Tingo Group, Inc. · OTC:TIOG
Tingo — Micronet Enertec Technologies — IPO Roadshow (April 2013)
32 slides from Tingo's IPO roadshow presentation, Apr 5, 2013
Slide 1: Issuer Free Writing Prospectus
1 Issuer Free Writing Prospectus Dated April 5, 2013 Filed Pursuant to Rule 433 Registration No. 333 - 185470
Slide 2: Free Writing Prospectus Statement
2 Free Writing Prospectus Statement Micronet Enertec Technologies, Inc. (“ Micronet Enertec ”, “we”, “our” or the “Company”) has filed a registration statement (including a preliminary prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read t
Slide 3: Forward-Looking Statements
Forward - Looking Statements 3 This presentation contains forward - looking statements . All statements other than statements of historical facts contained in this presentation, including statements regarding Micronet Enertec’s future results of operations and financial position, financial targets,
Slide 4: Statement on Pro Forma Financials
Statement on Pro Forma Financials The pro forma condensed consolidated financial information included in this prospectus is constructed from the separate financial statements of the Company and Micronet Ltd . (“ Micronet ”), in which the Company has a controlling interest, and may not represent the
Slide 5: Offering Details
Offering Details 5 Issuer Micronet Enertec Technologies, Inc. Proposed Listing/Ticker OTCQB: LPSTD; Applied to list on Nasdaq under the symbols MICT & MICTW Offering Size Approximately $10 million (15% over - allotment) Securities Offered Common Stock & Warrants Use of Proceeds Expand sales and mark
Slide 6: Micronet Enertec Technologies, Inc.
Micronet Enertec Technologies, Inc. 6 • Delaware corporation established in 2002 • We develop, manufacture and market sophisticated mobile ruggedized computers, tablets and equipment which are embedded and integrated in commercial applications such as Mobile Resource Management ( MRM) / Fleet Manage
Slide 7: Experienced Management Team
Experienced Management Team 7 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 in
Slide 8: Micronet Acquisition
Micronet Acquisition 8 • On September 7, 2012, we acquired 47.5% of the ordinary shares of Micronet • The shares were acquired from the controlling shareholders of Micronet • The transaction includes two call options: • Through August 7, 2013, the ability to purchase up to an additional 5.5% of Micr
Slide 9: Revenue Performance
Revenue Performance 9 Consolidated Pro Forma GAAP Micronet Enertec $22,691 $37,492 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2011 2012 Revenue (000) $10,146 $17,788 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 2011 2012 Revenue (000)
Slide 10: Net Income Performance
$1,359 $5,417 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2011 2012 Net Income (000) ($82) $2,840 ($500) $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2011 2012 Net Income (000) Net Income (1) Performance 10 Consolidated Pro Forma GAAP Micronet Enertec (1) Net income attributable to Micronet En
Slide 11: 2012 Revenue Breakdown
2012 Revenue (1) Breakdown 11 Revenue by Segment Revenue by Geography (1) Consolidated Pro Forma
Slide 12: Portable Rugged Tablet Computers
Portable Rugged Tablet Computers 12 Our mobile fleet management computers help to maximize productivity , manage assets, reduce costs, retain drivers and improve safety on the road • We provide robust programmable automotive/heavy equipment - grade mobile computers • We supply top - tier fleet manag
Slide 13: Mounted Rugged Tablet Computers
Mounted Rugged Tablet Computers 13 Our computers and tablets are built to withstand wide temperature ranges, vibrations and shock, and endure rough working conditions
Slide 14: MRM Applications
MRM Applications 14 • Driver Management - Driver ID, time cards , hours of service/fatigue management , logistics , schedules • Two - Way Messaging and Dynamic Dispatching – Pick - up/delivery , maintenance/ field services , taxi/ para - transit • Status Reporting - Arrival , start , end , delay , c
Slide 15: MRM Sectors
MRM Sectors 15 • Trucking & Distribution – Long haul , short haul , local • Construction – Cement trucks , aggregate , heavy equipment • Mining & Shale – Transportation systems • Technical Services – Repair and maintenance t echnicians • Public Transportation – Buses, schools , para - transit , taxi
Slide 16: Global MRM Market
Global MRM Market 16 • 13.8 million subscribers as of December 2012 • Expected to grow to 32 million in 2016 • 700,000 companies using MRM today - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2010 2011 2012E 2013P 2014P 2015P 2016P MRM Subscribers Sources: C.J. Driscol
Slide 17: U.S. MRM Market
- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 2011 2012E 2013P 2014P 2015P MRM Subscribers Heavy Equipment Monitoring Trailer/Container Monitoring Systems Installed Units - Long Haul Trucking GPS - Capable Cell Phones/Smartphones/Tablets Insta
Slide 18: U.S. MRM Growth Analysis
Vertical 2012 Subscribers 2015 Subscribers New Subscriber Growth Replacement Units (1) Total New Units Total Units Relevant to Micronet (2) Local Fleet 2,900,000 4,550,000 1,650,000 2,400,000 4,050,000 1,350,000 GPS iPhones 1,230,000 1,800,000 570,000 966,000 1,536,000 - Long Haul 700,000 1,200,000
Slide 19: Fleet Management Customers
Fleet Management Customers 19 Trimble Inc. (NASDAQ: TRMB) : An $ 7 billion market cap 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 provide
Slide 20: Military Systems
Military Systems 20 Micronet Enertec military computers and equipment are embedded in the core of electronic platforms, including: missiles , tanks, combat aircraft, drones, missile boats, submarines , command and control systems Command & Tracking Systems Naval Communications Systems Operations Con
Slide 21: Critical Missile Defense Technologies
Critical Missile Defense Technologies 21 Micronet Enertec Computers and Equipment are Integrated into Critical Missile Defense Systems Our systems and technology are embedded in the Arrow and Iron Dome missile programs as well as in naval platforms
Slide 22: Missile Defense Market
Missile Defense Market 22 “Israel continues to develop an increasingly sophisticated array of missile defense systems to counter the threats posed by their neighbors.” - Marcin Andrzej Piotrowski for Polish Institute of International Affairs - 3/1/2013 http://www.isn.ethz.ch/isn/Digital - Library/Ar
Slide 23: International Markets for Missile Defense
International Markets for Missile Defense 23 Growing Demand Worldwide Boeing, Israel Aerospace Industries’ Arrow 3 Interceptor Successfully Completes 1 st Flight Test “This successful test underscores the effectiveness of the decade - long cooperative relationship we have forged with IAI on the Arro
Slide 24: Missile Defense Customers
Missile Defense Customers 24 Israel Aerospace Industries (IAI): With annual revenues of over $3 billion, IAI is the largest aerospace and defense company and the largest industrial exporter in Israel. Globally recognized leader in development and production of military and commercial aerospace and d
Slide 25: Growth Strategy
Growth Strategy 25 Organic Growth : • Our goal is to become the standard in the U.S. with a potential market of 3 million MRM/FM units in the next three years • Aggressively increase our market share in non - U.S. markets such as Europe • Add recurring revenue components to our revenue stream in all
Slide 26: Summary Financial Data
For the year ended December 31, Pro Forma 2012 2012 2011 (in thousands, except share and per share amounts) Consolidated Statement of Operations Data: Revenue 37,492$ 17,788$ 10,146$ Cost of revenue 25,785 13,790 6,297 Gross profit 11,707 3,998 3,849 Operating Expenses 7,670 4,323 1,956 Income (loss
Slide 27: Summary Balance Sheet
Summary Balance Sheet 27 Pro Forma December 31, 2012 - ($000’s) Assets Liabilities Current Assets Current Liabilities Cash, cash equivalents & marketable securities 13,794$ Short-term and current portion of long-term debt (1) 6,360$ Accounts Reveivables 11,853 Account Payables 8,121 Inventories 7,39
Slide 28: Comparable Companies
Comparable Companies 28 (figures in millions, except per share data) Price (1) 52 - Week Equity Firm Firm Value / Revenue Firm Value / EBITDA Price / Earnings Company @ 04/05/13 High Low Value Value (2) LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E QUALCOMM Incorporated $65.81 $6
Slide 29: Capitalization Table
Capitalization Table 29 Security As of Mar 27, 2012 Pro Forma Post Offering % Fully Diluted Free Trading Common Shares 3,968,246 3,968,246 67.48% 3,573,946 394,300 Offering Shares 1,275,000 21.68% 1,275,000 Basic Shares Outstanding 5,243,246 Offering Warrants 637,500 10.84% 637,500 Fully Diluted Sha
Slide 30: Use of Proceeds
Use of Proceeds 30 • Expand sales and marketing efforts • Increase product offerings and working capital • Exercise a portion of call options on additional Micronet shares in controlled entity • Repay portions of debt • Fund potential acquisitions • General corporate purposes
Slide 31: Investment Highlights
Investment Highlights 31 The Micronet Enertec Opportunity • Increased presence and significant potential in expanding markets worldwide for: • Mobile Resource Management (MRM) and Fleet Management (FM) • Critical defense systems • Proven solution provider for large civilian and military markets • Ma
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