Optex Systems Holdings, Inc. · NASDAQ:OPXS
Optex Systems — Investor Presentation (February 2024)
24 slides from Optex Systems's investor presentation, February 2024
Slide 1: Optex Systems Holdings Inc.
Optex Systems Holdings Inc. Nasdaq : OPXS
Slide 2: Investor Presentation
Investor Presentation 2
Slide 3: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation includes forward-looking statements that are subject to many risks and uncertainties. These forward-looking statements, such as statements about Optex’s short-term and long-term growth strategies, can sometimes be identified by use of terms such as “intend
Slide 4: Presentation Contents
PRESENTATION CONTENTS 1. What is our Mission? 2. Customers and Products 3. Market Opportunity and Competitors 4. Clearly Articulated Business Strategy 5. Sustainable Competitive Advantages 6. Brief financial overview OPTEX Overview 2024 4
Slide 5: What We Do
WHAT WE DO… Threat Optex Customers Defense Offense OPTEX STANDS BETWEEN THE THREAT AND OUR CUSTOMERS. OPTEX Overview 2024 5
Slide 6: Optex Division – What We Do
OPTEX DIVISION – WHAT WE DO… OPTEX Overview 2024 6
Slide 7: Applied Optics Center (AOC) Division – What We Do
APPLIED OPTICS CENTER (AOC) DIVISION – WHAT WE DO… Optical Cells, Eyepiece, Components – Laser Filter Units Objective Lens Sets Optically aligned metal and glass lens sets Laser Interference Filters, ENVG Filters, Optical Coatings By depositing precise molecular layers of unique materials onto an op
Slide 8: Applied Optics Center – What We Do
APPLIED OPTICS CENTER (AOC) – WHAT WE DO… New Laser Filter Units Historical LFU’s 50 mm 60 mm 40 mm 24 mm 32 mm 30 mm 34 mm 44 mm 56 mm New Designs In Work Sig Sauer – NGSW Vortex Scope Next Generation Squad Weapon Every Weapon needs a Scope, Every Scope needs an LFU. OPTEX Overview 2024 8
Slide 9: Market Opportunity
MARKET OPPORTUNITY DoD Budget FY15-FY24 5% increas $1000B e $886.0B $900B $842.0B $816.7B $800B $756.6B *This provides extra funds for various efforts including the Abrams, $704.7B $703.7B Stryker, Bradley and Paladin Integrated Management (PIM) $700B $670.6B $685.0B $606.0B programs. $600B $560.4B
Slide 10: Select Major Customers
SELECT MAJOR CUSTOMERS Defense Customers - ~90% of Revenue Commercial Customers - ~10% OPTEX Overview 2024 10
Slide 11: Market Opportunity
MARKET OPPORTUNITY Abrams Tank Armored Multi Purpose Vehicle Nov 2023: State Dept. approves $2.5B sale of Abrams Sept 2023: The Army awarded BAE Systems a tanks to Romania (54). $797 million contract for full-rate production. January 2023: Poland orders another 116 Abrams ($1.4bn). The total contrac
Slide 12: Entrenched Supplier to Multi-Decade Programs of Record
Entrenched Supplier to Multi-Decade Programs of Record Abrams Tank Stryker Bradley Fighting Vehicle Armored Multi-Purpose ~# In Service/# Produced: 3,000/10,500 ~# In Service/# Produced: 4,200/5,000 ~# In Service/# Produced: 6,000/6,700 Production nowVehicle started for 2,900 in 6-8 yrs. LAV (Light
Slide 13: Market Opportunity – Recent Win
MARKET OPPORTUNITY – RECENT WIN M10 Booker Tank - Less Weight – 42 Tons vs 74 Ton Abrams - Prime – General Dynamics Land Systems - Low Rate Initial Production – 96 units - Started in late 2023 - Targeted Production Quantity - ~504 Units* - Optex Content - Turret Laser Protected Periscopes - Driver L
Slide 14: Market Share, Customers, and Competitors
MARKET SHARE, CUSTOMERS, AND COMPETITORS Periscopes & Vision Blocks Markets Sighting Systems Markets US $20 – 40MM US $100MM MHI Germany Norway 95% 5% US US UK UK 20 – 30% 0.5 – 1% Worldwide South Worldwide UK Korea Israel Belgium Worldwide Worldwide $40 – 50MM $500MM – $1B OPTEX Overview 2024 14
Slide 15: Optex Business Strategy
OPTEX BUSINESS STRATEGY PRODUCTS PRESENT NEW PRESENT Market Retention Product Development • Optical Engineering • New Periscope Technology Enhancement MARKETS • Mechanical Sighting Systems • New Sighting Systems • Assembly Processes • Recent M10 Booker Win Market Development Diversification • Commer
Slide 16: Sustainable Competitive Advantages
SUSTAINABLE COMPETITIVE ADVANTAGES… Building Patented Highest Share in our Approved Supplier to: Clean Capitalization CEO owns and Proprietary Niche US Market for Major General Dynamics, Table and Healthy 13+% of Out- Products for over Product Lines BAE Systems, L3 Harris Balance Sheet (Robust) stan
Slide 17: Financial Overview
FINANCIAL OVERVIEW OPXS Revenue and Gross Margin OPXS Revenue and EBITDA as % of Revenue $40 32.0% $40 20.0% EBITDA adj. as % of Rev $35 28.0% $35 Revenue in Millions Revenue in Millions 16.0% Gross Margin (%) $30 24.0% $30 $25 20.0% $25 12.0% $20 16.0% $20 $15 12.0% $15 8.0% $10 8.0% $10 4.0% $5 4.
Slide 18: Summary
SUMMARY Sustainable Competitive Profitable Product Advantage in an Attractive Market Portfolio • $1 Billion • Highest quality worldwide • Innovative • Increasing product market share development (commercial • New product and foreign) launches Selective Acquisition Excellent Customer Strategy Base •
Slide 19: Backup Data
BACKUP DATA Optex Systems Announces Acquisition of Speedtracker January 22, 2024 RICHARDSON, TX / ACCESSWIRE / January 22, 2024 / Optex Systems Holdings, Inc. (Nasdaq:OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications,
Slide 20: Divisional Breakdown
DIVISIONAL BREAKDOWN OPTEX SYSTEMS HOLDINGS, INC. OPTEX SYSTEMS APPLIED OPTICS CENTER ~50% of Revenue ~50% of Revenue • Laser Protected Periscopes and Vision Blocks • Premier Thin Film Coatings • Military Optical Sighting Systems • Blocks Unwanted Wavelengths • Weapon Systems, Optical Subassemblies
Slide 21: Leadership Team
LEADERSHIP TEAM Danny Schoening – CEO Jeff Balch – Quality Manager 30 years in Engineering, Manufacturing, 30 years in Optical Assembly Optics, and Business Leadership; holds and Optex Experience. 7 US Patents. Previously with Honeywell International (HON) and Finisar Angelina Kerr – Contracts and I
Slide 22: Bradley Support – What We Do
BRADLEY SUPPORT – WHAT WE DO… Bradley Fighting Vehicle Back-Up Sight 15 Degree Periscope Periscope Assembly Assembly M45 Periscope M17 Periscope Assembly Assembly M27 Periscope 20 Degree Periscope Assembly Assembly Optex Systems Inc. Military Artillery Fire Control Systems www.optexsys.com OPTEX Ove
Slide 23: Stryker – LAV Support – What We Do
STRYKER – LAV SUPPORT – WHAT WE DO… Stryker/LAV Family of Vehicles M27 Periscope M17 Periscope Assembly Assembly (Turret Version) M45 Periscope Vision Block Assembly Assembly LS Periscope LS MRS Collimator Assembly Assembly (MGS (MGS Version) Version) Optex Systems Inc. Military Artillery Fire Contr
Slide 24: Optex Products – What We Do
OPTEX PRODUCTS – WHAT WE DO… DDAN / M36 Sights Laser Protected Periscopes M17 Day/Thermal Periscope Back Up Sight Commercial Naval Binoculars Howitzer Products Stabilized Monocular – on Amazon Optical Assembly OPTEX Overview 2024 24
Optex Systems Holdings — Investor Presentation (February 2024) on 6ix