Know Your RobotsTony MelansonVP Marketingtmelanson@aethon.com

A STORY ABOUT TECHNOLOGY VS. OPPORTUNITY

Photos …photos

OPPORTUNITY VS TECHNOLOGY

June 2007

iPhone 2G2MPNo videoNo front camera

Fuji F50D12 MP 2.8 lensAVI video3x optical zoom8.2x Total zoomMax ISO 1600

VS

“The iPhone is obviously not a threat to cameras.The quality isn’t good enough.” - A camera executive somewhere

OPPORTUNITY VS TECHNOLOGY

Apple iPhone XR12 MP f/1.8 lens7 MP lens4K video5x total zoom

Lumix LX1520 MP lens f/1.44K Video3X Optical zoom6x Total zoom1 inch sensor

June 2019

VS

- A camera executive somewhere

“But, we are still better.”

Compact cameras DSLRs

Mirrorless cameras

88% 57%

80%Lenses

67%

June 2018 v 2019

CAMERA EQUIPMENT SHIPMENTS

IT’S ABOUT THE OPPORTUNUTY.

IT’S ABOUT OPPORTUNITY IN MOBILE ROBOTICS…and cohesive solutions

• Technical barriers to entry are almost non-existent

• Technology is obviously necessary – but it is no longer the limiting factor for success. (BTW –AI, vision, sensor and camera advancements still needed.)

• Ability to create a cohesive solution with a sustainable business model will determine success

• Engineering teams and marketing/design/product mgmt teams have to work very closely – and be unified on the opportunity.

DISCUSSION TOPICS

• Opportunity vs. technology

• Opportunity drivers

• What’s happening in mobile robotics

• Capitalizing on your opportunity

WHO WE AREABOUT ST ENGINEERING, AETHON INC.

• Owned by ST Engineering• Our robots make 5 million

deliveries annually

• Aethon AMRs since 2004• In Healthcare, Industrial, Hospitality• Based in Pittsburgh, PA LINK TO VIDEO SHOWN

DURING PRESENTATION

OPPORTUNITY DRIVERS

50 YEAR UNEMPLOYMENT LOW…it’s hard to hire for growth

400k+ job openings

Largest US employer. 400k+ openings

Obvious “ecommerce”growth

US LABOR COSTS…labor to move stuff is expensive

San FranciscoCA

NorthernNJ

PhoenixAZ

St. LouisMO

NashvilleTN

JacksonMS

$25.10 $24.50 $19.79 $20.89 $18.78 $17.72Average HourlyNonexemptw/Fringe (38%)

Average Labor Cost $21.13

Hourly5 Days /2 Shifts

$87,900

5 Days /3 Shifts

$131,851

7 Days /2 Shifts

$123,061

7 Days /2 Shifts

$184,591

Plus: turnover costs are about 20-30% of annual salary

WORKER SAFETY…material handling can take a toll on your people

Average cost of fall/slip - $46k

Average cost of strain - $33k

OVERALL EFFICIENCY & SPEED…material handling is key to productivity

Material handling can account for 30-75% of production costs and canincrease operational costs by 15-30%An obvious area of focus for anyproductivity enhancement and costreduction effortSource

Frost & Sullivan

Impacts employeesafety

Labor to movematerial Chokes / starves

downstream operations

Consumesfloor space

Excess dwell time

Increased cycle time

MOBILE ROBOT LANDSCAPEWHAT’S HAPPENING

GARTNER HYPE CYCLE

GARTNER PRIORITY MATRIX

AMRs on the way to “mainstream adoption” and considered “transformational” over the next 5-10 years

AUTONOMOUS MOBILE ROBOT…a variety of opportunities

Autonomous Mobile Robots

MATERIAL HANDLING OPPORTUNITIES

Healthcare Manufacturing Hospitality

Retail Warehouse

MATERIAL HANDLING OPPORTUNITIES

Healthcare Manufacturing Hospitality

Retail Warehouse

Secure clinical goods, meals, materials, waste

• Lots of people• Process re-engineering• Limited to no systems

engineer support

Healthcare

Raw material, components, sub-assy’s, finished goods, waste

• Integration to systems• Precise repeatability• High customization

Manufacturing

Guest deliveries, back-of-house material handling

• Design for guest• Tighter spaces• Limited to no systems

engineer support

Hospitality

Re-stocking, mixed-mode channel fulfillment, inventory management

• Congestion & public space

• Very specific functions• No onsite tech support

Retail

Receiving, bulk fulfillment, piece-part fulfillment

• Palette vs. Pieces• Stocking vs. Picking• Integration to systems

Warehousing

GO BEYOND THE ROBOT . . .

CONNECTED SYSTEMS

CONNECTED SERVICESRaaS since 2006. . .

Patented command center to provides remote support

Customer driven features & functionality rolled out

Automatic SW updates. All robots in fleet always latest and greatest.

Operational analytics for all robots in every fleet

Algorithms automatically detect and prioritize situations needed support

24/7/365 connected support of all robots in fleet

CAPITALIZING ON YOUR OPPORTUNITITES

PROJECT WITH ATS. . .their opportunity

Deliver new production line in the US to produce a wearable medical device and move current production from China.

And reduce risks:

PROJECT WITH ATS. . . their assessment

Key constraint to US production profitability was labor. But, challenges to this automation included:

- Component handling- Process complexity- Operations sequencing- Confidence in repeatability- Material handling “particularly intricate”

Conveyors

Machineoperators

AGVs

AIVs(or AMRs)

PROJECT WITH ATS. . .saw Aethon’s T3 as a lower-risk solution for material handling

PROJECT WITH ATS. . .and integrated with their mfg intelligence system

ATS Illuminate®

HOW TO GET STARTED . . .

KNOW YOUR OWN REQUIREMENTS

• Collect information about your environment and use cases

• It will save you time, focus your search and improve your decision making.

• Avoids perpetual pilot mode and development on-site

• You probably won’t get 100%....decide on the most important stuff

KNOW YOUR OWN REQUIREMENTS

Load

Weight, modality, transference, security,

flexibility

Robustness

Shift run-time, integration, your engineering staff,

remapping, facility wifi, remote control

Benefit

Expected benefit, qualitative vs quantitative, how you are

going to realize

Environment

Indoor/Outdoor, surfaces, cleanliness, precision,

elevators, ramps, heat/cold, water

Users

Trained ee’s, Untrained ee’s, Passive employees, guest

users, passive public

Research&

Piloting

PureLabor

Savings

Efficiency&

Speed

WorkerSafety

&Satisfaction

The customer’scustomer

ImprovedBusinessFlexibility

SomethingImpossible

WithoutRobot

WHAT’S YOUR BENEFIT PLAN?

Thank You