Slides
Page 1
Managing Director and Chief Executive Officer’s Presentation Dr. Andreas Schwer For personal use only
Page 2
2024 Highlights - Financial 6 In 2024 EOS continued to execute on its turnaround program and set the foundation for future growth 1. Underlying EBITDA is a non-IFRS measure and comprises net profit after tax, adjusted to exclude tax, finance costs, depreciation and amortisation and foreign exchange impacts. A reconciliation between the net profit after tax and Underlying EBITDA is set out in an attached slide. The directors consider it useful as it enables re aders to obtain an understanding of results from operations. Underlying EBITDA is unaudited. Strong Revenue Growth Improved Gross Margins Strong Balance Sheet Revenue $258.7m $39.4m (up 17%) vs. prior year Gross Margin % 46% 2% vs. prior year Underlying EBITDA1 $13.0m $7.3m (up 128%) vs. prior year NPAT $(19.7)m $14.4m (up 42%) vs. prior year At 31 January 2025, EOS had nil borrowings, ~$128m cash and ~$48m of cash security deposits Revenue $176.6m $14.6m (up 9%) vs. prior year $82.1m Gross Margin % 48% 3% vs. prior year 41% Underlying EBITDA1 $(12.9)m $0.1m (up 1%) vs. prior year $25.9m NPAT $(35.1)m $9.3m (up 21%) vs. prior year $15.4m Total Operations Continuing Operations Discontinued Operations For personal use only
Page 3
2024 Highlights - Strategic and Operational 7 Focused Strategy Strong Markets Product Development Market Development Portfolio Optimisation Strengthened Balance Sheet StrategicOperational Designed to Drive Order Book Growth in 2025 • Review of strategic growth opportunities • Decision to focus on high growth opportunities – Counter-Drone and Space Control • Announced agreement to divest non-core, naval satcom business, EM Solutions in Nov 24 • Proceeds received $158m on 31 Jan 2025 • Ongoing conflicts and geo-political tensions • Role of new technology and innovation - continuing megatrend • New & existing customers continue to engage strongly in many markets • New Slinger counter-drone systems delivered to Germany and deployed in Ukraine • Next-generation technology R500 RWS developed in close collaboration with customer • Government funding received for new space capabilities in Australia • Successful demonstrations for Ukraine, Germany, potential new customers in Middle East • High Energy Laser Weapon – negotiations for first commercial sale are progressing • Space Control – several visitations and detailed discussions with international partners • Repaid remainder of borrowings in Jan 25 • Cash balance ~$128m plus ~$48m of cash security deposits at 31 Jan 2025 • Strong balance sheet to support future growth EOS has laid foundations for future growth, particularly Counter-Drone (RWS / High Energy Laser Weapons) and Space Control For personal use only
Page 4
Market Conditions Geopolitical uncertainty and ongoing regional tensions Rapid technological changes are challenging defence forces 8 Geopolitical uncertainty and rapidly evolving technology continues to create supportive market conditions For personal use only
Page 5
EOS is focused on growing its order book Growing the order book continues to be our key focus; several opportunities are developing positively Markets Products Sales & Marketing Order Book • Global military spending remains strong • Enduring thematic drivers: • Geopolitical tensions • Technological shifts • Recent launch of the R500, the next-gen successor to the renowned R400 • Commenced sales of new container-based RWS • Significant focus on improving software and AI capability across the product range • Step-change in sales capabilities installed during 2024 • Strong focus on Europe • Increased investment in marketing with trade shows and demonstrations • Contract backlog of $136m at Dec 24, (excl. EM Solutions) • EOS is working to grow the order book over the forward period Traditional sales lead times are 1-3 years - several opportunities continue to develop positively 9 For personal use only
Page 6
Maturity Definition Advanced: Contract under negotiation or negotiated and conditional Evaluation: Customer is performing assessments of product and/or detailed discussions are underway Preliminary: Bid being prepared or submitted Emerging: Initial discussions have occurred Opportunity Maturity Product Estimated Opportunity Size R400 $260-$300m R800 $20-$30m HELW $100-$200m R500 $500m+ R400 $60m R150 $200-$300m Slinger $150m R400 $200m Slinger $60-$100m R800 Up to $100m HELW $100-200m+ Space Control $10-$100m+ Market Development Update Growing the order book continues to be our key focus; several opportunities are emerging Note: The maturity of each opportunity should not be taken as an indicator of how long it may take to secure a potential contract. There is no certainty that any particular outcome or transaction will result from these discussion s and negotiations 10 • Significant investment in sales capability, marketing (trade shows and demonstrations) is focused on pipeline development • Wide range of evolving opportunities: • Product diversity • Geography diversity • Extended sales cycle e.g. 1- 3 years • Large, complex projects • Often subject to government bureaucratic processes • Acceleration and delays • Detailed list of notable opportunities appended Advanced Evaluation Preliminary Emerging Advanced As Reported 25 Feb 2025 For personal use only
Page 7
Sales Strategy 11 EOS continues to invest in its sales capabilities and has developed tailored go-to-market strategies for each region EUROPE N. AMERICAMIDDLE EAST ASIA PACIFIC • Strong market growth • New EOS market since 2023 • Conflict creating urgent operational requirements • Fragmented and diverse market • Strong Netherlands relationship, growing in other countries • Partner with local champions to shape local requirements - leverage political and industrial market access • Consider localisation for large orders • Australian home base & existing domestic relationships • Asian emerging, fragmented and diverse markets • Longstanding Singapore relationship • Drone threat perceived as less acute • Significant future sales development opportunity • Large and concentrated market • Well established competitors • Local EOS facility – local board and management relationships • Approach includes • Direct sales • Partnering • Close work with Northrop Grumman • Focus on demonstrations • Longstanding, deep relationships in certain countries • Tensions creating urgent operational requirements • New opportunities emerging • Country-specific approach: • Direct sales • Partnering Industry sales cycles are typically long; we will consistently execute our go-to-market plans For personal use only
Page 8
Product Development – Software and AI Opportunity Implications for EOS • EOS expects smaller, more distributed command and control systems (C2) to continue emerging, providing more resilience and faster decisions • AI-driven software and C2 will become a key differentiator • EOS’ products currently use market-leading software. • In order to maintain this leadership position, EOS will continue to invest in software and AI capability • EOS is exploring multiple C2/software growth opportunities: • Organic - develop more in-house capability • Inorganic - acquire or partner with market leading expertise EOS is focused on advanced software solutions as part of our emphasis on counter-drone opportunities 12 AI will become a critical differentiator in counter-drone solutions For personal use only
Page 9
Context • EOS products consistently demonstrate greater accuracy than competitors • We remain committed to being the global product leader • The R500 RWS was launched in Feb 2025 at IDEX in Abu Dhabi Planned Features • Increased lethality • Dual-feed cannon and larger ammunition capacity • Dual-weapon capability • High elevation for CUAS applications • High resolution sensor unit with additional CUAS sensors • AI-based target identification and tracking • Mesh network capability Customer Interest • We are in active discussions with a long-standing Middle Eastern customer for a launch order for this system Product Development – R500 EOS is maintaining global product leadership by developing a next-generation AI-based RWS 13 For personal use only
Page 10
Counter Drone • Significant organic growth opportunities: • Remote Weapons Systems (RWS) • Counter-Drone products (specialised RWS) • Two large strategic opportunities: • High Energy Laser Weapons • Space Control • Key focus areas: • Commercialising our significant IP assets • Maintaining capital discipline Growth Strategy EOS is positioned to grow sustainably in the short, medium and longer terms 14 VALUE TIME 1-3 Years 2-5 Years 3-10 Years DEFEND & GROW NURTURE SEED RWS / CUAS Space Control High Energy Laser Weapon For personal use only
Page 11
Summary EOS aims to become a global leader in Counter-Drone, High Energy Laser Weapons and Space Control RWS / Counter-Drone High Energy Laser Weapons Space Control Summary • Market conditions remain supportive • Focused growth strategy - Counter-Drone and Space Control • Divestment of non-core activity (EM Solutions) • Strengthened balance sheet to support growth • EOS will continue to be a disciplined allocator of capital • EOS expects that 2025 revenue will be heavily biased to the second half of the year 15 For personal use only
Page 12
31 Appendix For personal use only
Page 13
32 Market Development Update Growing the order book continues to be our key focus; several opportunities are developing Note: there is no certainty that any particular outcome or transaction will result from these discussions and negotiations 32 AdvancedEvaluationPreliminaryEmerging Region Product Size Opportunity Australia R400 $80-100m • Land 400-3 Project for ADF • Product specification / discussion ongoing with end-users • Contract development with Hanwha at advanced stage • Potential to sign in 2025 and benefit 2026 & 2027 revenue North America R800 $20-30m • Launch opportunity for EOS new heavy calibre R800 system • Customer is upgrading legacy Stryker/LAV vehicles for Ukraine donation • Customer finalising contract with national funding provider • Potential to sign & benefit 2025 and future years Europe - Ukraine R400 ~$181m • EOS has two conditional orders with Ukraine • Product demonstrations held & product listed as ‘approved’ • Orders depend on Ukrainian budget allocation International HELW 100kW $50-100m • Detailed discussions advanced during 2024 and early 2025 • Potential to sign during 2025 International HELW 100kW $50-100m • Detailed discussions held during 2024 • Customer has sought re-quote during 2025 following change in spec. • Potential to sign during 2025 or 2026 Notable Opportunities Maturity Definition • Emerging: Initial discussions have occurred • Preliminary: Bid being prepared or submitted • Evaluation: Customer is performing assessments of product and/or detailed discussions are underway • Advanced: Contract under negotiation or negotiated and conditional As Reported 25 Feb 2025 For personal use only
Page 14
33 Market Development Update Growing the order book continues to be our key focus; several opportunities are developing Note: there is no certainty that any particular outcome or transaction will result from these discussions and negotiations 33 AdvancedEvaluationPreliminaryEmerging Region Product Size Opportunity Middle East R500 $500m+ • Existing customer, follow-on order • Initial bid submitted, potential contract award in 2026 Middle East R400 Spares <$20m • Existing customer, sustainment contract • Bid submitted, under review Europe R400 Marine Slinger <$20m • Existing customer nation, new product configuration • Bid submitted, discussions done – Update: Order secured in May 2025 for A$53m Australasia R400 Marine $15-25m • Existing end user • Bid submitted, discussions ongoing Notable Opportunities Maturity Definition • Emerging: Initial discussions have occurred • Preliminary: Bid being prepared or submitted • Evaluation: Customer is performing assessments of product and/or detailed discussions are underway • Advanced: Contract under negotiation or negotiated and conditional As Reported 25 Feb 2025 For personal use only
Page 15
34 Market Development Update Growing the order book continues to be our key focus; several opportunities are developing Note: there is no certainty that any particular outcome or transaction will result from these discussions and negotiations 34 AdvancedEvaluationPreliminaryEmerging Region Product Size Opportunity Europe R150 $100-$300m+ • Opportunity to put RWS on large logistics vehicle fleet • Competitive process during 2025 and 2026 – new customer • Potential follow-on opportunities with other nations Europe R400 Slinger <$50m • Follow on orders being pursued with donor nation • End user in Ukraine North America R400 <$50m • New customer, New end user • Bid submitted to large global prime to support vehicle program Europe R400 <$50m • New customer, New end user • Bid submitted to large global prime to support vehicle program International R400 Slinger <$100m • Potential new customer • Sample products sold, demo held, discussions underway • Potential to accelerate due to operational requirements Middle East R400 <$100m • Potential new customer • Sample products sold, demo held, discussions underway • Potential to accelerate due to operational requirements Notable Opportunities Maturity Definition • Emerging: Initial discussions have occurred • Preliminary: Bid being prepared or submitted • Evaluation: Customer is performing assessments of product and/or detailed discussions are underway • Advanced: Contract under negotiation or negotiated and conditional As Reported 25 Feb 2025 For personal use only
Page 16
35 Market Development Update Growing the order book continues to be our key focus; several initial opportunities are emerging Note: there is no certainty that any particular outcome or transaction will result from these discussions and negotiations 35 Region Product Size Opportunity Europe R400 Slinger $10-$50m • Potential new customer nation in western Europe • Early stage discussion with end customer & potential partners, including established local providers North America R400 Slinger <$50m • Sample products sold, co-developing advanced software for customer • Targeting initial orders in 2025 & 2026. Market size > 4,000 vehicles Middle East R800 Up to $100m • Previous end user / new customer • Vehicle upgrade opportunity – early stage discussions Middle East HELW $100-200m or more • New product for existing national customer • Next step – bid & deal structuring planned for 2025 International Space Control <$10 - $100m+ • Initial discussions with several prospective customers • Opportunities range in size and could include initial ‘test’ programs, to pilot sites and larger opportunities over 2-5 year period Maturity Definition • Emerging: Initial discussions have occurred • Preliminary: Bid being prepared or submitted • Evaluation: Customer is performing assessments of product and/or detailed discussions are underway • Advanced: Contract under negotiation or negotiated and conditional Notable Opportunities AdvancedEvaluationPreliminaryEmerging As Reported 25 Feb 2025 For personal use only
Page 17
36 Reconciliation of Statutory Profit / (Loss) and non-IFRS measures 36 Continuing Operations $m 2024 2023 (Loss) for the year from continuing operations (35.1) (44.4) Income tax (benefit) (3.3) (11.2) (Loss) before tax (38.4) (55.6) Finance costs 24.6 35.3 Foreign exchange (gain) (11.6) (0.9) Underlying EBIT (loss) (before foreign exchange gains) (25.4) (21.2) Depreciation and amortization 12.5 9.4 Other one-off adjustments - (1.2) Underlying EBITDA1 gain/(loss) (before foreign exchange gains) (12.9) (13.0) Total Operations (Continuing & Discontinued) $m 2024 2023 Loss for the year (19.7) (34.1) Profit after tax for the year from discontinued operations 15.4 10.3 Net loss for the year attributable to continuing operations (35.1) (44.4) 1.Underlying EBITDA is a non-IFRS measure and comprises net profit after tax, adjusted to exclude significant items such as tax, finance costs, depreciation and amortization and foreign exchange impacts. The directors consider it useful as it enables readers to obtain an understanding of results from operations. Underlying EBITDA is not audited by the Company's auditors. The results for EM Solutions (divested in January 2025) have been treated as discontinued operations For personal use only