Announcement PDF ASX RELEASE 2025 Annual General Meeting – CEO’s Presentation Melbourne, 20 May 2025 Electro Optic Systems Holdings Limited (EOS or Company) (ASX: EOS) provides the attached CEO Presentation to be delivered at today’s Annual General Meeting commencing at 10.00am AEST at the offices of MinterEllison, Level 20, Collins Arch, 447 Collins Street, Melbourne VIC 3000. Authorised for release by the CEO and Managing Director of Electro Optic Systems Holdings Limited. Further information: Investor Relations ir@eos-aus.com ABOUT ELECTRO OPTIC SYSTEMS (ASX:EOS) EOS operates in two divisions: Defence Systems and Space Systems Defence Systems specialises in technology for weapon systems optimisation and integration, as well as ISR (Intelligence, Surveillance and Reconnaissance) and C4 systems for land warfare. Its key products offered include next-generation remote weapon systems, vehicle turrets, high-energy laser weapons (directed energy), as well as fully integrated and modular counter-UAS and C4 systems. Space Systems specialises in applying EOS-developed optical sensors and effectors to detect, track and characterise objects in space. It includes capabilities in the domain of space control. Managing Director and Chief Executive Officer’s Presentation Dr. Andreas Schwer 2024 Highlights - Financial In 2024 EOS continued to execute on its turnaround program and set the foundation for future growth Strong Revenue Growth Improved Gross Margins Strong Balance Sheet Total Operations Revenue $258.7m Gross Margin % $39.4m (up 17%) vs. prior year 46% 2% vs. prior year Underlying EBITDA1 $13.0m $7.3m (up 128%) vs. prior year NPAT $(19.7)m $14.4m (up 42%) vs. prior year Continuing Operations Discontinued Operations Revenue $176.6m $14.6m (up 9%) vs. prior year $82.1m Gross Margin % 48% 3% vs. prior year Underlying EBITDA1 $(12.9)m $0.1m (up 1%) vs. prior year $25.9m NPAT $(35.1)m $9.3m (up 21%) vs. prior year $15.4m 41% At 31 January 2025, EOS had nil borrowings, ~$128m cash and ~$48m of cash security deposits 1. Underlying EBITDA is a non-IFRS measure and comprises net profit after tax, adjusted to exclude tax, finance costs, depreciation and amortisation and foreign exchange impacts. A reconciliation between the net profit after tax and Underlying EBITDA is set out in an attached slide. The directors consider it useful as it enables readers to obtain an understanding of results from operations. Underlying EBITDA is unaudited. 6 2024 Highlights - Strategic and Operational Operational Strategic EOS has laid foundations for future growth, particularly Counter-Drone (RWS / High Energy Laser Weapons) and Space Control Focused Strategy • Review of strategic growth opportunities • Decision to focus on high growth opportunities – Counter-Drone and Space Control Portfolio Optimisation • Announced agreement to divest non-core, naval satcom business, EM Solutions in Nov 24 • Proceeds received $158m on 31 Jan 2025 Strengthened Balance Sheet • Repaid remainder of borrowings in Jan 25 • Cash balance ~$128m plus ~$48m of cash security deposits at 31 Jan 2025 • Strong balance sheet to support future growth Strong Markets • Ongoing conflicts and geo-political tensions • Role of new technology and innovation - continuing megatrend • New & existing customers continue to engage strongly in many markets Product Development • New Slinger counter-drone systems delivered to Germany and deployed in Ukraine • Next-generation technology R500 RWS developed in close collaboration with customer • Government funding received for new space capabilities in Australia Market Development • Successful demonstrations for Ukraine, Germany, potential new customers in Middle East • High Energy Laser Weapon – negotiations for first commercial sale are progressing • Space Control – several visitations and detailed discussions with international partners Designed to Drive Order Book Growth in 2025 7 Market Conditions Geopolitical uncertainty and rapidly evolving technology continues to create supportive market conditions Geopolitical uncertainty and ongoing regional tensions Rapid technological changes are challenging defence forces 8 EOS is focused on growing its order book Growing the order book continues to be our key focus; several opportunities are developing positively Markets • Global military spending remains strong • Enduring thematic drivers: • Geopolitical tensions • Technological shifts Products Sales & Marketing • Recent launch of the R500, the next-gen successor to the renowned R400 • Step-change in sales capabilities installed during 2024 • Commenced sales of new container-based RWS • Strong focus on Europe • Significant focus on improving software and AI capability across the product range • Increased investment in marketing with trade shows and demonstrations Order Book • Contract backlog of $136m at Dec 24, (excl. EM Solutions) • EOS is working to grow the order book over the forward period Traditional sales lead times are 1-3 years - several opportunities continue to develop positively 9 As Reported 25 Feb 2025 Market Development Update Growing the order book continues to be our key focus; several opportunities are emerging Opportunity Maturity Advanced Advanced Evaluation Preliminary Emerging Product Estimated Opportunity Size R400 $260-$300m R800 $20-$30m HELW $100-$200m R500 $500m+ R400 $60m R150 $200-$300m Slinger $150m R400 $200m Slinger $60-$100m R800 Up to $100m HELW $100-200m+ Space Control $10-$100m+ • Significant investment in sales capability, marketing (trade shows and demonstrations) is focused on pipeline development • Wide range of evolving opportunities: • Product diversity • Geography diversity • Extended sales cycle e.g. 1- 3 years • Large, complex projects • Often subject to government bureaucratic processes • Acceleration and delays • Detailed list of notable opportunities appended Maturity Definition Advanced: Contract under negotiation or negotiated and conditional Evaluation: Customer is performing assessments of product and/or detailed discussions are underway Preliminary: Bid being prepared or submitted Emerging: Initial discussions have occurred Note: The maturity of each opportunity should not be taken as an indicator of how long it may take to secure a potential contract. There is no certainty that any particular outcome or transaction will result from these discussions and negotiations 10 Sales Strategy EOS continues to invest in its sales capabilities and has developed tailored go-to-market strategies for each region EUROPE • Strong market growth • New EOS market since 2023 • Conflict creating urgent operational requirements • Fragmented and diverse market • Strong Netherlands relationship, growing in other countries • Partner with local champions to shape local requirements - leverage political and industrial market access MIDDLE EAST N. AMERICA ASIA PACIFIC • Longstanding, deep relationships in certain countries • Large and concentrated market • Australian home base & existing domestic relationships • Tensions creating urgent operational requirements • New opportunities emerging • Country-specific approach: • Direct sales • Partnering • Well established competitors • Local EOS facility – local board and management relationships • Approach includes • Direct sales • Partnering • Close work with Northrop Grumman • Focus on demonstrations • Asian emerging, fragmented and diverse markets • Longstanding Singapore relationship • Drone threat perceived as less acute • Significant future sales development opportunity • Consider localisation for large orders Industry sales cycles are typically long; we will consistently execute our go-to-market plans 11 Product Development – Software and AI Opportunity EOS is focused on advanced software solutions as part of our emphasis on counter-drone opportunities Implications for EOS • • • • • EOS expects smaller, more distributed command and control systems (C2) to continue emerging, providing more resilience and faster decisions AI-driven software and C2 will become a key differentiator EOS’ products currently use market-leading software. In order to maintain this leadership position, EOS will continue to invest in software and AI capability EOS is exploring multiple C2/software growth opportunities: • • Organic - develop more in-house capability Inorganic - acquire or partner with market leading expertise AI will become a critical differentiator in counter-drone solutions 12 Product Development – R500 EOS is maintaining global product leadership by developing a next-generation AI-based RWS Context • • • EOS products consistently demonstrate greater accuracy than competitors We remain committed to being the global product leader The R500 RWS was launched in Feb 2025 at IDEX in Abu Dhabi Planned Features • • • • • • • Increased lethality Dual-feed cannon and larger ammunition capacity Dual-weapon capability High elevation for CUAS applications High resolution sensor unit with additional CUAS sensors AI-based target identification and tracking Mesh network capability Customer Interest • We are in active discussions with a long-standing Middle Eastern customer for a launch order for this system 13 Growth Strategy EOS is positioned to grow sustainably in the short, medium and longer terms 1-3 Years • Significant organic growth opportunities: • Remote Weapons Systems (RWS) • Counter-Drone products (specialised RWS) • Two large strategic opportunities: • High Energy Laser Weapons • Space Control • DEFEND & GROW 2-5 Years NURTURE 3-10 Years SEED Space Control VALUE High Energy Laser Weapon Counter Drone Key focus areas: • Commercialising our significant IP assets • Maintaining capital discipline RWS / CUAS TIME 14 Summary EOS aims to become a global leader in Counter-Drone, High Energy Laser Weapons and Space Control Summary • Market conditions remain supportive • Focused growth strategy - Counter-Drone and Space Control • Divestment of non-core activity (EM Solutions) • Strengthened balance sheet to support growth • EOS will continue to be a disciplined allocator of capital • EOS expects that 2025 revenue will be heavily biased to the second half of the year RWS / Counter-Drone High Energy Laser Weapons Space Control 15 Appendix 31 As Reported 25 Feb 2025 Market Development Update Growing the order book continues to be our key focus; several opportunities are developing Emerging Preliminary Evaluation Advanced Notable Opportunities Region Australia Product R400 Size Opportunity $80-100m • • • • Land 400-3 Project for ADF Product specification / discussion ongoing with end-users Contract development with Hanwha at advanced stage Potential to sign in 2025 and benefit 2026 & 2027 revenue Launch opportunity for EOS new heavy calibre R800 system Customer is upgrading legacy Stryker/LAV vehicles for Ukraine donation Customer finalising contract with national funding provider Potential to sign & benefit 2025 and future years North America R800 $20-30m • • • • Europe Ukraine R400 ~$181m • • • EOS has two conditional orders with Ukraine Product demonstrations held & product listed as ‘approved’ Orders depend on Ukrainian budget allocation International HELW 100kW $50-100m • • Detailed discussions advanced during 2024 and early 2025 Potential to sign during 2025 International HELW 100kW $50-100m • • • Detailed discussions held during 2024 Customer has sought re-quote during 2025 following change in spec. Potential to sign during 2025 or 2026 Note: there is no certainty that any particular outcome or transaction will result from these discussions and negotiations Maturity Definition • Emerging: Initial discussions have occurred • Preliminary: Bid being prepared or submitted • Evaluation: Customer is performing assessments of product and/or detailed discussions are underway • Advanced: Contract under negotiation or negotiated and conditional 32 As Reported 25 Feb 2025 Market Development Update Growing the order book continues to be our key focus; several opportunities are developing Emerging Preliminary Evaluation Advanced Notable Opportunities Region Product Size Opportunity Middle East R500 $500m+ • • Existing customer, follow-on order Initial bid submitted, potential contract award in 2026 Middle East R400 Spares <$20m • • Existing customer, sustainment contract Bid submitted, under review Europe R400 Marine Slinger <$20m • • Existing customer nation, new product configuration Bid submitted, discussions done – Update: Order secured in May 2025 for A$53m Australasia R400 Marine $15-25m • • Existing end user Bid submitted, discussions ongoing Note: there is no certainty that any particular outcome or transaction will result from these discussions and negotiations Maturity Definition • Emerging: Initial discussions have occurred • Preliminary: Bid being prepared or submitted • Evaluation: Customer is performing assessments of product and/or detailed discussions are underway • Advanced: Contract under negotiation or negotiated and conditional 33 As Reported 25 Feb 2025 Market Development Update Growing the order book continues to be our key focus; several opportunities are developing Emerging Preliminary Evaluation Advanced Notable Opportunities Region Product Size Opportunity Europe R150 $100-$300m+ • • • Opportunity to put RWS on large logistics vehicle fleet Competitive process during 2025 and 2026 – new customer Potential follow-on opportunities with other nations Europe R400 Slinger <$50m • • Follow on orders being pursued with donor nation End user in Ukraine North America R400 <$50m • • New customer, New end user Bid submitted to large global prime to support vehicle program Europe R400 <$50m • • New customer, New end user Bid submitted to large global prime to support vehicle program International R400 Slinger <$100m • • • Potential new customer Sample products sold, demo held, discussions underway Potential to accelerate due to operational requirements Middle East R400 <$100m • • • Potential new customer Sample products sold, demo held, discussions underway Potential to accelerate due to operational requirements Note: there is no certainty that any particular outcome or transaction will result from these discussions and negotiations Maturity Definition • Emerging: Initial discussions have occurred • Preliminary: Bid being prepared or submitted • Evaluation: Customer is performing assessments of product and/or detailed discussions are underway • Advanced: Contract under negotiation or negotiated and conditional 34 As Reported 25 Feb 2025 Market Development Update Growing the order book continues to be our key focus; several initial opportunities are emerging Emerging Preliminary Evaluation Advanced Notable Opportunities Region Product Size Opportunity Europe R400 Slinger $10-$50m • • Potential new customer nation in western Europe Early stage discussion with end customer & potential partners, including established local providers North America R400 Slinger <$50m • • Sample products sold, co-developing advanced software for customer Targeting initial orders in 2025 & 2026. Market size > 4,000 vehicles Middle East R800 Up to $100m • • Previous end user / new customer Vehicle upgrade opportunity – early stage discussions Middle East HELW $100-200m or more • • New product for existing national customer Next step – bid & deal structuring planned for 2025 International Space Control <$10 - $100m+ • • Initial discussions with several prospective customers Opportunities range in size and could include initial ‘test’ programs, to pilot sites and larger opportunities over 2-5 year period Note: there is no certainty that any particular outcome or transaction will result from these discussions and negotiations Maturity Definition • Emerging: Initial discussions have occurred • Preliminary: Bid being prepared or submitted • Evaluation: Customer is performing assessments of product and/or detailed discussions are underway • Advanced: Contract under negotiation or negotiated and conditional 35 Reconciliation of Statutory Profit / (Loss) and non-IFRS measures The results for EM Solutions (divested in January 2025) have been treated as discontinued operations Total Operations (Continuing & Discontinued) $m 2024 2023 Loss for the year (19.7) (34.1) 15.4 10.3 Net loss for the year attributable to continuing operations (35.1) (44.4) Continuing Operations $m 2024 2023 (Loss) for the year from continuing operations (35.1) (44.4) Income tax (benefit) (3.3) (11.2) (Loss) before tax (38.4) (55.6) Finance costs 24.6 35.3 Foreign exchange (gain) (11.6) (0.9) Underlying EBIT (loss) (before foreign exchange gains) (25.4) (21.2) 12.5 9.4 - (1.2) (12.9) (13.0) Profit after tax for the year from discontinued operations Depreciation and amortization Other one-off adjustments Underlying EBITDA1 gain/(loss) (before foreign exchange gains) 1. Underlying EBITDA is a non-IFRS measure and comprises net profit after tax, adjusted to exclude significant items such as tax, finance costs, depreciation and amortization and foreign exchange impacts. The directors consider it useful as it enables readers to obtain an understanding of results from operations. Underlying EBITDA is not audited by the Company's auditors. 36 36