Electro Optic Systems Holdings Limited

Thank you for standing by and welcome to the Electro Optic Systems 2026 half-year results. All systems are in a listen-only mode. There will be a presentation followed by a question and answer session. If you would like to ask a question via the phones, you need to press the star key followed by the number 1 on your telephone keypad. If you would like to ask a question via the webcast, please enter it into the ask a question box and click submit. I would now like to hand the conference over to Dr. Andreas Schwer, Managing Director and CEO. Please go ahead.

Good morning, good evening, ladies and gentlemen. My name is Andreas Schwer, Managing Director and Chief Executive Officer of Electro Optic Systems. I would like to give you our speech for the first half 2026 year results presentation and we are very proud to announce that the first half year has been exceptionally good. It has been a record year for Electro Optic Systems. Let's please move to slide number four. So the agenda looks like the following. We will first summarize the highlights of the first half year. I will put you then into the strategic context, what has happened in particular in the first half of 2026 with a focus on the high energy laser weapon business and then a very strong focus on the Mars update, Mars, our recent acquisition. We then have looked at the order book and I will give you an outlook on our business development, what will happen over the next few months I will then hand over to Clive Cuffell, our CFO, who will give you an overview about our financial performance down to division and level, some aspects on the cash flow, and then I will summarize the presentation by giving you a strategic outlook before we go to the question and answer session. Please move on. We are on slide number six. So to put you into the context, EOS is operating in a very strong market. The first half year has been exceptionally strong from a market perspective. The conflict in Ukraine but also in particular in the Middle East was helping us a lot to get more traction and to achieve the results which we have achieved. Part of that obviously was a strongly evolving partnership network. You might remember that part of our go-to-market strategy is to enter into partnerships with national champions in particular key and core markets. That has happened also in the first half of 2016. You could also demonstrate now in a quite impressive way that you can deliver. We can deliver on commercials. We can deliver in a highly operational excellence mode. So we could convert quite significantly our order book into revenue and we could operate in a very complex and demanding supply chain environment, an environment where www.optic-systems.com We have invested some years ago into a framework agreement with Northrop Grumman to secure us the supply of a very strategic component, the 30mm cannon. And that's one example why it's paying off now. We can deliver quicker than some of our competitors and that is giving us a strategic lead. So we expect the growth to be very sustainable and robust and we are very optimistic for the outlook over the next few months and years. So we are very positioned to capitalize on all those factors and all those framework conditions. Let's move on please. I would like to hand over to Clive to give you the highlights of the first half 2026 financials. So please Clive.

Thank you, Andreas, and good morning, everyone. So as this slide shows, it's been quite a positive first half in many respects. The revenue of $169 million, which was announced a few weeks ago, is an increase of almost 300%. on the comparable prior period. Gross margin at 58% continues a trend of positive development particularly in our remote weapons system business and we're extremely pleased that in the first half we are able to report an underlying EBITDA of 21 million Australian dollars. As we have said previously, we've been targeting profitability for some time. The strong markets combined with the order book and particularly the agility that Andreas mentioned has allowed us to achieve the revenue that has driven this positive EBITDA for the first half of the year. The cash position and the funding position of the business has never been better. At the end of June we had $256 million in the bank. We also had undrawn debt facilities of $30 million and in July after the end of the period we received the final tranche of the equity raise which was a further $30 million. So we are in markets as Andreas is about to explain that are very strong and the business is extremely well capitalised to deliver on that growth. The other highlight that I'll come back to later on is this morning we are announcing that our revenue outlook for the calendar year 2026 is now a range of $360 million to $400 million including the benefit of the Mars business Thank you, Clive. We are on page number eight.