Creating subscription based revenues from delivery of essential data to government and commercial entities around the globe
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Creating subscription based revenues
from delivery of essential data to
government and commercial entities
around the globe
1
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
INTRODUCTION K L E O S . S PA C E A S X : K S S 3
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
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
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
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
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
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
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 10THE 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 11THE 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 12INITIAL 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 13TARGET 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 14BUSINESS 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 15L 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 16FINANCIAL 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 17COMPETITIVE 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 18CONCLUSION
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 19Contact:
Europe: Australia:
Andrew Bowyer - CEO MMR Corporate Services
andy.bowyer@kleosglobal.com kleos@mmrcorporate.com
kleos.space/investors/
20You can also read
