Post on 02-Aug-2020
Leading Global IoT Telematics Software & Solutions Company
MARCH 2020
Cautionary Note Regarding Forward-looking Statements
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This presentation contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to PowerFleet’s
beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other
factors, which may be beyond PowerFleet’s control, and which may cause its actual results, performance or achievements to be materially different from future results, performance
or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking
statements. For example, forward-looking statements include statements regarding: prospects for additional customers; potential contract values; market forecasts; projections of
earnings, revenues, synergies, accretion or other financial information; emerging new products; and plans, strategies and objectives of management for future operations, including
growing revenue, controlling operating costs, increasing production volumes, and expanding business with core customers. The risks and uncertainties referred to above include, but
are not limited to, future economic and business conditions, the ability to recognize the anticipated benefits of the acquisition of Pointer, which may be affected by, among other things,
the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for PowerFleet’s products to continue to develop, the possibility
that PowerFleet may not be able to integrate successfully the business, operations and employees of I.D. Systems and Pointer, the inability to protect PowerFleet’s intellectual property,
the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time
in PowerFleet’s, I.D. Systems’ and Pointer’s filings with the Securities and Exchange Commission, including I.D. Systems’ annual report on Form 10-K for the year ended December 31,
2018, Pointer’s annual report on Form 20-F for the year ended December 31, 2018 and PowerFleet’s registration statement on Form S-4 filed with the Securities and Exchange
Commission on May 24, 2019, as amended on July 1, 2019 and July 23, 2019, could cause actual results to differ materially from those expressed in any forward-looking statements made
by, or on behalf of, PowerFleet. Unless otherwise required by applicable law, PowerFleet assumes no obligation to update the information contained in this presentation, and expressly
disclaims any obligation to do so, whether a result of new information, future events, or otherwise.
About PowerFleet
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• PowerFleet is a leading global B2B mobile fleet
and asset management company
• Serving the industrial, logistics and commercial
vehicle industries
• Improving safety, reducing costs, streamlining
operations, and increasing profitability
• Expanding patent portfolio, including 53 granted
and pending patents
PowerFleet Investment Highlights
ExpansiveStrong secular tailwinds and industry catalysts driving multi-billion-dollar global IoT and connected vehicle market opportunity
Scale Geographic reach and product portfolio to win large global tenders
Growth Large vertical markets with 15%+ CAGR opportunities
DifferentiatedOnly provider who’s solutions provide for complete supply chain visibility with solutions that span bumper to bumper and cargo
Predictability Rapidly growing services and recurring revenue
Leadership Experienced leadership team and strong strategic sponsor
Go-to-Market Focus
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LOGISTICS INDUSTRIAL VEHICLES ASSETS& IoT
Fleet ManagementReefer MonitoringTrailer TrackingCargo VisibilityCargo SecurityDriver BehaviorELD
Fleet ManagementAccess ControlChecklistsImpact MonitoringProductivityLift, Speed, Location
Fleet ManagementFuel and OdometerDiagnostic CodesUnlock and LockImmobilizationAccident/event detection Mobile IntegrationDriver Behavior
Fleet ManagementAsset SecurityWork / Run Time Location
Global Presence
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PowerFleetDirect Sales
IndirectSales
Global Headquarters Technology
Center ofExcellence
NASDAQ: PWFL (*Projected 2020)
PowerFleet by the Numbers
600,000Subscription Units*
$150MCombined Revenue*
$75M High-margin service
revenue*
Powerful Customer List
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The best companies in the world have chosen our combined solutions to power their industrial telematics needs
Market Growth Opportunities
$8.1T 2015
$15.5T2023
7.5%CAGR
Berg Insight - 2019
Global Logistics Market Growth
Global Asset Tracking: $32B by 2024Global Cold Chain: $447B by 2025NA Cold Chain: $142.5B by 2024
Transparency Market Research Report 2018
Market Growth Opportunities
$2.1B 2018
$4.8B2024
15.2%CAGR
Global Warehouse Management System Growth
$73.2B 2018
$237B2025
14.2%CAGR
Connected Vehicle Market GrowthAdroit Market Research
PowerFleet How We Win
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10M Forklifts Worldwide
11MUS Class 7-8, Trailer &
Container Units Opportunity
22M US Class 1-5 + Global Rental
INDUSTRIAL LOGISTICS VEHICLES
ASP: $1,000-$1,500ARPU/Month: $10-$15
ASP: $200-$800ARPU/Month: $5-$30
ASP: $150-$300ARPU/Month: $3-$15
Market Drivers
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• Industrial IoT transforming legacy industries
• Connectivity permeating value chains across sectors – enabling visibility to improve velocity
• Several catalysts driving market growth: - 3G to LTE upgrade cycle- Chain of Custody regulatory requirements
Gartner Market Guide Sept 2019
Worldwide spending on the Internet of Things (IoT) is forecast to reach $745 billion in 2019, an increase of 15.4% over the $646 billion spent in 2018, according to a new update to the International Data Corporation (IDC)
Worldwide Semiannual Internet of Things Spending Guide. IDC expects worldwide IoT spending will maintain a double-digit annual growth rate throughout the 2017-2022 forecast period and surpass the $1 trillion mark in 2022.”
PowerFleet Tech Stack
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ANALYTICSAnalytics, business intelligence and integration
SaaSDesign / develop unique operational control software
DEVICESSelect / design /engineer required specialized telemetry devices
SENSORSSelect or design and engineer specialized sensors
Full tech stack
approach – from the
devices that create the
data to machine
learning, applications,
and visualization for
maximum leverage
and integration
Powerful Software, Analytics, Machine Learning
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SOFTWARE ANALYTICS MACHINE LEARNING
Powerful Purpose-Built Hardware
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LOGISTICS INDUSTRIAL VEHICLES
Bin to Fork to Truck
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Quarter Financial Performance
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$4.3 $6.4 $5.6 $5.8
$18.7$7.2
$7.2 $10.6 $11.1
$16.5
$11.5$13.6
$16.3 $16.9
$35.1
Q4-18 Q1-19 Q2-19 Q3-19 Q4-19
Product
Services
-$0.6
$0.2 $0.1
$0.7
$2.1
Q4-18 Q1-19 Q2-19 Q3-19 Q4-19
Revenue ($ in millions)
Adjusted EBITDA ($ in millions)
• Q4-19 total revenue of $35.1M, up 17% year-
over-year on a pro forma basis
• $16.5M in product revenue (47% of revenue)
• $18.7M in service revenue (53% of revenue)
• Q4-19 gross margins of $47.4%:
• Product Margin: 30.4%
• Service Margin: 62.3%
Annual Revenue Performance & Outlook
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$15.5 $17.4 $16.2
$36.5
$75.0
$21.4 $23.6$36.9
$45.4
$75.0
$36.8M$41.0M
$53.1M
$81.9M
$150.0M
2016 2017 2018 2019 2020E
Services Product
$200 Million Target Model
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Gross Profit
Adj. EBITDA
Revenue @ $200M+
50%
25%
Services/Recurring Rev.
55%
$100M
$50M
$110M
Target Model: Significant combined scale to drive meaningful operating leverage
Balance Sheet & Capitalization Support Growth
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Balance Sheet (Dec. 31, 2019)
Cash and Cash Equivalents $16.4 million
Debt $34.9 million
Net Debt $18.5 million
Unused Credit Facility $10 million
Current Ratio 1.7
Working Capital $29.2 million
Capitalization (Dec. 31, 2019)
Common Shares Out. 29.7 million
Convertible Preferred $50 million @ $7.319
Convertible Preferred Shares, if Converted
6.8 million
Total Shares Outstanding 36.5 million
PowerFleet Investment Highlights
Expansive Global IoT expenditures to reach $1 Trillion by 2022
Scale Geographies that enable leveraging our portfolio & cross selling
Growth Large vertical markets with 15%+ CAGR opportunities
Differentiated Vertically integrated with connectivity on the road, facility, dock and yard
Predictability Long-term recurring revenue contracts with Fortune 1000 customers
Leadership Experienced leadership team and strong strategic sponsor
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COMPANY CONTACT
Ned MavrommatisCFOnmavrommatis@powerfleet.com+1 201.996.9000
INVESTOR CONTACT
Matt GloverGateway Investor RelationsPWFL@gatewayir.com+1 949.574.3860