturing as a commercial operation. Fred's, I guess, history has been in bringing forward startups. Although in U.S. terms we might still be classified as a startup, we are an ASX 300 company and pretty much found our feet, and able to ride out things like the 2020 issues that hit the company through COVID and so on. I think it's quite clear that EOS has a stability and a momentum of his portfolio of interests. I'm just interpreting what Fred told the board, and I think it's what he told the market in his release. He's got other interests which require much more day-to-day attention. Great. Thanks, Ben Greene. Also from Tony Vucic, "Can you please indicate a value of the IP EOS is contributing to the SpaceLink venture? I'll answer that in two ways. Our space communications IP that we hold right now represents an actual cash investment by our partners of about AUD 800 million. We're not contributing more than about a sixth of that to SpaceLink in the first block 1 and block 2 satellite constellations. If we had to put a number on it in terms of what's been invested, not more than AUD 100 million or so of IP investment, maybe AUD 150 million, is going into what we call block 1 and block 2. Because remember what I just said a few minutes ago, basically block 1 and block 2 are gonna be largely off-the-shelf proven space technologies that are leveraging the SpaceLink concept of operations for their value more than any new technology in the satellite. That's why it's such a great deal, because the concept and the licenses are where the value is, and the satellites that we need to deliver really high return on investment on that initial rollout of the concept can be off-the-shelf technology satellites. When I talk about the last, I guess, 80% of the technology portfolio that we sit on, that will play into block 3, block 4, block 5, and block 6 of SpaceLink. Each one of those is typically an AUD 600 million constellation investment. We, of course, won't make those investments until we then accumulate customers in advance for each block to roll out. Great. Thank you very much. A question from Andrew McLaw, "Excluding SpaceLink, can EOS please confirm its average R&D expense for the past three years? Is this likely to change over the next five years?" The average R&D expense over the last five years, I could take a pretty good swag at that, but I've got my CFO here. Do you want to take that on? I think we'd add it up and come back to them if it's okay. Look, I'll answer the second part of the question. I don't think it's gonna change, no. The EOS process of R&D investment is that we operate a very conventional R&D process by U.S. standards, where we put pretty much 100% of the R&D money on the table for year one and maybe year two of an R&D program. Our R&D programs typically span five or six years. They're quite deliberate. They're planned out over five or six years. Products we're launching now were envisaged five or six years ago when the R&D started. By the time we get to year three, we get early buy-in from customers who want that product, and they're typically putting in 20% in year 3, 50% in year 4, and 75% in year 5 of the R&D costs. Of course, the R&D costs are much heavier in year five than they are in year one and two. We typically finish up taking the high risk investment, but it's only about 20%, 25% of the total investment. Our customers and our partners will fund the other 75% of the R&D costs. That profile won't change. How much money we put into it won't change much, because we've accumulated such a significant pile of technology that our early stage investments, even as the business grows, our early stage investments in dollar scale don't have to grow in proportion to the business volume. It's not quite a perpetual motion machine, but it's much more efficient than it was for EOS, say, five years ago. Great. Thank you, Ben. A question from Angus Robertson. "EOS is making losses and has several developing businesses. When roughly do you expect NPAT to settle down to an NPAT increasing each half?" If the world doesn't change much from now, I'm saying we don't need COVID to go away. If we talk about the COVID reality we're living in now, and that becomes the reality that we live in for the next three or four years, within two or three halves, we should achieve that position. Great. Okay. Well, Ben, I think we're pretty much up against our allotted time, and seem to have through plenty of questions. Thank you to all our shareholders for attending this webinar. Thank you for Ben and Michael, and Morgan, for presenting. We look forward to talking to you all again very soon. Thanks, everyone. Thanks for coming.