ASX small and Mid-Cap Conference5 September 2019

Electro Optic Systems Holdings LimitedASX = EOS

Information Brief

ASX Small and Mid-Cap Conference5 September 2019

Disclaimer

This presentation and any related communication may contain statements that areforward looking with regard to the business and future performance of Electro OpticSystems Holdings Limited [“EOS”] and its subsidiaries.

These statements reflect EOS’ current views, assumptions and projections based on,but not limited to, currently available information with regard to its existing andpotential customers, markets and the prevailing economic conditions.

These statements may involve risks and uncertainties which may cause EOS’ actualfinancial performance to differ materially from those inferred from any forward-lookingstatements.

Such statements, therefore, should not be regarded as an expressed or impliedforecast of the future financial performance of EOS. You are cautioned not to putundue reliance on this presentation.

© Electro Optic Systems Pty Limited

1. What We Do: Defence and Space2. Snapshot View3. Outlook

1. Remote weapon systems [RWS] allow users to deploy existing weapons without the need for a local gunner.

2. The gunner is located away from the weapon to avoid casualties from returned fire.

3. The RWS is far more accurate and effective in combat than a manned gun.

4. EOS invented this product class under various US Army contracts from 1993.

5. EOS has recently re-invented the product with new technology to again dominate the world market.

Defence Segment

EOS R400 RWS on US Army MATV

• Market is remote weapon systems and counter-drone systems.• $16 billion market, initial $1 billion secured. Market dominance.• New EOS technology and products emerging to maintain lead.• Order intake averaging over $100m quarterly going forward.• Order increases in line with >30% market share are expected.• Heavy investments fully expensed produce strong margins.

Defence Segment

Defence Facilities

© Electro Optic Systems Pty Limited

EOS Hume [ACT] plantwith RWS pre-shipment

Defence Facilities: UAE

© Electro Optic Systems Pty LimitedEOS [UAE] plant with vehicles for RWS installation

Defence Facilities: USA

© Electro Optic Systems Pty Limited

1.0m SLRTelescope

[Commonwealth]

1.8m DLRtelescope

40cm DIMM

0.7m Deep SpaceTelescope

kW laser lab

R&D laser LabControl Room

Office

As part of EOS $200M investment in space technology, the EOS Space Research Centre at Mt Stromlo is the largest and most capable optical space capability in private ownership world-wide

Space Segment

EOS applies advanced optical technologies in space for space surveillance, tracking, space situation awareness, space environment management and optical communication.

Space Segment: Space Situation Awareness

© Electro Optic Systems Pty Limited

EOS has its own tracking sites [Learmonth and Mt Stromlo] providing capacity and performance superior to all except the leading 5 space nations. This capability is used by EOS for purposes associated with its emerging businesses in the space

segment EOS capabilities are far beyond sensors, and include constellation design and management,

mission control, space asset protection, and communications security.

Snapshot Today

1.Balance sheet $100+M with all IP and intangibles expensed2.Revenue $140M and EBIT $20M [CY 2019]3.Growth on existing contracts is >45% beyond 2021 4.Market capital $500+M5.Share price at $5.20 has delivered 65% compound growth for

6 years6.PE multiple is 18x based on CY 2020 EBIT and $5.20

EOS Share Price: 2013-2019

>45% compound growth forecast from Defence Sector EBIT alone

Years Held 6 5 4 3 2 1Compound Return 65% 58% 42% 46% 31% 78%

2006

200 7

Outlook: Key Points

1.Highly profitable company with assured growth over 45% 2.Strong likelihood of expanding orders to stimulate further growth3.Strong cash, no debt, strong management team, pilot plant successful.4.Over $300M invested [and fully expensed] across the business to build

strong competitive positions thru superior technology5.At $520M market cap, currently trading at P/E of 18 on next FY EBIT

for Defence Segment alone6.Space sector currently excluded from market valuations but now

moving to profit and accelerating