AEROMETREX LIMITED — AGM Information 2020

Nov 3, 2020

AEROMETREX AGM PRESENTATION 4 November 2020

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SEE YOUR WORLD CLEARLY.
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DISCLAIMER

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This presentation is provided for information purposes only and is not a disclosure document as defined under the Corporations Act 2001 (Cth) This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase, sale or issue of any securities or any financial product nor does it constitute financial product or investment advice. The presentation does not contain all the information that may be required for evaluating the Company's assets, prospects or potential opportunities and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person.

No representation or warranty, express or implied, is made as to the accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this presentation. Neither the Company, its related bodies corporate, shareholders or affiliates, nor any of their respective officers, directors, employees, related bodies corporate, affiliates, agents or advisers makes any representations or warranties that this presentation is complete or that it contains all material information about the Company or which a prospective investor may require in evaluating a possible investment in the Company or acquisition of securities. To the maximum extent permitted by law, none of those persons accept any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation or in relation to the accuracy or completeness of the information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns (if any) contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Neither the Company nor its related bodies corporate, shareholders or affiliates, nor any of their respective officers, directors, employees, related bodies corporate, affiliates, agents or advisers guarantees any return or generally the performance of the Company or the price at which its securities may trade. Any investment in the Company is subject to investment risks including the possibility of loss of capital invested and no return of income or payment of dividends.

Before making an investment decision, you should assess whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances and consider seeking your own independent legal, financial and commercial advice. Past performance is no guarantee of future performance.

The distribution of this document in jurisdictions outside Australia may be restricted by law. Any recipient of this document outside Australia must seek advice on and observe any such restrictions.

This presentation may contain certain “forward‐looking statements” with respect to the financial condition, results of operations and business of the Company and certain plans and objectives of the management of the Company. Forward looking statements can generally be identified by words such as ‘may’, ‘could’, ‘believes’, 'plan', 'will', 'likely', ‘estimates’, ‘targets’, ‘expects’, or ‘intends’ and other similar words that involve risks and uncertainties, which may include, but are not limited to, the outcome and effects of the subject matter of this presentation. Indications of, and guidance on, future exchange rates, capital expenditure, earnings and financial position and performance are also forward‐looking statements.

You are cautioned not to place undue reliance on forward looking statements as actual outcomes may differ materially from forward looking statements. Any forward‐looking statements, opinions and estimates provided in this presentation necessarily involve uncertainties, assumptions, contingencies and other factors, and unknown risks may arise, many of which are outside the control of the Company. Such statements may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward looking statements. Forward‐looking statements including, without limitation, guidance on future plans, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Such forward looking statements speak only as of the date of this presentation.

The information in this presentation is current as at the date on the cover of the presentation and remains subject to change without notice, in particular the Company disclaims any intent or obligation to update publicly any forward‐looking statements, whether as a result of new information, future events or results or otherwise.

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MANAGING DIRECTOR’S ADDRESS Mark Deuter

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BUSINESS OVERVIEW

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FY20 Key Highlights

December 2019

• $25m initial public offering listing under ASX code ‘AMX’

• February 2020  Establishment of US office

March 2020

• Queensland contract wins of $1M

May 2020

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• Acquisition of Spookfish Australia from EagleView

June 2020

• Addition to All Ordinaries list

• 4.6m shares released from escrow

• Appointment of Chief Operating Officer (COO)

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KEY FINANCIALS

Revenue + 24.7%

Cashflow from operations + $8.2m

Available cash $22.2m

	FY20	FY19	Percentage
	$’000	$’000	Change
Aerial Photomapping	6,112	6,497	(5.9)%
LiDAR	8,923	6,468	37.9%
3D	3,361	1,952	72.1%
MetroMap – Subscription	705	344	104.9%
– On demand	990	848	16.7%
Total Operating Revenue	20,091	16,109	24.7%
EBITDA	3,901	5,035	 22%
EBITDA (normalised)	4,598	5,035	 8.7%
Cashflow from operations	8,163	5,095	 60%
Financial Position
Cash on Hand	22,239	5,110

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METROMAP

MetroMap is Aerometrex’s subscription-based product offering that supplies Data as a Service (DaaS). Ranging from 2D imagery to 3D off-the-shelf city models and a range of LiDAR and imageryderived datasets, MetroMap is the future of accurate geospatial data, accessible by everyone from large corporates, government departments, SMEs and individuals.

Key Products:

• 2D aerial imagery subscription plans

• 3D off-the-shelf city models and subscriptions

• Near-infrared imagery (NiR)

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FY20 Highlights

Total Revenue $1.7m +42% (2019: $1.19m)

Acquisition of Spookfish Australia (May 2020)

• Classified LiDAR point cloud datasets

• AI-derived value-added datasets

Major Use Cases:

• Accurate and frequent spatial information to assist local councils in urban planning, asset management and community engagement

• 2D and 3D spatial mapping to plan, build and maintain smarter infrastructure

• Integrate accurate base map imagery with other utility databases to aid operations, engineering design, planning and decision support

• Ensure faster, more accurate valuations based on detailed risk assessment of assets

• Showcase property developments by combining the power of visual imagery and data attributes

• Visualise, plan and optimise telecommunication networks using updated 2D & 3D datasets

• Monitor environmental change and disaster management right from planning through to response & recovery

Growing ARR

Deployment of MetroCam

Investment into sales and marketing, IT systems to scale for future growth

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METROMAP – 3D

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METROMAP Building momentum with strong growth in ARR

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AERIAL PHOTOGRAPHY AND MAPPING

The foundation of Aerometrex has been in project based aerial photography, photogrammetry and mapping services since its establishment in 1980. Driven by exacting standards of project delivery and the need for geospatially accurate data, this discipline underpins the Aerometrex commitment to quality.

Predominantly project based with some clients moving towards the MetroMap subscription product (DaaS) however demand in photomapping will continue.

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FY20 Highlights

Revenue $6.1m -5.9% 2019: $6.5m

Shift towards MetroMap subscription model & LiDAR

Key Products:

• 2D ortho-imagery with the ability to customize resolution, accuracy and turn around times

• Digital elevation data such as digital terrain models (DTM) and digital surface models (DSM)

• Stereo-derived datasets

Project expertise & discipline

Major Use Cases (not exhaustive):

• Large infrastructure projects where engineers and project managers require high accuracy and specific capture dates.

• Monitoring progress of widespread events, or documenting damage; ideal for insurance sector, government emergency departments, coroners.

• Asset management of critical development areas for use by councils, urban planners.

• Dynamic change assessment along coastlines for factors such as erosion, monitoring seagrass.

• Volumetric calculations and site management for mining and exploration firms.

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3D MODELLING

Our world-leading 3D modelling service offers multiscale models captured via a combination of platforms - aircraft, helicopter and ground level. These offer extremely high resolutions ranging from 7.5 cm to under 1cm. With the additional dimension, our 3D models promise greater context and the ability to derive more features & insights via classification.

Key Products:

• 3D Mesh Models of built up and natural environment

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FY20 Highlights

Revenue $3.3m +72% (2019: $1.95m)

Opening of US office in Denver, Colorado

• 3D Semantic LOD Models

• Artificial intelligence and machine learning enabled value-added products such as Classified 3D mesh and feature capture

• 3D visualisation products for audio-visual, gaming, and virtual or augmented reality

World leading

Major Use Cases:

• Provide base 3D models for planning of digital twins and smart city projects

• Improve planning and monitoring of major transport & infrastructure projects from concept to final design using 3D data

• Provide three-dimensional context to critical engineering & construction projects

• Support urban designers, architects, real estate specialists by allowing threedimensional assessment of new developments

Completion of major projects in:

• Pau, South of France

• Karlsruhe, Germany

• Auckland, Christchurch, Wellington & Tauranga, New Zealand

• Western Sydney, Digital Twin

• Fishermans Bend, Melbourne

• 3D digitisation to support heritage building conservation as well as larger tourism initiatives

• Virtual films and futuristic gaming with realworld environments using 3D

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3D MODELLING

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LiDAR

Light Detection and Ranging (LiDAR) is an advanced aerial surveying technique which utilizes active laser pulses (up to 2 million laser pulses per second) generated by the sensor to measure the distance of the aircraft to the ground. As the position of the aircraft is determined by GPS, the shape of the terrain including above ground features can be modelled. This survey technology and the information derived from it has become a critical asset for numerous planning & monitoring purposes, even more so when combined with imagery.

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FY20 Highlights

Revenue $8.9m +38% (2019: $6.5m)

Investment into aircraft and sensors

Key Products:

• LiDAR 3D Point Clouds

• Ground Surface Products

• Vegetation Surface Products

• Vector Line Products

• LiDAR-derived 2D datasets

Potential opportunity to convert to subscription model

Major Use Cases:

• Agricultural irrigation analysis

• Engineering design across projects spanning road, rail, oil & gas pipelines, renewable energy (wind & solar).

• Environmental mapping including flood modelling, catchment analysis, bushfire fuel load mapping.

• Canopy growth and volume analysis across forestry and urban vegetation.

• Stockpile analysis, windrow analysis across mining and exploration sites.

• Vegetation encroachment mapping along powerlines.

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LiDAR

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LiDAR Windrows

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IMPACT OF COVID-19 Business is well placed to weather the storm

Positive Impacts

• Improved access to airspace

STRONG BALANCE SHEET

• MetroMap supports business working remotely with geospatially accurate current data

• Increased pool of experienced staff looking for opportunities

Cash at 30 June 2020 $22.2m (2019: $5.1m)

• Catalyst for systems & process improvements to drive future scalability & efficiency of the business

Available debt facilities : $4.5m (2019: $nil)

Negative Impacts

• Border closures and quarantines in round 2 creating some logistical complexity

• Crews remain in field longer & lockdown restrictions having impact on costs

Positive cashflow from operations $8.2m (2019: $5.1m)

• Delays in freight (both local & international) creates need for more planning lead time

• Restrictions on travel

• Delay of projects while business adapts to the new ‘normal’

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Opportunities

• Stimulus spending - Infrastructure spending leads to increased demands for remote services

• Business (customers) looking for alternative partners/suppliers to provide more value, more ROI and customer experience

• Ongoing M&A opportunities being presented to Aerometrex for consideration

• Restrictions on travel ease sooner than expected

• Risks  Slowing of the economy & impact on business confidence

• Prolonged negative economic impact

• Closure of state borders impacting movement of staff

• Restrictions on travel limit opportunities

• Cost (for customers) becomes focus resulting in competitors going into a price war to survive in the short term

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STRATEGIC PRIORITIES Focus on controllable events in current operating environment

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Ongoing
Navigating current
Development analysis of economic & social Consolidation
of overseas M&A environment of
of Spookfish
revenue opportunities Covid-19
acquisition
streams in 3D
into MetroMap
– US and
Europe
GROWTH
Continued
development and Investment into
expansion of R&D focusing on
MetroMap to analytics, AI,
increase value Continue to machine learning,
Increasing
proposition for brand invest prudently derived data
customers through awareness to to drive products, camera
3D, near-infrared, leverage scalability for technology
LiDAR opportunities future growth
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Bushfire Fuel Load Mapping

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LiDAR with view of trees and built up area

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LiDAR showing fuel load density (red – high fuel load)

LiDAR with upper tree canopy stripped

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