8-K
AeroVironment Inc (AVAV)
8-K
2022-10-05
For: 2022-10-05
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April 08, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) ofthe Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 5, 2022
AEROVIRONMENT,
INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-33261 | 95-2705790 |
|---|---|---|
| (State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer Identification No.) |
| incorporation or organization) | ||
| 241 18th Street South**, Suite 415** | ||
| --- | --- | |
| Arlington**, Virginia** | 22202 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code:
(805) 520-8350
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.0001 par value | AVAV | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 7.01. | Regulation FD Disclosure |
|---|
On October 5, 2022, AeroVironment, Inc. (the “Company”) will host an investor and analyst event in Petaluma, California beginning at 9:00 am Pacific Time, which will include presentations from the Company’s President, Chief Executive Officer, and Chair of the Board, Wahid Nawabi, and the Company’s Senior Vice President and Chief Financial Officer, Kevin McDonnell, and other members of the Company’s executive management team. The Company is furnishing as Exhibit 99.2 to this Current Report on Form 8-K the presentation materials to be provided to and discussed with attendees at the investor and analyst event. The Company has posted the presentation to be discussed by the Company's executive management team at http://investor.avinc.com/events-and-presentations. A video of the presentation will also be available at http://investor.avinc.com/events-and-presentations following the completion of the event.
The information in this Current Report on Form 8-K (including the presentation materials attached as Exhibit 99.1 hereto and the video presentation) is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings. This current report on Form 8-K will not be deemed an admission as to the materiality of any information contained herein (including the presentation materials attached as Exhibit 99.1 hereto and the video presentation).
Safe Harbor Statement
Certain statements in this Current Report on Form 8-K (including the presentation materials attached as Exhibit 99.1 hereto and the video presentation) may constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” or words or phrases with similar meaning. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements.
Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the impact of our recent acquisitions of Arcturus UAV, Inc., Telerob GmbH and the Intelligent Systems Group of Progeny Systems Corp. and our ability to successfully integrate them into our operations; the risk that disruptions will occur from the transactions that will harm our business; any disruptions or threatened disruptions to our relationships with our distributors, suppliers, customers and employees, including shortages in components for our products; the ability to timely and sufficiently integrate international operations into our ongoing business and compliance programs; reliance on sales to the U.S. government and related to our development of HAPS UAS; availability of U.S. government funding for defense procurement and R&D programs; changes in the timing and/or amount of government spending; our ability to perform under existing contracts and obtain new contracts; risks related to our international business, including compliance with export control laws; potential need for changes in our long-term strategy in response to future developments; the extensive regulatory requirements governing our contracts with the U.S. government and international customers; the consequences to our financial position, business and reputation that could result from failing to comply with such regulatory requirements; unexpected technical and marketing difficulties inherent in major research and product development efforts; the impact of potential security and cyber threats or the risk of unauthorized access to our, our customers’ and/or our suppliers’ information and systems; changes in the supply and/or demand and/or prices for our products and services; increased competition; uncertainty in the customer adoption rate of commercial use unmanned aircraft systems; failure to remain a market innovator, to create new market opportunities or to expand into new markets; unexpected changes in significant operating expenses, including components and raw materials; failure to develop new products or integrate new technology into current products; unfavorable results in legal proceedings; our ability to respond and adapt to unexpected legal, regulatory and government budgetary changes, including those resulting from the ongoing COVID-19 pandemic, such as supply chain disruptions, vaccine mandates, the threat of future variants and potential governmentally-mandated shutdowns, quarantine policies, travel restrictions and social distancing, curtailment of trade, diversion of government resources to non-defense priorities, and other business restrictions affecting our ability to manufacture and sell our products and provide our services; our ability to comply with the covenants in our loan documents; our ability to attract and retain skilled employees; the impact of inflation; and general economic and business conditions in the United States and elsewhere in the world; and the failure to establish and maintain effective internal control over financial reporting. For a further list and description of such risks and uncertainties, see the reports we file with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
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| Item 9.01. | Financial Statements and Exhibits |
|---|---|
| (d) | Exhibits. |
| --- | --- |
| Exhibit | |
| --- | --- |
| Number | Description |
| 99.1 | Press release issued by AeroVironment, Inc., dated October 5, 2022 |
| 99.2 | Informational slides provided by AeroVironment, Inc., dated October 5, 2022, relating to investor and analyst event |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AEROVIRONMENT, INC. | ||
|---|---|---|
| Date: October 5, 2022 | By: | /s/ Melissa Brown |
| Melissa Brown | ||
| Vice President, General Counsel & Corporate Secretary |
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Exhibit 99.1
AeroVironment, Inc. to Present at Investorand Analyst Event
**ARLINGTON, Va., Oct. 5, 2022 –**AeroVironment, Inc. (NASDAQ: AVAV), a global leader in intelligent, multi-domain robotic systems, is hosting an Investor and Analyst Event in Petaluma, California today. The event is scheduled to begin at 9:00am PT and will include presentations from Wahid Nawabi, chairman, president and chief executive officer, Kevin McDonnell, senior vice president and chief financial officer, and other members of the executive management team. Concurrent with this release, the Company is filing an 8-K which includes the presentation materials to be discussed with attendees at the event.
The Company will also be posting the presentation slides at https://investor.avinc.com/events-and-presentations.
A video of the presentation will also be available at https://investor.avinc.com/events-and-presentations following the completion of the event.
ABOUT AEROVIRONMENT, INC.
AeroVironment (NASDAQ: AVAV) provides technology solutions at the intersection of robotics, sensors, software analytics and connectivity that deliver more actionable intelligence so you can proceed with certainty. Headquartered in Virginia, AeroVironment is a global leader in intelligent, multi-domain robotic systems and serves defense, government and commercial customers. For more information, visit www.avinc.com.
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CONTACT
Jonah Teeter-Balin
+1 (805) 520-8350 x4278
https://investor.avinc.com/contact-us
-end-
Exhibit 99.2
CORRESP
| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>1<br>October 5, 2022<br>INVESTOR DAY 2022<br>Beyond the Horizon |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>2<br>Today’s<br>Agenda<br>INVESTOR & ANALYST DAY //<br>AGENDA DAY 2<br>TIME<br>AGENDA ITEM<br>LOCATION<br>7:00 AM<br>BREAKFAST<br>Sheraton<br>-<br>Marina Room<br>8:00 AM<br>SHUTTLE BUS: SHERATON TO PETALUMA FACILITY<br>Sheraton Parking Lot<br>8:15 AM<br>SECURITY CHECK<br>-<br>IN<br>MUAS Facility<br>8:45 AM<br>WELCOME<br>9:00 AM<br>AEROVIRONMENT TODAY & TOMORROW<br>9:30 AM<br>FINANCIAL UPDATE<br>10:00 AM<br>MEDIUM UNMANNED AIRCRAFT SYSTEMS \(MUAS\) UPDATE<br>10:30 AM<br>BREAK<br>10:45 AM<br>FACILITY TOUR<br>11:15 AM<br>SMALL UNMANNED AIRCRAFT SYSTEMS \(SUAS\) UPDATE<br>11:45 AM<br>TACTICAL MISSILE SYSMTE \(TMS\) UPDATE<br>12:15 PM<br>LUNCH<br>12:30 PM<br>Q&A PANEL<br>1:00 PM<br>CLOSING REMARKS<br>1:15 PM<br>SECURITY CHECK<br>-<br>OUT<br>1:30 PM<br>SHUTTLE BUS: MUAS TO DEMO SITE<br>MUAS Facility Parking Lot<br>2:00 PM<br>DEMOS \(DRINKS & SNACKS\)<br>Demo Airfield<br>4:00 PM<br>SHUTTLE BUS: DEMO SITE TO HOTEL<br>OCTOBER 5 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>3<br>Jonah Teeter<br>-<br>Balin<br>Sr Director, Corporate Development & Investor Relations<br>WELCOME! |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>4<br>WATCH THE VIDEO<br>HERE |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>5<br>Safe Harbor Statement<br>Certain statements in this presentation may constitute "forward<br>-<br>looking statements" as that term is defined in the Private Secur<br>ities Litigation<br>Reform Act of<br>1995. Forward<br>-<br>looking statements include, without limitation, any statement that may predict, forecast, indicate o<br>r imply future<br>results, performance or<br>achievements, and may contain words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “pr<br>oject,” “plan,” or<br>words or phrases with similar meaning.<br>Forward<br>-<br>looking statements are based on current expectations, forecasts and assumptions t<br>hat involve<br>risks and uncertainties, including, but not limited to,<br>economic, competitive, governmental and technological factors outside of<br>our control, that may<br>cause our business, strategy or actual results to differ materially<br>from the forward<br>-<br>looking<br>statements.<br>Factors that could cause actual results to differ materially from the forward<br>-<br>looking statements include, but are not limited to<br>, the impact of our<br>recent<br>acquisitions of Arcturus UAV, Inc.,<br>Telerob<br>GmbH and the Intelligent Systems Group of Progeny Systems Corp. and our ability to successfully<br>integrate them<br>into our operations;<br>the risk that disruptions will occur from the transactions that will harm our business; any disruptions or<br>threatened disruptions to our<br>relationships with our distributors, suppliers, customers and employees, including shortages in co<br>mponents for our<br>products; the ability to timely and sufficiently<br>integrate international operations into our ongoing business and compliance pro<br>grams; reliance on<br>sales to the U.S. government and related to our<br>development of HAPS UAS; availability of U.S. government funding for defense pro<br>curement and<br>R&D programs; changes in the timing and/or amount of<br>government spending; our ability to perform under existing contracts and ob<br>tain new<br>contracts;<br>risks related to our international business, including compliance<br>with export control laws; potential need for chang<br>es in our long<br>-<br>term<br>strategy in response to future developments; the extensive regulatory requirements<br>governing our contracts with the U.S. governm<br>ent and<br>international customers; the consequences to our financial position, business and reputation that could<br>result from failing to c<br>omply with such<br>regulatory requirements; unexpected technical and marketing difficulties inherent in major research and product<br>development effo<br>rts; the impact of<br>potential security and cyber threats or the risk of unauthorized access to our, our customers’ and/or our suppliers’<br>information<br>and systems;<br>changes in the supply and/or demand and/or prices for our products and services; increased competition; uncertainty in the cu<br>sto<br>mer<br>adoption<br>rate of commercial use unmanned aircraft systems; failure to remain a market innovator, to create new market opportunities or<br>to<br>expand into<br>new<br>markets; unexpected changes in significant operating expenses, including components and raw materials; failure to develop ne<br>w products or<br>integrate new<br>technology into current products; unfavorable results in legal proceedings; our ability to respond and adapt to un<br>expected legal,<br>regulatory and government<br>budgetary changes, including those resulting from the ongoing COVID<br>-<br>19 pandemic, such as supply chain<br>disruptions,<br>vaccine mandates, the threat of future<br>variants and potential governmentally<br>-<br>mandated shutdowns, quarantine policies, travel res<br>trictions and<br>social distancing, curtailment of trade, diversion of<br>government resources to non<br>-<br>defense priorities, and other business restric<br>tions affecting our<br>ability to manufacture and sell our products and provide our<br>services<br>;<br>our ability to comply with the covenants in our loan documents; our ability to<br>attract and retain skilled employees; the impact of inflation; and general<br>economic and business conditions in the United States<br>and elsewhere in<br>the world; and the failure to establish and maintain effective internal control over<br>financial reporting.<br>For a further list and description of such risks<br>and uncertainties, see the reports we file with the Securities and Exchange Commission. We<br>do not intend, and undertake no oblig<br>ation, to update<br>any forward<br>-<br>looking statements, whether as a result of new information, future events or otherwise.<br>For a further list and description of such risks and<br>uncertainties, see the reports we file with the<br>Securities and Exchange Commission, including<br>our most<br>recent Annual Report on Form 10<br>-<br>K and<br>Quarterly Reports on Form 10<br>-<br>Q, which are<br>available at<br>www.sec.gov<br>or on our website<br>at<br>www.investor.avinc.com/financial<br>-<br>information<br>..<br>We do not intend, and undertake no obligation, to<br>update any forward<br>-<br>looking statements, whether<br>as a result of<br>new information, future events or<br>otherwise. |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>6<br>Where We’re at<br>in Today’s Agenda<br>INVESTOR & ANALYST DAY //<br>AGENDA DAY 2<br>TIME<br>AGENDA ITEM<br>LOCATION<br>7:00 AM<br>BREAKFAST<br>Sheraton<br>-<br>Marina Room<br>8:00 AM<br>SHUTTLE BUS: SHERATON TO PETALUMA FACILITY<br>Sheraton Parking Lot<br>8:15 AM<br>SECURITY CHECK<br>-<br>IN<br>MUAS Facility<br>8:45 AM<br>WELCOME<br>9:00 AM<br>AEROVIRONMENT TODAY & TOMORROW<br>9:30 AM<br>FINANCIAL UPDATE<br>10:00 AM<br>MUAS UPDATE<br>10:30 AM<br>BREAK<br>10:45 AM<br>FACILITY TOUR<br>11:15 AM<br>SUAS UPDATE<br>11:45 AM<br>TMS UPDATE<br>12:15 PM<br>LUNCH<br>12:30 PM<br>Q&A PANEL<br>1:00 PM<br>CLOSING REMARKS<br>1:15 PM<br>SECURITY CHECK<br>-<br>OUT<br>1:30 PM<br>SHUTTLE BUS: MUAS TO DEMO SITE<br>MUAS Facility Parking Lot<br>2:00 PM<br>DEMOS \(DRINKS & SNACKS\)<br>Demo Airfield<br>4:00 PM<br>SHUTTLE BUS: DEMO SITE TO HOTEL<br>OCTOBER 5 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>7<br>Wahid Nawabi<br>CEO, President and Chairman<br>AEROVIRONMENT<br>Today and Tomorrow |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>8<br>We support<br>a much larger set of international<br>customers today<br>-<br>55 countries and growing!<br>We are<br>a truly<br>global company<br> –<br>not just<br> “Simi Valley, CA centric”, but with staff in Germany,<br>UAE, and 7 sites across the USA, plus forward<br>-<br>deployed and<br>in harm’s way with customers and<br>supporting customers<br>Our workforce<br>has doubled from ~600 to<br>over 1200<br>employees today<br>Our revenues<br>have doubled, allowing<br>R&D<br>investments<br>at record high levels,<br>and outpace<br>competitors<br>The last 5 years have been great,<br>and we have<br>similarly<br>high<br>expectations for the next 5 years<br>Since<br>Investor Day 2018 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>9<br>Our Future State<br>Evolving for our customers<br>Integrated Portfolio<br>of Intelligent,<br>Multi<br>-<br>Domain<br>Robotic Systems<br>for Defense and<br>Commercial Markets<br>o<br>Mission<br>-<br>centric solutions<br>o<br>Operate in the presence of<br>near peer adversaries<br>o<br>Seamlessly integrating<br>robotic systems with<br>humans |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>10<br>AV’s product portfolio is<br>shaped so that we<br>serve<br>our customers<br>as the<br>world’s leading provider of<br> “intelligent, multi<br>-<br>domain<br>robotic systems”<br>We operate different<br>business models<br>-<br>providing hardware<br>solutions & services<br>We have<br>6 product<br>lines<br>today, geared<br>toward customer<br>success in all domains<br>\(SUAS, TMS, MUAS, UGV,<br>HAPS, MW\)<br>We stretch from below the<br>waves of Earth’s oceans<br>to the red surface of Mars<br> –<br>going where our<br>customers go and where<br>they can’t<br>Comprehensive<br>Business Strategy |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>11<br>Since Investor Day 2018,<br>Our Evolution Continues<br>Aug 2022<br>May 2021<br>Feb 2021<br>Feb 2021<br>Jun 2019<br>VTOL<br>SUAS<br>Pulse Aerospace<br>Lawrence, Kansas<br>AI/ML<br>Autonomy<br>Progeny Systems, ISG<br>Manassas, Virginia<br>MUAS/<br>CO<br>-<br>CO Svc.<br>Arcturus UAV<br>Petaluma, California<br>UGV/<br>EOD<br>Telerob<br>Stuttgart, Germany<br>UAS<br>Navigation<br>Planck<br>Aerosystems<br>San Diego, California<br>Added to<br>Our Portfolio |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>12<br>Long<br>-<br>Term<br>Objectives<br>Our aim is to double revenue by increasing:<br> •<br>Our presence internationally to better serve growing customer base<br> •<br>Our investments in R&D<br> •<br>The size of our team and our areas of expertise<br> •<br>The “resiliency” of our solutions \(Contested airspace operations\)<br> •<br>Our investments in AI & Autonomy<br>And building onto our legacy by:<br> •<br>Expanding our product portfolio & solution offerings to meet customers’ evolving needs<br> •<br>Continuing to have a diverse, talented workforce<br> •<br>Improving our business processes to be “easier to do business with”<br> •<br>Continuing to earn the “Great Place to Work” certification for many years to come<br> •<br>And earning our stakeholder trust and respect each day |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>13<br>Why do we believe<br>this is achievable?<br>The Ukraine war has<br> “awoken”<br>the US and<br>our Allies regarding<br>the seriousness of<br>global threats,<br>especially from<br>Russia and China<br>US DoD<br> & most of<br>our allies’<br>defense<br>spending should<br>continue to be at<br>healthy and record<br>levels<br>Lots of Positive Trends<br>The Ukraine war has validated<br>again<br>the importance and relevance of drones<br>and loitering munitions. This is a<br>historic shift in mindsets and AV is at<br>the forefront of this revolution!<br>We are well positioned to support our<br>allies and we MUST continue to invest in<br>our solution portfolio. |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>14<br>The<br>future<br>for<br>AeroVironment<br>has<br>never<br>been<br>brighter<br>We have<br>a<br>clear and<br>compelling<br>plan<br>for growth,<br>supporting<br>our growing<br>global<br>customer base<br>We<br>work hard<br>to<br>remain<br>leaders<br>in the markets<br>we serve<br>We are<br>in the middle<br>of our transformation<br>,<br>which is positioning<br>us for<br>decades of<br>continued growth and<br>success<br>supporting<br>our customers<br>We have<br>much to do!<br>Understanding<br>customer needs<br>and effective<br>execution<br>are keys to<br>success<br>In<br>Conclusion<br>one<br>two<br>three<br>four |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>15<br>Where We’re at<br>in Today’s Agenda<br>INVESTOR & ANALYST DAY //<br>AGENDA DAY 2<br>TIME<br>AGENDA ITEM<br>LOCATION<br>7:00 AM<br>BREAKFAST<br>Sheraton<br>-<br>Marina Room<br>8:00 AM<br>SHUTTLE BUS: SHERATON TO PETALUMA FACILITY<br>Sheraton Parking Lot<br>8:15 AM<br>SECURITY CHECK<br>-<br>IN<br>MUAS Facility<br>8:45 AM<br>WELCOME<br>9:00 AM<br>AEROVIRONMENT TODAY & TOMORROW<br>9:30 AM<br>FINANCIAL UPDATE<br>10:00 AM<br>MUAS UPDATE<br>10:30 AM<br>BREAK<br>10:45 AM<br>FACILITY TOUR<br>11:15 AM<br>SUAS UPDATE<br>11:45 AM<br>TMS UPDATE<br>12:15 PM<br>LUNCH<br>12:30 PM<br>Q&A PANEL<br>1:00 PM<br>CLOSING REMARKS<br>1:15 PM<br>SECURITY CHECK<br>-<br>OUT<br>1:30 PM<br>SHUTTLE BUS: MUAS TO DEMO SITE<br>MUAS Facility Parking Lot<br>2:00 PM<br>DEMOS \(DRINKS & SNACKS\)<br>Demo Airfield<br>4:00 PM<br>SHUTTLE BUS: DEMO SITE TO HOTEL<br>OCTOBER 5 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>16<br>Kevin McDonnell<br>CFO<br>FINANCIAL UPDATE<br>Long Term Growth Potential |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>17<br>SEGMENT<br>GLOBAL TAM \(1\)<br>OUTLOOK<br>HIGHLIGHTS<br>SUAS<br>$1B+<br>Growing<br>o<br>Global Leader Position in Group 1<br> –<br>Over $2B of revenue over last 15 years<br>o<br>Adding Group 2 to Target Market<br>o<br>Multiple New Product Introductions and Add<br>-<br>ons<br>o<br>Well Positioned for Future U.S. DOD Programs of Record<br>MUAS<br>$2B+<br>Disrupter<br>o<br>Targeting Group 2/3<br>o<br>Leading the way to next generation products<br>o<br>Sole Selected for Increment 1 of Future Tactical UAS Program<br>-<br>$1B+ Program<br>o<br>Leveraging AV Global Franchise for U.S. and International Sales<br>TMS<br>$2B+<br>Growing<br>o<br>Global Leader in Loitering Munitions; Patented “Wave Off” Technology<br>o<br>Expanding U.S. DOD Footprint; Authorized to Sell in 20+ Countries<br>o<br>Targeting Multiple $1+ Billion Programs<br>o<br>Preferred Partner to integrate on aircraft, ground vehicles and ships<br>HAPS<br>$50B+<br>Innovating<br>o<br>Goal to deliver stratospheric cell service via solar powered platform<br>o<br>Softbank primary customer for telecom application<br>o<br>Targeting Large U.S. DOD Opportunities<br>UGV<br>0.5B+<br>Adapting<br>o<br>Part of Multi<br>-<br>Domain Solutions<br>o<br>Benefits from Growing Defense Budgets Globally<br>o<br>Positioning for future U.S. DOD programs<br>MW<br>$2B+<br>Innovating<br>o<br>Significant Increased Spending for Classified U.S. DOD Programs<br>o<br>Center of Excellence for Autonomy and Machine Learning<br>o<br>Source of Potential New Products<br>Business Segments<br>Market Outlook<br>Group 1/2 UAVs<br>Loitering Munitions<br>Group 2/3 UAVs<br>High Altitude Comms<br>Unmanned<br>Ground Vehicles<br>McCready Works<br>\(1\) Data from Renaissance Strategic Advisors,<br>Detecon<br>Consulting and Company Estimates |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>18<br>SEGMENT<br>GLOBAL TAM \(1\)<br>OUTLOOK<br>HIGHLIGHTS<br>SUAS<br>$1B+<br>Growing<br>o<br>Global Leader Position in Group 1<br> –<br>Over $2B of revenue over last 15 years<br>o<br>Adding Group 2 to Target Market<br>o<br>Multiple New Product Introductions and Add<br>-<br>ons<br>o<br>Well Positioned for Future U.S. DOD Programs of Record<br>MUAS<br>$2B+<br>Disrupter<br>o<br>Targeting Group 2/3<br>o<br>Leading the way to next generation products<br>o<br>Sole Selected for Increment 1 of Future Tactical UAS Program<br>-<br>$1B+ Program<br>o<br>Leveraging AV Global Franchise for U.S. and International Sales<br>TMS<br>$2B+<br>Growing<br>o<br>Global Leader in Loitering Munitions; Patented “Wave Off” Technology<br>o<br>Expanding U.S. DOD Footprint; Authorized to Sell in 20+ Countries<br>o<br>Targeting Multiple $1+ Billion Programs<br>o<br>Preferred Partner to integrate on aircraft, ground vehicles and ships<br>HAPS<br>$50B+<br>Innovating<br>o<br>Goal to deliver stratospheric cell service via solar powered platform<br>o<br>Softbank primary customer for telecom application<br>o<br>Targeting Large U.S. DOD Opportunities<br>UGV<br>0.5B+<br>Adapting<br>o<br>Part of Multi<br>-<br>Domain Solutions<br>o<br>Benefits from Growing Defense Budgets Globally<br>o<br>Positioning for future U.S. DOD programs<br>MW<br>$2B+<br>Innovating<br>o<br>Significant Increased Spending for Classified U.S. DOD Programs<br>o<br>Center of Excellence for Autonomy and Machine Learning<br>o<br>Source of Potential New Products<br>Business Segments<br>Market Outlook<br>Group 1/2 UAVs<br>Loitering Munitions<br>Group 2/3 UAVs<br>High Altitude Comms<br>Unmanned<br>Ground Vehicles<br>McCready Works<br>\(1\) Data from Renaissance Strategic Advisors,<br>Detecon<br>Consulting and Company Estimates<br>Global TAM For AVAV Product Portfolio Has Expanded Significantly Over Last Two Years |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>19<br>ONE<br>Increasing Defense<br>Budgets Globally<br>TWO<br>Increased Demand for<br>Loitering Munitions \(TMS\)<br>within U.S. DOD<br>THREE<br>Several $1 Billion+ U.S. DOD<br>Program opportunities for<br>Tactical Missiles \(TMS\),<br>Small UAS \(SUAS\) and<br>Medium UAS \(MUAS\)<br>Multiple Growth Drivers Give Confidence in Long Term Outlook<br>Long Term<br>Growth Drivers<br>FOUR<br>Increasing International Demand for TMS and MUAS Products<br>FIVE<br>Upgrades and Replacements for SUAS Installed Base<br>SIX<br>Growth of U.S. DOD Classified Programs driving demand for<br>McCready Works<br>SEVEN<br>Longer Term<br> –<br>the commercialization of HAPS for Telecom and DOD<br>applications |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>20<br>Examples<br>of<br>Large $1 Billion+ Programs on Horizon<br>AeroVironment is well positioned to compete in each of these programs<br>MUAS<br>TMS<br>SUAS<br>o<br>Long Range Reconnaissance \(LRR\)<br>o<br>Medium Range Reconnaissance MRR\)<br>o<br>Future Tactical UAS \(FTUAS\)<br>o<br>Medium Endurance UAS \(MEUAS\)<br>o<br>NAVY ISR<br>o<br>Long Range<br>Precision<br>Munition \(LRPM\)<br>o<br>Optionally<br>Manned<br>Fighting<br>Vehicle<br>\(OMFV\)<br>o<br>Ground<br>Organic<br>Precision<br>Strike System \(GOPSS\)<br>o<br>Organic<br>Precision<br>Fires<br>-<br>Mounted \(OPF<br>-<br>M\)<br>o<br>Organic<br>Precision<br>Fires<br>-<br>Light \(OPF<br>-<br>L\) |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>21<br>Potential of Accelerating Growth in Next Five Years<br>Financial<br>Performance<br>\(1\)<br>Mid<br>-<br>Point of Revenue and Adjusted EBITDA Guidance Range of $490M to $520M for revenue and $82M to $92M for Adjusted EBITDA<br>\(2\)<br>Adjusted excludes intangible amortization, deal costs, stock<br>-<br>based compensation and other extraordinary items. See Appendix A an<br>d B for Adjusted EBITDA reconciliations.<br>Revenue Growth<br>R&D Investment<br>Adjusted EBITDA %<br>\(2\)<br>14%<br>12%<br>Growth should accelerate with Large Program Wins<br>12%<br>10%<br>-<br>11%<br>R&D Investment will Continue<br>17%<br>17%<br>Growth is Priority<br>AVERAGE<br>MID<br>-<br>POINT<br>\(1\)<br>FY18<br>-<br>FY22<br>FY23<br>LONG TERM |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>22<br>Potential of Accelerating Growth in Next Five Years<br>Financial<br>Performance<br>\(1\)<br>Mid<br>-<br>Point of Revenue and Adjusted EBITDA Guidance Range of $490M to $520M for revenue and $82M to $92M for Adjusted EBITDA<br>\(2\)<br>Adjusted excludes intangible amortization, deal costs, stock<br>-<br>based compensation and other extraordinary items. See Appendix A an<br>d B for Adjusted EBITDA reconciliations.<br>Revenue Growth<br>R&D Investment<br>Adjusted EBITDA %<br>\(2\)<br>14%<br>12%<br>Growth should accelerate with Large Program Wins<br>12%<br>10%<br>-<br>11%<br>R&D Investment will Continue<br>17%<br>17%<br>Growth is Priority<br>AVERAGE<br>MID<br>-<br>POINT<br>\(1\)<br>FY18<br>-<br>FY22<br>FY23<br>LONG TERM<br>Expect continued double digit organic revenue growth with R&D investment<br>and Adjusted EBITDA percentages in line with historical averages |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>23<br>Where We’re at<br>in Today’s Agenda<br>INVESTOR & ANALYST DAY //<br>AGENDA DAY 2<br>TIME<br>AGENDA ITEM<br>LOCATION<br>7:00 AM<br>BREAKFAST<br>Sheraton<br>-<br>Marina Room<br>8:00 AM<br>SHUTTLE BUS: SHERATON TO PETALUMA FACILITY<br>Sheraton Parking Lot<br>8:15 AM<br>SECURITY CHECK<br>-<br>IN<br>MUAS Facility<br>8:45 AM<br>WELCOME<br>9:00 AM<br>AEROVIRONMENT TODAY & TOMORROW<br>9:30 AM<br>FINANCIAL UPDATE<br>10:00 AM<br>MUAS UPDATE<br>10:30 AM<br>BREAK<br>10:45 AM<br>FACILITY TOUR<br>11:15 AM<br>SUAS UPDATE<br>11:45 AM<br>TMS UPDATE<br>12:15 PM<br>LUNCH<br>12:30 PM<br>Q&A PANEL<br>1:00 PM<br>CLOSING REMARKS<br>1:15 PM<br>SECURITY CHECK<br>-<br>OUT<br>1:30 PM<br>SHUTTLE BUS: MUAS TO DEMO SITE<br>MUAS Facility Parking Lot<br>2:00 PM<br>DEMOS \(DRINKS & SNACKS\)<br>Demo Airfield<br>4:00 PM<br>SHUTTLE BUS: DEMO SITE TO HOTEL<br>OCTOBER 5 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>24<br>Gorik Hossepian<br>Vice President and Product Line General Manager<br>Medium Unmanned Aircraft Systems<br>MEDIUM UNMANNED<br>AIRCRAFT SYSTEMS \(MUAS\)<br>FTUAS Program & Key Technologies |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>25<br>Insert MUAS Video<br>WATCH THE VIDEO<br>HERE |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>26<br>Replacement for RQ<br>-<br>7B<br>Shadow in US Army brigade<br>combat teams<br> •<br>Seeking VTOL,<br>runway<br>-<br>independent,<br>reduced acoustic signature,<br>easily transportable<br> •<br>Requires at least 6<br>-<br>hour<br>duration and operating<br>ability out to 100km<br> •<br>More than 500 shadows<br>fielded globally<br>FTUAS Program<br>Purpose<br>Shadow<br>JUMP<br>20 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>27<br>Increment 1<br> •<br>Sole source $8m award for one<br>Jump 20 system<br> ➔<br>AV front runner<br>for full program with win<br>o<br>Each system includes 6 air vehicles,<br>ground terminals and control stations<br>o<br>Army may field up to 7 additional systems<br> •<br>Result of more than one year of<br>competitive evaluations using existing<br>proven technologies<br> •<br>Experience will feed Increment 2<br>award requirements<br>FTUAS<br>Program<br>Details<br>Increment 2<br> •<br>Fields systems that fully<br>comply with FTUAS program<br>requirements<br> •<br>Separate program from<br>Increment 1 and may have<br>multiple awardees<br> •<br>Will field systems with<br>additional combat brigades<br> •<br>Awards expected in next 9<br>-<br>12<br>months<br>Final Award<br> •<br>Expected award in late<br>GFY24 with initial<br>fielding in GFY25<br> •<br>Total award value of<br>$1B+ over 10 years<br> •<br>60+ Brigade Combat<br>Teams in Total |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>28<br>AeroVironment JUMP 20<br> ™<br>is already best in class<br> •<br>14+ hour flight duration with operating range of 185 km<br> •<br>Industry leading payload capacity and range trade<br>-<br>offs<br> •<br>Market share leader in MEUAS SOCOM contracts<br> •<br>Over 115,000 operational hours to date<br>Planck Acquisition improves competitive position<br> •<br>Necessary technology to meet FTUAS requirements for GPS denied operation<br> •<br>Opportunities to make better through internal integrations and future<br>developments<br> •<br>Enables more GNC and Autonomy capabilities+<br>FTUAS Program<br>Competitive Advantage |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>29<br>OpTrack<br>Automated Control Engine \(ACE\)<br>AVEM<br>-<br>Tethered<br> •<br>Real<br>-<br>time, AI/ML<br>-<br>based object<br>detection and geolocation<br> •<br>Deployed with Border Patrol to<br>detect humans on rough terrain<br> •<br>Extended to detect ships, humans<br>in the water, and marine mammals<br> •<br>Enabling technology for deployment<br>of organic<br>sUAS<br>on vessels & vehicles<br> •<br>Vision<br>-<br>based precision launch,<br>tracking and landing<br> •<br>GPS optional<br> •<br>Fully<br>-<br>integrated, persistent aerial<br>sensor system for moving<br>vehicles/vessels<br> •<br>GPS denied, RF silent<br> •<br>Up to 100ft altitude, 20 mph cross<br>winds<br>Planck<br>Aerosystems<br>-<br>Products |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>30<br>Planck<br>Aerosystems<br>Automated Control Engine \(ACE\)<br>Utilizes AprilTags for a visual<br>fiducial navigation system<br>o<br>Developed originally for<br>mobile<br>-<br>landing applications<br>o<br>Reworked to provide a<br>position solution from a fixed<br>target reference<br>Vision<br>-<br>Based<br>Launch & Landing |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>31<br>o<br>Enables ship<br>-<br>based<br>ISR/SAR<br>o<br>Maritime logistics:<br>Ship/Shore, Ship/Ship<br>o<br>Integrates with<br>USN/NATO flight decks<br>o<br>Automated SAR when<br>integrated with<br>OpTrack<br>ACE & JUMP 20:<br>Maritime Operations |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>32<br>Air<br>-<br>Launched<br>Effects Concepts<br>Switchblade<br> ®<br>300<br> •<br>Under<br>-<br>wing launch of SB300<br>from standard launch tube<br>Switchblade<br> ®<br>600<br> •<br>Early concept modeling for under<br>-<br>belly,<br>internal, and under<br>-<br>wing mounts<br>Hatchet & BMS<br> •<br>Interior air<br>-<br>drop from standard<br>deploy mechanism |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>33<br>Insert<br>SB300 J20 Video<br>WATCH THE VIDEO<br>HERE |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>34<br>FACILITY TOUR<br>Please leave all electronic devices in this room.<br>Photos and videos prohibited. |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>35<br>Where We’re at<br>in Today’s Agenda<br>INVESTOR & ANALYST DAY //<br>AGENDA DAY 2<br>TIME<br>AGENDA ITEM<br>LOCATION<br>7:00 AM<br>BREAKFAST<br>Sheraton<br>-<br>Marina Room<br>8:00 AM<br>SHUTTLE BUS: SHERATON TO PETALUMA FACILITY<br>Sheraton Parking Lot<br>8:15 AM<br>SECURITY CHECK<br>-<br>IN<br>MUAS Facility<br>8:45 AM<br>WELCOME<br>9:00 AM<br>AEROVIRONMENT TODAY & TOMORROW<br>9:30 AM<br>FINANCIAL UPDATE<br>10:00 AM<br>MUAS UPDATE<br>10:30 AM<br>BREAK<br>10:45 AM<br>FACILITY TOUR<br>11:15 AM<br>SUAS UPDATE<br>11:45 AM<br>TMS UPDATE<br>12:15 PM<br>LUNCH<br>12:30 PM<br>Q&A PANEL<br>1:00 PM<br>CLOSING REMARKS<br>1:15 PM<br>SECURITY CHECK<br>-<br>OUT<br>1:30 PM<br>SHUTTLE BUS: MUAS TO DEMO SITE<br>MUAS Facility Parking Lot<br>2:00 PM<br>DEMOS \(DRINKS & SNACKS\)<br>Demo Airfield<br>4:00 PM<br>SHUTTLE BUS: DEMO SITE TO HOTEL<br>OCTOBER 5 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>36<br>Trace Stevenson<br>Vice President and Product Line General Manager<br>Small Unmanned Aircraft Systems<br>SMALL UNMANNED<br>AIRCRAFT SYSTEMS \(SUAS\)<br>Next Gen Needs for Near Peer Conflicts |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>37<br>Future<br>Systems<br>Evolving<br>AeroVironment’s Portfolio<br>Legacy AV Fixed Wing<br>FoS<br> •<br>Reliable, Proven Group 1/2<br>sUAS<br> •<br>Common User Interface and GCS<br> •<br>Hand launched, fixed wing vehicles<br> •<br>Custom high<br>-<br>performance payloads<br> •<br>Gov’t waveform DDL radios<br>Future AV<br>eVTOL<br>FoS<br> •<br>Build and Expand on Legacy<br>FoS<br>to provide<br>full suite of solutions across Groups 1<br>-<br>2<br> •<br>Portable, Modular, Denied Environment<br>Multi<br>-<br>payload<br> •<br>Adaptable communications architecture<br>supporting DDL / MANET / others<br>Vapor 55 MX<br>Puma VTOL<br>PUMA<br> ™<br>3 AE<br>RQ<br>-<br>20<br>PUMA<br> ™<br>LE<br>RAVEN<br> ®<br>RQ<br>-<br>11<br>WASP<br> ™<br>AE<br>RQ<br>-<br>12 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>38<br>Enable the mounted or dismounted soldier to transport a system, quickly<br>deploy, and easily control a medium/long endurance multi<br>-<br>payload VTOL UAS<br>Current SUAS + VTOL + RF/GPS Denied + Autonomy to meet current, emerging and adjacent market needs<br>Future System<br>Product Philosophy<br>Key Performance Areas<br>EO/IR capability<br> –<br>take the best performance video capability and build<br>around that<br>Endurance<br> –<br>Increased performance to match customer needs<br>Contested environment capabilities<br> –<br>GPS denied NAV/robust<br>RF comms for contested missions<br>VTOL<br> –<br>Easier take<br>-<br>off and landing, especially in confined spaces<br>Autonomy<br> –<br>Hardware to support development and integration of future<br>autonomy improvements such as target detection and classification,<br>improved GPS denied navigation, etc. Reduce<br>Develop flexible product architecture for the future<br>Modular payload<br>compatible \(ISR,<br>comm relay, SIGINT, etc.\)<br>Versatile<br>communications architecture<br>High Portability<br> –<br>Minimal pack<br>-<br>out for mounted operations \(Humvee, RHIB,<br>Helicopter, SUV\)<br>Scalable architecture<br>to enable lower<br>-<br>cost versions for commercial<br>applications and high<br>-<br>performance versions for military customers<br>Expandable autonomy<br>architectures |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>39<br>VTOL<br>Benefits<br>No launch mechanism needed<br> –<br>launch anywhere in any<br>environment ideal for confined environments<br>No runway or open space required<br>for launch and recovery<br>Maintains all<br>-<br>weather capability<br> –<br>minus water landing |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>40<br>Autonomy<br>Process & Benefits<br>Aircraft Health Monitoring<br> •<br>Detect anomalies before mishaps occur<br> •<br>Use learning algorithms for post<br>-<br>mission data review<br> •<br>Embed algorithms onboard for live telemetry processing<br>Cloud Server<br>Data Processing<br>Machine Learning<br>Fleet Manager<br>Maintenance Planning<br>Feedback<br>Actionable Data<br>Flight<br>Telemetry<br>Onboard Monitoring<br> & Response<br>Reduce Cognitive Load on Operator<br> •<br>Pre<br>-<br>planned Mission Execution<br> •<br>Execution with and without Comms Link<br> •<br>Target Tracking with Flightpath Updates<br> •<br>Automatic Response to Emergencies<br>Addresses Evolving Customer Needs By Investing in Autonomy |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>41<br>WATCH THE VIDEO<br>HERE |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>42<br>VAPOR<br> ®<br>55 MX<br>Mission Options<br>Expeditionary<br>Scout<br>Forward operator,<br>mechanized<br>insertion, day or night<br>reconnaissance<br>Small Munition<br>Firing<br>Provide the ability to carry<br>munitions and hit targets in<br>defilade, perform BDA and<br>then reload and do it again.<br>Payload<br>Delivery<br>Ideal for emergency response<br>operations. Deliver life<br>-<br>saving<br>equipment in challenging<br>environments<br>Mapping /<br>Inspection<br>Provide detailed<br>position data and<br>imagery to inspect<br>infrastructure<br>Maritime<br>Patrol<br>Provide perch and<br>stare capability to<br>inspect infrastructure |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>43<br>NEW PUMA ACCESSORY |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>44<br>New Accessory<br>Visual Navigation System<br>Determines Precise Location without relying on GPS<br> –<br>accurately navigate in GPS denied environments<br>Upgrade kit for Puma 2/3 AE SUAS<br>includes suite of down<br>-<br>looking sensors that gather imagery and compute modules<br>to determine location<br>System transitions to and from GPS<br>-<br>denied navigation<br>mode<br>automatically without operator input<br>System will enable future advanced navigational<br>capabilities<br>through future updates |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>45<br>Where We’re at<br>in Today’s Agenda<br>INVESTOR & ANALYST DAY //<br>AGENDA DAY 2<br>TIME<br>AGENDA ITEM<br>LOCATION<br>7:00 AM<br>BREAKFAST<br>Sheraton<br>-<br>Marina Room<br>8:00 AM<br>SHUTTLE BUS: SHERATON TO PETALUMA FACILITY<br>Sheraton Parking Lot<br>8:15 AM<br>SECURITY CHECK<br>-<br>IN<br>MUAS Facility<br>8:45 AM<br>WELCOME<br>9:00 AM<br>AEROVIRONMENT TODAY & TOMORROW<br>9:30 AM<br>FINANCIAL UPDATE<br>10:00 AM<br>MUAS UPDATE<br>10:30 AM<br>BREAK<br>10:45 AM<br>FACILITY TOUR<br>11:15 AM<br>SUAS UPDATE<br>11:45 AM<br>TMS UPDATE<br>12:15 PM<br>LUNCH<br>12:30 PM<br>Q&A PANEL<br>1:00 PM<br>CLOSING REMARKS<br>1:15 PM<br>SECURITY CHECK<br>-<br>OUT<br>1:30 PM<br>SHUTTLE BUS: MUAS TO DEMO SITE<br>MUAS Facility Parking Lot<br>2:00 PM<br>DEMOS \(DRINKS & SNACKS\)<br>Demo Airfield<br>4:00 PM<br>SHUTTLE BUS: DEMO SITE TO HOTEL<br>OCTOBER 5 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>46<br>Brett Hush<br>Vice President and Product Line General<br>Manager<br>Tactical<br>Missile Systems<br>TACTICAL MISSILE<br>SYSTEMS \(TMS\)<br>Family of Loitering Munitions |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>47<br>Blackwing<br>Launched from US Navy<br>Submarines<br>In production<br>Switchblade<br> ®<br>300<br>Man packable<br>Multi<br>-<br>pack Launcher<br>In Production for over decade<br>Built over 5,000<br>Integrates with ships, aircraft,<br>and ground vehicles<br>Jackal<br>Air Launched,<br>sprint<br>-<br>loiter,<br>teamed with NGC,<br>in development<br>Award expected GFY24<br>Switchblade<br> ®<br>600<br>Man portable,<br>In production<br>Integrates with ships, aircraft,<br>and ground vehicles<br>Family of<br>Loitering Munitions |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>48<br>WATCH THE VIDEO<br>HERE |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>49<br>Soldier Portable<br>All<br>-<br>in<br>-<br>one, man portable<br>missile system provides the<br>warfighter with increased<br>mission capabilities<br>Minimized Soldier burden,<br>light weight man portable<br>mission system<br>Self<br>-<br>contained units enable<br>portable, fast<br>-<br>response<br>launch flexibility from its<br>stowed configuration<br>Time Sensitive<br>Quick response to troops in<br>contact and/or fleeting<br>targets, ready to fire 2<br>minutes \(SB300\) and 10<br>minutes \(SB600\)<br>Enables ground teams to<br>dictate the terms of target<br>engagement.<br>Maintain direct oversight<br>and situational awareness<br>across complex battlespace<br>without external ISR or fire<br>assets support.<br>Precision Strike<br>FCU with target lock<br>-<br>on<br>capability ensures precision<br>strike.<br>Missile tracks changes in<br>angle, range, and sudden<br>movement of designated<br>target with no further<br>operator input.<br>Optimized EO/IR camera<br>with processing and image<br>stabilization automatically<br>tracks and continually<br>adjusts.<br>Operator<br>-<br>in<br>-<br>the<br>-<br>loop<br>Wave<br>-<br>off/Recommit<br> –<br>operator is capable of<br>aborting up to four seconds<br>before impact.<br>Operator may re<br>-<br>engage<br>same or new targets<br>multiple times.<br>Intuitive tablet FCU offers<br>manual or automated<br>flight control for accuracy<br>of mission execution.<br>Low Collateral Damage<br>Wave<br>-<br>off capability enables<br>operator to cancel an<br>engagement mid<br>-<br>flight,<br>reducing non<br>-<br>combatant or<br>collateral damage effects.<br>Ability to loiter before<br>striking, allowing operators<br>to more precisely detect,<br>track and engage<br>appropriate targets.<br>Switchblade<br> ®<br>Loitering Missiles |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>50<br>SPECS<br>Wingspan<br>and Length<br>27 in \(68.6 cm\)<br>19.5 in \(49.5 cm\)<br>Weight<br>5.5 lb \(2.5 kg\)<br>Link Range<br>10 km Standard GCS<br>Endurance<br>15 minutes<br>Speed<br>Cruise: 63 mph \(24<br>kts<br>\)<br>Dash: 100 mph \(41<br>kts<br>\)<br>Total Payload<br>Capacity<br>Modular payload bay<br>..87 lb \(395 gm\)<br>Operating<br>Altitude<br>Below 500<br>ft<br>AGL<br>\(ceiling >15,000<br>ft<br>MSL\)<br>Launch<br>Platforms<br>Self contained ground launch<br>and multipack<br>Effects<br>on Target<br>Anti<br>-<br>Personnel Effects<br>SWITCHBLADE<br> ®<br>300<br>KEY CAPABILITIES<br>Battle<br>-<br>proven beyond line<br>-<br>of<br>-<br>sight precision strike loitering munition<br>Small size, light weight, backpackable, up to 3 across in medium rucksack<br>One<br>-<br>person operation, rapidly deployable in < 2 minutes<br>Advanced munition, low collateral damage, patented wave<br>-<br>off/recommit<br>Ruggedized Fire Control Unit \(FCU\), mission planner laptop, training simulator<br>Onboard image tracker, supports day and night operations<br>Full motion video streamed to FCU over encrypted digital data link |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>51<br>Behind Cover<br>Wave Off<br>Rapid Engagement <2 min<br>Target ID or Orbit<br>Portable <12lbs<br>Wave Off or Arm<br>Target Lock and Engage<br>Re<br>-<br>engage or Destroy<br>Switchblade<br>Munition Operator<br>Disable Engine Compartment<br>LOITER OR DIRECT ATTACK<br>Eliminate Fuel Truck Payload<br>Launch Multiple AURs<br>Defeat Multiple Targets |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>52<br>SENSOR<br>-<br>TO<br>-<br>SHOOTER |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>53<br>SPECS<br>AUR<br>Dimensions<br>Length: 60 in<br>Diameter: 7.55 in<br>System<br>Weight<br>System: 120 lb \(54.4 kg\)<br>1 AUR, 1 FCS<br>Link Range<br>Threshold: 40 km<br>Objective: 90+ km<br>Endurance<br>40+ Min<br>Speed<br>Cruise: 70 mph<br>Dash: 115 mph<br>Total Payload<br>Capacity<br>7 lb \(3.17 kg\)<br>Anti<br>-<br>Armor Munition<br>Operating<br>Altitude<br>650 ft AGL nominal<br>\(ceiling 15,000 ft MSL\)<br>Launch<br>Platforms<br>Self contained launcher<br>for ground, air, and maritime<br>Effects on<br>Target<br>Anti<br>-<br>Armor and<br>Anti<br>-<br>Personnel Effects<br>KEY CAPABILITIES<br>Man portable, quick setup shoot and move<br>Target ID<br>-<br>capable beyond 2 km<br>All<br>-<br>in<br>-<br>one RSTA and NLOS precision strike with network integration capability<br>Anti<br>-<br>armor EFP warhead and blast frag with patented wave<br>-<br>off/recommit<br>High<br>-<br>Performance Optics<br> –<br>2 axis EO/IR gimbal for Day/Night Operations<br>AES<br>-<br>256 encrypted digital C2 and SAASM GPS with DDL handoff capability<br>Touch Tablet C2, mission planning, integrated training sim and mission record<br>Man portable, quick setup shoot and<br>move<br>SWITCHBLADE<br> ®<br>600 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>54 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>55<br> ® |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>56<br>Response to Army Program<br>-<br>of<br>-<br>Record \(POR\)<br>to<br>develop Long Range Precision Munition \(LRPM\)<br> •<br>Increase standoff distances of soldiers and<br>aircraft/helicopters<br> •<br>Operate in Anti<br>-<br>access, Area<br>-<br>denial \(A2AD\) and GPS/PNT<br>denied environments<br> •<br>3<br>-<br>5 year<br>development cycle beginning this GFY<br>AeroVironment and Northrop<br>partnering on program<br> •<br>Jackal is a turbojet loitering munition<br> •<br>Provides extended range at tactically relevant speeds<br>combined with ability to loiter near targets<br> •<br>Supports multiple warheads, ISR, and EW payloads<br>Northrop Grumman<br>Jackal |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>57<br>Where We’re at<br>in Today’s Agenda<br>INVESTOR & ANALYST DAY //<br>AGENDA DAY 2<br>TIME<br>AGENDA ITEM<br>LOCATION<br>7:00 AM<br>BREAKFAST<br>Sheraton<br>-<br>Marina Room<br>8:00 AM<br>SHUTTLE BUS: SHERATON TO PETALUMA FACILITY<br>Sheraton Parking Lot<br>8:15 AM<br>SECURITY CHECK<br>-<br>IN<br>MUAS Facility<br>8:45 AM<br>WELCOME<br>9:00 AM<br>AEROVIRONMENT TODAY & TOMORROW<br>9:30 AM<br>FINANCIAL UPDATE<br>10:00 AM<br>MUAS UPDATE<br>10:30 AM<br>BREAK<br>10:45 AM<br>FACILITY TOUR<br>11:15 AM<br>SUAS UPDATE<br>11:45 AM<br>TMS UPDATE<br>12:15 PM<br>LUNCH<br>12:30 PM<br>Q&A PANEL<br>1:00 PM<br>CLOSING REMARKS<br>1:15 PM<br>SECURITY CHECK<br>-<br>OUT<br>1:30 PM<br>SHUTTLE BUS: MUAS TO DEMO SITE<br>MUAS Facility Parking Lot<br>2:00 PM<br>DEMOS \(DRINKS & SNACKS\)<br>Demo Airfield<br>4:00 PM<br>SHUTTLE BUS: DEMO SITE TO HOTEL<br>OCTOBER 5 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>58<br>Where We’re at<br>in Today’s Agenda<br>INVESTOR & ANALYST DAY //<br>AGENDA DAY 2<br>TIME<br>AGENDA ITEM<br>LOCATION<br>7:00 AM<br>BREAKFAST<br>Sheraton<br>-<br>Marina Room<br>8:00 AM<br>SHUTTLE BUS: SHERATON TO PETALUMA FACILITY<br>Sheraton Parking Lot<br>8:15 AM<br>SECURITY CHECK<br>-<br>IN<br>MUAS Facility<br>8:45 AM<br>WELCOME<br>9:00 AM<br>AEROVIRONMENT TODAY & TOMORROW<br>9:30 AM<br>FINANCIAL UPDATE<br>10:00 AM<br>MUAS UPDATE<br>10:30 AM<br>BREAK<br>10:45 AM<br>FACILITY TOUR<br>11:15 AM<br>SUAS UPDATE<br>11:45 AM<br>TMS UPDATE<br>12:15 PM<br>LUNCH<br>12:30 PM<br>Q&A PANEL<br>1:00 PM<br>CLOSING REMARKS<br>1:15 PM<br>SECURITY CHECK<br>-<br>OUT<br>1:30 PM<br>SHUTTLE BUS: MUAS TO DEMO SITE<br>MUAS Facility Parking Lot<br>2:00 PM<br>DEMOS \(DRINKS & SNACKS\)<br>Demo Airfield<br>4:00 PM<br>SHUTTLE BUS: DEMO SITE TO HOTEL<br>OCTOBER 5 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>59<br>Wahid<br>Nawabi<br>//<br>CEO, Chairman & President<br>Kevin McDonnell //<br>Sr. Vice President & Chief Financial Officer<br>Gorik<br>Hossepian<br>//<br>Vice President and Product Line General Manager of Medium Unmanned Aircraft Systems<br>Trace Stevenson //<br>Vice President and Product Line General Manager of Small Unmanned Aircraft Systems<br>Brett Hush //<br>Vice President and Product Line General Manager of Tactical Missile Systems<br>Q&A<br>Panelists |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>60<br>Where We’re at<br>in Today’s Agenda<br>INVESTOR & ANALYST DAY //<br>AGENDA DAY 2<br>TIME<br>AGENDA ITEM<br>LOCATION<br>7:00 AM<br>BREAKFAST<br>Sheraton<br>-<br>Marina Room<br>8:00 AM<br>SHUTTLE BUS: SHERATON TO PETALUMA FACILITY<br>Sheraton Parking Lot<br>8:15 AM<br>SECURITY CHECK<br>-<br>IN<br>MUAS Facility<br>8:45 AM<br>WELCOME<br>9:00 AM<br>AEROVIRONMENT TODAY & TOMORROW<br>9:30 AM<br>FINANCIAL UPDATE<br>10:00 AM<br>MUAS UPDATE<br>10:30 AM<br>BREAK<br>10:45 AM<br>FACILITY TOUR<br>11:15 AM<br>SUAS UPDATE<br>11:45 AM<br>TMS UPDATE<br>12:15 PM<br>LUNCH<br>12:30 PM<br>Q&A PANEL<br>1:00 PM<br>CLOSING REMARKS<br>1:15 PM<br>SECURITY CHECK<br>-<br>OUT<br>1:30 PM<br>SHUTTLE BUS: MUAS TO DEMO SITE<br>MUAS Facility Parking Lot<br>2:00 PM<br>DEMOS \(DRINKS & SNACKS\)<br>Demo Airfield<br>4:00 PM<br>SHUTTLE BUS: DEMO SITE TO HOTEL<br>OCTOBER 5 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>61<br>Wahid Nawabi<br>CEO, President and Chairman<br>CLOSING REMARKS |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>62<br>Our Last 5 Years<br>have been great<br>We Have Very Attractive Opportunities<br>in front of us<br>We are Well Positioned<br>to capitalize on these opportunities<br>We Have High Expectations<br>for ourselves and our teams<br>We are Committed<br>to strong returns for shareholders<br>Today’s Key<br>Messages |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>63<br>o<br>Intro of Field Operations Team<br>o<br>Puma AE flight demonstration<br> •<br>Cover standard Puma AE and Puma LE use cases<br> •<br>Discuss VNS capabilities and use cases<br> •<br>Demonstrate how Sensor to Shooter operates<br>o<br>UGV demonstration with<br>Telemax<br>Evo Plus<br> •<br>Demonstrate ease of control to search a car<br>o<br>Raven<br>i23D<br> •<br>Discuss rapid deployment capabilities<br> •<br>Ground side by side comparison of i23 to i23D demonstration<br>Demo Products<br>You will See |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>64<br>Time for security check<br>-<br>out and shuttle bus to demo field |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>65<br>APPENDIX A<br> –<br>Historical GAAP to NON<br>-<br>GAAP Reconciliation of Adjusted EBITDA<br>FY18<br>FY19<br>FY20<br>FY21<br>FY22<br>Net income from continued operations<br>21,750<br>$<br><br>41,912<br>$<br><br>41,339<br>$<br><br>23,331<br>$<br><br>\(4,188\)<br>$<br><br>Interest Expense \(Income\)/net<br>\(2,240\)<br><br><br>\(4,672\)<br><br><br>\(4,828\)<br><br><br>618<br><br><br>5,440<br><br><br>Tax provision / \(benefit\)<br>9,800<br><br><br>4,641<br><br><br>5,848<br><br><br>539<br><br><br>\(10,369\)<br><br><br>Depreciation and amortization \(1\)<br>5,982<br><br><br>7,669<br><br><br>9,888<br><br><br>19,262<br><br><br>60,825<br><br><br>EBITDA \(Non-GAAP\)<br>35,292<br>$<br><br>49,550<br>$<br><br>52,247<br>$<br><br>43,750<br>$<br><br>51,708<br>$<br><br>FV Step-up amortization incl. in loss of disposal of PP&E<br> —<br> —<br> —<br> —<br>1,280<br><br><br>Cloud Amortization<br> —<br> —<br> —<br> —<br>339<br><br><br>Stock-based compensation<br>4,956<br><br><br>6,985<br><br><br>6,227<br><br><br>6,932<br><br><br>5,390<br><br><br>Acquisition-related expenses<br>1,238<br><br><br> —<br>1,049<br><br><br>7,982<br><br><br>4,853<br><br><br>Equity method investment activity<br>\(216\)<br><br><br>3,944<br><br><br>5,487<br><br><br>10,481<br><br><br>\(4,589\)<br><br><br>Non-controlling interest<br> —<br>\(19\)<br><br><br>\(4\)<br><br><br>14<br><br><br>3<br><br><br>One-time \(gains\)/losses, net<br> —<br>\(3,602\)<br><br><br> —<br> —<br> —<br>Legal accrual related to our former EES business<br> —<br> —<br> —<br>9,300<br><br><br>10,000<br><br><br>Sale of ownership in HAPSMobile JV<br> —<br> —<br> —<br> —<br>\(6,383\)<br><br><br>Adjusted EBITDA \(Non-GAAP\)<br>41,315<br>$<br><br>56,858<br>$<br><br>65,006<br>$<br><br>78,459<br>$<br><br>62,601<br>$<br><br>\(1\) as reported |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>66<br>APPENDIX<br>B<br> –<br>FY23 Forecasted GAAP to NON<br>-<br>GAAP Reconciliation of<br>Adjusted EBITDA<br>\(in millions\)<br>Net income \(loss\)<br>$<br>11 - 18<br>Interest expense, net<br>5<br><br><br>Benefit from income taxes<br>\(4\) - \(1\)<br>Depreciation and amortization<br>60<br><br><br>EBITDA \(Non-GAAP\)<br>72 - 82<br>Stock-based compensation<br>8<br><br><br>Equity method investment loss \(gain\)<br>1<br><br><br>Acquisition-related expenses<br>1<br><br><br>Adjusted EBITDA \(Non-GAAP\)<br>$<br>82 - 92<br>Fiscal year ending<br>April 30, 2023 |
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| © 2022 AeroVironment, Inc.<br> –<br>Proprietary Information<br>Slide<br>67<br>October 5, 2022<br>INVESTOR DAY 2022<br>Beyond the Horizon |
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