Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe

Page created by Andy Hicks
 
CONTINUE READING
Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
Creating subscription based revenues
from delivery of essential data to
government and commercial entities
around the globe

                                       1
Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
DISCLAIMER

This document is not a product disclosure statement for the purposes of a disclosure document under the Corporations Act 2001 (Australia).

This presentation has been prepared solely for information purposes and does not purport to contain all the information that a potential investor may
require. It is distributed on the understanding that no representation or warranty is made by Kleos Space S.A. with respect to the completeness, accuracy
or reliability of the information contained. This presentation is not a financial product or investment advice or a recommendation to acquire Kleos Space
S.A. securities, nor is it legal, accounting or tax advice. This presentation has been prepared without taking into account any person’s individual
investment objectives, financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters
and for making your own independent assessment of the information in this presentation. Before making an investment decision, prospective investors
should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and seek independent
professional advice.

Past performance and historical information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not)
an indication of the Kleos Space future financial performance or condition. Actual outcomes may vary from forecasts. A number of important factors and
risks may cause actual performance to differ materially.

This presentation must not be disclosed to any other party and does not carry any right of publication. This presentation is without reference to, and
should be viewed solely in conjunction with, the oral briefing provided by Kleos Space S.A.. Neither this presentation nor any of its contents may be
reproduced or used for any other purpose without the prior written consent of Kleos Space S.A..

This presentation has been prepared in accordance with the laws of the Grand Duchy of Luxembourg.

K L E O S . S PA C E A S X : K S S                                                                                                                             2
Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
INTRODUCTION

K L E O S . S PA C E A S X : K S S   3
Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
INTRODUCTION

             Radio Frequency (RF)                                 Kleos is the first company to fly    The data is collected and
             spectrum usage is a resource                         clusters of four satellites to       downlinked from the satellites
             that can be mined for highly                         accurately detect and locate the     then processed through our
             valuable data                                        usage of the RF spectrum by          proprietary algorithms
                                                                  legitimate and illegitimate actors

             Once ‘packaged’ into data
             products and transferred to our
             licenced subscribers ‘as-a-
             service’, the same data is able to
             be sold unlimited times creating
             annuity type revenues.

             Kleos is targeting areas that are of greatest interest to our
             customers i.e. Strait of Hormuz, South China Sea, East/West
             Africa, Southern Sea of Japan, northern Australian coast

K L E O S . S PA C E A S X : K S S                                                                                                      4
Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
EXECUTIVE SUMMARY

       Proprietary technology and own               Complementary to other              Revenue generating post imminent
       satellites creating a highly                 commercial and government           launch of first satellites that are
       valuable, independent data set               assets and data                     waiting at the launch site

       High growth:                                 Subscription based data sales are   Stable OPEX, profits increase over
       more satellites = more data = more revenue   scalable, recurring annuity type    time with growth in subscribers
                                                    and unrestricted in scale

       Exceptional management team                  Defensible market position
       experienced across Space,
       technology, defence and
       intelligence sectors

K L E O S . S PA C E A S X : K S S                                                                                            5
Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
INVESTMENT HIGHLIGHTS

                         Subscription revenue model providing     Global engagement made in high value defence and
                         recurring, annuity type, profitable      security markets:
                         cash-flow.                                     Qualified pipeline of 25 deals
                                                                        Further initial pipeline of over 90 opportunities
                                                                        Upsell opportunities; requests for high margin,
                                                                        bespoke data
                                                                        Annual Licensing Fees for 1st Cluster between
                         Large addressable Maritime                     A$128k – A$971k per licence
                         Information market expected to be
                         up to US$1.41BN (Technavio)
                                                                  Technology driven:
                                                                        Leveraging proprietary IP
                                                                        Owned assets
                         High barrier to entry for competition:
                               Development time
                               Level of expertise required
                               Capex intensive

K L E O S . S PA C E A S X : K S S                                                                                          6
Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
MILESTONES ACHIEVED

                                     Four Scouting Mission       Multiple early contracts signed e.g.
                                     satellites
                                     at the launch site             US Air Force Micro-Satellite Military
                                                                    Utility programme contract awarded
                                     Launch programmes              L3Harris (NYSE:LHX US$43Bn
                                     delayed due to COVID-          market cap) – Integrator and
                                     19 lockdowns, now              placement on US Government GSA
                                     beginning to re-open           platform
                                                                    Multiple Nation state collaborations
                                     Satellite operating            Brazilian Government pre-orders
                                     licences in place              awarded

                                     Data products               Next cluster of four satellites in
                                     prepared                    progress
                                     Revenues to commence
                                     post satellite test phase

K L E O S . S PA C E A S X : K S S                                                                         7
Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
UPCOMING MILESTONES

                                     First satellite cluster to be launched; Scouting Mission

                                     Commencement of subscription revenues

                                     Team expansion to facilitate scalable growth

                                     Further contracts to be signed

                                     Launch further clusters, collecting more data

                                     Subscriptions and revenue growth

K L E O S . S PA C E A S X : K S S                                                              8
Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
MANAGEMENT & BOARD

Peter Round                           Andy Bowyer                                Miles Ashcroft                           David Christie
Chairman/Exec Director                CEO/Co-Founder                             CTO/Co-Founder                           Non-Exec Director

RAF Air Commodore, expert in          15 years’ heritage delivering complex      Extensive 20+ years technical            20 years experience as a Solicitor and
EU Defence Issues, military           Space projects, including on missions to   experience delivering technically        Executive in Australia, United Kingdom
affairs and has led multiple multi-   Mars and Mercury as co-founder of          ground breaking and high value           and the US. Specifically focused in
million pound contracts within the    Space Engineering company; Magna           Space engineering hardware to            corporate/commercial, governance
Defence industry. Internationally     Parva. Experienced technology sales,       multiple international space agencies,   and M&A. Currently a co-founder of an
renowned strategic executive with     marketing, contracting, commercial and     multiple patent holder. Co founder of    Artificial Intelligence company and
experience in the US,EU and           business development executive across      Magna Parva.                             Digital Marketing company.
NATO.                                 Space and Defence sectors.                                                          Australia based.

K L E O S . S PA C E A S X : K S S                                                                                                                                 9
Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
MANAGEMENT

                                     Iain Hackston                              Karyn Hayes-Ryan
                                     CFO                                        USA Director
                                     Extensive CFO experience and is            Former intelligence community
                                     a finance professional with wide-          and Department of Defense senior
                                     ranging international experience and a     executive with an extensive history
                                     proven track record. Previous roles        in defence, aerospace and IT.
                                     include O3b (satellite), LeoSat            Has held senior executive roles in
                                     Enterprises, Inc. (satellite) – USA        the National Geospatial Intelligence
                                     / Luxembourg and at SES Satellite          Agency and National
                                     Leasing (satellite (SES S.A): Euronext:    Reconnaissance Office.
                                     SESG).

                                     Sean McKay
                                     USA/Saudi BD
                                     Retired Colonel and with over 22
                                     years’ experience in programme
                                     management for various Department
                                     of Defense, Foreign Military Sales,
                                     and Intelligence Community activities in
                                     command and control, intelligence,
                                     surveillance, reconnaissance, space.

K L E O S . S PA C E A S X : K S S                                                                                     10
THE GLOBAL CHALLENGE

                                                    Defence                               Illegal
                                                    and Security                          fishing

Increasingly complex global threats
and emergencies are driving the        Maritime
                                                                                                              Drugs/arms/
need for more specific data from the   security
                                                                                                              people trafficking
world around us.
                                                                    From launch of
                                                                   our first satellites
Current solutions are often                                        we are targeting:
expensive, technically limited by
range, limited by geography &           Border
weather                                 security                                                             Illegal oil
                                                                                                             bunkering

                                                   Ghost                                            Illegal
                                                   shipping                                         trans-shipping
K L E O S . S PA C E A S X : K S S                                                                                          11
THE GLOBAL CHALLENGE – COVID 19 EFFECT

                                      Kleos data shines a light on the new paradigm

                Control of a Pandemic             The need for data will             Commercial, private sector
                                                  multiply, Governments need         Space enables
                                                  to:
                    People movement                  Identify new patterns of life      Wide area surveillance
                    within borders as
                                                     Know where threats are             Affordable data
                    important as across
                                                     and the scale of the threat
                    borders
                    Criminals will exploit           Know what is happening
                    emerging black markets           within and outside their
                    and restrictions                 borders

K L E O S . S PA C E A S X : K S S                                                                                12
INITIAL TARGET MARKET - SOLUTION

Kleos Data Product                   Applications                            Markets

Locations of VHF transmitters        Surveillance of ‘areas-of-interest’     Defence & Security
e.g. walkie talkies used to          Maritime situational awareness          Commercial GEOINT providers
coordinate activity on board a       Border security                         Search & Rescue
ship, or from ship-to-ship or from   Maritime operations, logistics, port    Fishing Monitoring (regulatory)
a ship-to-shore                      and terminal management                 Insurance and Shipping
                                     Maritime trade                          Companies
                                     Risk management, commercial
                                     shipping and port stakeholders
                                     Fleet capacity analysis and forecasts
                                     Reporting on illegal activities

K L E O S . S PA C E A S X : K S S                                                                             13
TARGET MARKET APPROACH

             Kleos initial addressable market of Global                                   Kleos is accessing diverse, B2G & B2B
             Maritime Information Market expected to                                      multi-market, direct, channel partner &
             be up to US$1.41BN (Source:Technavio)                                        reseller agreement revenue streams

                                        Defence/Security Market – Government/Enterprise Licence Customers

                  Defence                     Intelligence                  Tier 1 ISR                   Intelligence                 Border/Homeland
                  Ministries                   Agencies                    Supply Chain                  Aggregators                  security Agencies

                                                     Maritime Market – Team Licence Customers

                 Coast guards              Maritime Security            Insurance Companies                                              Intelligence
                                                                                                      Shipping Companies
                                             Companies                                                                                   Aggregators

                                                    Other Markets – Team/Single User Licence Customers

                                Search and Rescue                                             Communications               Earth Observation
                                                               Regulatory Bodies
                                    Agencies                                                    Providers                   App Developers

K L E O S . S PA C E A S X : K S S                                                                                                                        14
BUSINESS MODEL

                                     • Subscription based Data-as-a-Service licencing to access data
                                     • Repeatable model, data ‘rented’ to an unrestricted number of
                                       customers
                                     • Data accessed via industry standard APIs
                                     • Standardised pricing based on number of users and use of the data
                                     • Highly cost effective when compared with operating own assets
                                     • Initial target subscriber base is in excess of 130 users
                                     • Go-to-market strategy includes direct sales and via integrator,
                                       channel partner and reseller

                                              Example annual revenues per subscription based on number of Clusters
                                             Number of
                                                                    1                2                 3
                                              Clusters
                                             Single User       $128,571           $200,000          $400,000

                                             Small team        $485,714           $728,571         $1,457,143

                                             Large team        $971,429          $1,457,143        $2,914,286

K L E O S . S PA C E A S X : K S S                                                                                   15
L E A D I N G T H E WAY TO E A R LY R E V E N U E

Global engagement (the numbers encompass a wide range of levels from early                                  Highlights include:
discussions to signed contracts) across USA, Europe, Asia Pacific, South
America, Middle East and Canada has already been achieved across a wide                                          L3Harris contracted as data
range of customer, reseller and integrator types:                                                                integrator and to place Kleos
                                                                                                                 products on to the GSA Schedule
                                                                                                                 a widely used US Government
                          Route to market for a particular region, each partner is able to sell many
                                                                                                                 Portal which provides a shorter,
   Reseller,                                                                                           26
   Channel Partner        licences to their customer base at ‘single user, team or enterprise’ level             simplified sales process.
                           A specialised entity that is aggregating or integrating multiple data
                                                                                                                 Contract awarded for Kleos data
   Integrator                                                                                          66
                           sets together to deliver a derived product to their customers                         from Utah State University Space
   Government              Defence and Security single users, agencies, departments                              Dynamics Laboratory (SDL) under
                                                                                                       29
                           delivering a capability, solution for end users
   Defence
                                                                                                                 multi-national Government
   Government Civil        Regulatory or other civil single users, agencies or departments             10
                                                                                                                 initiative in collaboration with US
                           delivering a capability, solution for end users
                                                                                                                 Air Force Research Laboratory.
                                                                                                                 The Brazilian Government agency
                                                                                                                 Agência Nacional do Petróleo,
                                                                                                                 Gás Natural e Biocombustíveis –
                                                                                                                 ANP (www.anp.gov.br) pre-Order
                                                                                                                 Kleos data.
K L E O S . S PA C E A S X : K S S                                                                                                                     16
FINANCIAL INPUTS/OUTPUTS

                                     Cluster 1 at launch site, multi-    Revenues to grow consistently
                                     year revenue generating life.       over time with the company’s
                                     Revenues will commence post         subscription business model
                                     launch satellite and data testing   and as additional services are
                                     phase                               added

                                     Through incremental increase        The revenue growth can be
                                     of satellite numbers, Opex          achieved with an inflation-
                                     remains stable creating high        adjusted fixed 5-year Capex
                                     EBITDA                              renewal cycle and stable annual
                                                                         Opex

                                     Forward orders in place, and        Delivering growing Free Cash
                                     strong pipeline to build on         Flows over each successive
                                                                         Capex cycle.

K L E O S . S PA C E A S X : K S S                                                                         17
COMPETITIVE LANDSCAPE

                  No direct competitor with   1st mover outside of US for    The market and customer
                  equivalent technology or           similar offering.        base welcomes multiple
                  business plan or area of         Hawkeye360 closest        data sets to fill gaps and
                        interest cover            equivalent, US based,            reduce risks.
                                               recently closed a US$70m
                                                                              At 9th June 2020; Kleos
                                              capital raise at a pre-money
                                                                               market cap = A$28M
                                                  valuation of US$200m
                                                 (Edison Group Report)

K L E O S . S PA C E A S X : K S S                                                                        18
CONCLUSION

    Leveraging Space                         SPACE                                                   RAPID           Kleos now stands at a
  technology to deliver a                 TECHNOLOGY                                                GROWTH           critical inflection point,
 high value commercial,                                                                                            poised to commence rapid
scalable, responsive, high                                                                                           and significant growth
 quality and trusted data
    set to industry and
 Government customers
                                                                    OPPORTUNITY

                                           Space capability delivered by the private sector offers a responsive,
                                           cost effective enhancement of Government and other asset derived
                                              data sets to deliver solutions for maritime security challenges
     K L E O S . S PA C E A S X : K S S                                                                                                     19
Contact:
Europe:                       Australia:
Andrew Bowyer - CEO           MMR Corporate Services
andy.bowyer@kleosglobal.com   kleos@mmrcorporate.com

kleos.space/investors/

                                                       20
You can also read