Kraken Robotics (PNG) Investor presentation summary

Strategic overview and acquisition rationale

• Acquisition of Covelya for $615 million enhances scale, technology, and global reach, with $480 million in cash and $135 million in equity issued to Covelya's shareholder.

• Covelya brings advanced subsea technologies, a strong technical team, and a portfolio of patents, expanding the total addressable market and accelerating growth, especially in defense.

• The combined entity will operate two business units: Defence and Commercial, maintaining leadership continuity and integrating key Covelya management.

• Acquisition is expected to be accretive across revenue, EBITDA, cash flow per share, and EPS, with significant cost and revenue synergies anticipated.

• Financing includes a $150 million credit facility and $402.5 million subscription receipt offering, resulting in a low combined net leverage of ~0.3x.

Financial performance and outlook

• Combined 2025E revenue projected at ~$364 million and adjusted EBITDA at ~$88 million, with a 24% EBITDA margin.

• Kraken's standalone 2025 revenue was $102 million with $25 million adjusted EBITDA; Covelya's 2025E revenue is ~$262 million with $63 million adjusted EBITDA.

• Combined revenue and EBITDA CAGRs (2023-2025E) are 23% and 39%, respectively, reflecting strong growth.

• Cost efficiencies of $10 million expected within 24 months post-acquisition, with further revenue synergies anticipated.

• Balance sheet remains strong, supporting future growth and strategic investments.

Market positioning and growth drivers

• The combined company serves over 700 customers, including major defense and commercial clients, with a diversified global footprint across 25 facilities in eight countries.

• Dual-use technology portfolio targets defense, maritime surveillance, offshore energy, and critical underwater infrastructure markets.

• UUV market expected to grow at a 24% CAGR from 2025 to 2035, driven by defense modernization and offshore energy investments.

• Significant opportunities in mine countermeasures, subsea inspection, and environmental monitoring, with a large pipeline of RFPs from navies and commercial operators.

• Enhanced R&D and innovation capabilities, with over 110 patents and strong collaboration with universities and research labs.