Attached files
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| 8-K - 8-K - MICT, Inc. | zk1415484.htm |
Exhibit 99.1
Investor Presentation
September 2014
Forward Looking Statement
This presentation contains express or implied forward-looking statements within the Private Securities Litigation
Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not
limited to, those statements regarding future growth and rates of growth, financial targets, business strategy,
plans and objectives for future operations, new market entry, pursuing new opportunities, expansion of the
company’s brand, broadening distribution and addition of new products. Such forward-looking statements and
their implications involve known and unknown risks, uncertainties and other factors that may cause actual
results or performance to differ materially from those projected. The forward-looking statements contained in
this presentation are subject to other risks and uncertainties, including those discussed in the "Risk Factors"
section and elsewhere in the company's annual report on Form 10-K for the year ended December 31, 2013 and
in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, the
company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-
looking statements whether as a result of new information, future events or otherwise.
Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not
limited to, those statements regarding future growth and rates of growth, financial targets, business strategy,
plans and objectives for future operations, new market entry, pursuing new opportunities, expansion of the
company’s brand, broadening distribution and addition of new products. Such forward-looking statements and
their implications involve known and unknown risks, uncertainties and other factors that may cause actual
results or performance to differ materially from those projected. The forward-looking statements contained in
this presentation are subject to other risks and uncertainties, including those discussed in the "Risk Factors"
section and elsewhere in the company's annual report on Form 10-K for the year ended December 31, 2013 and
in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, the
company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-
looking statements whether as a result of new information, future events or otherwise.
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3
Corporate Overview
Company Overview
Revenue by Segment
(2013)
Revenue by Geography
(2013)
4
Nasdaq Ticker
MICT
Shares Outstanding
~5.83M
Float
~3.2M (66%)
2013 Revenue
$35.6M
2Q14 Cash and marketable
securities
securities
$16.3M
2Q14 Long Term Debt
$5.5M
Investment Highlights
5
Two Multi-Billion Dollar
Markets
Markets
History of Growth
Revenue grew from $10 M in 2011 to $35.6 M in 2013
Mobile Resource Management (MRM)
Aerospace & Defense
Focused On High
Growth MRM Verticals
Growth MRM Verticals
Local Fleet
Long Haul
Heavy Equipment
Low Revenue Multiple
0.8x sales (as of 7/28/14)
Trades at 70% discount to the blended industry peer multiple of 2.4x sales
Strong Balance Sheet
$9.2 M in cash (as of 6/30/14)
$7.1 M in Marketable Securities
$19.6 M in net working capital
Preeminent R&D
History of leading edge product development
8% allocated to R&D in 2013
Management Owns Significant Stake; Aligned With Shareholders
Experienced Management Team
David Lucatz - Chairman of the Board and CEO
25 years’ experience with a successful track record in operations, finance,
business development and management, including:
Co-owner of ITL Optronics Ltd., an advanced electronics supplier to the
defense and security industries, listed on the Tel Aviv Stock Exchange
CEO of Taliplast, a leading manufacturer of Plastic products
EVP of Securitas, a public finance investments group
Tali Dinar - Chief Financial Officer
15 years’ experience managing financial operations in the homeland
and defense industries
Former Manager at Kost Forer Gabbay & Kassierer, a member of Ernst & Young Global
A former Chief Controller of GCST, a major Global Homeland Security Group, and
ITL Optronics, a Public Defense Group
Shai Lustgarten - CEO of Micronet Ltd.
16 years’ experience managing sales and marketing in the defense
and civil electronics industries
Former VP Sales, Marketing & CMO of TAT Technologies Group
Former Director of Business Development of SGD Engineering Ltd
and Marketing & Business Development Director for Haargaz group
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Mobile Resource Management (MRM)
Division
MRM Market Solution
Rugged Tablets
Vibration and shock endurance
Built to withstand wide
temperature ranges
temperature ranges
Fixed or Portable
Endure rough working
conditions
conditions
Bringing together best of breed
technology & solutions for
driver / platform interfacing
driver / platform interfacing
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MRM market expected to grow from $5.5B in 2013 to over $9B by
2016; Number of subscribers expected to grow from 17 M
subscribers to 32 M by 2016*
2016; Number of subscribers expected to grow from 17 M
subscribers to 32 M by 2016*
MRM Market Growth
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U.S. MRM Market Vertical Growth
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Steady Double Digit Growth Trend In Three Target Verticals
Licht & Associates study (November 20, 2013)
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Local Fleet Vertical Is Becoming a Larger Portion of Company Orders in 2014 as of July 31, 2014
*Licht & Associates study (November 20, 2013)
**Company estimate
Specialists In The Industrial Market
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Ruggedized Industrial
Enabling in-cab platforms
Fix-mount / Portable
Integrated Wireless & GPS
GSD SW- MDM, OTA updates
CAN/OBDII Diagnostics
Video cams
Enhanced business model
Offered direct to TSPs
BYOD through channels:
Mobile operators, VARs
Mobile operators, VARs
Collaboration with specialist
technology partners
technology partners
Conumer
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Trimble Inc. (NASDAQ: TRMB): An $7 billion market cap
corporation, the second largest provider of FM and MRM
solutions with 370,000 installed units
corporation, the second largest provider of FM and MRM
solutions with 370,000 installed units
Teletrac Inc.: A provider of advanced and interactive fleet
automation software based in California. Teletrac provides
solutions to more than 20,000 fleets with 200,000 vehicles
automation software based in California. Teletrac provides
solutions to more than 20,000 fleets with 200,000 vehicles
Imarda Ltd: A provider of fleet management solutions based
in Australia and New Zealand
in Australia and New Zealand
Belgravium Technologies PLC (AIM: BVM): A market leader in
enterprise mobile computing solutions with an installed
global product base of over 300,000 terminals
enterprise mobile computing solutions with an installed
global product base of over 300,000 terminals
Key MRM Customers
Transformative Acquisition
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Complementary product line with strong presence in local fleet
vertical
vertical
U.S.-based MRM Division of Beijer Electronics Inc.
Enables MICT to establish strong U.S. sales and
operational base
operational base
Headquartered in Salt Lake City, UT
Immediately accretive; 2013 revenues of $11M
Significantly expands customer base
Strengthens R&D
Change in Verticals
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Local Fleet Business Is Becoming
The Largest Portion of 2014 Received Orders
Orders received till July 31, 2014
Sales 2013
Diversified Customer Base
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Significant Diversification of Customer Base
Should Drive Potential Growth
Customer Diversity - 2014
Customer Diversity - 2013
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Local Fleet
(July 2014) $800,000 Order for TREQ-VMX Mobile Rugged Tablets for Heavy
Construction Market
Construction Market
(June 2014) $2.7 Million Order for Mobile Rugged Tablets for Transit MRM
Solutions
Solutions
(May 2014) $1.4 Million in Rugged Tablet Orders for the Yellow School Bus Local
Fleet Market
Fleet Market
Long Haul
(April 2014) Over $400,000 in A307 Mobile Computing Device Orders for Trucking
and Long-Haul Solutions in Chile and Mexico
and Long-Haul Solutions in Chile and Mexico
MRM
Significant Recent Orders
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Aerospace & Defense
Division
A&D Market Solution
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Sophisticated and rugged computer-based equipment focusing on
missile defense systems
missile defense systems
Mission critical applications
Security clearance for most sensitive Israeli defense programs
Comprehensive solution for customer:
Stable, Cash Generating Business; $10.7 M In Backlog At 12/31/13
Designs
Manufactures
Supplies
Develops
Supplier of Critical Aerospace Defense
Systems
Systems
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Technology
Application
Strong Customer Base
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Israel Aerospace Industries (IAI)
Largest aerospace and defense company and industrial exporter
in Israel
Over $3 billion in annual revenue
Rafael Advanced Defense Systems Ltd
Key involvement in Israeli defense projects
$1.8 billion annual revenue
Elbit Systems Ltd. (NASDAQ and TASE:ESLT)
Defense contractor with operations in Israel and the U.S.
$3 billion annual revenue
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Aerospace & Defense
(July 2014) $1.2 Million Purchase Order for Missile Defense Support
System
System
(June 2014) $3 Million in Follow-On Orders for Missile Defense System
Support Project
Support Project
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Select Financial Information
Please refer to the company’s financial filing filed with the SEC for full financial information
Revenue Trends
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Quarterly growth of 18%
Strong annual growth
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(in Thousands)
Strong Balance Sheet
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Revenue Multiple Landscape
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|
Peers
|
Price to Sales
|
|
CalAmp
|
2.5x
|
|
MiX Telematics
|
2.6x
|
|
Xplore
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1.4x
|
|
Zebra
|
3.8x
|
|
Garmin
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4.2x
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|
Fleetmatics
|
5.9x
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|
Average
|
3.4x
|
|
Peers
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Price to Sales
|
|
Astronics
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2.3x
|
|
Elbit
|
0.9x
|
|
Tel Instrument
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1.08x
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|
Raytheon
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1.26x
|
|
Lockheed Martin
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1.19x
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|
Average
|
1.3x
|
Micronet Enertec At 0.8x Sales
Trades At A 70% Discount To The Blended Industry Peer Multiple
Of 2.4x Sales
Of 2.4x Sales
Aerospace & Defense
Assumes 60% of sales from MRM and 40% from A&D. Multiples As of 7/28/14.
MRM
Success Strategy
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Proven Products, Proven Management, Proven
Company, High Growth Markets
Company, High Growth Markets
Product Innovation
Drive Sales and
Marketing
Marketing
Recent acquisition fortifies U.S. sales presence
Further broadens and diversifies customer base
Comprehensive product offering including best in class Android product
roll out
roll out
Continue R&D investment
Focus on High Growth
Markets
Markets
Aggressively drive successful penetration of high growth local fleet
vertical
vertical
Proven acquirer
Focus acquisitions on technology and penetration of high growth
verticals
verticals
Select Acquisitions
