Astralution - additional info

Meeting with Scandinavian Gulf
19.09.2016

Additional information and follow up after meeting

Astralution general Presentation

Executive Summary

Astralution AS is founded, owned and managed by Nina Bokn Solheim, Bente Kristin Malmo
and Petter Sem-Henriksen. The company aims to establish a position as a market leader in
the field of unmanned aerial drones for Oil & Gas service, and beyond.
The company will offer inspection and emergency response solutions based on high
resolution imaging systems, satellite communication platforms and data streaming, utilizing
systems such as aerial drones, body cameras and networks of various sensor systems. The
long term goal is to have three main sources of revenue; one from the sale of products, one
from technical inspection and one related to emergency preparedness consultancy and
hardware solutions.
Astralution’s core R&D project at present to develop a purpose built drone to be used in an
offshore environment up to EX Zone 1. Several operators have indicated they are very
interested in this type of purpose built drone, and are recognizing the need for EX Zone 1
certification. Astralution has received max funding from Innovation Norway to develop the
first in the world EX Zone 1 multi-rotor system to carry multiple payloads for Oil & Gas
service for stage I &II. The next step is to develop a commercial product with a customer and
Innovation Norway will for this stage support 45% of actual cost. Application will be sent
medio October.
The benefits of the company’s solutions are cost savings, efficiency, and HSE-benefits
through faster and better overview of a situation to reduce risks to life and health of
personnel, or unnecessary damage to assets and the related costs.
Astralution will initially focus on the following business areas: Search & Rescue, Fire-fighting
Operations, Critical Structure Inspection, and Evidence Gathering.

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Astralution general Presentation

Table of Contents

1. The Company ................................................................................................................... 2
1.1. Company Details ....................................................................................................... 2
1.2. Ownership Structure .................................................................................................. 3
1.3. Founders - Shareholders ........................................................................................... 3
Operational Staff................................................................................................................... 4

2. Product & Services ........................................................................................................... 5
2.1. Research and Development (includes UAV Tech Specs) ......................................... 6
2.2. Strategy ..................................................................................................................... 7
2.3. Key Selling Points ...................................................................................................... 7

3. Market ............................................................................................................................... 8
3.1. Target Segment ......................................................................................................... 9

4. Organization and Location .............................................................................................. 10
5. Partners .......................................................................................................................... 11

1. The Company

Astralution AS is a start-up company located in Stavanger at the west coast of Norway, also
known as the oil capital of Europe. Astralution AS is owned and operated by its founders.

1.1. Company Details Astralution AS
915 607 306
Company Details Nina Bokn Solheim
Company Name +47 975 38 297
Norwegian Organization Number: [email protected]
General Manager Bryggeri kaien 24
Phone 4014 Stavanger
Email www.astralution.com
Address

Web

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Astralution general Presentation

1.2. Ownership Structure

Petter Sem- Bente K. Malmo Nina Bokn
Henriksen Solheim

10% 10% 10% 100%
As Astra Aero
Holding AS

70%

Astralution AS

1.3. Founders - Shareholders

Nina Bokn Solheim,
Founder and CEO

Nina leads the overall strategic growth and positioning of the
company. She has an extensive experience from oil and gas
operations and a strong sales and marketing background.
Innovative thinker, creative, excellent people skills, solid and
relevant network, and a tech nerd.

Her complete focus is on proven technology used in new
ways and development of new partnerships with leading
industry companies. A big fan of teamwork and synergy
effect 2+2 = 5

Petter Sem-Henriksen,
Co-Founder & Board Member

Petter is a former fighter pilot and chief pilot for a major
civilian airline company. Working for one of the largest
helicopter providers in the world. He is responsible for
providing offshore helicopter services including SAR in the
Barents Sea and Ekofisk. His competence and experience
in aviation and air legislation has been instrumental in
establishing our unique culture of HSE&Q. He is also a
strong contributor in making us a LEAN company.

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Astralution general Presentation

Bente Kristin Malmo,
Co-Founder & Board Member
Bente has more than 30 years’ experience working with
international organisations implementing train the-trainer
concepts in operational readiness and supporting
organisational development processes. Our strategic
thinker, with the knowledge and experience to understand
what it takes to get there. Her solid background as a HR
Manager and a serial entrepreneur contributes to set our
strategic goals and gives us the tools and guidance to reach
them. She is working for a visionary company focusing on
strength based leadership and organizational development.

Operational Staff

Huw A.Scott
CTO
Huw Scott is the Chief Technical Officer for Astralution.
Huw brings to the company a wealth of previous
scientific and engineering knowledge from Medicine,
Aerospace Sciences and Oil & Gas engineering
services, with focus on subsea construction and electro-
hydraulic systems. His previous knowledge of UAV
systems and flight dynamics is of high value to the
company and has stimulated a revised design concept
for multi-rotor platforms, currently being integrated into
our current R&D project. His ability understand
technologies from across multiple industries will serve
the company well as we seek to draw together many
current technologies into our solution packages for our
end clients.

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Astralution general Presentation

Huw Scott is currently acting as the Chief Technical Officer for Astralution. Huw brings to
the company a wealth of previous scientific and engineering knowledge from Medicine,
Aerospace Sciences and Oil & Gas engineering services, with focus on subsea
construction and electro-hydraulic systems. His previous knowledge of UAV systems and
flight dynamics is of high value to the company and has stimulated a revised design
concept for multi-rotor platforms, currently being integrated into our current R&D project.
His ability understand technologies from across multiple industries will serve the company
well as we seek to draw together many current technologies into our solution packages for
our end clients.

2. Product & Services

Astralution focuses on technology solutions functioning as a new way of communication,
which allows you to optimize ways of collaboration, increase security, save time and money.
The company will offer solutions based on communication tools like smartphones, video
cameras, and the future of aviation – Drone technology. With a helmet mounted ex safe
camera, smartphone or a drone, the teams in the field will have a new tool for advanced
picture and video intelligence gathering, resulting in improved situational awareness, and
tactical planning.

Astralution has already entered into agreements with suppliers of EX zone 1 approved smart
phones, Ex zone 1 approved cameras, and software used for picture and video satellite
transmission.

The company has a short term goal to develop a purpose built drone to be used in an
offshore environment. Early indication by the oil and gas market is that the drone should be
EX zone 1 approved. Several operators have indicated they will be very interested in this
type of purpose built drone.

Astralution aims in the long term to have three main sources of revenue; one from the sale of
products, one from technical inspection and one related to emergency preparedness
consultancy.

The solutions are targeted for use in:

• Search & Rescue
• Fire-fighting Operations
• Critical Structure Inspection
• Evidence Gathering

As Astralution grows, we will be defining and developing additional profit centers for our
company and investors by offering value-added services such as training classes, seminars,
on-site flying, private labeling for our channel market resellers, and other ancillary revenue
streams based on individual client needs.

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Astralution general Presentation

2.1. Research and Development (includes UAV Tech Specs)

UAV System
Astralution has now developed a first stage multi-rotor prototype system ( third party
supplier). This new design is set to provide extended flight times and payload capabilities in
comparison to current market standards. The platform is non-EX, and will be used as our
base system for EX Zone 1 conversion/ certification alongside our EX development partner.
This model is planned to be available for our service provision outside of EX environments at
the start of 2017 as a “heavy lift” capable system, with multiple payload options.
Tech Specs (non EX): PROTOYPE SYSTEM (Design improvements are continuous)

• Flight time 50 minutes with “off-shelf” li-po battery packs.
• New battery pack design in development for 2017: up to 80/90 minutes flight time

predicted with current simulations
• Payload capabilities approx 10kg max
• Weight with batteries approx 8,5 kg (no payload)
• 4x Ducted Propeller design/ 8 propellers in total
• Carbon Fiber construction, 3D printed
The system is under constant development and improvement currently, with weights being
reduced with each design review, increasing the possible flight times and/ or payload
capabilities.
R&D for the base system is near completion. At this stage, Astralution remains open to other
UAV system providers who may also wish to consider their platform for EX conversion and
use with the oil & gas industry and/ or emergency response systems.

• Phase 2 (Estimated funding - NOK 7 mill.)
o Innovation Norway to cover 45% of our documented actual cost.
o In this phase we will develop the product and work together with our pilot
customer to modify the system to get the required certification.
o The first system certified for zone 1, is planned to be available for pre-sale
orders in the fall of 2017.

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Astralution general Presentation

2.2. Strategy

Astralution will focus on cutting edge technology, target marketing to increase market
penetration and domination, expand target markets with controlled growth, and establish
brand awareness for Astralution name and products.
The company considers early entrance to the market, being a first-mover, to be of high
importance to get a head start on more resourceful competitors. Furthermore, key success
factors are considered to be:

• Product quality and reliability
• Utilizing next-generation technology
• Solid marketing and promotion budgets
• Products delivered on time
• Cost control
• Sustaining controlled growth
• Innovative business models that we constantly monitor and modify

2.3. Key Selling Points

• Efficiency – Technical inspection and collaboration across great distance
• Cost Savings – Based on the released numbers from our competitors in the UK we

know there is a potential savings of 97% for flair inspections compared to traditional
climbers, and no need to shut down production during drone inspection
• HSE – Quick and better overview may save lives

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Astralution general Presentation

3. Market

In a report published by Markets and Markets the global multirotor drones market is
estimated to be valued at $ 840.21 million in 2015. It is projected to grow to $2.28 billion by
2020 (CAGR of 22.2 %). The charts below are based on projections by BI Intelligence and
ABI Research.

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Astralution general Presentation

3.1. Target Segment

Our core business segments are:
• Oil & Gas Operators
• Rig owners
• Service companies
• First responders- law enforcement and emergency teams
• Shipping / FPSO´s
• Refineries/ Hydrocarbon Storage facilities
• Windmill operators
Additional relevant products for the middle east are :

• Solar panel inspection
• Agriculture
• Goods delivery
• Security
• Emergency preparedness ( incident site overview )
• NDT inspection including technical report
• Complete setup of visual communication on ground and air system and air
• Fire department support

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Astralution general Presentation

Source: ABI research

4. Organization and Location

Astralution’s day-to-day operations are managed In Stavanger, Norway by its founders, who
prefer a close, hands-on approach to all aspects of their business. At the time of writing 2
people working full time for the company and as the organization grows the company will
form a more functional and tailored organizational structure.
Astralution is a small company with a minimum command hierarchy and a maximum of
community spirit and cooperation. Despite the small size of this company, our business
practices are cantered on implementing our goals, never losing sight of profitability objectives
and the return of investment for our investors & partners.

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Astralution general Presentation

5. Partners

We are rapidly expanding our list of partners and providers, who are all offering market-
leading technology products and development support, to enabling Astralution to deliver
cutting edge payload options and data management tools for our UAV systems. The list of
technology available to us continues to grow as we extend our partnerships. Currently we are
planning payload options including:

• HD Camera and ultra lightweight gimbal systems
• Satellite uplink capability for image transfer
• Gas sensor systems for hydrocarbons and environmental monitoring
• IR imaging/ FLIR systems
• Radar navigation capability/ obstacle avoidance
• High-tech GPR
Currently Astralution remains open to new partners, and we invite UAV system providers and
payload developers to discuss options for market-entry into the Scandinavian oil & gas
industry and emergency response establishments.
Additional information about our partners and signed commercial agreements will be
provided if we decide to move forward with this partnership.
Please note: Some of our technology might be limited by Norwegian export regulations as
well as ITAR regulations.
ITAR =The International Traffic in Arms Regulations

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