PresentationDenise PacioniDirector of Investor Relations Good morning, everyone. It's wonderful to see so many of you here in beautiful Albuquerque, New Mexico. Welcome to our Space and Directed Energy facility, where we've developed and built products such as the BADGER, Locust and laser communication terminals. Before we get started, please take a moment to review our safe harbor statement located on the screens to your left and right. As a reminder, this event is being webcast live and will be archived o ...

Group 1 - The event is hosted at the Space and Directed Energy facility, showcasing products like BADGER, Locust, and laser communication terminals [1] - The agenda includes insights on the overall defense industry and a focus on the defense tech sector [3]

AeroVironment (NasdaqGS:AVAV) Update Summary Company Overview - **Company**: AeroVironment (AV) - **Event Date**: September 30, 2025 - **Location**: Albuquerque, New Mexico - **Focus**: Defense technology sector, specifically in Space and Directed Energy, Cyber and Mission Solutions, Uncrewed Systems, and Precision Strike and Defensive Systems [1][2][3] Key Industry Insights - **Defense Industry Context**: The defense industry is experiencing a significant shift due to underinvestment over the past 15-20 years, leading to a consolidation into seven major primes. This has created a unique opportunity for companies like AV to capitalize on increased defense spending [6][7][8]. - **Global Threat Landscape**: The current geopolitical climate is marked by rising conflicts, particularly between the U.S. and China, necessitating advanced defense solutions [7][8]. - **Government Support**: There is bipartisan support in the U.S. Congress for increased defense investments, reflecting a shift in military leaders' mindsets towards more autonomous and integrated systems [8][9]. Company Strategy and Positioning - **Market Opportunity**: AV is positioned to benefit from a projected increase in defense spending, particularly in autonomous systems, which could triple or quadruple in the next three to five years [8][9]. - **Product Portfolio**: AV's product offerings include loitering munitions, uncrewed systems, and advanced software solutions like AV Halo, which integrates AI and autonomy into defense operations [10][18][39]. - **Total Addressable Market (TAM)**: AV estimates a TAM of $70 billion to $75 billion, with significant growth potential in offensive systems ($10 billion+) and uncrewed systems ($15 billion+) [13][15]. Product Highlights - **Loitering Munitions**: Products like Switchblade and Red Dragon are expected to become billion-dollar franchises, with significant demand anticipated [18][19]. - **Uncrewed Systems**: The P550 and Jump 20 systems are critical to AV's strategy, with the latter focusing on cross-domain capabilities [41][46]. - **Directed Energy Solutions**: AV is developing laser communication systems and other directed energy products, which are expected to grow significantly [21][56]. Technological Innovations - **AV Halo Software**: A new software platform designed to integrate various defense systems, enhancing operational efficiency and effectiveness [24][25][39]. - **Modular and Open Architecture**: AV Halo is built to be modular and interoperable, allowing for rapid integration of new capabilities and third-party systems [26][27]. Financial Performance and Growth - **Revenue Projections**: For FY 2025, AV anticipates revenues exceeding $1 billion, with a strong first quarter performance of $285 million [42]. - **Scalability**: AV has the capacity to scale production significantly across various product lines, ensuring readiness to meet increasing demand [46][47]. Conclusion - **Strategic Positioning**: AV is well-positioned to leverage current market dynamics, with a strong focus on innovation, scalability, and meeting the evolving needs of defense customers. The company is confident in its ability to capture a larger share of the defense spending as it continues to develop and deliver advanced solutions [17][49][50].