LFT Multicopters – Copter Express

Long flight time multicopter productionCopter Express presentation

CopterExpress

www.copterexpress.com

Copter Express Ltd was founded in January 2013 and is a pioneer on the civil drone market. The company got international publicity in June 2014 when it first launched the pizza air-delivery in the Russian city of Syktyvkar. Copter Express has a successful experience of providing unmanned aircrafts to the police, military etc. It is also a founder and a chief member of the Small UAV Association. Currently the company specialises in the following activities:

Unmanned systems development

Civil drones sales

Package air-delivery

Aerial survey and mapping

Educational activities

Sports activities

Social work and legislation development

COMPANY OUTLINE

CopterExpress

www.copterexpress.comTECHNOLOGY TRENDS

Power consumption increase weak

Propulsion system energy efficiency increase weak

Battery current output increase strong

UAV weight reduction via the use of new materials strong

CopterExpress

www.copterexpress.comMODEL LINE-UP

Specs / Model Drone 250 Drone 500 Drone 1000

Drone type Quadcopter Quadcopter Octocopter

Diagonal size 70 cm 110 cm 110 cm

Take-off weight 2,5 kg 5 kg 10 kg

Propellers 18’’ 30’’ 30’’

Motors T-motor 4004 T-motor U8 pro T-motor U8 pro

Equipment Full HD or 4K camera on a gyro-stabilised gimbal Full HD or 4K camera or a zoom camera or a thermal imager on a gyro-stabilised gimbal

Full HD or 4K camera or a zoom camera or a thermal imager on a gyro-stabilised gimbal

Additional weight – up to 300 g up to 1 kg

Planned retail prices 125000 250000 500000

*photos approximate

CopterExpress

HYDROGEN FUEL CELLS

Specs / type HFC 250 HFC 500 HFC 1000

Power 250 W 500 W 1000 W

Voltage 10-30 V 10-30 V 10-30 V

Element weight 600 g 1000 g 2000 g

Weight of the battery, electronics and a fan 200 g 300 g 500 g

Price 300 500 900

Hydrogen tank 1 2 7

Tank capacity 1,1 l 2 l 7 l

Tank weight 0,9 kg 2 kg 3,2 kg

Hydrogen weight 50 g 100 g 350 g

Pressure 300 bar 300 bar 300 bar


CopterExpress

HYDROGEN FUEL CELLS

* Consumption of one litrE of hydrogen at a pressure of 300 BAR = 430 V×H


CopterExpress

– 20 min flights – Battery lifetime – 150 cycles + Exceptionally long flight times: 1 to 1.5 hours on Li-ion

batteries, 2 to 4 hours on hydrogen batteries !+ Li-ion battery lifetime – 500 cycles, hydrogen battery lifetime – 1000 hours !+ Decreased noise levels !!!+ Light folding frame Compact and portable hard case

COMPETITORS copter express

OUR ADVANTAGE www.copterexpress.com

CopterExpress

MARKET OVERVIEW

The Russian market of the civil UAVs is estimated to be 550 million roubles in 2014, with more than 15% annual growth

Among the peers the following can be mentioned: Unmanned (Finko Ltd), JSC "RusAeroLab», RPE AVAX-GeoService Ltd, GeoScan Ltd, UAC Ptero, Zala Aero Group.

700 million 6 direct competitors

* According to the Small UAV Association research, 2015


CopterExpress

PEERS ANALYSIS

Copter Express

Unmanned rusaerolab avax-geoservice geoscan ptero ZalaAero Group

Multiple niches segmentation • •

Goods delivery apparatus •

B2C segment involvement •

Marketing activity • • • •

High PR activity • • •


CopterExpress

SWOT ANALYSIS

Possibilities Threats

• Technology trend on drones

• Increasing UAV market

• Focus on import substitution

• Planned government support

• Planned 2018 opening of the drones airspace

• Delays in legislation changes

• Competition with foreign companies

• Difficulty in obtaining loan products

• Foreign trade situation

Pros Cons

• Big experience

• High quality of production

• Unique technologies

• Company reputation and publicity

• Risk diversification

• Post-sales support

• SUABA affects the legislation development and government support

• Lack of working capital

Outs

ide en

v.In

side e

nv.

Strengths Weaknesses


CopterExpress

STAGES

1 Prototype • Own test frame • T-Motors power unit • DJI Electronics

Q3-Q42015

• Prototype development and field tests: 6 M RUB • Industrial design and marketing: 3 M RUB • Advertising: 2 M RUB • Pilot projects: 4 M RUB

Total investments:

15 m rub

2 Realisation • Custom-designed body • T-Motors power unit • DJI Electronics

Q1-Q2 2016

• Production equipment: 6 M RUB • First batch of drones for sale (100 items): 12 M RUB • Advertising: 2 M RUB • Pilot projects: 5 M RUB

Total investments:

25 m rub

3 Development • Custom-designed body • Own-branded power unit • Own-branded Russian electronics

Q3-Q4 2016

• Own-branded power unit and electronics development: 3 M RUB • Second batch of drones for sale (300 items): 36 M RUB • Advertising: 6 M RUB • Pilot projects: 2 M RUB

Total investments:

0 m rub

4 Production • Own-branded line of drones for export 2017

• Batch of drones (1000 items): 120 M RUB • Advertising: 10 M RUB

Total investments:

0 m rub

stage time period EXPENSES and necessary investments


CopterExpress

PRODUCTION. STAGE 2 (Q1-Q2 2016)

BATCH PRODUCTION COSTS: 100 items

Model Drone 250 Drone 500 Drone 1000

Production cost of 1 item 75 000 150 000 300 000

Quantity 70 25 5

One batch production time 2 months

Production costs 10 500 000 rub

Administrative costs 1 500 000 rub

TOTAL 12000000


CopterExpress

PRODUCTION. STAGE 3 (III-IV Q. 2016)



Quantity 210 75 15

One batch production costs 6 months



TOTAL 36000000



CopterExpress

PRODUCTION. STAGE 4 (2017)



Quantity 700 250 50

One batch production costs 12 months



TOTAL 120000000



4

CopterExpress

PROSPECTS: COMPANY GROWTH

Expected market share in 2017 – 14% (140M rub), WITH THE TOTAL EXPECTED MARKET SIZE OF 1 BILLION RUB (IN RUSSIA)


TYPE / STAGES 1 STAGE 2 STAGE 3 STAGE 4 STAGE

Investments, RUB 15 000 000 25 000 000

Of which, costs of R&D, prototyping, pilot projects, etc. 15 000 000 11 000 000 5 000 000

Profit from sales – 2 100 000 6 300 000 21 000 000

CopterExpress

FINANCIAL MODEL

NPV (with a rate of return of 20%) 70 M rub

IRR 0,65

Financial performance


CopterExpress

WHY WILL WE MAKE IT?

• There are potential clients and preliminary enquiries for UAV purchases.

• Our team has an extensive experience in the UAV development and delivery.

• A wide network of technology partners. Our PR-partners: Technopolis Moscow, IDC.

• The company already sells different UAV models and has a customer base.

• We completed a number of successful projects using the multicopters developed by us.

• The company became known for its pizza air-delivery project, which was covered by

more than 3,000 articles in the Russian and international media.

• The company is a founder and a chief member of the Small UAV Association.


CopterExpress

PROJECT TEAM

OLEG PONFILENOK

ELVIRA YARULLINA

OLEG BARMA

SERGEY BARINOV

EVGENY PROKHOROV

NIKOLAY ZHERDEV

KONSTANTIN KOLOTOV

ALINA NIZAMIEVA

ANTON LOGINOV

OLGA LOGINOVA

– CEO

– CFO

– lead pilot

– head engineer

– engineer

– engineer

– engineer

– analyst

– web store director

– tender expert


4

CopterExpress

OUR OFFER TO AN INVESTOR

40M RUB for 25% of the company


CopterExpress

EXIT OPTIONS

Investor share repurchase

by the company management

Share repurchase

by a different investor

1 2


Copter Express CEO

E: [email protected]

T: +7 (926) 163-25-46

A: Volgogradsky pr. 42, k.5 (Technopolis Moscow)

Oleg Ponfilenok

Investor Relations

LFT Multicopters – Copter Express