Electro Optic Systems Holdings Limited (EOS.AX) Earnings Call Transcript & Summary

Okay. Thank you. Good morning, everybody, and happy New Year, and welcome to 2026 with EOS. My name is Clive, and I am the CFO and COO of EOS. This morning, we announced on filings on the Australian Stock Exchange, the acquisition of the business of MARSS Group. We lodged on the Australian Exchange an announcement with a number of details about the acquisition. And we also filed this investor presentation that we are going to talk through now. On the call today is our CEO, Dr. Andreas Schwer and David Bert, our Director of Corporate Development. So I'm going to hand over to Andreas. And what we're going to do is we're going to step through the slides that we published on the ASX this morning. And then we are going to open the call up to Q&A later. If you have a question, please type it into the chat box that's available and David will moderate the questions at the end of the call. So with that, I will hand over to Andreas Schwer.

Thank you, Clive. My name is Andreas Schwer, I'm Managing Director and Chief Executive Officer of Electro Optic Systems. So dear shareholders, dear investors, today, it's a transformative day for Electro Optic Systems. You might recall that EOS has one of its mission statements saying that we want to become the world's leading company for the anti-drone business. With this kind of acquisition, we are getting one significant step ahead and becoming very close to that target. So the acquisition of MARSS is transforming our business in many respects. And the key advantage of having MARSS within the portfolio of EOS is that we now close the gap between being a sensor or an effector provider and now becoming a fully integrated end-to-end solution provider for integrated counter UAS systems, whether it's in the military context, whether it's in the homeland security context or whether it's in the commercial or civil context. That is, for us, a big step forward. So MARSS is a European-based defense and security technology provider. They're doing many things. Their key product is the NiDAR product. NiDAR is an advanced AI-enabled decision-making and sensor-effector orchestration tool. It is making MARSS an integrated C2 provider. There are only a few C2 providers worldwide active in this market and MARSS is one of the few providers, which has an installed base of more than 60 systems around the globe, 60 systems which prove that those systems are working. The system is very effective to defeat drones. So we can call it a fully battle-proven system, which is a kind of asset, in fact, which not many companies being active in this domain can really state. So the NiDAR C2 technology, NiDAR stands for Network Integrated Defense for Detection and Response. This kind of technology is doing a sensor fusion, sensors of any kind of respect, radar sensors, optical sensors, acoustic sensors, RF sensors. And the AI-embedded software is allowing for an extremely rapid real-time decision-making, allowing the overall system to react in the best way possible to [indiscernible] drones, not only single drones, but large quantity of drones, large swarms of drones. That kind of capability is extremely important in the future as the threat potential has changed towards attack profiles of many, many drones at the same time. So the kind of chain of detection, classification, identification, decision-making and defeat can be done either in a fully automated way if the clients prefer to do that. So there is no more person within the loop or it can be done obviously with a person still being in the loop and taking the last decision. That's up to the client. With the acquisition of MARSS, EOS is expanding its geographic footprint and we broaden our market presence. I will come back later on to a map showing you where MARSS is active today and where its assets are. And in terms of market presence, I mentioned it right some minutes ago. It is extending the EOS market, the end user market from being a pure military client-oriented company into homeland security and civil commercial areas. So this product, the C2 product of MARSS, NiDAR is applicable also to protect critical infrastructure in those types of domains, commercial airports, normal types of power stations, cities, palaces, all those kind of things which are not of pure military nature, but things or assets which are critical infrastructure. It can also be used to protect borders. So the NiDAR technology, which is, as I was mentioning before, AI-enabled is not only helping EOS to open those types of markets to become a truly fully integrated counter UAS solution provider. We can also make use of this AI-enabled NiDAR to implement this technology, the AI-based software algorithms into our remote weapon systems product range. And I'm talking about the entire product range starting from the small R150 up to the very large and very powerful R800. We can then use those kind of weapon systems for what I was mentioning in some of our earlier calls to create a mesh network kind of system out of several RWS to create hemisphere coverage of armored vehicles in the field to defeat them against complex drone attacks. So our RWS product range will also significantly benefit from this acquisition. So it's helping us in many, many dimensions. The transaction is structured in an upfront cash payment of AUD 54 million, plus contingent consideration of up to AUD 174 million in form of performance right tied to new MARSS orders over the next 12 months, payable in a combination of cash, which is capped at EUR 20 million and EOS shares. Clive will give you in a few minutes some further details on the commercials of this transaction. We expect that this acquisition will be primarily funded from existing cash reserves and it is anticipated to be broadly neutral for earnings and operating cash flow in 2026. Obviously, we expect this business to significantly contribute to our top line and earnings from 2027 onwards as their pipeline and as a business perspective of MARSS as a stand-alone business unit is tremendously positive and giving us lots of upside potential. Please move on. This slide is certainly familiar to some of you. We can see here in blue boxes what the EOS product portfolio was up to today. It is mainly based on sensor systems and effector systems. On the effector side, as you know, canon-based air defense systems, canon-based RWS, high-energy laser weapons since a few months. The integration of missiles and rockets in our multipurpose RWS platforms and the recent acquisition of the interceptor drone business of MARSS, they have formed up so far our effector suite. Now we can close the gap between sensors and effectors with the acquisition of MARSS. MARSS is a commanding control system provider, will allow us to have on all of our critical infrastructures, which are to be protected, a fully situational awareness picture, the full operational battlefield picture, which allows us to detect, to identify, to classify any kind of intruder, any kind of target. And thanks to the AI-supported decision-making algorithms, we can or the machine can decide in no time about which kind of engagement mode is the most promising one, and we instruct various effectors to slow on the targets and to defeat those targets. This is what we call the brain behind any kind of integrated counter UAS systems and there are not many of those type of brains available to the market. So with the acquisition of MARSS, as I was mentioning before, we are now in the position as one of the very few integrated solution providers to offer the client an end-to-end solution. Please go on. So what is the challenge of today? Today, the challenge is the so-called swarm challenge. Low-cost and very adaptable drone swarms are flying on targets on your critical infrastructure, causing you significant problems in defeating those drones. It causes a kind of cognitive overload to the people which have -- who have to deal with it. And only AI-supported, machine supported decision-making can help you to defeat those large quantities in a small period of time. So this overwhelming force of attackers is something which is causing so much problems that it is hard to defeat 50 or 100 drones. With our type of system, with a NiDAR-based system, we are able to defeat as many drones as you want. So the limitation only comes with an effector suite you are going to use against those type of drones. The C2 system can be operated stand-alone to protect a single critical infrastructure, but it can also integrate a cluster of those C2 systems into a regional or even a nationwide C2 system. That is what some of our clients have already indicated to us, that is what they want us to do. So it's a very versatile, very flexible system solution. Let's move on. Clive, I would like to take over on the commercials, please.

Yes. Thank you, Andreas. And for those that have joined recently, my name is Clive, I'm the CFO and COO of EOS. So as mentioned earlier, this is a transaction to buy MARSS. The purchase price has 2 components. There is an upfront component, which is USD 36 million, which is approximately AUD 54 million. That will be paid at the time of completion and EOS has cash in the bank to make that payment, and I'll come back to that a little bit later. The business of MARSS has significant growth opportunities ahead of it at this time. These include a number of fairly significant contract opportunities that it could sign during the earnout period. So there's an earnout period that has been defined that runs until May 2027. And under the earnout agreement with the vendors of MARSS, the vendors will receive EUR 20 million for each EUR 100 million of new orders that are secured during the earnout period to May 2027. The earnout payment is capped at EUR 100 million, which equates to EUR 500 million worth of orders if secured by May 2027. The way the earnout is paid is a combination of cash, but that is limited -- at vendor's option that is limited to EUR 20 million, and the rest of the earnout is paid in EOS shares. The EOS shares for the earnout will go to the vendor based on a fixed price of AUD 7.40. The vendors were very keen to be able to participate in the upside for EOS of winning -- of MARSS winning new orders and helping grow the MARSS business and, of course, helping grow the EOS business as well. So they were keen to take shares in EOS. Over the last few months, as this contract to buy MARSS was negotiated, the share price of EOS has moved quite a bit at times and therefore, a longer VWAP period was selected in determining the strike price for these shares. And we -- in the end, it was settled on 25 days. I'm now going to just confirm -- so just in case anyone's got any questions, the shares that will be issued are all going from EOS' existing issuance capacity on the Australian Stock Exchange and no further shareholder approvals are required in order to issue these shares. Completion is expected in 2026. It is subject to standard conditions, including customer approvals for major contracts and also regulatory and defense export approvals in certain jurisdictions. Finally, I'll just mention a new committed optional loan facility, which EOS has secured. So EOS has a large number of attractive growth opportunities in front of it at this time. And having access to capital is important to EOS in order to make the most of the very strong markets that we find ourselves in. So to that end, EOS has secured a new committed AUD 100 million facility, which can be exercised at EOS option. Facility will support the growth in the EOS business as required. It will provide liquidity buffers. We do have quite a lumpy business sometimes and some of our opportunities are very large, so it's important that we maintain appropriate liquidity buffers. And it's -- the money is also available to assist if required in helping us with the MARSS growth as well. So as you can tell, the business is very well funded. And I would just say that we will disclose more information on the final details of that facility when the long-form documentation on that is finalized in the coming weeks. So as you can tell, this is a very strategic acquisition for EOS. And I'm now going to pass back to Andreas, who's going to outline the strategic rationale a little more.

Thank you, Clive, for the very comprehensive overview. So what is the compelling strategic rationale behind? It's closing the gap, the gap between component sensors and effectors and an end-to-end solution for the client. Today, the key problem is the identification of threats. And as illustrated on that graphics on the right side of this slide, you can see the complexity by identifying and discriminating through threats, drones for natural objects such as birds. In order to do this kind of discrimination, you need to identify movement patterns, movement patterns which a human being hardly can detect, but the machine can. That's the reason why NiDAR with its AI-based algorithms with a library behind of those type of movement patterns is in a position to help the operator or to even decide by itself what it is and what to do. This is extremely important in any kind of counter UAS application from now on and in the future. A key point is that this technology is not something coming out of the labs, which is in a kind of prototype or early development stage. No, it is a proven technology. It is fielded for more than 60 times with various clients, and it has been exposed to real threats, so it's battle proven. We know it's working, and that is giving us the confidence to say that this is a game changer for Electro Optic Systems. Please move on. So EOS is moving up the value chain from a component provider to component weapon system, remote weapon station or high-energy laser weapon system to become an integrated counter UAS provider. And as you might recall, there are not many companies around who can say that they are an integrated counter UAS solution provider. We can tailor the solution to the clients' perspective. We can integrate obviously, our own sensors and effectors, but we can integrate as well third-party effectors whatever the clients want us to do. We will operate MARSS, our new counter UAS system business as a stand-alone business unit within EOS in order to be able to best serve the various markets. So our go-to-market proposition is much stronger, and I cannot underline enough and strong and clearly enough that the opportunity now to enter homeland security and commercial/civil markets is an extreme enlargement of our potential customer base. It helps any of our business to grow much more than what we could have done otherwise. And it's even more expanding our international footprint. MARSS, its assets today are in France, in Monaco and in the United Kingdom and in Saudi Arabia. So with the acquisition of this business, we have now an operating footprint in France and U.K. and in Saudi Arabia, which is helping EOS a lot in order to expand into so-called primary strategic markets, again, also with our other core business, which is the laser business or which is the remote weapon station business. So this will open up lots of new opportunities, and it will grow our pipeline very significantly. Please go on. So as you can see here, MARSS today's headquarter is in Monaco. We have taken the decision to shift this headquarter about 15 kilometers to the West, and then we end up in Southern France, so we have a French entity. We've decided to go that way in order to open up and to ease the access to the huge French domestic market. So France will be depicted tomorrow in blue on this chart or in red as U.K. is colored here in red because it's an existing MARSS operating site in Saudi Arabia. Don't forget our latest developments, which are happening now in Germany, where we've taken the decision to open up operating facilities predominantly in the area of high-energy laser weapons and for space control or space warfare activities. Our very strong footprint in the United States with our facility in Huntsville, Alabama, our strong footprint in the UAE, the United Arab Emirates, where we have our own activity, our own company and where we are about also to enter into joint ventures and obviously, our home country in Australia, where we have most of our today's operations and our headquarter and obviously, not to be forgotten, Singapore. That is the footprint of EOS as of today. With a global reach and a truly global operating footprint, which will underline our aspiration to become a truly global player, not only in counter EOS solutions, but obviously also in our other types of businesses. With the acquisition of MARSS, we have a team of, in total, more than 500 people, among those more than 40 very exclusive, an AI competent software engineers. This is our brain in the future to develop the company further. Let's move on. So we would like to discuss a little bit more the role of the C2 system, starting obviously with [indiscernible]. You are very familiar with this kind of page, showing the different types of drones. And again, our C2 system is a system which is scalable. Our C2 system is not only identifying drones, it can also identify any other kind of intruder, but obviously, we as EOS, we want to have integrated counter UAS solutions focusing on the anti-drone business. And as such, we will show you over the next few slides what the C2 system is really doing and how we are integrating our effectors and sensors into it. Before we come to that point, once more, our suite of effectors. So we are concentrating on the so-called hard kill product range, expanding from remote cannon-based weapon systems, over interceptor drones, our high-energy laser business, which makes us very much unique on the market and obviously, any kind of rocket system, which we can install in our weapon platforms. This is giving us a quite large range of effective firepower to defeat drones and other incoming threats. Next move on. So the core of any C2 system is its software. The software, which is called NiDAR in our case, the software is providing sensor fusion, any kind of sensor, whether it's radar, optical sensor in the visible or infra-red range, any kind of RF sensor or any kind of acoustic sensor, all those data are fused, are combined. And then a very complicated decision-making process within the NiDAR software is happening in real time in order to direct the various effectors against the various types of threats and to engage as many of those threats simultaneously. This is something which is extremely time critical, and that's the reason why it is indispensable to have an AI-supported movement pattern identifying software algorithm behind. NiDAR has it and NiDAR is unique in the market from that respect. Please move on. So coming now to the overview. So it's a piece of software NiDAR, but obviously, our delivery is not only a piece of software. We deliver integrated command and control centers. Those kind of centers can be stationary centers as the one which you can see here on the right upper side, a kind of center, which is like a center in a building. But we are also offering other than those type of war rooms, also very integrated, very smart and small in terms of volumetric constraints, type of centers which are embedded into containers, which go on small vehicles, which go outside on platforms into the field even into very expeditionary environments. So it's very versatile. As mentioned before, 60 deployments worldwide in a very successful manner. And MARSS comes with a total team size of about 80 people, primarily located in EMEA, so in European establishments. The core technology platform, NiDAR, it is, as I was mentioning before, versatile. We will also use it and embed it in our existing fire control software and normal weapon systems to give that the latest edge of AI capability and to use those kind of weapon stations in the future as meshed network, which is unique. No other remote weapon platform provider is able to provide meshed network technology to clients, which is giving them hemispherical coverage and protection against any kind of intruding drone attacking those vehicles from the top. So NiDAR is helping us in many, many types of respects. Please move on. So I think we covered most of those points. It is fully modular. It comes in different versions. It comes in war centers. It comes in war room kind of configurations. It comes in stand-alone configurations to protect a single stand-alone critical infrastructure, but it can also combine various types of infrastructures together into kind of regional multi-domain or even nationwide integrated C2 system. And yes, obviously, you can also use it to integrate missile-based air defense and to make it a more comprehensive system. It is fully modular and scalable, which makes it so attractive for EOS. Please move on. So here, you can see different type of sensors, which we are using and which -- with which we can do this kind of sensor fusion. We have GPS sensors. We have RF. We have acoustic sensors. We have any kind of optical sensors, some of which will come from our own EOS sensor portfolio. Many of them will come from third-party optical sensor providers. And obviously, we can indicate any kind of third-party radar. This is giving our C2 system an identification and tracking range of up to 80 kilometers, which is huge. It's absolutely huge. And if you go one slide further on in terms of how we defeat those kind of drones, as it was also shown in one of the other charts beforehand, [indiscernible] then the full suite of integrated effectors available starting from canon-based systems, soft kill options. So jamming is also obviously an integral part of those kind of systems, but any kind of hard kill spanning up to high-energy laser weapons, missiles or rockets can be used as effectors within this kind of integrated system. Please move on. This is just a very simplistic example where we've only shown 4 RWS being integrated to NiDAR and the concept is very simple. So the radar is giving you 360 degree of coverage. And as soon as one intruder is identified, it hands over the signal to one of the electro-optic sensors and the sensor is showing in no time on the target and starting the process of detection, identification and classification for which you need to have this software behind. And then obviously, the decision is taken on which effector has to take out which kind of threat and the weapon system is slowing in and killing the intruder. That's a very simplistic model, but obviously, in reality, it is very complicated and the decision-making is very complicated depending on the nature of the threat and the overall environmental conditions and emission situation in which our critical infrastructure is situated in. So it's a multilayered sensor system, multilayered detection system and the multilayered effector defense system. On this chart, you can see a mobile solution. You can see how small this kind of NiDAR system can be integrated into a container being able to provide this kind of competence and capability to the effector suite around. In this chart, you can see we can mount all required sensors on the top side of this small vehicle. The system itself comes in this small substandard container. And again, we can even integrate it into a weapon station onboard computing system. So there are no volumetric constraints. Please move on. So we can summarize the acquisition of MARSS is a transformative element to the long-term journey of Electro Optic Systems. It brings us a significant step forward to become the global counter UAS leading company. And with global, I really mean worldwide. We are closing the main gap which we have had so far between sensing, detecting and having an ineffective defense. And we have not only closed this gap with a kind of system provider. No, we have been successful in acquiring one of the leaders in this particular domain worldwide. And with the integration of MARSS into EOS. We will have a very much improved go-to-market proposition. We are vertically integrated. We are boosting us up into the next layer, and we have a much wider market access, again, in terms of commercial, civil and homeland security type of clients, but also from a geographical perspective. So the transaction coming in at commercial conditions, as outlined by Clive before, is a very attractive deal for EOS, opening up many opportunities for our future growth. With that, we want to conclude this presentation, and I would like to hand over to David to monitor and to administrate the session of questions and answers, please.

Thanks, Andreas. [Operator Instructions] First question comes from an investor, who asks, how long do you expect the -- to take to integrate the MARSS NiDAR system with the existing EOS product suite? Will there be any priority in terms of system, for example, R400. Andreas?

Excuse me, can you please repeat?

How long will it take to integrate that MARSS NiDAR system with EOS' product suite?

Okay. We have already started some conceptual activities, so we expect about 18 months from today to have it integrated and to have the first demonstrators in the field. We already have customers who have expressed a strong desire to have this as a standard solution. So about 18 months from now.

Great. Clive, James from Petra asks, do we have any -- are we able to say anything about the size of the MARSS' pipeline at this point in terms of the sales mix within that pipeline?

Sure. Thanks, David. So we haven't made any forward-looking statements that maybe just a little bit of color will help. So historically, the business has generated revenue of about EUR 240 million over 5 years. So it's a very established business, albeit the contracts sometimes can be quite lumpy. Order book-wise, the order book is modest at the moment. But as I said, they expect -- they have a number of opportunities in the pipeline that they think can turn into secured orders over the coming months, and that's what has driven the earnout period. Typically, sales orders can either be in 2 forms. They can either be to set up a system for a new site. So that's, I suppose, the first install of a new system, and that can be done over a year, sometimes a bit less, sometimes a bit more. And then the second thing that happens is you get follow-on orders to roll out multiple sites and to support these sites, these can typically be 3- to 5-year contracts. So obviously, this is a business that has the opportunity to have more of a recurring revenue base and a more stable revenue base than some onetime sales that EOS has had in the past, and that's going to continue to add to the diversity of the EOS order book, which, as you know, is something that we've been working on for some time. Maybe the final comment in terms of sales contract composition. So typically, you can see contracts that have sometimes maybe 30% of the revenue coming from the sale of software and 70% coming from the sale of hardware. So a customer will ask for a comprehensive setup with sensors and effectors. And that means that MARSS is in the position of being prime because it's delivering the software that joins everything together. So 30% of our contract would be for the software itself and 70% would be the price that the customer pays for the sourcing of sensors and effectors that the MARSS and the prime would do. So I hope that helps provide a little bit of color. We will be monitoring the development of the MARSS order book and the lead up to completion, and we'll keep the market informed and provide further information, particularly as that order book develops and new wins happen because the earnout period has started as of yesterday, Sunday.

Thanks, David. I think we'll go to the next question.

Great. A follow-up question from James. How does -- and perhaps for Andreas, how does the NiDAR system enable EOS to enter the civilian homeland security markets?

As the NiDAR systems agnostic in terms of effectors, obviously, we can now offer to the client integrated solutions, which are more focusing on so-called soft kill options or options which are, I would say, adjusted for critical use in areas where you hardly can use missiles rockets or canons. So a combined usage of our laser business, laser factors plus some soft kill options will allow the system to be an ideal candidate for the protection of, for example, commercial airports or other urban areas. That is something which we could not do in the past. So again, this is a universal kind of system for any kind of client.

Great. And perhaps as a follow-up question, does EOS intend to sell integrated C2 products on a stand-alone basis?

Yes, we are doing so. So we will operate today's MARSS portfolio as a stand-alone business unit, a unit called integrated counter UAS systems. So this kind of business unit is obviously allowed to sell the system without selling with them any kind of EOS effector. It's not mandatory. And whatever the clients want, we are ready to deliver. We are happy, obviously, to sell also laser weapons and remote weapon platforms with it, but it's not a must do.

Another question for Andreas. How long will it take to develop the NiDAR mesh network capability?

As was mentioning before, it's about 18 months. That is the embodiment of the NiDAR software algorithms into our existing fire control software tool, which we have onboard of all weapon stations. It requires a significant enhanced computing power. And that's the reason why we have introduced with R500, the next-generation onboard computing platform, which has at least 25x more computing power than what we have seen so far, and this will allow us to fully -- to do a full embodiment of this NiDAR software package within one weapon station. And with this step then, we will include also a communication module, which allows the weapon stations to interconnect with each other, allowing for the meshed technology. But the key comes really with embodiment of this NiDAR software into our fire control system, 18 months from today.

Great. [Jasper] has asked if this acquisition of the NiDAR solution could expand the scope of any existing opportunities within our pipeline, the EOS pipeline?

Yes, obviously. I mean, it opens a new market for us. So far, our clients were, in most of the cases, system integrating companies, system integrators to which we have sold stand-alone effectors. In a few cases, we have sold effectors in a stand-alone mode. But the future, as the threat scenario is becoming more and more complex, clients will ask more and more for integrated solutions, those kind of clients we can serve from today on with an end-to-end solution, which we could not do so far. So yes, it will significantly increase our product portfolio offering and our market potential and pipeline.

And perhaps, Andreas, there's a follow-up question, does the acquisition change the likelihood of existing negotiations with EOS customers?

Also, that point is true. We have ongoing negotiations with some clients where we have offered also integrated counter UAS systems or the software package behind the command and control suite as an option, and we would have subcontracted those kind of activities to a third party like MARSS. Those kind of negotiations are becoming now much easier as we can provide now a seamless, fully integrated solution coming out of one hand, a one-stop shop that makes any negotiation much simpler. And we have a couple of those negotiations today ongoing. That's one reason also why we have capped the earnout at a maximum of EUR 100 million, which correlates to EUR 500 million of order intake potential, very likely order intake potential over the next 12 months, which is giving you quite a good view on what we expect from this business to be in the future.

Great. Perhaps a question for Clive. Could you just recap what the impact the acquisition will have on the overall cost base and profitability of EOS?

Sure. So I think we've previously said for EOS that the EBITDA breakeven for EOS will come in north of $200 million, so that's a baseline, I guess. MARSS has been profitable in its own right at EBITDA level at times over the last 5 years. It has been a lumpy business, and there are some years where it has made a modest profit, in other years it's made a modest loss. So depending on the level of contracts secured during the earnout period, there's the opportunity for MARSS to make a significant contribution to EOS EBITDA from 2027 onwards. And that will be because it covers its own operating costs with an adequate delivery of contracts. So we do not expect it to add a significant operating cost burden to the business that is unfunded. And we're confident about EOS' ability to become profitable in the period ahead at EBITDA level. I think based on the order book that the group has as a whole, which the EOS secured order book is over $400 million at the end of December. And that does not include conditional contracts like the one we have announced with another high-energy laser customer. So with a very strong order book and the profile I mentioned earlier, I think we're very confident in the EBITDA profitability of EOS going forward.

Thanks, Clive. Andreas, Owen Humphries at Canaccord asks how many third-party products are currently integrated into the NiDAR system?

The NiDAR system was delivered in 60 or to 60 different clients and installations, and they've integrated more than 100 different types of radar and electro-optical sensor units coming from almost any kind of globally available sensor suite provider. So it has more or less seen almost any potential to be integrated sensor suite so far. So it's -- there's no surprise to be expected. They are very versatile.

Great. Another question for Andreas. Will EOS now seek to bid as a systems integrator in the future, unlike in Land 156?

Yes, that is going to happen. That's the main reason why we have done this transaction. We want to be seen as a system provider, but we will also continue to deliver our systems, our effectors, our sensors to other system integrators. So we don't want to stop all this kind of business, but we as EOS want to be also in a position to act as an integrated system provider as we could have done with Land 156. So in the future, we are able to offer those kind of fully integrated systems.

Great. That brings all the questions to an end. Would you like to wrap us up, Andreas?

Yes. Thanks, David, for the moderation of the questions. So I want to mention once again that this is a transformative deal for Electro Optic Systems. It opens up absolutely new market, homeland security and commercial markets, which we were not accessible to EOS so far. It allows us to tap into other geographies much easier than we could have done otherwise. And it opens for us a market which will drive the future, the market of very complicated counter drone systems as the threat profile is emerging more and more into this direction, UAS will be more and more centric to those kinds of absolutely dominating scenarios in the future business of -- within the defense market. And we are very, very confident that the acquisition of MARSS will be a cornerstone in the history of Electro Optic Systems. So leaving you with our strong level of confidence, we hope that the market is sharing our confidence, and we are very optimistic to make this business a significant pillar of the EOS portfolio from now on. Thanks to everybody for being with us. Thanks for your time. And we are obviously happy to respond to any kind of questions which might come up over the next few hours or days. Please direct those ones either to David, Clive or myself. Thanks for your attention, ladies and gentlemen. And have a good day.