Autonomous Control Laboratory : Financial Results Material for the 1st Quarter of Fiscal Year Ending March 31st, 2021

Autonomous Control Laboratory : Financial Results Material for the 1st Quarter of Fiscal Year Ending March 31st, 2021

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August 14, 2020 at 02:03 am EDT

AUTONOMOUS CONTROL SYSTEMS LABORATORY

CONFIDENTIAL

This materials should not be used without prior consent from Autonomous Control Systems Laboratory Ltd.

Table of Contents

FY21/03 Q1 Financial Results

Business Highlights

FY21/03 Forecast

Appendix

Confidential

FY21/03 1Q Highlights

- Despite delays in sales due to the expansion of COVID-19, ACSL continued to enhance collaboration and conduct R&D activities
- In response to growing demands for data security, NEDO1 launched a project to develop a more secure drone. ACSL was adopted with the government's aim to take procurement from next fiscal year
- Sales of 36 MM JPY in Q1
- - Demonstrations and sales of platform drones decreased from the previous fiscal year due to postponement of project implementations
  - Others increased from the previous fiscal year due to the booking of national projects
- Although business activities are restricted due to COVID-19, ACSL actively continued to conduct R&D with increased personnel
- Announced "ACSL Accelerate 2020", a medium-term management policy, for the future market
- - With a view on significant changes in the industrial drone market environment, ACSL set goals for the next 10 years
  - Medium-termmanagement policy targets 5.5 billion yen in sales and 750 million yen in profit in FY23/03 as target over the next three years
- The outlook for this fiscal year is sales of 1.4 to 1.7 billion JPY and operating loss of 2.5 to 0 JPY
- - There is a risk that the spread of the COVID-19 infection may postpone projects and delay new acquisitions
  - ACSL will make upfront investments, mainly in R&D, in fields where demand is expected to grow in the future
New Energy and Industrial Technology Development Organization

Confidential

Impact of Infection Expansion of COVID-19

Delay in booking sales in Q1 due to postponement of projects. Despite delays in project implementation, demand for unmanned and labor-saving is expected to continue in the future

Customer

Supply chain

Operation

Finance

Potential risks

Reduction of customers' investment budget for new technologies such as drones due to economic and business downturn
Delays in production due to the inability to procure major parts caused by delays in supply and the suspension of production
Decrease in business development activities
Suspension or slowdown of business activities due to spread of infections
Decrease in cash due to lower sales
Impairment risk caused by sluggish business activities of portfolio companies

Recent situation

Delay in sales due to postponement of 1Q projects
While certain risk of postponement of this year project implementation, demand will continue
Supply chain is gradually recovering
Expects to overcome by the end of the year, despite some delays in procurement
Continuously recommends remote work
Continues development and production activities while keeping the number of employees in office
Sufficient cash holdings (approx. 3.5 billion JPY)
Continues cost control at portfolio companies

Confidential

Financial Highlights

Sales decreased from the previous fiscal year due to the postponement of project implementation and recorded 36 MM JPY in Q1. Profit posted a loss due to the impact of the decline in sales

[MM JPY]

		FY21/03	FY20/03	FY20/03
		1Q	1Q	Annual

	Actual		YoY	Actual	Actual
		Increase/Decrease

Sales	36		▲40.6%	60	1,278

Gross profit	▲6		-	8	808

Gross profit margin	▲19.1%		▲32.8 ppt	13.7%	63.2%

Operating income	▲237		-	▲197	15

Ordinary income	▲180		-	▲80	231

Net income	▲214		-	▲81	239

Confidential

Sales and Operating profit by quarter

As is typical YoY, sales is small in Q1-Q3 and tend to be biased toward Q4.

The seasonality may be exacerbated this fiscal year due to the impact of COVID-19

Sales and Operating profit by quarter [MM JPY]

943

Sales Operating profit

									392						442
		68	106	141	104	141	168	60	143	130


53		44				36



144	124	154	118	143	88	142			197	102	126
						237


	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4			Q1	Q2	Q3	Q4	Q1

		FY03/18				FY03/19						FY03/20				FY03/21

Confidential

Sales transition

Demonstrations and platform drone sales decreased from the previous fiscal year due to delays in project implementations. "Other"s increased from the previous fiscal year due to national projects

Sales by STEP1

[MM JPY]			Others	104



			Mass Production


			Demonstration


			experiment	68	60

	53
		9
	30	10	24		36

	16	25	27		30

	6			1	4
		FY18/03 1st quarter	FY19/03 1st quarter	FY20/03 1st quarter	FY21/03 1st quarter

1: Solution development (STEP1, 2) and Mass production (STEP3, 4) were respectively renamed as demonstration experiment and platform drone sales from this quarter.

Confidential

Quarterly change in the demonstration experiments

As is typical YoY, sales were small in Q1, and demonstration experiments were postponed due to COVID-19, resulting in a decline in revenue from the previous fiscal year

Quarterly sales (MM JPY)

Demonstration experiment 1

Proof of Concept

Private concept verification (PoC) of feasibility of drone use ideas
Use of ACSL platform drones

Customized development

Detail test designs
Development of customized drones and systems

														671
6	37	57	116	25	59	75	133	27	65	102		1


	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4	Q1

		FY03/18				FY03/19				FY03/20			FY03/21

Quarterly number of deals

			27					37					55
			19		16	22				22	21
8					14
6			6
									2


	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4	Q1

		FY03/18			FY03/19				FY03/20			FY03/21

© 2020 ACSL Ltd. All Rights Reserved.	1: Solution development (STEP1, 2) was renamed to "Demonstration experiment" from this quarter	Confidential	8

Platform drones sales

Sales are usually small in Q1 of each year, and sales in Q1 of the current fiscal year were lower than in the previous fiscal year due to delays in shipments to customers caused by COVID-19

Platform drone sales 1

Sales of standard and general- purpose aircraft
Production and supply of improved aircraft to customers based on standard aircraft

Sales by quarter (MM JPY)

										225					212

				32				67	80				48
16	25	16					24	19
10					4



		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4	Q1

			FY03/18				FY03/19				FY03/20			FY03/21
Unit by quarter (Units)

															74
									31	47
				18				20
7	10	5	8			6	12	9		1



		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4	Q1

			FY03/18				FY03/19				FY03/20			FY03/21

© 2020 ACSL Ltd. All Rights Reserved.	1: Mass production (STEP3, 4) was renamed to platform drone sales from this quarter	Confidential	9

Others

Sales of the national project for this fiscal year was JPY21 million. Maintenance services remained at the same level as the previous year.

Others1: Maintenance services

Sales of drone components and modules
Repair service129
Some national projects

Other Sales (MM JPY)

National Projects

Maintenance services, etc.

30				65						28		59	30

27									33			18			21

			16					14	12				10
2	6	9	3		9	9		8


	Q1	Q2	Q3	Q4			Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4	Q1

		FY03/18					FY03/19				FY03/20			FY03/21

1: For national projects, subsidies received are generally posted as non-operating income. On the other hand, some projects whose main purpose is to conduct commissioned experiments are recorded as sales.

Confidential

Gross profit

Gross loss is 6 million JPY. Gross profit margin tends to remain low due to the small sales

Quarterly gross profit and gross profit margin [MM JPY]

60%	60%	48%	59%	60%	52%	48%	58%	70%
9%			13%			14%		655
								-19%

								204
	40	63	68			83	101				69	75
4		13			8



															-6
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4	Q1

	FY03/18					FY03/19				FY03/20				FY03/21

Confidential

R&D Expenditure

Even under the influence of COVID-19, our core R&D activities continued and posted the same R&D expenditure as last year. The ratio to sales increased due to the decrease in sales

Quarterly R&D Expenses and Sales Ratio [MM JPY]

127%	91%	107%	82%		76%	109%			167%
	67%		59%
	57%
			38%
					15%			8%

		113			127

		80	85	94
						76	78
67	62				66
			58	54		60

FY03/18

FY03/19

FY03/20

FY03/21

Confidential

Status of projects for the current fiscal year as of the end of Jun.

As of Q1, the highly probable pipeline1 is 110 MM JPY. Promoting the acquisition of projects though development of new customers in addition to approach to existing customers

Sales and Pipelines as of end of FY21/03 1Q [MM JPY]

		109
36

Current quarter Sales	End of current	Sales + Highly
	quarter Highly	probable pipeline
	probable pipeline

Acquired approximately 109 MM JPY as projects of this fiscal year (Q2 to Q4) as of the end of Q1
Some projects postponed from Q1 due to the spread of COVID-19infection
As large-scale projects will be booked toward the end of the fiscal year, sales will be concentrated in the 4Q

1: Highly probable pipelines is the total amount of sales for projects with a purchase order and related documents at the end of June

Confidential

Table of Contents

Results for FY20/03 1Q

Business Highlights

FY21/03 Forecast

Appendix

Confidential

FY21/03 Q1 Major Business Highlights

Along with promoting partnerships with major companies in various fields, ACSL was adopted a national project and steadily expanded its business

Apr.	Jointly with Nishimatsu Construction, ACSL developed a system that automatically measures cracks in
	concrete floors.

	Began collaboration with Sensyn Robotics to build and implement B-to-Bdrone solutions

	Adopted in New Energy and Industrial Technology Development Organization (NEDO)'s project
	"Development of Secure Drone Infrastructure Technology"

May.	Collaboration began with VFR for joint development of application-specificcommercial drone

Jun.	Participated as the only member in the logistics field of Super City Open Laboratory

Jul.	Started collaboration with Toko Tekko to develop and sell disaster prevention drones


	Marine litter reduction project "Debris Watchers" disclosed the development progress of a coastal drifted
	litter detection system

Aug.	Developed smokestack inspection drone in collaboration with Kansai Electric Power

	Adopted in NEDO's project "Develop the operation control system for unmanned aerial vehicles and
	collision avoidance technology"

Confidential

Development of Foundational Technologies for Safe and Secure Drones

With the increasing importance of security for drones, the need for security-backed drones is rapidly growing

Growing interest in security-backed drones

The importance of introducing drones as flying IoT with ensured cyber security is reaffirmed
NEDO launched a project of 1.61 billion JPY1 for developing a standard infrastructure for high- security, low-coststandard drone and flight controllers intended for government procurement.
Consortium companies:

Expansion to small aerial drone market

In the small-scale aerial drone market, there has been only a choice of consumer drones, and large demand is expected for small- scale security-backeddrones
ACSL can expand into markets not previously approached
Aiming to contribute to earnings from the next fiscal year (FY03/22) after the end of this project in this fiscal year

1: The size of businesses adopted is the size of the projects of all the companies and is not ACSL sole budget

Confidential

Inspection- Automatic Measurement of Cracks on Concrete Floors

In collaboration with Nishimatsu Construction, ACSL developed a system to automatically measure cracks in concrete floors, aiming to save labor and improve quality

Detecting cracks in concrete

The detection of the cracks in the concrete floor is currently achieved by visual inspection, and labor cost is an issue
Developed a system consisting of a drone that flies autonomously through a non-GPSenvironment to take pictures of the floor automatically and image analysis technology to detect cracks in concrete
It is expected to reduce the burden on the inspector, save time, and improve the quality of the crack inspection compared to the conventional method of marking cracks in the concrete floor

Source: Nishimatsu Construction Press Release

Confidential

Inspection- Chimney Inspection Drone with Kansai Electric Power Company

Provided PF2 as a platform drone for an autonomous drone developed with Kansai Electric Power Co. to fly in non-GPS environments for inspection inside the chimneys of thermal power plants

Chimney interior inspections

In cooperation with KEPCO, developed an autonomous drone for inspection inside the chimney (non-GPSenvironment) to reduce inspection costs, improve work efficiency and increase safety.
ACSL provides ACSL-PF2 as a platform aircraft in drones that autonomously fly even in non-GPSenvironments
KEPCO and KANSO Technos Co., Ltd. will cooperate in ACSL to conduct inspections of smokestacks using this drone.

Source: Kansai Electric Power Co., Press Release

Confidential

Disaster Prevention - Disaster prevention drones with Toko Tekko

In line with the national policy, started collaboration for disaster prevention/mitigation drone that can be used to collect and survey information in the harsh environment of large-scale natural disasters

Providing flight controllers for drone

Provision of high-performance,multi-functional, all- weather, mission-critical drones in response to the national policy for natural disasters and accidents
The importance of drones that can be used for lifesaving, information gathering and rescue activities at disaster sites, and the rapid increase in demand for safe and secure drones that can be used for secure management of confidential information
Toko Tekko leverages its experience and expertise to develop a drone that is resistant to wind and dust, having a floating structure, for disaster prevention and disaster mitigation
The airframe designed and manufactured by Toko Tekko is equipped with flight controllers developed by ACSL.

Toko Rescue Loan ® TSV-RQ1

Source: Press Release of Toko Tekko

Confidential

Disaster Prevention - Development of Coastal Litter Detection System

Debris Watchers, an industry-academia partnership project in which ACSL participates, discloses progress on developing coastal drifting waste detection systems.

Coastal Litter Detection System

ACSL joined the drone team of Debris Watchers an industry-academicmarine litter reduction project consisting of six companies and two universities
Using AI to analyze images captured by a drone along the coast to verify the practicality of image recognition technology for identifying plastic and other coastal debris
Imaging of the coast is carried out using ACSL-PF2and other equipment

© 2020 ACSL Ltd. All Rights Reserved.	Source: Debris Watchers press release	Confidential	20

Started collaboration with Sensyn Robotics

Collaboration with Sensyn Robotics to develop B-to-B drone solutions and actual deployment. As a first step, completed connecting to SENSYN FLIGHT CORE and launched solutions

Cooperation to provide solutions in all phases

Seamlessly provide all phases of drone utilization for end-userbusiness issues

Examples of applications

Development of application-specific drone, solutions including software systems, proof-of-effectiveness testing, and implementation into actual operations and post-implementationsupport
Logistics: Full automation of indoor inspections, such as inventory taking, and full automation of outdoor drone logistics
Inspection: Periodic inspections through remote monitoring and remote management

Source: Sensyn Robotics Press Release

Confidential

Collaboration with VFR for development of industrial drones

Collaboration with VFR began for the development of industrial drones for the Japanese market.

About VFR

Established in Mar. 2020 as a subsidiary of
VAIO Co., Ltd
Develop airframes and components and provide solutions to promote and accelerate innovation in social infrastructure through drones
Aiming to leverage the advanced engineering and manufacturing technologies cultivated in the parent company, VAIO's PC-related business, as well as supply chain management skills in Japan and overseas

Collaboration between ACSL and VFR

There is an urgent need to develop mass- production drones and solutions that can be deployed
Issues can be solved by combining the knowledge and technical strengths of both companies
VFR's computing and robotics technologies and ACSL's airframe development and autonomous control technologies are used to update ACSL's existing aircraft and jointly develop new aircraft optimized for each application

Confidential

Table of Contents

Results for FY21/03 Q1

Business Highlights

FY21/03 Forecast

Appendix

Confidential

Objectives of ACSL Accelerate

ACSL announced its medium-term management policy at a time when it shifted from the "demonstration phase" to the "social implementation phase" for industrial drones.

While the drone market shifts from a "Trial" phase to "Social Implementation" phase, new lifestyle and measures against infectious diseases and progression of Society 5.0 have brought great changes to our business environment.

ACSL has developed a set of mid-term management directions, goals and key milestones to ensure that all stakeholders involved, both internal and external, focus on common value creation for our clients and continuous corporate value growth:

・A Masterplan defining the "To-Be" State in 10 years, and

・A Mid-term Management Direction (FY20-22)to realize the masterplan

Confidential

FY 21/03 Forecasts

Despite risk of a decline in sales due to COVID-19, ACSL will continue upfront investment, mainly in R&D, for business expansion in the future

FY21/03 outlook

Billions JPY

～6

17 14

Sales	Risk of	Sales	COGS
(Upper limit) COVID-19	(After risk
		consideration)

R & D

expenditure

10.5

4.1 8～

		▲2.5	+2.5~
Gross	SG&A	Operating	Excluding
profit	cost	loss	risk

0 0

Operating

income

Confidential

Forecast FY20/03

Sales are expected to be 1.4 to 1.7 billion JPY, more than last fiscal year. While sales is expected to grow operating loss is expected to 0 to 250 MM JPY due to upfront investment

Sales1

Operating income

Billions yen

14~17

Billions yen

12.7

FY17/03

FY18/03

FY19/03

FY20/03

FY21/03

0.15

8.0

1.5

3.7

▲ 2.5~0

▲ 3.3

FY17/03

FY18/03

FY19/03

FY20/03

FY21/03

Including the risk of a sales decline due to the impact of COVID-19, the forecast is JPY1.4 to JPY1.7 billion
The number of projects for demonstration experiment is expected to remain at the same level as the previous fiscal year. (112 cases) Unit price is expected to decline due to the impact of the elimination of large-scale project in FY20/03
Platform sales are expected to increase by more than the previous fiscal year (-200 units) in line with MINI sales. Unit price is expected to decline due changes in the product mix.

▲ 5.3 ▲ 5.4

Gross profit target of 55~60%
R&D expenses, which are the main SG&A expenses, are expected to be 410 MM JPY
Operating loss is expected to 250 to 0 MM JPY given COVID-19 risks

1: Solution construction (STEP1, 2) and Mass production (STEP3, 4) were renamed to Demonstration experiments and platform drone sales from the current quarter.

Confidential

Table of Contents

FY21/03 Q1 Financial results

Business Highlights

FY21/03 Forecast

Appendix

Confidential

Balance Sheet

[MM JPY]

		FY21/03	FY20/03	FY20/03
		End of first quarter	End of first quarter	End of the fiscal year

	Actual		YoY	Actual	Actual
		Increase/Decrease

Current Assets	3,872		▲19%	4,753	4,818
Cash
3,482		▲23%	4,531	3,775
Fixed Assets
1,072		+1,499%	67	449
Total Assets
4,944		+3%	4,820	5,268

Current Liabilities	124		▲38%	200	233
Long-term Liabilities
1		-	0	0
Total Liability
126		▲37%	200	233
Net Asset
4,818		+4%	4,620	5,034
Total Asset
4,944		+3%	4,820	5,268

Confidential

Sales

Aiming for sales of approximately 5.5 billion yen in FY22 in conjunction with the commercialization of application-specific drones from FY20, and steadily build up a pipeline for future sales of application-specific drones after FY22.

Sales (base scenario)

Mass production and

100 mn JPY			Aggressive Investment for	55
			Growth		5	Other

						Application-specific Drones Sales
Strengthening Product			~35	20	（incl. selling off and subscriptions）
		-	Small Aerial drones	1bn
Capabilities and Market
				-	Other drones	1bn
Opportunity Identification
		12.7	14~17			Development of application-
	8.0			30	specific drones
				- PoC and development 2 bn
3.7

					-	Platform drone sales	1 bn

FY17	FY18	FY19	FY20	FY21	FY22

Confidential

Sales breakdown

Aiming for an annual shipment of more than 2,000 units by commercialization and mass production of application- specific drone toward FY22, with a significant increase in sales of drones, including subscription

		FY20		FY22

	Units		Value	Units	Value
			(100mn JPY)		(100mn JPY)

Sales of application-specific drones				1300~	20

Small aerial photo（low ASP）	-		-	1,000~	10

Other （high ASP）				300~	10

Development of application-specific	~200		12.5~15	~300	30
drones

PoC and Development	-		7.5~10	-	20

Sales of Platform/Evaluation drones	~200		~5.0	~300	10

Other	-		~1.5	-	5

Confidential

KPI in the Mid-term Management Direction

Established new KPIs in the Mid-term Management Direction in order to accurately track the progress of new business models.

From

SummaryKPI

Drone Sales	Sales of drones	Units
in STEP 3~4

Sales of

application -specific drones

Summary

Sales of Development of application-specific drones (incl. selling off and subscriptions)

KPI

Units
Applications

Solution	PoC and custom	Projects
development in
Develop-
STEP 1~2
ment

Development of application -specific

drones

▪	PoC and custom	▪	Projects
	development using platform	▪	Units of
	drones
		platform

▪	Sales of platform/evaluation		drones
	drones

Confidential

Numerical targets

By commercializing small aerial photo drones, ACSL aims to achieve a solid business foundation of 5.5 billion yen in sales and 750 million yen in operating income by FY22, despite a decline in profit margins due to the rapid increase in sales.

	FY17	FY18	FY19	FY20	FY22

Revenue [JPY]	370 mn	800 mn	1.2 bn	1.4~1.7 bn	5.5 bn

Gross profit	48%	53%	63%	57%	50%
R&D	320 mn	360 mn	270 mn	410 mn	800 mn

Sales profit	▲540 mn	▲300 mn	10 mn	▲250~0 mn	750 mn

In FY22, the commercialization of small drones for public and private sector will help build a solid sales profit, despite a decline in gross margin.

Confidential

KPI

	指標	FY17	FY18	FY19	FY20	FY22
	(18/03)


Sales of application-specific drones

Small aerial photo	Unit							1,000~

Value
（low ASP）							10
(100mn JPY)
	-	-	-		-

Other	Unit			300~


Value
（high ASP）							10
(100mn JPY)


Development of application-specific drones

	# of project	60	81	112		-		-
PoC and Development
Value	2.1	2.9	8.6		7.5~10		20
	(100mn JPY)

Sales of	Unit	40	106	101		~200		~300
Platform/Evaluation	Value	9.0	3.8	3.0		~5.0		10
drones	(100mn JPY)

Confidential

Management Team

CEO	Dr. Hiroaki Ohta

Ph.D. from Kyoto University. Assistant professor at Department of Aeronautics and Astronautics, Kyoto University, followed by research scientists at University of California, Santa Barbara. Also served as Technical Advisor for a start-up in Silicon Valley. McKinsey & Company from 2010. Joined ACSL as in July 2016.

President	Satoshi Washiya
＆COO

M.S. of Architecture from Waseda University. Served both domestic and multinational companies in corporate wide transformation projects at Tokyo and Stockholm office of McKinsey & Company. Joined ACSL in July 2016.

CFO	Kensuke Hayakawa

M.S. of Management of Technology from Tokyo institute of technology. Implemented operational improvement/transformation of Portfolio companies at KKR Capstone. Joined ACSL as CFO in March 2017.

CTO	Dr. Chris Raabe

Ph.D. from University of Tokyo. Embedded software engineer at Boeing from 2006. Assistant professor at Department of Aeronautics and Astronautics, University of Tokyo from 2014. Joined ACSL as CTO in April 2017.

External	Masanori Sugiyama		Audit & Supervisory	Akira Ninomiya
Director		member


External	Shinichi Suzukawa		Audit & Supervisory	Hideki Shimada
Director		member

Audit & Supervisory	Takeshi Ohnogi
member

Confidential

(Reference) Sales Recognition and Seasonality

Sales are booked upon acceptance by client (at end of project). Seasonality increases towards 4Q driven by large-scale projects, mainly from existing customers

Sales Recognition

	Acceptance (Sales booked)
Start project	Implementation	Complete project

Large-scale projects and seasonality

Client A

Client B

Client C

Client D

Sales are booked at the time of acceptance by clients , at the end of each project
Adopted for all projects regardless of duration or size

							・・・
							・・・
							・・・
	Q3	Q4			Q1	・・・
		2H of fiscal year		Next fiscal year
•	Mainly large projects		•	Projects become larger
•	Many large projects are		•	No projects across year end
	booked in March			due to budget cycle

Confidential

Disclaimer

These materials have been prepared by Autonomous Control Systems Laboratory Ltd. (the "Company"). These materials are for the exclusive use of the persons attending an oral briefing to which these materials relate given by one or more authorised representatives of the Company and/or persons to whom these materials have been provided directly by an authorised representative of the Company (together, the "Recipients"). Without prejudice to the generality of the foregoing, these materials are directed only at persons who are believed to be investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005) and who have professional experience in matters relating to investments, and any investment or investment activity to which these materials relate is available only to such persons or will be engaged in only with such persons. Persons who do not have professional experience in matters relating to investments should not rely on these materials.

These materials are being provided to the Recipients for information purposes only. These materials speak only as of their date, and the views expressed are subject to change based upon a number of factors, including, without limitation, macroeconomic and equity market conditions, investor attitude and demand, the business prospects of the Company and other specific issues. These materials and the conclusions contained herein are necessarily based on economic, market and other conditions, as in effect on, and the information available to the Company as of, their date. These materials do not purport to contain a complete description of the Company or the market(s) in which the Company operates, nor do they provide an audited valuation of the Company. The analyses contained in these materials are not, and do not purport to be, appraisals of the assets, stock or business of the Company or any other person. Moreover, these materials are incomplete without reference to, and should be viewed and considered solely in conjunction with, the oral briefing provided by an authorised representative of the Company in relation to these materials.

The Company strongly suggests that each Recipient seeks its own independent advice in relation to any investment, financial, legal, tax, accounting or regulatory issues discussed herein. Nothing herein should be construed as financial, legal, tax, accounting, actuarial or other specialist advice. In particular, nothing herein shall be taken as constituting the giving of investment advice and these materials are not intended to provide, and must not be taken as, the exclusive basis of any investment decision or other valuation and should not be considered as a recommendation by the Company (or any of its affiliates) that any Recipient enters into any transaction. Each Recipient must make its own independent assessment and such investigation as such Recipient deems necessary to determine its interest in participating in any transaction. No reliance should be placed upon these materials in connection with any actual mandate or transaction. These materials comprise a general summary of certain matters in connection with the Company. These materials do not purport to contain all of the information that any Recipient may require to make a decision with regards to any transaction. Any decision as to whether or not to enter into any transaction should be taken solely by the relevant Recipient. Before entering into such transaction, each Recipient should take steps to ensure that it fully understands such transaction and has made an independent assessment of the appropriateness of such transaction in the light of its own objectives and circumstances, including the possible risks and benefits of entering into such transaction.

These materials have been provided to the Recipients on the basis that each Recipient and such Recipient's representatives, directors, officers, employees and professional advisers keep these materials (and any other information that may be provided to such Recipient) confidential. These materials (and any other information which may be provided to any Recipient) may not be disclosed, in whole or in part, or summarized or otherwise reproduced, distributed or referred to, in whole or in part, without the prior written consent of the Company. Neither the Company nor any of its affiliates (nor any of its or their respective directors, officers, employees, professional advisers or representatives) makes any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of these materials, any of their contents or any of the results that can be derived from these materials. Without limiting a person's liability for fraud, no responsibility or liability (whether in contract, tort or otherwise) is or will be accepted by the Company or any of its affiliates or any of its or their respective directors, officers, representatives, employees, advisers or agents) as to, or in relation to, these materials, their contents, the accuracy, reliability, adequacy or completeness of the information used in preparing these materials, any of the results that can be derived from these materials or any written or oral information provided in connection therewith (including, without limitation, any responsibility or liability (i) in relation to the distribution of possession of these materials in any jurisdiction or (ii) for any loss or damage of any kind whatsoever arising as a result of the use or misuse of these materials) and any such responsibility, liability or obligation is expressly disclaimed, except to the extent that such responsibility, liability

or obligation cannot be excluded by law. Analyses and opinions contained herein may be based on assumptions that, if altered, can change the analyses or opinions expressed. No audit of these materials has been undertaken by an independent third party.

Any statement, estimate or projection included in these materials (or upon which any of the conclusions contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the condition (financial or otherwise), prospects, business strategy, plans or objectives of the Company and/or any of its affiliates) may prove not to be correct. No representation or warranty is given as to the completeness or accuracy of any forward-looking statement contained in these materials or the accuracy of any of the underlying assumptions. Nothing contained herein shall constitute any representation or warranty as to the future performance of the Company, any financial instrument, credit, currency rate or other market or economic measure. Information about past performance given in these materials is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. Neither the Company nor any of its affiliates has verified the achievability of any estimate or forecast of future financial performance contained herein (including, without limitation, any estimate of potential cost savings and synergies), nor of any of the methods underlying the preparation of any such estimate or forecast.

Neither the Company nor any of its affiliates accepts or will accept any responsibility, duty of care, liability or obligation for providing any Recipient with access to additional information, for updating, modifying or otherwise revising these materials or any of their contents (including, without limitation, any estimate or forecast of future financial performance), for correcting any inaccuracy in these materials or their contents (or any other written information or oral information provided in connection therewith) which may become apparent, or for notifying any Recipient or any other person of any such inaccuracy.

These materials shall not be construed as a prospectus or an offer to sell, or a solicitation of an offer to buy, any security or any business or assets, nor to enter into any agreement or contract with any Recipient, the Company (or any of their respective affiliates) or any other person. Any potential transaction that may be related to the subject matter of these materials will be made pursuant to separate and distinct documentation and in such case the information contained herein will be superseded in its entirety by such documentation in final form. By accepting these materials, each Recipient represents and warrants that it is able to receive them without contravention of any unfulfilled registration requirements or other legal or regulatory restrictions in the jurisdiction in which such Recipient resides or conducts business.

Autonomous Control Systems Laboratory Ltd.

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Autonomous Control Systems Laboratory Ltd. published this content on 14 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 August 2020 06:02:03 UTC

Delayed Japan Exchange Other stock markets 01:42:54 2024-04-25 am EDT			5-day change	1st Jan Change
978 ^JPY	-3.36%		-13.22%	+8.31%

Apr. 03	ACSL Becomes First Drone Maker to Be Regular Member of Japan Association of Defense Industry	MT
Mar. 22	ACSL's Domestic Drone Adopted for Aerial Photography by Japan Air Self-Defense Force	MT

ACSL Becomes First Drone Maker to Be Regular Member of Japan Association of Defense Industry	Apr. 02	MT
ACSL's Domestic Drone Adopted for Aerial Photography by Japan Air Self-Defense Force	Mar. 22	MT
ACSL Ltd.'s Made-In-Japan Drone Adopts as an Aerial Photography Drone by Japan's Ministry of Defense	Mar. 20	CI
ACSL Ltd. Enters into A Commitment Line Agreement	Mar. 14	CI
ACSL Gets 370 Million Yen Large-Scale Project from Ministry of Defense	Mar. 12	MT
ACSL Ltd. Revises Consolidated Earnings Guidance for the Fiscal Year Ending December 31, 2024	Mar. 07	CI
ACSL Books Extraordinary Loss of 431.71 Million Yen for Fiscal Q4	Feb. 15	MT
ACSL Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year Ending December 31, 2024	Feb. 14	CI
Japanese Shares Finish Modestly Higher After Unemployment Data	Jan. 30	MT
ACSL's US Subsidiary Enters Drone Collaboration with Ameren	Jan. 29	MT
ACSL Finalizes Pricing and Improvements for SOTEN Drones in US Market	Jan. 25	MT
ACSL Ltd.'s Subsidiary ACSL, Inc. Announces Pricing and Authorized Dealers for Small Aerial Drone SOTEN in the United States	Jan. 24	CI
ACSL Secures 1.44 Billion Yen Loan From Japan Finance Corp.	Jan. 18	MT
ACSL's US Unit Partners Firmatek Following Restriction on Chinese Drones	Jan. 18	MT
ACSL, Inc. Signed a Memorandum of Understanding for Strategic Partnership with Firmatek, LLC	Jan. 16	CI
ACSL and Xiangqi Technology Sign Distributor Agreement Amid Taiwan's Chinese-Made Drone Restriction	Dec. 28	MT
ACSL Ltd. Announces Distributorship Agreement with Xiangqi Technology Inc. in Taiwan Area	Dec. 27	CI
Nikkei posts sharpest drop in about 6 weeks as chip shares slide	Dec. 05	RE
Nikkei falls to 3-week low as chip shares decline	Dec. 04	RE
ACSL Bags Drone Order from General Pacific, Gets US Export License	Nov. 15	MT
ACSL to Sell 3 Million Shares in International Offering; Shares Plunge; Shares Fall 9%	Nov. 13	MT
ACSL Selected as Key Business Operator for Government's SME Innovation Project	23-10-23	MT
ACSL Ltd.(TSE:6232) dropped from S&P Global BMI Index	23-09-18	CI
Acsl Ltd. Receives Order for A Large-Scale Project in India	23-08-10	CI
ACSL Partners C2 Group to Tap into US Market	23-08-09	MT

	1st Jan change	Capi.
ACSL LTD.	+8.31%	95.25M
KEYSIGHT TECHNOLOGIES, INC.	-7.85%	25.59B
UBTECH ROBOTICS CORP LTD	+84.81%	2.58B
RAINBOW ROBOTICS CO.,LTD.	-0.97%	2.46B
ZHE JIANG DALI TECHNOLOGY CO.,LTD	+22.32%	1.15B
MAYTRONICS LTD.	-22.90%	919M
QUICK INTELLIGENT EQUIPMENT CO.,LTD.	-30.92%	690M
HESAI GROUP	-51.96%	537M
HANGZHOU JINGYE INTELLIGENT TECHNOLOGY CO., LTD.	-25.83%	500M
SHENZHEN GENVICT TECHNOLOGIES CO., LTD.	-10.82%	433M

1H of fiscal year

Mainly small projects

Mainly with new customers