Service business

Delta Drone International ASX:DLT) Builds Market-Leading Drone Services Business in FY21 – sUAS News

Strategy execution and significant expansion of markets, services and corporate contracts
HIGHLIGHTS OF FISCAL YEAR 21
• Revenue up 64% to $5.5 million ($3.4 million for fiscal 2020)
• Twelve new contracts with multinational companies, including South32 Coal
Holdings (Pty) Ltd (now Seriti Power), Pioneer Seed RSA, Syngenta and GoviEx Uranium
• Added three new service features: Light Detection and Ranging (LiDAR), Security Monitoring, and Advanced Drone Pilot Training
• Acquisition of Arvista Pty Ltd in Australia to create a local headquarters and further strengthen drone-based data services and technology solutions for enterprise customers
• Entry into four new markets: Australia, Namibia, Zambia and Niger
• Strengthened balance sheet with an unsecured loan agreement with the parent entity Delta Drone SA, and
• After the reporting period, divested the Parazero drone security business for $6 million in cash.
February 28, 2022 – Global drone-as-a-service provider, Delta Drone International Limited
(ASX: DLT) is pleased to report its results for the 12 months ended December 31, 2021 (FY21).

Commenting on the company’s progress in FY21, Delta Drone International CEO

Christopher Clark said:
“Last year, Delta Drone International created positive momentum as the company successfully executed its growth strategy. In early 2021, two international companies merged to form Delta Drone International, and with the majority acquisition of Arvista in Australia, we have formalized the foundations of our future market orientation.

“Overall revenue increased significantly, up 64% to $5.5 million for the year. Delta Drone International has consolidated itself as one of the leading providers of drones as a service.

“Our already extensive range of services has been enhanced with the latest capabilities in light detection and ranging [LiDAR]Beyond Visual Line-of-Site (BVLOS) security monitoring and advanced operations, enabling us to meet the increasingly specialized needs of our customers.

“Delta Drone International now provides services in 9 countries, as corporate clients have a universal need for the types of services we expertly provide. Our market expansion continued with the establishment of a new headquarters in Australia serving the mining, agricultural and infrastructure sectors following the acquisition of Arvista, while new contracts and market entries took place in Namibia, Zambia and Niger.

“While expanding our market penetration, we also deepened our relationships with key customers, adding another 12 major contracts with multinational companies. Many of these were either contract extensions due to the excellent relationships we have with our clients, or tenure extensions due to our expertise in the field and our ability to show value to clients.

FINANCIAL OVERVIEW

FY21 revenue increased 64% to $5.5 million (FY20: $3.4 million), including drone security sales.

Reflecting the company’s growth strategy and the start of scaling, an operating loss of $3.6 million was incurred in FY21. Of this operating loss, $1.9 million related to the divested Parazero business, with an operating loss from continuing operations of $1.7 million.

As of December 31, 2021, Delta Drone had $954,000 in cash in the bank, providing sufficient flexibility for the company to continue executing on its current growth strategy.

After the end of the year, the company sold its drone security business, Parazero, for $6 million in cash to a consortium of investors led by NASDAQ-listed Medigus Ltd, and facilitated by the capital firm -Israeli venture LIA Pure Capital Ltd.

COMMERCIAL UPDATE

Delta Drone International has expanded its lineup of major contracts with some of the world’s best-known mining and agricultural companies, as well as others now using drones in commercial settings, leveraging the company’s leadership in drones as a what service. These new contracts build on the company’s three new services to its core capabilities: lightweight detection and ranging (LiDAR), security monitoring, and advanced drone pilot training.

Key contracts and new capability additions that show the broad spectrum of Delta Drone International’s services in FY21 included:
• Provide global media company Thomson Reuters in South Africa with assistance in
Remote Operator Certificate (ROC) certification and pilot training to capture real-time drone news and events
• GoviEx Uranium extended its relationship with DLT through a virtual 3D model baseline study in Niger to create a shareable view of the mine site to share with stakeholders who cannot visit the site due to travel restrictions
• Northern Star, Australia’s global gold producer, has commenced aerial surveys using multiple LIDAR capabilities at its Western Australian operations in Kalgoorlie, Yandal and Pogo via DLT’s Australian operation, Arvista

• Multinational OEM (original equipment manufacturer) and global industrial equipment leader Doosan Mobility Innovation has signed an integration agreement with DLT safety company, Parazero, where its patented SafeAir parachute technology will be integrated into Doosan’s award-winning DS30 endurance drones
• Global mining and metals company South32 Coal Holdings (Pty) Ltd (now Seriti Power)
extended its DLT contract in South Africa for another five years, allowing DLT to provide its drone-as-a-service capabilities across mine surveying and real-time data collection services
• Perenti’s subsidiary, AMS African Mining Services extended its contract for stockpile volume measurement where DLT deployed its fleet of mining-specific drones weekly to accurately track stockpile volumes on site so that AMS can better optimize its supply chain.
• Global accounting firm BDO recommended DLT to supply their bespoke drone solution to provide large scale livestock audits for client verification reports.
• Interwaste commissioned DLT to provide advanced thermal imaging data to help the organization create more detailed air quality reports to monitor environmental conditions at waste and landfill sites.
• Rustenberg Platinum Mines Limited, a wholly owned subsidiary of Anglo American Platinum Limited, the world’s largest platinum producer, has signed with DLT to provide mapping, explosion monitoring and inspection services in South Africa .
• Pioneer Seed RSA, a subsidiary of major agricultural seed producer, Corteva

Agriscience RSA has engaged specialist DLT agricultural drone pilots to deploy state-of-the-art agriculture-specific drones to capture a range of vital data, including plant analysis, to ensure maximum yield for crops such as corn, soybeans and sunflower.
• Multinational agricultural services company Syngenta extended its DLT mission to Zambia and used its advanced data capabilities to virtually provide real-time crop visualization and analysis while enabling remote data capture and sharing.

Syngenta field trials in the region.

• Concentrated Solar Power (CSP) plant inspections were added to the company’s capabilities through surveys for a client in the Northern Cape Province of South Africa.

The survey is of great importance in the industry as historically this type of survey has been extremely difficult to perform due to the reflective nature of the factory mirrors preventing the required images from being captured. A 100% bespoke solution created in-house that included a rewrite of the AI ​​detection algorithm successfully monitored broken mirrors and faulty heating elements, as well as providing the customer with analysis on optimization future performance.

OPERATIONAL UPDATE

Delta Drone International has expanded its operations to Australia, Namibia, Zambia and Niger, increasing the number of markets in which it now offers its range of drones as a service
capacity for nine jurisdictions.

Australia

DLT has acquired a 60% stake in Perth-based aerial and land surveying service provider Arvista Pty Ltd. A key step in DLT’s growth strategy in Australia, he immediately provided DLT with a blue chip Australian customer base and access to a team of highly skilled professionals with the expertise to expand their skills beyond the survey to include the full range of drone-as-a-service operations provided by Delta Drone International.

Namibia
training subsidiary of DLT Drone Safety & Legal (Pty) Ltd), has expanded its accredited training
operations in Namibia to provide advanced training on drone operations to companies. The courses provide enterprise drone operators with an intermediate understanding of aerial data capture, to better understand the breadth of how advanced drone use and its associated services can add value to their operations.

Zambia

DLT has expanded its operations in Zambia after being appointed by an agricultural multinational
service company, Syngenta. DLT used its advanced data capabilities to visualize and analyze crops virtually, while enabling remote capture and sharing of data from Syngenta’s field trials in the region – a critical part of the research and development process for the plant. ‘business.

Niger

DLT entered Niger with uranium explorer and developer, GoviEx Uranium Inc, to carry out its
new baseline investigation of the previously mentioned virtual 3D model.

Appointment of the financial director

On December 2, 2021, Paul Williamson joined Delta Drone International as Chief Financial Officer (CFO), replacing Mr. Moshe Hukaylo. Paul is an astute finance professional with 29 years of accounting experience as a Chartered Accountant and Corporate Secretary. He previously worked for the Big Four professional services firm, KPMG, and surveying and spatial data management service provider, Land Surveys Group.

POSITIVE VISION

Commenting on the company’s positive outlook, Mr. Clark said:

“In 2022, we will use our strengthened balance sheet to further develop our services and pursue other exciting growth opportunities. Commercial applications of drone services are growing steadily and are likely to overtake government and defense in terms of market share in the coming years.

Delta Drone International is therefore focused on revenue growth with a significant investment in sales and marketing to leverage its reputation for technology and operational leadership as it executes its growth strategy and solidifies its drone-as-a-service business model.

“In addition, the company is working to further reduce overhead costs while improving
operational efficiency following its successful integration and increased cross-selling between its business units. »

This announcement has been cleared for publication by the Board of Directors of Delta Drone International Limited.