Ann: Capital Raise Investor Presentation, page-5

I was initially skeptical about the need for a capital raise, but after reading the details, I'm fully on board.

Innovation and growth are closely linked, and it seems clear that the demand for increased R&D is driven by the needs of their Tier 1 customers. In the tech industry, if DRO didn't respond to this demand, their product would likely struggle to sell. Notice in the last dot point I have, the keyword is high demand from customers, not prospects. So, there is a real need to accelerate the innovation of their products.

Shifting towards a SaaS business model is exactly what's needed to push this company towards $300 - $500 million in revenue.

To those who think Droneshield can grow without capital raises, are simply living in denial. They are needed to fuel growth when raised for the right reasons.

Whether or not this is the right move, we will know in 12 months from today. But for now, I'm content.

DRO Overview
● DRO provides world-leading Artificial Intelligence platforms for protection against drones
● Hardware and software to detect and safely neutralise small drones used for warfare, terrorism, contraband delivery, and
airport disruptions
● DRO’s market leading software, hardware and engineering capabilities provide the platform opportunity to entrench its market
leadership and facilitate future growth

Pipeline & Growth Opportunity
● Deep and high-quality sales pipeline of >$1.1 billion has doubled in the past 3 months, with $28 million of contracted
sales orders currently being fulfilled
● Given DRO’s unique counterdrone (C-UxS) engineering experience, market leading position and unparalleled insights on
industry dynamics and the future requirements of tier 1 military customers, there is presently an opportunity to accelerate
and enhance its AI software infrastructure and hardware capabilities


Investment in R&D to Accelerate Growth
● DRO is undertaking this Capital Raise to support the implementation and extension of its R&D programs
● Extending R&D into new products and new generations of existing products will:
– Entrench DRO's position as the market leader in the rapidly expanding C-UxS market
– Enable DRO to expand into new markets and products as the drone and counterdrone warfare evolves
– Expand gross profit margins as the revenue mix shifts toward AI enabled software solutions supported by DRO’s market
leading hardware solutions
– Accelerate SaaS revenue

Capital Raising
● DRO has raised $120 million via a fully underwritten share placement to institutional investors (Placement) (refer to page 18
for more detail)
● Proceeds will be used to fund the development of priority R&D programs as well as strategic bolt-on acquisitions to
accelerate the development of DRO new products & software capabilities to meet high demand from its global tier 1
customer base