Good morning. Good evening, ladies and gentlemen.

My name is Andreas Schwer, Managing Director and Chief Executive Officer of Electro Optic Systems. Uh I would like to give you uh our speech for the first half 2024 year results presentation, and we are very proud to announce that the first half year has been exceptionally good.

It has been a record year for Electro Optic System. Let's, please, move to slide number 4.

The agenda looks like the following. We will first uh summarize the highlights of the first half year.

I will put you then uh into the strategic context, what has happened in particular in the first half of 2024 with a focus on the high-energy laser weapon business, and then very strong focus on the MARSS update, MARSS, our recent acquisition. We then have a look to the order book, and I will give you an outlook on our business development, what will happen over the next few months.

I will have then hand over to Clive Cuthell, our CFO, who will give you an overview about our financial performance down to divisional level, some aspects on the cash flow, and then I will summarize the presentation by giving you a strategic outlook before we go to the question-and-answer session. Please move on.

We're on slide number 6. To put you into the context, EOS is operating in very strong market.

The first half year has been exceptionally strong from a market perspective. The conflict in Ukraine, but also and in particular in the Middle East, was helping us a lot to get more traction and to achieve the results which we have achieved.

Uh part of that obviously was a strongly evolving partnership network. You might remember that part of our go-to-market strategy is to enter into partnerships with national champions in particular key, core markets.

That has happened also in the first half of 2024. We could also demonstrate now in a quite impressive wave that we can deliver.

We can deliver on commercials. We can deliver in a highly operational excellence mode.

We could convert quite significantly our order book into revenue. Uh we could operate in a very complex and demanding supply chain environment, an environment where internationally lots of challenges were to be faced, but we delivered according to customer requirements, urgent customer requirements.

We could deliver in very short delivery time frames, quicker than most of our competitors. That this could be done because of some strategic investments which we did in the past.

Some of you might remember, we have invested some years ago into a framework agreement with Northrop Grumman to secure us the supply of a very strategic component, the 30mm cannon. That's one example why it's paying off now.

We can deliver quicker than some of our competitors, and that is giving us a strategic lead. We expect the growth to be very sustainable and robust, and we are very optimistic for the outlook over the next few months and years.

We are well positioned to capitalize on all those factors and all those framework conditions. Let's move on, please.

I would like to hand over to Clive to give you the highlights of the first half 2024 financials. Please, Clive.

Thank you, Andreas, and uh good morning, everyone. As this slide shows, uh it's been quite a positive first half in many respects.

The revenue of $169 million, which was announced a few weeks ago, is an increase of almost 300% uh on the comparable prior period. Uh gross margin at 58% um continues a trend of positive development in uh particularly in our remote weapon systems business.

Uh and we're extremely pleased that in the first half, we were able to report an underlying EBITDA of $21 million Australian. As uh we have said previously, um we've been targeting profitability uh for some time.

The strong markets combined with the order book, and in particularly, the agility that Andreas mentioned has allowed us to achieve the revenue that has driven this positive EBITDA for the first half of the year. Uh the cash position and the funding position of the business has never been better.

At the end of June, uh we had $256 million in the bank. We also had undrawn debt facilities of $30 million.

In July, after the uh end of the period, uh we received the final tranche of the equity raise, which was a further $30 million. We are in markets, as Andreas is about to explain, that are very strong, and the business is extremely well capitalized to deliver on that growth.

Uh the other uh highlight uh that I'll come back to later on is this morning we are announcing that our revenue outlook for the calendar year 2024 is now a range of $360 million to $400 million, including the benefit of the MARSS business, which we acquired in May. We're going to talk about that a little bit more as we go on, uh but I will hand back to Andreas, who's going to talk more about uh the environment uh that we are dealing with and uh the opportunities ahead of the company.

Thank you, Clive. We are on page number 8.

EOS is active in four segments, following our strategic imperatives of becoming the number one global provider of integrated counter-UAS solutions, and secondly, to become the worldwide leader outside US on space control, space warfare type of systems. In order to achieve that, we're active in the following four domains.

Two of those domains are effector type of domains, and the other two domains are system-level type of domains. I start with the effectors.

We have been, we are, and we will be a world-leading supplier of kinetic defeat systems of remote weapon systems, or remote weapon stations. This business is remaining very exceptionally strong, and we except we expect a strong growth path also over the next few months and years because of our highest accuracy in tracking and shooting, the highest hit probability.

I just want to remind everybody, we have never lost any kind of competitive shooting event, and that is the baseline of our business success in this particular business area. Our high-energy laser weapon business, where we succeeded uh in 2025 with the first worldwide 100 kW laser weapon contact for export, that is a domain where we expect a very substantial growth in the future.

This is becoming a backbone of our business, and that's an area where the competition is not that strong. There are only very few players on the market competing against Electro Optic Systems.

I will come back on all those segments in a few minutes again. Most notably here is our recent acquisition of the company MARSS.

The company, which was based uh at acquisition time in Monaco, we have transferred the company meanwhile to France, to Nice. They're active now with operations in France, and in UK, and in Saudi Arabia.

This pillar, uh which was always promising, it was promising from day one, is turning now to become an extremely positive growth uh growth uh area for the business. We are now in a position to offer integrated counter-UAS systems, turnkey systems for any kind of client, whether it's a military client or whether it's a client coming from the so-called homeland security area, such as operators of airports, commercial airports, uh power stations, and other critical infrastructure.

That is our business which is driven by MARSS, and MARSS is uh is backed by its own proprietary NiDAR AI-driven command and control system, a system which is fusing any kind of sensor information and creating a integrated picture for the operator in order to decide automatically on which sensor, which effector should take over, which kind of intruder in order to protect the infrastructure in a hemispherical way. I will also come back on this a little bit later on.

The fourth pillar of activity uh is our so-called space control system, our space business, where we are developing systems being able to uh interact with any kind of space object. Interaction could go that far that we are able to not only move space debris, but also being able to blind satellites temporarily or also permanently.

We can disable satellites from ground. That is a business which is coming sooner than we have expected and which we believe will become a very strong pillar as well, a little bit later than the high-energy laser weapon business and the MARSS business, but with the same level of potential in the future.

That's also business where there is hardly any competition outside the US in the marketplace. Let's move on, please, on slide number 9.

Let's uh recap the first megatrend, the drone warfare. Uh and I cannot repeat this often enough that the appearance of the drone in the battlefield is causing a substantial change in the overall warfare scenario.

Month over month, we can see this in Ukraine, but also in the Middle East, that this kind of threat is dominating the airspace. It is creating a zone of up to 40km, the so-called kill zone, in between the front lines, causing uh almost a standstill in ground-based operation because of loitering ammunition, because of attacking kamikaze drones.

This is becoming the threat scenario number one, and that's the reason why the defense number one, the defense priority number one will be on counter-UAS in anti-drone weapon systems. That's exactly where EOS is active, where we put all of our efforts in, and where we are so strongly positioned.

Let's move on. Number 10.

This anti-drone warfare is facing substantial problems. Traditional defense system systems, which are basically missile- and rocket-based systems, are way too expensive to defeat on a long term those kind of drones.

Nobody can afford to shoot with missiles costing up to 3, $4 million of US dollars of, of course, to shoot with them against drones for a few thousand dollars. Not even the rich and wealthy Middle Eastern states can afford that long run.

That's the reason why also those states are heavily investing into integrated counter-UAS systems, such as ours, being able to offer with more affordable effectors to go against that those drones with more affordable effectors. The second point is uh traditional air defense is too inflexible.

Uh they are based on a few effectors only, effectors which cannot be exchanged that quickly, effectors which cannot interlock with those kind of threats that quickly. This kind of slow response, the traditional slow response, is not adequate anymore in this upcoming drone warfare, a warfare where drones can be launched in your nearest vicinity and giving only a few seconds to react.

Such a short period of time, which even requests you to give up on manual operation, to even give up on the human operator being in the loop, but instead of going to fully automated, to fully robotic type of defense operation. Those are the key changes in the field, and we experience week over week changes to that one in Ukraine requiring adaptations of the defense strategy, adaptation of our effectors, uh which happens then mostly in the software area.

Please move on. Slide number 11.

The EOS solution is now, with the acquisition of MARSS, then the that we can offer this kind of complete counter-drone platform. Uh I want to remind everybody that EOS is active, in particular in the Middle East, with more than 60 installed bases.

Means EOS is protecting more than 60 critical infrastructures in the Middle East successfully over the last few months from being effected by and impacted by attacks of drones, or cruise missiles, or rockets. We have shot down with our systems hundreds of Shahed drones and dozens of missiles and rockets.

If anybody needs a testimony, we can provide firsthand testimony from the top leaders of those countries there. What makes us extremely proud is we seem to be the the one and only customized and dedicated anti-drone platform.

We are not competing in those markets with the traditional C4I platforms coming from the big OEMs such as, for example, Raytheon, Lockheed Martin, or Thales, systems which have been developed in a very complex environments to operate very complicated sys- systems such as Patriot or THAAD, systems which are uh interconnecting the different domains, land, space, air, and sea. That is an overkill for most of those applications.

It's an overkill for what is demanded by the clients. What the client are asking are flexible solution, adaptive solutions to protect the single piece of infrastructure where a system which they can uh purchase for much lower price is much more the more is much more an appropriate solution.

This is exactly where MARSS is active, where MARSS has delivered since 2018 and '19. That's the reason why EOS is now at the forefront of this megatrend.

Again, not only a trend to protect military installations, a trend to also protect commercial and homeland security type of platforms. That is all possible because of our hardware-agnostic platform.

MARSS, because of its history, is an uh absolutely hardware-agnostic provider of those solutions. They can integrate any kind of sensor, whether it's, whether it's an radar, electro-optic, RF, acoustic, or any kind of sensor, and any kind of effector.

MARSS has integrated more than 160 different type of sensors and effectors. Nobody else has done this multitude of effectors.

This is allowing us now to offer the client, on the spot, to use his existing portfolio of sensors to integrate in a very seamless way within no time and to offer our clients, in very few days, to set up a solution which is uh able to defeat those kind of drones, even if they attack in large quantities in swarms. Our secret behind is our AI-driven algorithms.

Uh we have a software package which is extremely user intuitive and which is extremely flexible to handle complex type of threat scenarios. The user-intuitive uh in in intuitive uh usage capability is a key point allowing us to train operators within a few days.

Everybody can operate those kind of systems within no time thanks to the concept of operation, a concept which allows you to operate those systems either from traditional command control centers, war centers, but also from a simple platform like an iPad. It does not make any difference in terms of effectivity.

It only depends on the customer preference, but it is extremely easy to operate. That's another key selling factor, and it's absolutely at the state-of-the-art on how to operate those kind of platforms today and in the future.

Please move on. We go to slide number 12.

This kind of operation of an integrated MARSS counter-UAS system is following the following kind of action stream. Uh the system is always continuously doing the data fusion from all those kinds of sensors I was just mentioning.

It identifies any kind of intruder, any kind of object. It does then the identification to not only discriminate whether it's a hostile kind of threat, whether it's a drone, or whether it's just a bird or a friendly force.

It's doing the identification down to the type of effector. It can even identify the weaponary on those kind of incoming threats, which is quite unusual.

Uh we're doing this by doing a kind of permanent comparison with a library which is uploaded to any of those systems, and this kind of library is learning day by day. We give our clients permanent upgrades of those libraries.

That's a very good aftersales business to allow our clients to always be at the forefront of knowledge on what is potentially coming in, then how to uh defeat those kind of systems in the most efficient way. This NiDAR system is giving then recommendation to the operator to engage, and it is proposing which type of effector should take out which type of intruder.

Again, this can be done with man or with person in the loop, or it can be done autonomously. In the future, that's our prediction, it will be done more and more autonomously because there is no time for human in the action.

In many cases, we will only have a few seconds for the decision-making process requiring a fully automated robotic emp- approach. Then the system will decide by itself on the engagement and will shoot down those kind of drones.

That's the kind of circle of operation. It is uh a state of the art.

It is what the customer is needing, and this is how we are operating day by day. Again, EOS has a battle-proven system.

Uh that's quite unique in the anti-drone warfare. This is showing you just to illustrating you how such a kind of operating center could look like.

This is the kind of high-end solution with a 360-degree kind of uh war area or war zone or command center where uh the kind of control is happening. Again, it can go down to a simple iPad or laptop type of operation where you see everything on one single screen, and the operator does not need anything else in order to fulfill, more or less, the same kind of job.

What you can see in the right side, that's more the kind of setup for a nationwide operation, or an operation where you interconnect several critical infrastructures to keep the overview on what's ongoing over a certain number of sites, more than one. Please move on.

Slide number 14, partners and clients. This is a collection of partnerships uh uh which we've active.

You can see top-notch, first-class defense companies from all around the world which are our proud partners. Uh from, starting from Korean companies, uh European companies, top-notch American companies.

We are partnering with them because they all appreciate our uh high-end performance, our first-hit probability, and our survivability in the battlefield. We've signed a couple of new partnerships, and I just want to highlight two of them here.

Uh one is with BAE Systems, one of the world-leading providers of defense systems. BAE Systems has decided to use for all its future, of its future counter-UAS applications, our NiDAR command and control software.

That is an exceptional result, and it shows that one of the world market leaders has done, after a very thorough review of all the options on the global market, they've decided in our favor. They've decided that our NiDAR system is the best of the best, and that's the reason why we are together now and shaping up the future between BAE Systems and Electro Optic Systems.

We also formed a partnership with the French German group KNDS, one of the leading European groups in land systems, and we are proud partner of KNDS in the area of remote weapon systems, including its application in the anti-drone warfare. Those are just two examples of how we go into markets to minimize the time to market and to minimize the capital exposure.

Let's move on, please. High-energy laser weapon.

We have signed the first contract uh in the middle of 2025. This contract is not only running according to schedule, we are about 1 year ahead of schedule.

The client is extremely happy with our performance, and as a result of that, he intends to place the first low-rate initial production contract, the first kind of serial production contract to EOS much ahead of the delivery time of the first system. We will deliver the first system not only in 2028, but towards the middle of 2027, which is an tremendous achievement, and because of that, we will enter with the clients, most likely, into a contract for this low-rate initial production contract ahead of even that point in time.

That's underlining our capability, and it's underlining that our investment into the setup of the first worldwide uh serial production facility of high-energy laser weapons in Singapore was the right decision to do. It puts us at the forefront at this very prestigious, advantaged and uh advantageous market, and uh a market which will grow significantly over the next few year, where we can play now a very, very strong position.

The contract with the Dutch has had a value of €71 million, but uh you might recall that we are able to deliver, in larger quantities, system systems at the price of down to €30 million. That is giving the client a huge advantage because of the large-scale opportunity.

Um, uh as I was mentioning before, we passed successfully the so-called Critical Design Review, that's a kind of standard review you you have to pass in any kind of military procurement process. That is a strong, a strong quality stamp which we got by the clients that they consider the system being ready for production now.

That is the reason why we can increase, or decrease the time scope to deliver earlier than expected, and the customers also considering to increase the scope of this standing contract by adding other features like navalization, for example. All that, again, is a testimony of our quality, even in delivery, not only in development.

Please move on. MARSS has secured uh in 2024 uh contracts for more than $200 million Australian.

You might recall that we are very optimistic to be able to sign for MARSS uh orders of up to €1 billion, which is around $1.6 billion Australian of orders within the first 12 months. That's the reason why we've increased the cap in earn-out from originally 500 million Aus- €500 million to €700 million.

We are more confident than ever before that we can achieve those values. This is reason why the acquisition of MARSS was a turning point for Electro Optic Systems.

It is giving us not only the position of being able to compete against other primes in the the delivery of turnkey solution, but also to be able to significantly scale up our revenue base as the MARSS uh contract size usually is higher than if we sell just normal type of equipment, normal type of effectors. MARSS, from any kind of angle, is a big success story for us already now.

Please move on. The order book, the unconditional order book, we could manage to increase from last year 459 and end of '24, 136 to now more than $846 million Australian.

That is an exceptional success, and what makes us extremely optimistic, it's not only the MARSS business coming on top of it, it's also the laser business coming into play now, and also our uh very uh uh kind of backbone and the so-called bread-and-butter business, the weapon station business is picking up extremely successfully, giving us uh a very optimistic outlook into the next future. If you look to the order book, this is driven currently very much by the Middle East.

That is basically reflecting the actual geopolitical situation with a strong, short-term delivery demand. We expect this to be more balanced in the next future by European programs coming into play, also very significant programs and acquisitions coming into play, where we expect long-term to have a balanced order book with uh kind of one-third going to the Middle East, one-third at least going to Europe, and another third going to the United States and the rest of the world.

That gives us a more robust position in the market. We become less and less depending on a single client or a single region.

Please move on. This is the order book.

Uh we can uh we You can see here that we have added some more lines, some more lines of very substantial opportunities, large-scale opportunities, some of them, but not all of them, coming from the MARSS type of business opportunity. Uh MARSS has so far been only active, or predominantly active in the Middle East with its over 60 installations.

What will come now very soon and much sooner than expected also, MARSS will reach out to NATO countries, will reach out to European countries. Most of you will have been informed that there was some days ago the first aggressive drone attack on a European airport.

It was in Leipzig, Germany, where a drone with explosive on it was attacking an Antonov aircraft. It was the first time that a weapon system was really attacking, in a direct manner, on an commercial airport an aircraft.

That has cause caused lots of panic uh with most of European airport operators, also with many operators of other type of civil infrastructure all across Europe. We are over-flooded by inquiries from those type of operators.

We are now in very intense contacts and dialogues, not only with the ministries of defense across Europe, but also with the ministries of interior, with the homeland security ministries, with the police forces and all the commercial operators all across Europe. We expect this business to pick up in a much stronger way than we were ever expecting before.

Thanks to MARSS, and thanks to our ability to deliver solutions which are also customizable for those kind of infrastructures where you cannot use missiles, where you not can use cannon-based air defense, but where you can use laser weapons, that is, and where you can use interceptor drones. Our interceptor drone is a drone which is not based on an um an explosive warhead, but which is just first operating by the pure kinetic impact, by hitting the attackers.

Those kind of effectors will play a dominant role with those kind of installations. MARSS is perfectly positioned to also go into those kind of markets, which is creating another layer of growth potential on the short run, and all that has not been expected when we were starting the acquisition of MARSS.

That is the reason why we are more optimistic than we've ever been before. Please move on.

Space is also getting more and more traction. I just want to highlight one country.

The German government has decided, and they've allocated a budget of more than €35 billion, which is more than $60 billion Australian, for expenditure to defend and to protect their own space, their own military space infrastructure. Uh a significant sub-line of this €35 billion budget is denoted for our type of capability to protect space-based assets by ground-based systems.

This is giving us a strong outlook for our space business. We believe that, not only on the German example, because other governments will follow this example, that our space business will pick up business much earlier than we've ever expected before, and we expect the space business to become very substantial not only beyond 2030, but even before 2030.

That is again based on our capability to track with an unmatched precision any object in space down to a single coin, even in cis-lunar orbit, combined with our ability to correct atmospheric distortions, which nobody else can do outside the US to this kind of extent, and our ability now to combine our high-energy laser weapon technology, which we have available up to 150 kW today and which we expect to scale up up to 300 kW over the next 4 years, to be able to combine all that together will allow us to engage against satellites from ground irrespective of the orbit of the satellite. This is giving our kind of client a world-decisive leading edge.

Uh that type of business is extremely sensitive. It will require localization, and that's one reason why we are able and prepared to localize not only this kind of space type of business in NATO countries such as Germany, we will also do that in any kind of request for laser, for counter-UAS-based type of business.

We can do that because we own all IP from A to Z. Let's uh move on, please.

We are coming now to the financial slides. I would like to hand over to our CFO, Clive Cuthell, please.

Thank you, Andreas. On the uh the next slides is a little bit more detail on the financial results for the first half.

Uh overall, the revenue of $169 million, which was announced a few weeks ago, uh as the chart on the right-hand side shows, that first half revenue is the highest first half revenue that EOS has ever achieved. Uh and that reflects uh many of the market trends that Andreas has outlined.

Uh the chart on the bottom right uh sets out the diversity of our revenue stream, and we are particularly pleased with the improvement in the the geographic diversity of our revenue that was achieved during the half. The company, uh as many people know, has done a lot of work to diversify um the sources of geographic revenue over the last couple of years, and that is now translating uh into the financial results.

Uh the other uh things to highlight include uh obviously the underlying EBITDA of $21 million achieved during the period. Uh the company has as I said earlier has been focused on profitability uh coming from scale for some time, and uh we're we're obviously um pleased to see that being operationalized.

Uh the result includes a gross margin of 58%, as the table shows, and ignoring uh the very unusual uh one-time uh result of 76% last year, this 58% continues the positive trend uh that we've seen across different parts of our business, um which is attributable uh not just to the strong markets that we're in, but also the pricing discipline and the execution discipline that we've been uh establishing over the last few years in EOS. The The next page uh over uh on page 23 shows a summary uh of the results between our different uh segments.

The defense segment at the top uh now includes the MARSS business, but also includes the results for high-energy laser and for remote weapon systems. Uh during the first half, more than 80% of the revenue in the first half came from our uh remote weapon system business, in particular selling the Slinger counter-drone gun system um that uh that we have.

Uh in the the space systems part of the business, uh as Andreas said, uh this is more of a significant future growth opportunity. Uh we remain um very positive on the outlook for this business, uh and we will continue to make uh very modest investments um from the company's perspective in this, and continue to develop the European market in this area.

Maybe just a a couple of comments on the margin mix in the business. Uh over the next 12 months, uh we expect to see two or three things impacting margin in the business.

Uh in particular, the growth uh in high-energy laser weapon revenue that we expect to arise uh from the Dutch contract uh should have a positive impact on gross margin and EBITDA margins. Uh on the other hand, the growth in the MARSS business that we're expecting um uh over the next 12 months um as we've taken over ownership, um that that will have a lower gross margin, but we still expect 20% EBITDA.

We're not providing guidance uh on on margins overall, but as we've indicated previously, uh in our industry and in our business in particular, we are aiming we continue to aim for a 20% EBITDA margin overall. Uh on the next page is the cash flow, and as people who've followed us for a long time know, cash flow is very important at EOS, and it's been a strong focus for us over the last few years.

Uh most of our business, uh remote weapon systems, laser weapons, and space, uh we have always run these over the last few years to be cash flow positive. Our business is evolving a little bit with the acquisition of MARSS.

As as Andreas mentioned, MARSS is a prime contractor, uh which is a little bit different from a uh an OEM manufacturer uh that our traditional business has been. Larger projects when you're a prime contractor can be a little bit lumpy.

Uh that said, uh uh it's uh uh I think it's safe to say that EOS will continue to be very disciplined in managing the cash flow and the profitability and the execution on prime contracts uh over the next 12 months, in the same way that we've been careful with cash uh over the last 2 to 3 years. Over the next 12 months, we do expect to deploy capital uh particularly in growing the MARSS business.

Uh some of that will be bank guarantees, some of that will be working capital, and uh and typically, we we can sometimes see in the MARSS business investments in the first few months uh of large contracts. Uh with the existing MARSS order book, uh we we may see a little bit of that over the next 6 to 12 months.

The company is well-funded. As mentioned earlier, we had more than $260 million Australian in the bank at the end of June and $30 million of undrawn debt facilities, a total of almost $300 million.

The company has all of the funding uh that it needs to grow the business in the way that Andreas has outlined over the next few years. We will continue to focus on scale and profitability and cash flow.

Uh finally, naturally we're we're obviously very pleased that the first half result has operationalized the growth um that we've talked about over the last few reporting periods. Uh the revenue outlook, uh as Andreas has indicated, is stronger than we previously expected.

That's a a factor of uh market growth. It's uh it's driven by our strategy to focus on counter-drones, uh counter-drone activity, and it's it's obviously uh driven by the company's agility, in the way that Andreas mentioned, our ability to supply customers quickly um has been a defining factor in our first half performance.

As a result of all of these things, the full-year growth outlook uh has been increased uh, and the revenue uh that we are guiding for the full year, as I mentioned earlier, is a range of $360 million Australian to $400 million Australian, including the MARSS business. I'm going to hand back to Andreas now uh for some uh wrap-up comments um before Q&A.

Okay. Thank you, Clive.

As you have seen, our business is very stable and robust. Uh all of our segments are performing really well.

We are extremely confident to uh increase our growth year-over-year and our revenue base year-over-year as the strategy is working out in a very nice manner. The decision to focus our strategy on the two pillars, counter-drone and uh the so-called space control or space warfare, is uh paying off now.

Uh we are very proud of having taken this kind of decision some years ago. We are in the middle of the military growth, and uh we are a so-called new tech uh player in defense.

We are not seen as a traditional player. We're not a metal bending company.

We're the company working and being active in areas such as anti-drone business, AI technology, software technology in high-tech technology such as laser, and uh in this anti-satellite business. Those are all key drivers, key uh drivers which make EOS very attractive for clients, for industrial partners, and also for investors.

This is giving us all the confidence to be able to execute this growth path, uh again, based on remote weapon systems, uh further much further pushed with uh the AI-enabled C2 command and control system capability by MARSS, uh further pushed by our high-energy laser weapon business, and then, in a third step, by our space warfare type of capability. This is the growth story which we have uh told you we will go through, and if you, please, go to slide number 27, that's the kind of growth story which we will continue to be executed.

We are currently riding an exceptionally strong wave, and we expect this wave to continue. We will benefit with all you together on on uh on that wave, and we EOS we want to remain your trusted partner in defense business.

Uh to to conclude my statements with uh my standard kind of closing statement, we always say what we think, and we always do what we say. We continue on in this wave, and uh in this context, we are more than happy to receive your questions now.

Thank you very much for your attention and uh looking forward to further collaborate with all of you.

Done, guys. Uh, great set of numbers, and uh looks like the pipeline's building strongly.

Um got a couple of questions here. Um one relates to the guidance upgrade here um relating to MARSS.

How much of the upgrade relates to contracts you have not secured yet?

Thanks, Owen. Um I'll cover that one.

Uh the the guidance that we have provided is entirely based on contracts that are secured. There are no amounts in the guidance that relate to uh future contracts uh that are uh not signed, and there are no amounts in the guidance relating to conditional contracts.

If we sign additional contracts over the coming weeks, there is the possibility um that they would benefit uh 2024, albeit um uh as time passes naturally um that uh will be of of limited benefit to 2024. Does that cover it, Owen?

The guide Yeah. The guidance in the second half of the core business is call it 110 mil.

You've just done 170 in the first half. Does that relate it to supply constraints um uh for the core business?

Or is that Uh

yeah. Thanks, Owen.

We we've given uh guidance in total of 360 um to 400, uh which obviously includes uh both businesses. Uh the first half was especially strong, uh Owen.

Uh the uh uh I think it's more a reflection of the lumpiness of some of our contracts. Um we are we we are expecting, uh as you've indicated, that the core business uh may not be quite as strong in the second half uh as it was in the first half, um although that's just more due to the timing of deliveries uh and other factors.

We continue to manage uh capacity and supply chain constraints uh and we're uh we're very comfortable about the um our ability to grow um over the next uh 12 to 24 months. Uh

just checking the notes to the account, it looks looks like you've put through a 77 mil uh security deposit. Just um um um historically, can you guys give us a range of how much uh when you sign a contract, how much is required up front for a security deposit, not a number maybe, but a range?

Yeah. Um thanks, Owen.

That's That's right. In uh in the detailed uh financial report, we have indicated that the company provided a guarantee um to a potential future customer uh after 30th of June.

Uh typically, uh in our industry, um we can give guarantees uh to customers or prospective customers sometimes that are uh and the guarantees can sometimes be 5%, 10%, 20%, sometimes even higher uh uh relative to contract value. Uh just for context, uh the guarantee that was provided um is is in relation to an opportunity that is presently unsigned and unannounced.

If it results in a material contract being signed, then naturally, we would update the market immediately. Then

if you go to your outlook, uh your uh business development update there, this that's a that's a new slide that's getting bigger um to me, particularly the bottom three. Uh say you do sign a material contract, call it uh one of those big three there, how does the working capital nature go go?

I know most of the revenue sign comes in the first year, but with the procurement, what's the lead times between order and delivery and payment?

Thanks, Owen. Look, we um I think it's fair to say that that we're uh as Andreas has indicated, the the outlook for the MARSS business that we acquired is is stronger than we expected, and and some of that is shown uh on the bottom of slide 19.

Uh we we see quite a lot of opportunities to grow that business, and we do think um that there may be, and on some opportunities, there may be some initial working capital investments that are modest uh and well well within the funding position uh that the company has. Um I think, as we uh we did raise equity in the first half of the year, and as a result, balance sheet is very well-positioned to support growth outlook um including uh the uh the opera- operationalizing of uh future opportunities, such as those listed on page 19.

Uh I hope that answers the question, Owen.

Done, guys. Great outlook for the next couple of years.

Thank you.

Morning uh Morning, guys. Can you hear me?

Yes.

Yes. Ah yes.

Uh yeah, great great result and out- outlook there. Um this question's been partially answered, but I but I was just hoping to get um an idea on future MARSS orders.

Um is the, is the uh the ramp-up in the the contract that has been signed um uh late last half uh to revenue, is that typical of future orders, that that um revenue ramp-up from from signing to when it's actually being delivered, uh or is that more reflecting uh, the urgency um there by the by the Middle East customer?

Thanks, uh Baxter. I'll I'll answer that.

We acquired MARSS in May. It came with an order book uh of uh about 200 just over $200 million Australian, uh most of which was signed in April and May.

Uh in the MARSS business, it is typical that uh 60% and 70% of the revenue, sometimes a touch more, uh is earned in the first 12 to 24 months of the contract. That's because uh usually contracts that MARSS uh uh wins are involved in setting up new anti-drone systems to protect assets uh uh in uh of the customers concerned.

The profile uh of having a front-end loaded revenue uh that is earned over 12 to 24 months is is normal. Um it is fair to say that there are urgent operational requirements, particularly in the Middle East, that are benefiting our business uh at the moment.

That includes MARSS, and and also there's some benefit in the first half for our remote weapon system business from urgent operational requirements. Uh we we do not expect uh the urgency in the market to diminish over the coming uh years um because the trends that are are giving rise to it are are long-term, and we expect it in to continue.

Clive, if you allow me to add one more point. I think it's important for the understanding.

The beauty of the MARSS system again is to be able to act such as the the the toy Lego. You can plug and play any kind of brick one on top of each other.

It's always working. It's all compatible.

As MARSS has integrated more than 160 type of effectors and sensors over the last couple of years, we can just use on the market whatever is available on short-term delivery, whether it's a sensor, effector, and we can combine this very easily, allowing us to deliver much faster than other players, which are only qualified for the usage of very few types of sensors and components, and they are uh really required to wait for the delivery time for those kind of few sensors and effectors. We are more flexible, and we can use and integrate, again, whatever is available short-term.

This is giving us the leading edge, and allows us to convert orders into revenue much quicker than anybody else.

Yeah. Thanks for c- clarity.

Just Just Just another question. Um I'm just just looking at the uh market development order book uh pipeline.

Um I'm curious to know whether the uh Abrams product integration uh is that in that that pipeline there? Perhaps, in the US Army follow-on opportunities?

Yeah. Page 19 lists the opportunities.

What what is listed uh there at the top of page 19 is the nearest uh of the US Army opportunities, which we've listed at uh $20 to $50 million uh, and uh and relates to some of the work uh that we've talked about before uh what you mentioned. The There are um significant opportunities in the United States that are uh uh that are larger than the $20 to $50 indicated here, uh but they are a little bit further away.

Um so, uh potentially more uh '27 than '26, uh but there are there are sizable opportunities there, as we've indicated previously.

Yeah. Okay.

This um business development update pipeline slide, it relates to sort of, potential orders in the next uh 12 12 months, would you say, or 24 months?

This this is a this is a selection of some of the most significant and the most the nearest opportunities. Yes, uh some of these uh we would expect to sign over the next 12 months, and some will take a little bit longer.

Yeah. To make this clear, this is It's not

But it's not it's not exhaustive, I think it's what Andreas was about to add.

Yeah. It's not the exhaustive pipeline, as other companies are reporting.

This is just a selection of some key elements out of our pipeline. Yes, the focus is on very short-term execution of contracts here.

To come back on your question on the US Army, this will be the second phase of the pre-production contract phase, which we expect to get. Uh we we we received the first pre-serial contract order uh last year.

The second one, which is the one which you can see here in the pipeline, we expect to receive either towards end of this year, beginning of next year. Then we expect the first high-volume serial contract to come into play towards maybe end of next year or 2028.

That is then a substantially bigger one, and that goes then really into the high-volume production to serve our weapon systems for this particular platform, which you have seen on one of the slides before.

Okay. Thanks.

Can you perhaps uh detail um the your localization um and your production capacity in the US? Um, obviously we've seen drone tariffs come through, obviously not relating to to counter-drone, but could you can you just detail um to what extent you've localized in the US?

Yeah. We are operating a facility in Huntsville, Alabama, which has the same kind of capacity as our one in as our one in Australia.

We can produce there in one shift operation uh around 300 systems per year, in two shifts operation up to 500, 600 systems per year depending on the product mix. Uh again, the same kind of quantity we can produce in Australia, and with the new joint venture in the Middle East, which we have recently signed with a company, CHAIN5, which is government-owned.

In that facility, we will also be able to produce a couple of hundreds per year. Capacity constraints we do not have with our current setup, and we do not need to uh invest heavy CapEx in order to achieve that kind of growth.

That is the situation for remote weapon systems. All what relates to the MARSS type of business is even easier to scale because our in-house value contribution to MARSS is software.

We just need to adapt adopt the software case-by-case uh in order to scale the business. We don't need any kind of CapEx in order to do so.

We just need to recruit some more software engineers. Uh we need to include to increase then the quantity of procurement managers and project managers because we need to purchase more products from the market.

Again, that is not a question of building up internal production capacity. The MARSS type of business is extremely easy to scale.

I hope that answers your question.

Yeah. Yes, sir.

Thank you, Andreas and Clive. I'll leave it there.

I assume this question relates to the so-called UTF tender. That is to provide up to 4,000 R150 type of weapon systems on top of military logistics trucks.

That is uh probably one of the biggest worldwide uh remote weapon system tenders over the next 10 years to come. We are in the lucky position to be one of the three remaining contenders.

We are not permitted to disclose further information on who are our remaining competitors. We can only tell you that we are very confident from the feedback we've received from the clients that we are very well-positioned in terms of quality of the product, and also in terms of the price which we have delivered to the client.

Uh the client is now executing a one year of testing with the product. Everybody had to deliver five units uh, which will be integrated on those platforms and tested extensively over 1 year.

We expect the client to take a decision towards end of 2027. That will be also a multi-phase contract with a total volume of up to 4,000 systems.

It's It's huge.

Nothing is stopping the Australian government to do so. I want to remind, we have been selected, together with Leidos and other partners, in the program called LAND 156.

That will be the backbone for any Australian anti-drone application, whether it's for the military domain, which was the primary planned purpose in the past. Now also, uh homeland security type of operators have reached out to MOD and uh have declared interest in order to participate and to benefit from this program coming into a kind of production phase pretty soon.

We expect also Australia will pick up in that domain, but not to the extent as it will happen in Europe because of the threat scenario, which is more imminent in Europe because of geopolitical uh framework conditions.

Yes, I was mentioning before, we have more than 60 active installations, and it's in operational use since 2018. Uh that started after the Houthi rebels have have attacked 2000, I think it was 18, some Saudi Aramco oil refineries in Saudi Arabia.

That was the starting point for MARSS to deploy those kind of systems in Saudi Arabia. Today, we have in the entire Middle East more than 60 stations supporting more than 60 critical infrastructures.

Yes, we have been we have shooting down uh more than 100 Shahed drones and dozens of missiles and rockets, and that is continuing day by day. We're defending those kind of of systems.

Uh that is making us unique in the marketplace because almost nobody else can or has this kind of stamp being battle-proven as a dedicated counter-UAS system.

Sorry. Who can shoot down ballistic missiles?

Uh,

Okay. It depends on the power level of the system.

Uh, yes, with 100 kW systems, you are able to shoot down slow speed, or low speed type of rockets, artillery shells, and mortars. In order to shoot down faster, quicker flying objects like a uh a missile, you need to have higher power levels.

That's one reason why we will go into the 300 kW domain to be able to have a full C-RAM type of capability, which includes the missile segment, which will allow us to go against any kind of classical missile, not against hypersonic missiles, but classical missiles. That's not our primary objective.

Our primary objective is to become the anti-drone company number one because that is the dominant threat on the battlefield. There are thousands more drones being launched against targets than missiles.

That's the reason why the 100 kW market will be the dominant, the kind of mass market over the next 10 years.

Ladies and gentlemen, thank you so much for being with us. Thank you so much for listening to this conference.

I think the first half of this year is providing the evidence which we have promised to deliver for a long period of time. It's the evidence and proof point that our strategy is 100% right in putting all of our efforts into a strategy which is focusing on two pillars, two pillars of military warfare, which are now turning out to be in the center of all actions in the future.

We will execute exactly the strategy further on, and as I was mentioning before, we will always say what we think, and and do what we say. We will we will provide 100% transparency, and we are absolutely convinced that our growth path will be sustainable and stable to create more shareholder value.

Thanks for being us, and uh we are crossing fingers for another half year to come with great success.