Electro Optic Systems (EOS) Investor Presentation summary

Strategic rationale and market positioning

• Acquisition of MARSS accelerates expansion into integrated counter-drone systems, closing capability gaps from evolving drone threats.

• MARSS brings proven, AI-enabled C2 technology (NiDAR) for advanced sensor fusion and automated threat response.

• Positions the combined entity as a prime contractor, able to deliver end-to-end solutions and compete for larger, higher-value programs.

• Expands international footprint, especially in Europe and the Middle East, and broadens access to defence, homeland security, and civil markets.

• Enhances cross-sell opportunities and future product development through integration of technology and talent.

Technology and product integration

• NiDAR C2 platform acts as the central brain, integrating diverse sensors and effectors for rapid, automated counter-drone action.

• Enables machine-speed decisions, scalable protection, and continuous AI-driven learning to counter complex and swarm-based drone threats.

• Modular, sensor-agnostic architecture allows deployment across fixed, mobile, and expeditionary environments.

• NiDAR supports multi-domain operations (air, land, sea, sub-surface) and is interoperable with a broad suite of vendor offerings.

• Integration with existing remote weapon systems provides meshed hemispherical coverage for vehicle fleets.

Transaction structure and financials

• Upfront cash payment of US$36m (~A$54m), plus contingent consideration up to €100m (~A$174m) based on new MARSS orders.

• Earnout payable in a mix of cash (capped at €20m) and EOS shares, with vesting based on agreed share price.

• Acquisition primarily funded from existing cash reserves (~$107m at 31 Dec 2025) and performance rights.

• New $100m two-year term loan facility secured to support growth and provide liquidity buffers.

• Completion expected in 2026, subject to standard regulatory and customer approvals.