Aerodrome Group Ltd. — Investor Presentation 2021

Jun 16, 2021

ABOVE THE REST

Investor Deck June 2021

Disclaimer

The information included under this presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer to purchase securities and/or an invitation to make offers for their purchase or solicitation of any of the above regarding any securities of Aerodrome Ltd. (the "Company"). This Presentation was made for a convenient and concise presentation, and it does not exhaust the full data and information about the Company and its activities that may be relevant for the purpose of obtaining any decision regarding investment in the Company's securities, and therefore does not replace the need to review and inspect the company's Reports to the Israel Securities Authority, and especially the company's annual report for the period ended on 31.12.2020, published on March 14, 2021 (reference number: 2021-01-033153) (the "Annual Report" and "Public Information", respectively). The information under this Presentation is not a substitute for Public Information and in the event of any conflict between the content of this Presentation and the content of any Public Information, the content of the Public Information shall prevail.

The information in this Presentation should not be relied upon as any representation or warranty, express or implied, of the Company. No reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this Presentation. No legally binding obligations will be created, implied, or inferred from this Presentation. Various statements in this Presentation include information which derives from forecasts, estimates, assessments, and other information pertaining to future events and/or matters, whose materialization are uncertain and beyond the Company's control, and which constitute "Forwardlooking information", as defined in the Israeli Securities Law, 1968. Forward-looking information includes descriptions regarding the intent, belief or current expectations of the Company and are not guaranteeing future results, performance or achievements and are based on current expectations, estimations, and assumptions, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performances or achievements of the Company may differ materially from what is or may be expressed or implied in this Presentation due to a variety of factors, many of which are beyond the Company's control, including, without limitation, certain risk factors as contained in the Annual Report. The Company does not undertake any obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise. Certain information and factual statements (including in regard to markets or trends) contained herein are based on or derived from publicly available documents or independent third-party sources, and therefore the accuracy of such information and the assumptions on which such information is based have not been independently verified.

01 Drone Market Overview

02 Company Overview

Growth Strategy

Drone Service Market (2019 - 2025)

4

Growth Drivers

Based on 'Markets & Markets' insights

Industry Verticals

Rise in drone service demand by defense forces worldwide – Military and HLS verticals Stringent regulatory policies constrain major industries from implementing drone-based operations - shifting the market towards drone service providers Increase in use of drone services for industry specific solutions - Commercial verticals Technological accessibility and affordability – opening the drone service market for institutions and medium budgeted military entities Increase in requirement for qualitative data in various industries Adoption of drone services by prominent industries: Critical Assets Renewable Energy Pipeline Holdings Infrastructure Developments

Drone Services Market, By Region (USD Billion)

Drone Service market cap is estimated to surpass the Drone market cap during forecast period - Service is and will continue to be the largest segment of the drone industry

2019 - 2025

Military - By Application

• Intelligence, Surveillance, & Reconnaissance (ISR)
• Combat Operations
• Battle Damage Management

Commercial

• Critical Assets
• Renewable Energy
• Pipeline Holdings
• Infrastructure Developments

"Drone services companies tend to focus on specific verticals because a one-size-fits-all business model does not work. Further, as companies gain experience through operations, those that can best innovate to meet specific end-user needs will prosper."

Frost & Sullivan's aerospace, defense & security vice president Michael Blades said:

Frost & Sullivan's Global Commercial UAS Market Outlook, 2020

Drone Technology Carrier & Service Provider Doctrine

Client primary demands for DATA acquisition:

-

As a drone technology carrier and service provider, Aerodrome is able to meet end-user needs - using modular, clientoriented models

carrier - enabling clients to evade logistical & operational chain complexities

Drone Service Market - Key Events and Market Drivers

Amazon and other major companies realize the lucrative opportunities in the Drone market

Pandemic Alleviation Usage of Drone amidst Covid-19

Commercial companies focus on building operational resilience by leveraging emerging technologies and forming strategic partnerships with tech companies and Drone service providers (DSPs). DSPs utilize this opportunity to explore new business models and services like performance contracts, pay-per-mile, and pay-per-time - improving their revenues

2013

2016

Global Military implementation of Drone solutions. US military drone spending budgeted at \$7 billion

2018

Landmark Part 107 rule - open US skies for commercial Drone usage

2017

2020

2019

Growing demand for end-toend Drone based solutions enterprise segment to account for the largest share of the drone service market (2019)

North America - largest Drone Service market

2021…

Emerging technologies and use cases disrupting the market include thinking drones, IoT drones, cloud computing-based services, blockchain, development of enterprise drone analytics tools and, drone payloads, drone insurance, artificial intelligence and machine learning in drones

Short historical drone- market overview

Notable Past Global Drone Service Contracts

• Paradigm shift in favor of unmanned systems reflects the military and paramilitary (HLS) force's general tendency to be at par with the most advanced technology available and perceptions of the emergence of asymmetrical warfare – broadening market share of Drone technology carriers
• Growing demand for drone services and technology carriers for intelligence , surveillance and reconnaissance (ISR) applications

The rise in drone service procurement by defense forces worldwide is one of the most significant factors projected to drive the growth of the drone service market

Drone service based contracts, accelerate drone market growth and centralize DSPs as key market players

Unmanned Aerial Vehicles Market - Growth Rate by Region (2021 – 2026) Unmanned Aerial Vehicles Market - Revenue (%) by Application, Global, 2020

Commercial Drone segments propel Global Drone service market

Civil and Commercial segment adoption of Drone based services - challenging military segment dominance in the market

The technology is expected to have significant implications to a myriad of industries, ranging from public safety to farming automation, from disaster relief to infrastructure maintenance

The drone services market is expected to grow substantially - owing to the growing demand for drones due to their time and cost - efficiency and increasing applications across the globe. Other major factors impacting the growth of the market include:

The Drone Service is transitioning from a Nascent to a Growth stage

• Development of industry-specific solutions
• Improved regulatory framework
• Increasing requirement for high-quality data
• Technological advancements in drones
• Need for worker safety

The drone market is exhibiting cross continental and cross vertical development and shifts amidst forecast period. Defense vertical makes way to civil and commercial market share superiority

01 Drone Market Overview

02 Company Overview

Growth Strategy

Aerodrome Group – Who we are Company Profile

Aerodrome Global Footprint

Aerodrome displays cross-continent global presence as a dominant drone service providers as key market players

Aerodrome Group – Line of Business

Aerodrome offers cross-vertical business span, meeting operational, commercial and technological needs of each client

Aerial Intelligence Surveillance

Drone Powered Solutions – Defense

13

Pay by the hour (PBH) maintenance O-level, I level, Depo level

Mission based logistics

Management and control

Advanced training infrastructure and establishment

State of the art training Drone academy establishment

Wide range of Drone operational, logistic and maintenance knowledge

PBH services for all levels After-sale support

Turnkey operational, training after sale support

Aerodrome service methodology in the defense vertical

Drone Powered Solutions - Commercial

14

The Commercial and HLS segment of the Drone services market is projected to grow at the highest CAGR during the forecast period . Increasing demand for analytical services and software solutions in the Drone services market is driving the Commercial and HLS solution segments

Based on 'Markets & Markets' insights

2019-2025

Aerodrome service methodology in the commercial vertical

Engagement Methods

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End to end ILS Full transporting & deployment envelope Availability

PBH program - Agility

Academy, training and after sale support

End to End maintenance and integrated logistic support (ILS)

Aerodrome service methodology

"Contractor Owned" Method

Aerodrome purchases the Drone, payloads, ground stations, deciphering systems and more – providing independent service for designated target markets

Aerodrome posses the equipment, technology and the additional designated systems - operating direct platforms and technology purchases

Aerodrome operates integration, development and customization of the platforms full customization to specified client needs

Aerodrome manages an ongoing operational line - 2-5 years (usually)

Aerodrome service methodology

"Government Owned" Method

Customer support – Government Owned Method Client owned systems of piloting, maintenance and operations

Aerodrome provides UAS Academy and Training services - lead by the most skilled personnel on earth

ILS - Aerodrome provides full maintenance and integration services

Client Facing Values

Services Support

Typical Clients

• Critical assets managements
• Renewable energy operators
• Pipeline holding companies
• Infrastructure developments

Special Ops Units Commercial

Intelligence Consumers

Defense

Our business ethics policy dictates that manufacturers using the company's services are fully commercially protected - as the company never makes direct contact with its endcustomer, neither during, nor after the project period

01 Drone Market Overview

03 Growth Strategy

Company Overview

Aerodrome Group Strengths

Aerodrome Group serves as a comprehensive drone based aerial intelligence service provider and technology carrier

Aerodrome Group serves as a comprehensive drone based service provider and technology carrier - aggregating Drone, Data and Digitization as an aerial intelligence solution

Aerodrome Group – Symbiotic Business Growth

Aerodrome as a business unit

Optimizing performance by merging sales, finance & operations into a singular business unit

Increasing market share by broadening cross-company product and solution span

Harnessing technology and business innovation through cross-company cooperation

Company Expansion and Growth Perception

Growth strategy snapshot

Increasing and maximizing revenues through ongoing business activities, new clients, contracts and market verticals

scope, market share and service line

Commercial

• Energy
• Delivery
• Security
• Infrastructure mapping & inspection

Defense

• Maritime Patrol
• Intelligence Support
• Border Control

and market penetration

• North America
• Asia pacific
• Africa
• Europe / UK

2025

Company Expansion and Growth Perception Key growth

factors

Acquiring companies strategically situated overlapping Aerodrome's market expansion scope: North America, Asia-Pacific and Europe

Normalization of Israeli originated companies with the Arabic world. Such diplomatic and business shift opens a great deal of market growth opportunities. Should be noted that the markets at hand present increasing demand in Drone based services

Drone delivery segment rapid development and rise. Aerodrome should meet market demand and will institute an extensive operational drone delivery body

Penetrating the commercial market in 2021 - focusing on the verticals presented along the presentation, providing technologies, solutions and services in the commercial market. The company predicts that the commercial market will prevail as a global market growth driver and shall amount to a substantial share of the company's revenues (within forecast period)

Activity expansion through COCO model and full ongoing solutions for the company's array of clients - including a streamline of high-quality aerial data, whilst the company bears full responsibility for the operational and technological process (technology, operation, logistics and more)

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