ROCKETDNA LTD. — Investor Presentation 2019

Feb 10, 2019

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Copyright © 2019 Parazero Ltd.
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Investor Presentation

February 2019

Eden Attias | CEO

Copyright © 2018 Parazero Ltd.

Who is ParaZero?

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A global leader in drone safety solutions

• Israel based technology company that listed on the ASX in June 2018

• 1 leader in creating & manufacturing Drone Safety Solutions

• “

• • Its proprietary SafeAir” system is integrated on almost any commercial and consumer drone

• SafeAir solutions protects drones, people and payload, and records flight and usage analytics

• Extensive sales & distribution network established with track record of sales

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Corporate overview

Key information

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01 ASX Code: PRZ
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02 Share price: 10.5c [1]
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03 Shares on issue: 96.4m
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04 Market cap: AUD$10.13m [1]
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05 Options: 67.0m [2]
06 Cash: $0.59m [3]
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07 Q4 FY18 revenue: US$380k
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Shareholding breakdown[4]

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OTHER
BOARD &
MANAGEMENT
10.8%
21.6%
67.6%
TOP 20
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1. As at 7 February 2019

2. Including performance options

3. As at 31 Dec 2018, pre Entitlement Offer funds

4. Not Including performance options, including ESOP

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Market opportunity 2023

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Drone Addressable Market
$48.8
BN
$2.44 Drone Safety Market
BN
$1.46 ParaZero Safety Addressable Market
BN
$144 ParaZero Potential Revenue
M
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Significant opportunities in both commercial and prosumer sectors

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805,000
shipments of
commercial
drones in
2021 [1]
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• Spending of US$13bn by 2020[2]

• Multiple commercial uses including in emergency services (search & rescue and firefighting), media and news coverage, construction and infrastructure inspections

• Spending of US$17bn by 2020[2]

29m shipments of consumer drones in 2021[1]

• Leading manufacturer of consumer drones, DJI Technology, has a market share as high as 74%

• Drones are getting cheaper – driving mass adoption

• “Prosumer” shipments estimated to account for around 30% of total consumer drones

Source: 1 Business Intelligence 2. Goldman Sachs Insights

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The need for safety

• In less than 4 years, the US Federal Aviation Administration (FAA) reported nearly 5,000 incidents of drones flying in restricted airspace or otherwise appearing to violate rules

• Regulations are restricting the drone markets full potential due to safety concerns

• The number of reached reported incidents

• a new record of 260 per month in June 2017*

• A safety incident in any drone situation could result in serious harm to civilians

• valuable

• Drones are often carrying a payload that could be lost should the drone crash

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• US FAA, September 2017

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ParaZero solution: SafeAir[TM]

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• ParaZero offers commercial and consumer drone operators a suite of ready made and -

• custom made drone safety solutions to protect their drone, people and its payload

• The patented technology is a combination of hardware, firmware and software developed over a number of years

• Broad product portfolio is compatible with almost every drone for all applications

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OEM
AIROBOTICS SA 10
400g, 7 m/s 400g, 3-6 m/s
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AFTER MARKET PROSUMER
M-200 PHANTOM
700g, 3-6 m/s 160g, 5 m/s
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MARTIN
9kg, 7 m/s
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SA 30
950g, 4-8 m/s
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M-600 MAVIC
1.4kg, 4.5-6 m/s ~110g, 5 m/s
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SafeAir: End to End Safety Solution

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ParaZero
UTM
Collect data Alert UTM
Continuously Monitoring of flight Detect incident and
monitoring sensors and abnormalities trigger FTS (flight
flight path termination system) Patented
parachute
deployment
Alert
bystanders
Smart landing
UTM – Unmanned Aircraft System (UAS) Traffic Management System being developed by NASA / FAA
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Key advantages of ParaZero’s solutions

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• Low altitude deployment - failures can occur in take-off/landing – ParaZero’s solutions have rapid deployment which are effective at any altitude

• Records flight and usage analytics and black box information, now a requirement in some European countries

• Critical angle effectiveness - the ability to deploy when the UAV goes beyond a critical roll/tilt angle is vital at low altitudes

• Broad application use across high-end drones through to unmanned passenger aerial vehicles

• across almost all drones on the market

• Compatibility

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ParaZero revenue model

Multiple revenue streams

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H1 2019 H2 2019
Product/unit
SaaS fees from
sales
ASTM SafeAir
direct sales via
Package sales software
OEMs and
package
partners
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Scalable and
multiple
revenue
streams
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Q4 FY18 revenue of US$380k, with expectations for continued growth

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Sales and distribution network

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ParaZero has established an extensive sales and distribution network

• Direct sales to OEMs : Tailored solutions for drone manufacturers that integrate the products into their platforms

• Direct sales to Distributors and Retailors : Sales of commercial and consumer safety systems, over 25 channels worldwide

• ParaZero's E-commence platform for commercial systems

• Amazon platform for prosumer systems

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Board & key management

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(Ret.) Brig. Gen. Eden Attias CEO and Managing Director

Brigadier General, 30+ years experience in the Israeli Air Force. During his tenure, he oversaw the move of the IAF’s airlift base from Lod to the Nevatim air base and commanded the airbase, He was the Israeli Defense Attaché in Canada.

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Amir Tsaliah CTO & Co-founder

Stephen Gorenstein Non-executive Director

Founded the world’s first certified commercial drone company. Expert in electronics, mechanics, materials. 8 years experience in developing innovative technologies

Head of Jindalee Partners Melbourne with vast experience in the capital markets including equity analyst roles at both Goldman Sachs and Merrill Lynch. Formerly the Regional Head of Asia Pacific Metals and Mining at Bank of America Merrill Lynch.

Charis Law Non-executive Director

Australian Chartered Accountant with significant experience in commercialization and global expansion of industrial technology, leading finance and corporate development teams at Orbital Corporation Limited (ASX: OEC) and Austal Limited (ASX: ASB)

Dani Arazi Non-executive Director

Serial entrepreneur Israeli Chapter at 100+ Angels Club. Co-founder and executive (EVR) at Orckit Communications. Co-founder and member of the board of the ADSL Forum.

Chris Singleton Non-executive Director

Managing Director of Minaret Capital with vast corporate experience in marketing and design, change management, telecommunications, FMCG, resources and energy and labor hire/human capital. He has founded, developed and sold businesses across those sectors.

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Advisory Board

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Michael Huerta Advisory Board Dave Sharma Advisory Board

Maj. Gen. (Ret.) James Poss Advisory Board

Holds over three decades of senior and executive management experience in the technology and aviation innovation industries. Former Administrator at the USA’s Federal Aviation Administration. Group President of the Transportation Solutions Group of Affiliated Computer Services. Held senior positions at the Salt Lake Organizing Committee for the Olympic Winter Games of 2002 and U.S. DOT.

Director and Principal at Kelly & Partners Government, Incentives and Innovation practice and has 20+ years of leadership experience focused on technology innovation in Australia. He served as Australia’s ambassador to Israel., Dave was the International Relations Advisor to the Prime Minister, Advisor to the Foreign Minister and managed Australia’s diplomatic presence in Africa..

CEO of ISR Ideas. Founder and former Executive Director of the Alliance for System Safety of UAS (ASSURE) Federal Aviation Administration (FAA) Unmanned Aerial Systems (UAS) Center of Excellence Team. He is a 30 year US Air Force veteran with combat experience.

Dr. Alon Dumanis Advisory Board

Managed multi-billion dollar R&D programs, engineering, security, information technology, logistics and Acquisition, Air-Force infrastructure programs and other projects. He was a member of various notable steering committees for the Minister of Defense and the Israel Defense Forces Chief of General Staff, for national level strategy, technological road mapping and information technology.

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Major progress is being achieved

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Company executing according to plan

Product

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• ✓ Developed and launched a suite of commercial SafeAir products ✓ Secured commercial customers and sold approx. 2k systems to date ✓ Soft launch of prosumer products

Sales Channels

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• ✓ Secured global customers such as Airobotics, ACSL and Lufthansa ✓ Sales through distribution channels in the United States, Scandinavia, UK and other countries

• ✓ Enable online sales

Partnerships

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• ✓ Partnership with third parties to raise the awareness to safety: Insurance company and online drone training school

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Major progress is being achieved

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Market forces creating opportunities

ASTM standard published

• Publication of standard that defines the design, development & testing of parachute systems – a major milestone for the drone industry

• ParaZero active contributor to the standard

First ever waiver for flight over people with a parachute system

• UAS flight took place at a football game in Fargo, North Dakota to perform law enforcement and media missions

• UAS was equipped with ParaZero’s SafeAir Phantom System

• Creates significant opportunities for additional flights

• A second waiver was subsequently secured for another ParaZero customer

• Proposed regulations would dramatically expand commercial drone industry

FAA unveils set of proposed regulations that would allow routine flights over people & at night

• Drones heavier than 250g would need to meet safety requirements, such as the inclusion of a parachute

• Regulation would replace the need for waivers for certain operations

• ParaZero is the only company whose parachute system has been used in several successful waiver applications for flights over unprotected people

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Investment highlights

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• End-to-end solution that uses cutting-edge technology, compatible with any drone or

• application

• High-growth market - 29m drone shipments expected globally in 2021[1] and over 300 commercial drones expected to crash every day in the US alone

o Scalable revenue model with multiple revenue streams

• Led by veteran and industry professionals with extensive backgrounds in the defense and drone sectors

o Regulatory change is creating a need for drone safety products

Source: 1. BI Intelligence

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Disclaimer

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This presentation has been prepared by Parazero Limited. (“Parazero” or the “Company”) based on information available to it as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision.

This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in Parazero, nor does it constitute financial product advice or take into account any individual’s investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this presentation but must make its own assessment of Parazero and conduct its own investigations. Before making an investment decision, investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. Parazero is not licensed to provide financial product advice in respect of its securities or any other financial products. Cooling off rights do not apply to the acquisition of Parazero securities.

Although reasonable care has been taken to ensure that the facts stated in this presentation are accurate and that the opinions expressed are fair and reasonable, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Parazero its officers, directors, employees and agents, nor any other person, accepts any responsibility and liability for the content of this presentation including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of or reliance on any of the information contained in this presentation or otherwise arising in connection with it.

The information presented in this presentation is subject to change without notice and Parazero does not have any responsibility or obligation to inform you of any matter arising or coming to their notice, after the date of this presentation, which may affect any matter referred to in this presentation.

The distribution of this presentation may be restricted by law and you should observe any such restrictions.

This presentation contains certain forward looking statements that are based on the Company’s management’s beliefs, assumptions and expectations and on information currently available to management. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results or performance of Parazero to be materially different from the results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the political and economic environment in which Parazero will operate in the future, which are subject to change without notice. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast. To the full extent permitted by law, Parazero and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including, but not limited to, any assumptions or expectations set out in the presentation).

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Copyright © 2019 Parazero Ltd.

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THANK YOU

Eden Attias | CEO Eden@parazero.com

Copyright © 2018 Parazero Ltd.