Kornit Digital Ltd. · NASDAQ:KRNT

Kornit Digital — Investor Day (May 2021)

45 slides from Kornit Digital's investor day presentation, May 20, 2021

  1. Slide 1: Kornit 4.0 Investor Event

    © 202 1 Kornit Digital. All rights reserved. KORNIT 4.0 INVE S TOR EVE NT MAY 18 , 20 21 © 202 1 Kornit Digital. All rights reserved.

  2. Slide 2: Safe Harbor

    ©2021 Kornit Digital. All rights reserved. © 202 1 Kornit Digital. All rights reserved. 2 SAFE HARBOR This presentation contains forward - looking statements within the meaning of U . S . securities laws . All statements other than statements of historical fact contained in this presentation are for

  3. Slide 3: Kornit 4.0 Investor Event

    © 202 1 Kornit Digital. All rights reserved. KORNIT 4.0 INVE S TOR EVE NT MAY 18 , 20 21 © 202 1 Kornit Digital. All rights reserved.

  4. Slide 4: A Strong Start for 2021

    A STRONG START FOR 2021 © 202 1 Kornit Digital. All rights reserved. 4 © 202 1 Kornit Digital. All rights reserved.

  5. Slide 5: In 2026 Revenue $1B Our Goal

    IN 2026 REVENUE $ 1 B OUR GOAL © 202 1 Kornit Digital. All rights reserved. 5 © 202 1 Kornit Digital. All rights reserved.

  6. Slide 6: E-com keeps accelerating, self expression, retail meltdown

    © 202 1 Kornit Digital. All rights reserved. E - COM KEEPS ACCELERATING SELF EXPRESSION RETAIL MELTDOWN 6

  7. Slide 7: Excess production is a major pain point

    © 202 1 Kornit Digital. All rights reserved. EXCESS PRODUCTIO N IS A MAJOR PAIN POINT for brands and retailers Traditional supply chain and production methods are INADEQUATE 7

  8. Slide 8: What if things were different?

    21 MILLION TONS of textile are wasted OF I TEMS ARE NEVER PURCHASED 30 % DIFF ER E NT? THIN G S WERE WHAT IF 28 TRILLION LITERS of water are wasted Equals to entire US population drinking needs for more than 72 years © 202 1 Kornit Digital. All rights reserved. 8 © 202 1 Kornit Digital. All rights r

  9. Slide 9: Things can be different: on-demand, proximity, sustainable

    PRODUCTION B 2 C O NS HORE (same country) B2B NEARSHORE (neighboring country) PROXIMITY SUSTAINABLE DIFFERENT! ON - DEMAND THINGS CAN BE © 202 1 Kornit Digital. All rights reserved. 9 © 202 1 Kornit Digital. All rights reserved.

  10. Slide 10: In-season reactivity, endless virtual variety, flexible inventory

    IN - SEASON RE A CTIVITY ENDLESS VIRTUAL VARIETY FLEXIBLE INVENTORY MANAGEMENT © 202 1 Kornit Digital. All rights reserved. 10 © 202 1 Kornit Digital. All rights reserved.

  11. Slide 11: Our Mission

    BECOME THE OPERATING SYSTEM FOR ON - DEMAND SUSTAINABLE OUR MISSION © 202 1 Kornit Digital. All rights reserved. 11 © 202 1 Kornit Digital. All rights reserved. FASHION X Fashion x - Includes fashion, apparel, home décor, and other textile - based forms of self - expression

  12. Slide 12: Our Strategy: Establish Kornit X and deploy the operating system

    © 202 1 Kornit Digital. All rights reserved. SYSTEM For on - demand sustainable fashion x ESTABLISH KORNIT X 12 © 202 1 Kornit Digital. All rights reserved. AND DEPLOY THE OPERATING DEVELOP DE S IGNERS AND INFLUENCERS ECOM PLATFORMS & MARKETPLACES B R ANDS TRADITIONAL AND ONLINE RETAILERS LICENSORS

  13. Slide 13: Digitize Production

    DIGITIZE PRODUCTION H E A T TRAN S F E R SC R EEN EMB R OI D E R Y DYE - BASED PRINTING © 202 1 Kornit Digital. All rights reserved. 13 © 202 1 Kornit Digital. All rights reserved.

  14. Slide 14: Answering Market Needs: Innovation

    Mass P r o d u c tion First ever digital print capabilities on d y ed p ol y e s t er Retail quality Single s t e p D TF digital printing Printing on dark g a r me n ts Digital print on white g a r me n ts New applications Next gen decoration t echn ol o gies Quality P r od uc tivity Sustainability

  15. Slide 15: Introducing MAX Technology

    © 202 1 Kornit Digital. All rights reserved. MAX TECHNOLOGY INTRODUCING New standard for on - demand production 15 © 2021 Kornit Digital. All rights reserved.

  16. Slide 16: MAX Technology

    © 202 1 Kornit Digital. All rights reserved. MAX TECHNOLOGY 16 © 202 1 Kornit Digital. All rights reserved. Sustainability New appli c a tions Productivity Highest quality and Durability

  17. Slide 17: Atlas Max

    © 202 1 Kornit Digital. All rights reserved. ATLAS MAX 17

  18. Slide 18: Kornit NeoPigment Process and Technological Innovation

    © 202 1 Kornit Digital. All rights reserved. K ORNI T N E O P I G M E N T Ρ P R OC E SS Today our process optimizes ink efficiency for color Pigment Ink Kornit NeoPigment Ρ MAX TECHNOLOGY By enhancing the process, we created functionality that controls not only color but providing absolute digital c

  19. Slide 19: XDi Applications

    © 202 1 Kornit Digital. All rights reserved. © 202 1 Kornit Digital. All rights reserved. XDi APPLICATIONS Seamless 2D to 3D rendering with automated algorithms HIGH DENSITY EMBE L LISHMENTS EMBROIDE R Y HEAT TRANSFER SCREEN & V I N YL 19

  20. Slide 20: Embroidery Market Impressions

    MARK E T I M PRESSI O NS 5.2 B ( 1) Kornit TAM Embroidery EMBROIDERY IS A Duration Cost (18,000 stiches) Analog (5*5 cm) 8 minutes $3.6 Atlas Max 1 - 2 minutes $1.4 © 202 1 Kornit Digital. All rights reserved. 20 © 202 1 Kornit Digital. All rights reserved. (1) BASED ON “GLOBAL EMBROIDERY MARKET INS

  21. Slide 21: Heat Transfer and Vinyl Market Impressions

    MARK E T IMPRESSI ONS 2. 2 B ( 1) AND VI N YL ARE A HEAT TRANSFER Kornit TAM HT & Vinyl Heat Transfer Duration (Name & Number) Cost (Name & Number) Analog 25 minutes $4.6 Atlas Max 1 minute $1.2 Vinyl Duration (2 c o l o rs) Cost (2 colors) Analog 26 minutes $7.4 Polyester - $3.5 Atlas Max 1 - 2 min

  22. Slide 22: High Density Market Impressions

    MARK E T I M PRESSI O NS 0. 3 B ( 1) HIGH DENSITY IS A Kornit TAM High Density © 202 1 Kornit Digital. All rights reserved. NUMBER OF IMPRESSIONS IN 2020 22 © 202 1 Kornit Digital. All rights reserved. Duration Cost Analog (5*5 cm) 25 minutes $6.5 Atlas Max 1 - 2 minutes $2 (1) “GLOBAL APPAREL SCREE

  23. Slide 23: Atlas Max Poly

    © 202 1 Kornit Digital. All rights reserved. ATLAS MAX P OLY • Merging the MAX technology with • Create new capabilities on poly 23 © 202 1 Kornit Digital. All rights reserved. OF T - SHIRTS ARE MADE OF POLYESTER P o l y e s t e r 16 % ( 1 ) (1) “GLOBAL T - SHIRTS MARKET 2017 - 2025” CREDENCE RESEAR

  24. Slide 24: Robotic Automated Media Handling

    MEDIA HANDLI N G ROBOTIC • Productivity increase • Ease of operations • Production consistency AUTOMATED Atlas current loading and unloading 35 Se c ond s * Atlas MAX with automation 15 seconds 2 0 % Additional garments per hour © 202 1 Kornit Digital. All rights reserved. 24 © 202 1 Kornit Digital.

  25. Slide 25: DTG Market Opportunity

    TAM of 21B impressions in 2020 19B items* Digital i m pr e ss i o ns 31B (1) (1) Source: Company estimates for apparel impressions (including for example impressions on t - shirts, hoodies, pants, bags, etc.) 21B represents estimated annualized run rate of impressions for year - end 2020. 31B repres

  26. Slide 26: Fashion X On-Demand

    FASHION X ON - DEMAND © 202 1 Kornit Digital. All rights reserved. 26 © 202 1 Kornit Digital. All rights reserved. Fashion x - Includes fashion, apparel, home décor, and other textile - based forms of self - expression

  27. Slide 27: From Design to Full Collection in Weeks

    FROM DES I GN TO FULL COLLECT I ON © 202 1 Kornit Digital. All rights reserved. 27 © 202 1 Kornit Digital. All rights reserved. IN 2 WEEKS FROM DES I GN TO CATWA L K IN 1 DAY

  28. Slide 28: Fashion and Home Décor Digital Direct-to-Fabric

    © 202 1 Kornit Digital. All rights reserved. FASHION AND HOME DÉC O R DI GITAL – O N - DEMAND DIRECT - TO - FABRIC TAM of 39B sqm ~4 Trillion impressions** 4 2 B ( 2 ) (2026) 3 9 B ( 1 ) BREAKING LIMITS IN C O M ING SOON: MAX technology on Presto • Elite Fabric retail quality • Create new capabiliti

  29. Slide 29: Establish Kornit X and Deploy the Operating System

    © 202 1 Kornit Digital. All rights reserved. SYSTEM For on - demand sustainable fashion x ESTABLISH KORNIT X 29 © 202 1 Kornit Digital. All rights reserved. AND DEPLOY THE OPERATING DEVELOP DE S IGNERS AND INFLUENCERS ECOM PLATFORMS & MARKETPLACES B R ANDS TRADITIONAL AND ONLINE RETAILERS LICENSORS

  30. Slide 30: Kornit X

    © 202 1 Kornit Digital. All rights reserved. KORNIT X Consumers Fulfillers C r e a t o r s 30 © 202 1 Kornit Digital. All rights reserved. F U L F ILL E R S B R AN D S L I C E NS O R S M AR K E T P LA C E S RETAILERS PROMOTIONAL D N V BS • Immediate gratification • Consistent quality Note: Logos rep

  31. Slide 31: Kornit X: Empowering the Front-End

    © 202 1 Kornit Digital. All rights reserved. KORNIT X B R AN D S L I C E NS O R S M AR K E T P LA C E S RETAILERS PROMOTIONAL D N V BS FULFILLERS • Im m edia t e g r a tifi c a t i o n Fulfi l l er • Consistent quality 31 © 202 1 Kornit Digital. All rights reserved. Consumers C r e a t o r s Desi g

  32. Slide 32: Kornit X Network

    © 202 1 Kornit Digital. All rights reserved. BRANDS PROMOTIONAL RETAILERS LICENSORS MARKETPLACES DNVBS Consumer Creators FULFILLERS • Im m edia t e g r a tifi c a t i o n Fulfi l l er • Consistent quality 32 © 202 1 Kornit Digital. All rights reserved. KORNIT X Quality c onsi s t en c y (QUEST) Prox

  33. Slide 33: Kornit X: Managing Production

    B R AN D S P R OM O T I ONAL R E TA I LE R S LICENSORS MARKETPLACES DNVBS Consumer Creators MA N AGING PR O D U CTION KORNIT X ERP o r der Manage I n v e n t o ry Pick and route Pri n t Cut Quality S e w assu r ance P ack Sh ip Fulfillers F U L F ILL E R S • Immediate gratification • Consistent qual

  34. Slide 34: Kornit X

    KORNIT X Consumers Fulfillers C r e a t o r s F U L F ILL E R S B R AN D S L I C E NS O R S M AR K E T P LA C E S RETAILERS PROMOTIONAL D N V BS • Immediate gratification • Consistent quality © 202 1 Kornit Digital. All rights reserved. 34 © 202 1 Kornit Digital. All rights reserved. Note: Logos rep

  35. Slide 35: Using Kornit X to route and manage print orders

    ROUTE MANAGE their print orders Using Kornit X to An online design platform, recently valued at $15B with over 1B designs already created and a mission to empower everyone in the world to design Enable users to print their creations via a global network of printers © 202 1 Kornit Digital. All rights

  36. Slide 36: Kornit X Revenue Goal in 2026

    KORNIT X KORNIT X REVENUE GOAL* IN 2026 SAAS Subscription T r an s ac t ions VAS GOAL >$100M © 202 1 Kornit Digital. All rights reserved. 36 © 202 1 Kornit Digital. All rights reserved. *Management goal

  37. Slide 37: Financial Model: Revenue

    MO D EL FIGURES REPRESENT REVENUE FINA N CIAL CURRE N T $ 50 0 M END OF 2023 AN N UAL RUN RATE G OA L * $ 6 3 M $130M H2 H1 2020 $144M H1 Forecast 2021 Last 5 - year CAGR (2014 - 2019) 24% $ 180 M $ 96 M H2 $84M H1 2019 $ 193 M KORN I T © 202 1 Kornit Digital. All rights reserved. 37 © 202 1 Kornit

  38. Slide 38: Financial Model: 2026 Goals

    MO D EL FIGURES REPRESENT REVENUE FINA N CIAL 2026 $ 50 0 M $ 6 3 M $130M H2 H1 2020 $144M H1 Forecast 2021 $ 180 M $ 96 M H2 $84M H1 2019 $ 193 M BE FORE END OF 2023 AN N UAL RUN RATE GOAL* $ 1 B 5 0 - 54 % Gross M a rgin >20% Op erat ing Margin 202 6 * KORN I T © 202 1 Kornit Digital. All rights r

  39. Slide 39: $1B in 2026

    © 202 1 Kornit Digital. All rights reserved. $1B IN 2026 0 1 0 0 2 0 0 3 0 0 4 0 0 5 0 0 6 0 0 7 0 0 9 0 0 1 0 00 Sys t ems 2020 Cons u m a b les 2026 Service & KornitX 39 © 202 1 Kornit Digital. All rights reserved. 800 C 20% 30% AGR** 40% 40% $193M 14% 40% 46% $ 1 B REVENUE GOAL* Consumables and S

  40. Slide 40: Gross Margin and Operating Margin Goals

    © 202 1 Kornit Digital. All rights reserved. 2026 goals*: Gross margin of 50% - 54% Operating margin of over 20% GROSS MARGIN AND OPERATING MARGIN GOALS* 40 © 202 1 Kornit Digital. All rights reserved. • Continued transition to mass production systems • High growth of consumables business • High gro

  41. Slide 41: $1B Revenue Goal

    $1B REVENUE GOAL T a r ge t i ng IN 2026* $1B revenue in 2026 50 - 54% GM Over 20% OP 2018 2023 2026 © 202 1 Kornit Digital. All rights reserved. 41 © 202 1 Kornit Digital. All rights reserved. *Management goals

  42. Slide 42: Become the Operating System for On-Demand Sustainable Fashion X

    FASHION X OPERATING SYSTEM FOR ON - DEMAND SUSTAINABLE BECOME THE © 202 1 Kornit Digital. All rights reserved. 42 © 202 1 Kornit Digital. All rights reserved. $1B Fashion x - Includes fashion, apparel, home décor, and other textile - based forms of self - expression

  43. Slide 43: Commitment to Sustainability and Community

    © 202 1 Kornit Digital. All rights reserved. © 202 1 Kornit Digital. All rights reserved. 43 COMMITMENT TO SUSTAINA B ILITY AND COMMUNITY 43

  44. Slide 44: Our Vision

    CREATE A BETTER WORLD WHERE EVERYB O DY CAN BON D , DE SI G N AND EXPR E SS THE I R I DE NTI T IE S , ONE I MPRESSION AT A TIME OUR VISION © 202 1 Kornit Digital. All rights reserved. 44 © 202 1 Kornit Digital. All rights reserved.

  45. Slide 45: Q&A

    Q&A © 202 1 Kornit Digital. All rights reserved. 45 © 202 1 Kornit Digital. All rights reserved.

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