Icx - Creating Value with Ideas

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Creating Value with Ideas
Hans Kobler
CEO
ICx Technologies
July 2008
OVERVIEW
 World leader in advanced sensing technologies
with broadest platform in the industry
 Making sensors more sensitive, accurate, faster,
lighter and cheaper, network-centric
 Based in Arlington, 20+ locations worldwide
 800+ employees, incl. 400+ multi-disciplinary
developers
 Technology innovator with young expanding
product portfolio at the beginning of life cycle
 Initial focus on security with substantial
potential in commercial applications
 5 consecutive quarters 30%+ organic growth
 History of successful M&A
 Built in optionality for break-out growth
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MULTIPLYING THREATS AT HUGE ECONOMIC COST
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VARYING SOURCES
GWOT
DOMESTIC TERROR
CRIME
ASYMMETRIC WAR
NATURAL DISASTERS
EXOTIC DISEASE
WIDENING TARGETS
AIRPORTS
MASS TRANSIT
SEA PORTS
CRITICAL FACILITIES
BORDERS
US ARMED FORCES
CHEMICAL AGENTS
DIRTY BOMBS
SUICIDE BOMBER
IEDS
CHANGING TACTICS
BOX CUTTERS
BIO THREATS
HUGE ECONOMIC COST
OKC $0.7 b
GWOT $200+b
LONDON $0.7 b
9/11 $1,100 b
KATRINA $150 b
Sources: Houston Chronicle, Congressional Research Service, Traveltrade Australia
Insurance Journal, Institute for Analysis of Global Security, MSNBC, Department of Justice
CRIME $105 b
BROAD FOOTPRINT, ORGANIZED IN P&Ls
DETECTION
Laboratory quality sensing
at the front line of security
SURVEILLANCE
Superior perimeter
awareness & control
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SOLUTIONS
The Glue. Network centric
access to all sensors
ICx – BUILT ON CUSTOMER REQUIREMENTS
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More security through better sensors integrated into network centric
solutions offering actionable information
1975+
9/11
INDEPENDENT
ENTREPRENEURS
2001 - 2005
2005
Since 2006
DPC
FOCUSED VENTURE
PORTFOLIO
 Long on ideas
 Accelerated R&D
 Short on money
& connections
 Increasing market
exposure
UNIFIED TECH
PLATFORM
 Merger of
complimentary
technologies
 Marketing
Synergies
INTEGRATED
OPERATING COMPANY
 High organic growth
 Scalable platform
 Development synergies
 Integrated solutions
OUR STRATEGY

Grow core business organically at 30+% through
product innovation and growing sales synergies

Leverage our widely diversified product base into
integrated solutions tailored to our customers

Expand our technology leadership through strong
research and cross-technology fertilization

Keep attracting and retaining the best and
brightest talent in the industry

Leverage our proprietary deal flow for accretive
acquisitions of entrepreneurial technology leaders

Transplant our unique technologies into profitable,
high growth commercial markets beyond security
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ICX – INNOVATION ENGINE
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UNIQUE, TALENTED TEAM
 400+ Engineering, R&D
 60+ PhDs
 Multi-disciplinary
— molecular biologist
— nuclear physicists
— material scientists
— engineers…
INVESTMENT: $160 MM+*
 Internal R&D ~$40M+
 Contract R&D ~$120 MM+
STRONG RESEARCH PARTNERS
 MIT, Purdue University
 Pacific Northwest National Lab
 Oak Ridge National Laboratory
 Sandia National Laboratory
 World Class Tech Advisor y Board
*Aggregate R&D Spending fromJanuary 1, 2004 through Q3 2007
PROPRIETARY
PATENTS & LICENSES
NEW PRODUCT
PLATFORMS
COMBINATION
PRODUCTS
INTEGRATED
SOLUTIONS
TECHNOLOGY LEADERSHIP
MOLECULAR WIRES
ULTRA-SENSITVE EXPLOSIVE
VAPOR DETECTION
SURFACE PLASMON
RESONANCE
ADVANCED BIOLOGICAL
ANALYSIS
DIGITAL SIGNAL PROCESSING
MINIATURE SENSOR
INTEGRATION
PORTABLE MASS
SPECTROSCOPY
SPECIFIC IDENTIFICATION OF
CHEMICALS & EXPLOSIVES
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FAST POLYMERASE CHAIN
REACTION (PCR)
ENZYMES
NEAR INSTANT IDENTIFICATIONLOW COST CHEM AGENT
OF BIO THREATS
DETECTION
FREQUENCY MODULATED
CONTINUOUS WAVE RADAR
PHOTONIC BANDGAP
CRYSTALS
MULTIDIRECTIONAL LOCATION
OF SLOW-MOVING OBJECTS IDENTIFY FRIEND FOE
IED DEFEAT
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 weapon of choice
12,000+ US platoons
Dobie & Heishman in Iraq
 6,000+ Iraqi platoons
selling to Iraqis
 urgent need today
 aftermath tomorrow
ICx ADVANTAGE:
 more sensitive
 more accurate
 lighter
 battle proven
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ROBOTS
 carrier of the future
 30,000 plus robots
 UAV, UGV, UNV…
ICx ADVANTAGE:
 5x lighter
 more sensitive
 more accurate
 sensor integration
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LIQUID EXPLOSIVES
 current “favorite”
 huge security gaps
 10,000 + check points
ICx ADVANTAGE:
 1000x more sensitive
 proven
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NUCLEAR & DIRTY
BOMBS
 huge potential impact
 entry market
 first responder market
 $2 b+
ICx ADVANTAGE:
 market leader
 better electronics
 more accurate
BIO THREAT
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
Most devastating impact

$10b+ DoD and DHS

large technology gap

ICx tech leader

CHEM BIO WARFARE
 biggest threat
 largest solution deficit
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Sampling
•
Triggering
•
Identification
•
Integrated ICx
systems
ADVANTAGE:
Opportunities:
 largest CRAD budget
 DoD & DHS potential
 technology leader
 complete solution
•
$200k to $200k per mile
•
US southern border: 300 miles
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STS 4400
SECURE BORDER
INITIATIVE
 $10 b program
 struggling
 white knight potential
ICx ADVANTAGE:
 high resolution radar
 slew-to-cue solutions
 tried and trusted by
end customer
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WORLD’S BORDERS
 biggest price in HLS
 100,000+ miles
 $200k - $2 MM / mile
ICx ADVANTAGE:
 technology leader
 tried & trusted
 complete solutions
 reliable partner
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NETWORK CENTRIC
CONVERGENCE
 the future of security
 welcome upgrade for
partners
 $100b+ market
ICx ADVANTAGE:
 best sensors
 easy to integrate
 channel focused
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SIGNATURE INSTALLATIONS WITH BLUE CHIP CUSTOMERS
NYPD
HOUSTON AIRPORT
GAZA
US NUCLEAR INDUSTRY
BOEING/SBI
US COAST GUARD
DNDO/THERMO FISHER
US MILITARY IRAQ
STATUE OF LIBERTY
PENTAGON
TSA
CUSTOMS & BORDER PATROL
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NON-SECURITY APPLICATIONS
ENZYMES
FAST PCR
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PHOTONIC CRYSTALS
MASS SPEC
ALTERNATIVE ENERGY
ENVIRONMENTAL
MOLECULAR WIRES
FMCW
TECHNOLOGIES
FOOD & AGRICULTURE
NON-SECURITY
APPLICATIONS
DIAGNOSTICS
ALZHEIMERS IMAGING
TRANSPORTATION
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ANALYTICAL
INSTRUMENTS
 multiple huge multibillion dollar markets
 bio & medical
 environmental monitoring
 agriculture
ICx ADVANTAGE:
 Innovation engine
 leveraging CRAD
 dual use
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CANCER DETECTION
 multi-billion dollar market
 early stage cancer
detection
 DNA Analysis
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ICx advantage:
 Innovation engine
 leveraging CRAD
 dual use
ICX – INNOVATION ENGINE
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PROPRIETARY
PATENTS & LICENSES
WE ARE
CONTINUOUSLY
LOOKING FOR
IDEAS TO FUEL
THE INNOVATION
ENGINE
NEW PRODUCT
PLATFORMS
COMBINATION
PRODUCTS
INTEGRATED
SOLUTIONS