IN CONFIDENCE 1
For armoured vehicles our patented Linear Rocket Motors (LRM™) initiate in 2ms and deliver most of their massive impulse in 25ms to counteract the mine blast
lifting forces to keep the vehicle on the ground.
The Advanced Blast and Ballistic Systems Group.
2IN CONFIDENCE
ABBS Group Structure and Roles of
Different Operations.
Advanced Blast & Ballistic Systems Ltd. (ABBS) (57% Roger Sloman)
Holds AMPS™ patents and markets the AMPS™ armoured vehicle
technology globally. Current personal 10% share offer (non–EIS).
Advanced Blast
LLC (92% ABBS)
US Licensee. US
fund-raising 2019?
ABBS USA Inc.
(100% US-owned)US
Marketing and
ITAR firewall.
Advanced Reaction Motor Systems Ltd. (ARMS) (40/40% JV between ABBS Ltd
& Falcon) LRM™, propellant, and rocket motor production, and other hardware
procurement required for AMPS™ and eVTOL systems.
Advanced
Protected Vehicles
Ltd. (23.75% each ABBS, ARMS, D and J
Hermer,
Design and build of
mine-protected
Special Forces and
VIP type
vehicles.
Active VTOL Crash
Prevention Ltd.
30% each ABBS
and ARMS, 18.7%
two key staff.
Currently in
discussion with
major industry
players re a JV deal
to exploit the global
market potential.
ABBS Group Markets and Products
3
14ms 100ms
100ms 400msMotor Inactive
Motor Active
Propellant
Rockets
Active
Armoured
Vehicle
Protection
Composite Reinforced Belly
Plate
eVTOL
RocketseVTOL
Zero-Zero
Safety
System
eVTOL Safety System Market Leader
IN CONFIDENCE 4
Roger Sloman Business History
300mm standoff,
moist soil,
100mm depth,
6kg mine.
• 1970 ………...… B.Sc. Organic & Polymer Chemistry.
• 1971 - 75 …..… R&D in Advanced Composite Materials.
• 1975 …..….…… Founded Advanced Composites Group (ACG).
• 1975 - 80……... Introduced Carbon Fibre into F1 Motor Racing.
• 1980 - 2000 …. Developed lower temp. cure (LTM/MTM) prepreg concepts,materials and applications – LTM composite moulds foraerospace structures became standard in the industry.
• 2004 ….……….. ACG sold to Umeco for £45 million (RS retired from ACG on £8million share of proceeds). ACG re-sold in 2012 for £274million to Cytec.
• 2007 ……….….. Consultant to Aigis Blast Protection in Derby, UK.
• 2008 ……....….. Observations of High Speed Video of Blast Test.
• 2008 – 2018 ... Development of Active Mine Protection and eVTOL Systems.
IN CONFIDENCE 5
RS Technology Developments Leading to New Global Markets.
RS has identified and developed four game-changing technology
developments over 43 years which have each been disruptive
and created major new global markets.
• 1975 ……….. Introduced carbon fibre into F1 motor racing, now universalin all racing cars.
• 1980 ………… Developed game-changing Low Temperature Moulding (LTM™)composite moulds for aerospace structures which are now standard globally.
• 2008 ….…….. Identified the AMPS™ Active Mine Protection System concept.Being tested by the US Army and Plasan (Israel) Summer 2018.
• 2017 ……..... Identification of the need for the patented AVCP Safety Systemfor eVTOL’s and all other air vehicles. Now being developed.
6
IN CONFIDENCE
The ABBS Board and Management.
Roger SlomanCEO
Inventor and serial entrepreneur, introduced carbon fibre into F1 motor racing in 1975, identified Active Mine Protection concept in 2008 and eVTOL safety system in 2013.
Dr Brian Coaker Chartered Engineer & Scientist, oversees all technical development.
David Staveley International business background.
Paul Jenkinson MBA, angel Investor.
David Field R&D Grant funding expert.
Simon Flear Chartered Accountant
7
IN CONFIDENCE
Also in the ABBS Group
Daniel Jubb Leading UK rocket scientist. Owner and MD of The Falcon Project Ltd. our JV partner in Advanced Reaction Motor Systems Ltd. (ARMS). Technical Director of ARMS Ltd.
Prefersdiscretion
David Price CAD/CAM, Design Engineer and Electronics/Data Recording expert in TheFalcon Project/ARMS
F Major General Peter Gilchrist
Advisor to ABBS Board. Ex-Head of UK Army Procurement and a military advisor in the UK Embassy in Washington. Also holds a number of non-executive positions, some in larger Defence operations.
CONFIDENTIAL 8
14ms 100ms
100ms 400msMotor Inactive
ABBS Group Investment Options.
• The ABBS Group has developed unique patent-protected technologywhich is providing two different routes to exploitation, and multiplepotential exits in two major global markets at the same time. Thereare two current investment options as follows:-
1) I am currently offering 10% of my own ABBS shares for £1million torepay £500,000 loan used to support business over last 10 years.
2) The initial July 2017 EIS-qualifying AVCP share offer aimed to raise£600,000, and there is still £235,000 of that offer available at a post-investment valuation of £3million.
• AVCP intends to raise a further £1million next year if necessary, anInnovate UK loan is currently being pursued but US funding optionsalso exist.
IN CONFIDENCE 9
Customer/
Prospect
Application Contractual Form Order/
Quote
Value
£k
FY18-19
Est.
Value £k
FY19-
20
Est.
£k
Current Status
Plasan Seven
Motors
Order 77 77 200 Order placed
TARDEC Nine
Motors
Order expected probably
in 2-3 weeks
192 400 600 Order certain
to be placedTechnamm and
French SF
Belly
plate/floor
Quoted 8th Nov. 2018 43 150 500 Likely to
proceed
MDT Armoured
(Israel)
Belly
Plate/Floor
Quoted Oct. 2018 50 150 500 Likely to
proceed
Georgia Tech eVTOL
system
Humbuzz Team
Partnership Agreement
50 50? ? Likely to
proceedAstro Aero Elroy eVTOL
system
Programme being
discussed
0 50? 300 Likely to
proceedUrban
Aeronautics
eVTOL
system
Programme being
discussed
0 75? 750 Likely to
proceedUBER eVTOL
system
Programme being
discussed
0 50? ? Possible
Current Status – Orders And Pipeline.
IN CONFIDENCE 10
Trading Status and Discussions With
Major Global Players
Global Player Market Level of Discussion Date ABBS Objective
United Tech.
Aerospace (US)
Armoured
vehicles
Initial proposal May 2018 Major
investment/partnership
Plasan (Israel) Armoured
vehicles
Marketing agreement July 2018 Major
investment/partnership
Rafael (Israel) Armoured
vehicles
Initial discussions November
2018
Major
investment/partnership
Ballistic Recovery
Systems
eVTOL Safety
System
MOU re market
investigation
November
2018
Major
investment/partnership
Martin-Baker
Aircraft
eVTOL Safety
System
MOU re market
investigation
October
2018
Major
investment/partnership
• With an orderbook which will shortly reach £269,000 the Group is now trading
profitably and is fully expected to continue to do so.
• Internally-funded R&D is currently limited to the free cashflow generated and
the rate of development will only be increased when new funding is available.
11IN CONFIDENCE
6kg TNT-Equivalent Mine Test on a Snatch Land Rover – February 2015
Final jump
height
over 5m
12IN CONFIDENCE
6kg TNT-Equivalent Test on a Snatch Land Rover – February 2015
Note badly
deformed
belly plate
IN CONFIDENCE 13
Systems Active Test – Normal Speed.
300mm standoff,
moist soil,
100mm depth,
6kg mine.
IN CONFIDENCE 14
14ms
Motor Inactive
Systems Active Test – Effective Mass.
• Vehicle static weight c. 4,500 kg.
• Effective weight with two LRM’s firing about 125,000kg.
Vehicle After 6kg Active System Test.
IN CONFIDENCE 15
14ms 100ms
100ms 400msMotor Inactive
Motor Active
Driver’s door closed
and latched normally
after test. No significant
body distortion
IN CONFIDENCE 16
Systems Active Test – DRID Result.
• Minor Deformation of 15mm Hardox 450 belly plate • c. 30mm indentation in plate above charge.• No penetration.
• Measured DRI 16 instandard drivers seat, below injury threshold.
.
• Composite beam structure intact.• No contact with vehicle chassis rails,
less than 25mm elastic deformationin centre.
17
IN CONFIDENCE
Bringing the ABBS AMPS™ Systems to the Market –First, The Ultimate Protected VIP Vehicle.
Based on the successful Proof of Concept tests ABBS, working with it’s JV partner in
Advanced Protected Vehicles Ltd., OVIK can now design a unique, fully blast and ballistic
protected vehicle for Heads of State and high level Government and Military officials with
customer-specified blast protection levels up to 15 to 20kg.
This will demonstrate the potential for using the same technology in military vehicles.
18
IN CONFIDENCE
Cost-Effective Mine Blast Protection for Light Civilian Vehicles Without Rocket Motors.
Advanced Blast & Ballistic Systems Ltd.
Cost-Effective Mine Blast Protection for
Light Civilian Vehicles
Advanced Blast & Ballistic Systems Ltd.
www.advanced-blast.com
• Testing also showed that a 6kg mine
could be dealt with without using the
rocket motors.
• This makes the system far simpler and
cheaper to install and opens up the
market to Special Forces vehicles, and
UN Aid and mine clearance transport
vehicles, with large volume potential.
• A French Special Forces enquiry
pursued last week raised this possibility.
• A new brochure and approach to this
market is now being adopted, including
a direct approach to Toyota who supply
these vehicles through a special
operation in Gibraltar.
IN CONFIDENCE 19
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 20
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 21
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 22
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 23
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 24
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 25
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 26
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 27
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 28
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 29
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
IN CONFIDENCE 30
14ms
Motor Inactive
ABBS Active Mine ProtectionSystems (AMPS™) Technology
CONFIDENTIAL 31
14ms 100ms
100msMotor Inactive
The ABBS Group Activities.
Advanced Reaction Motor
Systems Ltd.Propellant and rocket motor design
development and production.
IN CONFIDENCE 32
Advanced Reaction Motor Systems Ltd.
Patented Linear Rocket Motor System Firing.
IN CONFIDENCE 33
Advanced Reaction Motor Systems Ltd.
300mm standoff,
moist soil,
100mm depth,
6kg mine.
• ARMS is a key part of the ABBS Group because it represents amajor part of the technology and IP base which differentiatesthe whole operation from any other of its size.
• The method of manufacture of the propellant used in theAMPS™ armoured vehicle system is a very sophisticatedsystem, unique to ARMS.
• The resulting propellant is an essential part of the uniquepatented Linear Rocket Motor (LRM™) system which reacts fastenough, and powerfully enough to counteract a mine/IED blastunder a vehicle.
• The technology will have many other applications in theaerospace and defence industries in due course.
CONFIDENTIAL 34
14ms 100ms
100msMotor Inactive
The ABBS Group Activities.
Active VTOL Crash
Prevention Ltd.Safety system development for eVTOL’s
and any other light aircraft.
CONFIDENTIAL 35
14ms 100ms
100ms 400msMotor Inactive
Active VTOL Crash
Prevention Ltd.
CONFIDENTIAL 36
14ms 100ms
100ms 400msMotor Inactive
Market Forecast – Porsche
Consulting.
Vertical Mobility Market Size to 2035 ($ bn)
Inspection 34Goods 4PassengerIntracity 21 City to City 11 Support Services 4TOTAL $74 billion
• N.B. The value and numbers projected for the Intracity (Urban Air Taxi) market only represents about 1/3rd of the total number of manned eVTOL’s when such as the many utility, First Responder, personal transport, security, police and fun markets are included.
Installed Estimates – Intra-city Only
2025 2030 2035
Baseline 500 2,000 15,000
Progressive 1,000 12,000 43,000
CONFIDENTIAL 37
14ms 100ms
100ms 400msMotor Inactive
Market Status
• Passenger drones and flying cars are nearing commercial availability, with 13 companies planning tolaunch services between 2020 and 2023. (e.g. Larry Page (Google Founder) has funded threeprojects, the Cora 4-seat eVTOL taxi aircraft currently flying in New Zealand, the Kitty Hawk Flyer, asingle person low altitude open-top ‘fun’ aircraft, and the Blackfly, a closed canopy single seatpersonal transport. Both the latter have FAA approval to be flown in uncongested, safe areas.
• There are new industry challenges but investment will overcome these:-
▪Regulations. ▪Technology maturity. ▪Infrastructure.▪Air Traffic Management. ▪SAFETY. – This is the AVCP focus, the only company offering a patent applied Zero-Zerocapability.
▪Psychological barriers. Source: Deloitte Insights
Uber and others predict that “5,000 eVTOL aircraft will provide air taxi services in every major city in due course”.
38
Conventional Ballistic Parachute Safety System Gap.
• Every eVTOL manufacturer says they will fit a ballistic parachute in
case there are control, power failure, FOD, or bird strike issues.
• But these will only work above about 100 – 150 feet altitude (could be
more – 250 feet?) due to the time it takes for the parachute to open.
• Hence there is a critical safety gap of at least 100 – 150 feet.
• Certification to carry passengers and fly over crowded urban
environments means that a complete Zero Altitude-Zero Speed safety
system will almost certainly be mandated by the FAA if it exists.
Currently there is no such system available.
39
14ms 100ms
100ms 400msMotor Inactive
System Design Code.
Total Mass (lbs) Thrust (lbsf) Critical Height (ft) Initial Height (ft) vx (mph) vy (mph) Burn Time (s) Max g
4409.2 11240 11 11 0.0 -22.4 0.63 1.55
Total Mass (kg) Thrust (N) Critical Height (m) Initial Height (m) vx (m/s) vy (m/s) Burn Time (s) Max g Limit
2000.0 50000 3 3 0.0 -10.0 0.63 3.00
Last Height Calculated (m)
Impact Velocity at Height Zero (m/s)
Impact Velocity at Height Zero (mph)
0.00 1.02 2.3
Impact Height Used (m) Max Mach No dt
0.00 0.029 0.0014
Time On (s) Impact Time (s) Burn Time (s)
0.00 0.69 0.63
Time On Time Off Impact Time Match Impact Time Index Vy Index Height Min Height
0.001 0.6 0.694 500 1.02 0.00 0.00
Min vy (m/s) At Height (m) At Time (s) Min vy (mph) At Height (ft) At Time (s) Max g
0.4 0.0 0.63 0.94 0.15 0.63 1.55
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
0.00 2.00 4.00 6.00 8.00 10.00 12.00
Hei
ght
(m)
Vertical Downwards Component of Velocity (m/s)
40
14ms 100ms
100ms 400ms
• The emergency could happen at any height.
• At about 100ft the final descent rate may be the worst case of about 20 to 25m/srequiring a high Total Impulse from the rocket motors.
• But at low heights, say in the zero to 30ft range, the aircraft develops much lowermomentum, requiring low Total Impulse, and the motor thrust (exceeding aircraftweight by x2) can lift it into the air after landing. Solution ……….. rotate the motors.
Dealing With All the Variables
It is essential to be able to adjust both the motor thrust level and the Total Impulse delivered. This is covered by AVCP patent applications.
41
Potential Safety System Elements.
42
Rapid Opening Parachute.
43
Target Result – A Ground Contact Velocity Less Than 2 m/s In All Circumstances.
• As a large parachute takes time to fill, AVCP is developing a solutionbased around a smaller, controllable parachute with unique air-bagdriven, rapid-opening characteristics and combining it with a retro-rocket pack to bring the aircraft down to land at between 1 - 2 m/sin a controlled manner, thus eradicating all the known problemswith conventional BRS systems.
• The solution can be adapted to suit each design of aircraft and itsflight characteristics, based around two optional layouts witheither an “in-line” retro-rocket motor pack or an “in-frame” versionfor winged designs.
• The rapid opening parachute allows AVCP to reduce the dangerheight from 200ft down to perhaps about 100ft with the retro-rocket pack firing for about one second to provide a fully controlledlanding, saving the aircraft from major damage and preventing anyinjuries to passengers.
• Our globally patented LRM™ motor technology plus unique motorcontrol and safety system design is currently the only viable Zero-Zero solution that will allow the aircraft designers/operators tomeet the Federal Aviation Authorities safety requirements forurban operations.
44
Other Market Applications for the Parachute/ Rocket Motor Combination.
Military UAV’s
UAV’s are increasingly taking over from military piloted aircraft. These are expensive,
important assets which are worth protecting with a controlled landing system.
Civilian Utility and Scientific UAV’s
Again, civilian use for many purposes is increasing rapidly, some with very expensive
equipment.
Whole Aircraft Recovery Systems
The Light and General Aviation market can use exactly the same combined
parachute/rocket motor combination to great advantage compared to the current
ballistic parachute-only technology. Many accidents occur on take-off or landing
below 250 feet, where the current ballistic parachutes are not effective.
Conventional Helicopters
Either the LRM™ option or possibly even the combined parachute/motor system could
be useful, especially for training applications.
45
IN CONFIDENCE
Business Development Routes – Armoured Vehicle Systems
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
TARDEC/US Army
Evaluation and development
Specific US vehicle tests
Specific US vehicle certification
Production?
Customer orMarket
6kg no motors Technamm/Special Forces
Proof of Concept Testing
Production for Special Forces
Larger scale production for mine clearance, UN aid vehicle, wider Special Forces uses.
Plasan Israel Proof of Concept Testing
Joint Global marketing of the whole suite of three systemsdealing with Belly Plate Deformation, Floor Shock, and Vehicle Global Acceleration.
Potential major deals with UTAS or Rafael
Both potential deals are currently being discussed. Either would provide major funding, additional resources, and global marketing.
MDT IsraelBelly plate & Active Floor
Proof of Concept Testing
Potential production for Israeli defence Force
46
IN CONFIDENCE
Business Development Routes – eVTOLSafety System – Short Term
2019 2020 2021 2022
Georgia TechHumBuzz
Test BoeingGo-Fly
Possible production version development and sales?
Customer orMarket
Astro AeroElroy/ex-Passenger Drone project.
Proof of Concept testingand initial certification
Testing in NASA/FAAGrand ChallengeProgramme to establish concept with the FAA re rules.
Potential production in fully certified form.
Potential major deals with BRS or Martin-Baker
Both potential deals are currently being discussed. Either would provide major funding, additional technical resources, and global marketing.Possible 3-way JV operation provides easy route to parachute supply and global marketing through BRS with Martin-Baker expertise and reputation.
Urban AeronauticsCormorant
Proof of Concept testing on prototype
Potential production for Israeli Defence Force
47
IN CONFIDENCE
Business Development Routes.
A. - The AMPS™ Armoured Vehicle Technology.1. The TARDEC (Tank and Automotive Research Development and Engineering Centre of
the US Army) collaboration to develop the AMPS™ technology to the TRL6 level is acrucial part of the certification process, which is being fully funded by them purchasingour equipment to test.
2. A major deal with UTAS, Rafael, or Plasan would provide the route to full certificationand the global market as well as funding and a future exit route.
3. Blast protecting light vehicles such as Toyota Land Cruisers to the 6kg under-belly levelwithout using the rocket motors is providing a very large new market currently beingdeveloped. It now extends to civilian UN Aid, Mine Clearance, Embassy etc. vehicles.
B. - The eVTOL Safety System1. We are working directly with the regulatory authorities (FAA,CAA,EASA etc.) who are
specifying the highest safety levels in case of accidents. We expect that the rules willeffectively make the use of our system essential to meet the requirements.
2. Market investigation is being done with separately with both Martin-Baker Aircraftand Ballistic Recovery Systems. Doing a deal with either, or both, preferably in a 3-wayJV is currently being discussed.
48
IN CONFIDENCE
Baseline AVCP 10 Year Forecast
Year to 31 October 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Profit and loss Summary £ £ £ £ £ £ £ £ £ £ £
Sales Revenue 0 300,000 1,150,000 2,950,000 8,250,000 15,558,333 25,283,333 37,341,667 50,691,667 65,333,333 81,266,667
Gross Margin % 33 38 42 46 48 50 50 50 50 50
Gross Margin 0 99,000 437,000 1,239,000 3,795,000 7,468,000 12,641,667 18,670,833 25,345,833 32,666,667 40,633,333
Staff costs 0 (200,000) (300,000) (350,000) (500,000) (750,000) (1,000,000) (1,250,000) (1,500,000) (1,750,000) (2,000,000)
Overheads 0 (50,000) (100,000) (150,000) (150,000) (225,000) (300,000) (375,000) (450,000) (525,000) (600,000)
IP amortisation 0 (5,069) (15,599) (31,549) (107,320) (242,189) (393,574) (581,281) 0 0 0
Profit/loss before interest & taxation 0 (156,069) 21,401 707,451 3,037,680 6,250,811 10,948,093 16,464,553 23,395,833 30,391,667 38,033,333
Interest 0 (37,000) (38,369) (39,789) (31,831) (23,873) (15,915) (7,958) 0 0 0
Profit / loss before taxation 0 (193,069) (16,968) 667,662 3,005,849 6,226,937 10,932,177 16,456,595 23,395,833 30,391,667 38,033,333
Corporation tax 0 83,220 47,760 (94,850) (553,502) (1,229,134) (2,151,893) (3,237,196) (4,445,208) (5,774,417) (7,226,333)
Net profit after taxation 0 (109,849) 30,792 572,812 2,452,347 4,997,803 8,780,284 13,219,399 18,950,625 24,617,250 30,807,000
Sales of 1,625 AVCP aircraft equivalent systems by 2028 @ £50k each
Based on achieving conservative market share declining to only 16.3% in 2028
49
IN CONFIDENCE
Baseline Forecast AVCP IRR for Investors
Year to 31 October 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
£ £ £ £ £ £ £ £ £ £ £
Company valuation - EBITDA multiple of 6 0 (906,000) 222,000 4,434,000 18,870,000 38,958,000 68,050,000 102,275,000 140,375,000 182,350,000 228,200,000
Company valuation - net assets 476,580 601,731 632,524 1,205,336 3,657,683 8,655,486 17,435,771 30,655,170 49,605,795 74,223,045 105,030,045
Total valuation 476,580 (304,269) 854,524 5,639,336 22,527,683 47,613,486 85,485,771 132,930,170 189,980,795 256,573,045 333,230,045
ROI for investors @ £3m 0.14 (0.09) 0.26 1.71 6.83 14.44 25.93 40.32 57.63 77.83 101.08
IRR for investors @ £3m -36% 14% 47% 56% 59% 59% 57% 55% 52%
ROI for investors @ £5m 0.09 (0.05) 0.15 1.02 4.05 8.57 15.39 23.93 34.20 46.18 59.98
IRR for investors @ £5m -46% 0% 32% 43% 48% 49% 48% 47% 45%
Based on a 6X multiple
50
IN CONFIDENCE
Target AVCP 10 Year Forecast
With unit prices increasing to £70k average over the period
and 3,089 AVCP units produced in 2028.
Year to 31 October 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Profit and loss Summary £ £ £ £ £ £ £ £ £ £ £
Sales Revenue 0 300,000 1,150,000 2,950,000 8,425,000 18,727,500 41,996,667 83,226,481 128,818,796 171,022,963 216,241,019
Gross Margin % 33 38 42 46 48 50 50 50 50 50
Gross Margin 0 99,000 437,000 1,239,000 3,875,500 8,989,200 20,998,333 41,613,241 64,409,398 85,511,481 108,120,509
Staff costs 0 (200,000) (300,000) (350,000) (500,000) (750,000) (1,000,000) (1,250,000) (1,500,000) (1,750,000) (2,000,000)
Overheads 0 (50,000) (100,000) (150,000) (150,000) (225,000) (300,000) (375,000) (450,000) (525,000) (600,000)
IP amortisation 0 (4,531) (11,336) (18,246) (63,168) (166,432) (373,227) (739,639) 0 0 0
Profit/loss before interest & taxation 0 (155,531) 25,664 720,754 3,162,332 7,847,768 19,325,106 39,248,602 62,459,398 83,236,481 105,520,509
Interest 0 (37,000) (38,369) (39,789) (31,831) (23,873) (15,915) (7,958) 0 0 0
Profit / loss before taxation 0 (192,531) (12,705) 680,965 3,130,501 7,823,894 19,309,191 39,240,644 62,459,398 83,236,481 105,520,509
Corporation tax 0 83,220 47,760 (94,850) (568,797) (1,518,162) (3,739,659) (7,596,254) (11,867,286) (15,814,931) (20,048,897)
Net profit after taxation 0 (109,311) 35,055 586,115 2,561,704 6,305,732 15,569,531 31,644,390 50,592,113 67,421,550 85,471,613
Based on achieving a 50% market share from 2024.
51
IN CONFIDENCE
Target AVCP IRR for Investors
Based on 6X Multiple
Year to 31 October 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
£ £ £ £ £ £ £ £ £ £ £
Company valuation - EBITDA multiple of 6 0 (906,000) 222,000 4,434,000 19,353,000 48,085,200 118,190,000 239,929,444 374,756,389 499,418,889 633,123,056
Company valuation - net assets 476,580 602,269 637,324 1,223,439 3,785,143 10,090,875 25,660,406 57,304,797 107,896,909 175,318,459 260,790,072
Total valuation 476,580 (303,731) 859,324 5,657,439 23,138,143 58,176,075 143,850,406 297,234,241 482,653,298 674,737,348 893,913,127
ROI for investors @ £3m 0.14 (0.09) 0.26 1.72 7.02 17.65 43.63 90.16 146.40 204.67 271.15
IRR for investors @ £3m -36% 14% 48% 61% 71% 76% 74% 70% 66%
ROI for investors @ £5m 0.09 (0.05) 0.15 1.02 4.16 10.47 25.89 53.50 86.88 121.45 160.90
IRR for investors @ £5m -46% 0% 33% 48% 59% 64% 64% 62% 59%
52
IN CONFIDENCE
Exit Options
• The eVTOL market is a rapidly evolving sector, with a fierce ongoing battle to be first tomarket in the Urban Air Taxi space in particular. This could create an exit opportunityfrom any of the major players such as UBER, Boeing, Airbus etc. seeking a fullycompliant safe aircraft with a patent-protected advantage over the competition.
• It could also come from one of the Ballistic Recovery System players such as BRS orGalaxy GRS, or from an aircraft ejection seat manufacturer such as Martin-BakerAircraft Ltd. or United Technologies Aerospace Inc. who already make combinedparachute and rocket motor systems, and whose ejection seat market is declining.
• The valuation will be based around the IP and having a market-ready compliantproduct, and we would expect any exit valuation to be above £30million.
• If the AVCP system becomes the dominant technology based on its IP protection witha greater than 50% market share we would expect a valuation well above £100million.
• Similarly, the armoured vehicle market offers potential exit opportunitieswith any of the major players with whom discussions are already takingplace. It is intended to retain ownership of the core ARMS business.
IN CONFIDENCE 53
Advanced Blast & Ballistic Systems Ltd
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