Slide 1: Investor Presentation April 2021
Investor Presentation April 2021 Filed by Cerberus Telecom Acquisition Corp. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Cerberus Telecom Acquisition Corp. Commission File No. 001-39647
Slide 2: Disclaimer
Disclaimer This presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between Cerberus Telecom Acquisition Corp. (“CTAC”) and KORE Wireless (“KO
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) Non-GAAP Financial Measures This Presentation includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including, but not limited to EBITDA, Adjusted EBITDA and certain ratios and other metrics derived therefrom. These
Slide 4: Today's participants
Today’s participants Cerberus Telecom Acquisition Corp. (CTAC) KORE Tim Donahue Romil Bahl Puneet Pamnani Former CEO of PRGX and Lochbridge ~30 years of Tech, SaaS, IoT and Analytics experience Chief Executive Officer KORE Wireless Former COO & CFO of Lochbridge and SVP of Corp Strategy and M&A at P
Slide 5: Transaction overview
Transaction overview Summary of KORE and CTAC proposed business combination Transaction Timing On December 24th, 2020, KORE and CTAC executed a non-binding term sheet setting forth the potential terms of a business combination Definitive documentation was signed March 12, 2021 The transaction is exp
Slide 6: Sources & uses / pro forma valuation
Sources & uses / pro forma valuation Estimated Sources & Uses ($ in millions) Illustrative Pro Forma Valuation (1) Represents existing holders of KORE common stock, including Abry Partners. (2) Assumes estimated cash held in trust at closing and no redemption of CTAC public shares. (3) SPAC Sponsor
Slide 7: KORE aligns perfectly with CTAC's strategy
KORE aligns perfectly with CTAC’s strategy Nick Robinson Co-CIO Cerberus Managing Director, Head of Trading and Member of Cerberus Corporate Credit Committee Investment Team Tim Donahue CEO and Director Management and Distinguished Advisory Board Michael Palmer Co-CIO Cerberus Managing Director, Pri
Slide 8: Growth-oriented company with recurring, predictable revenue and sustainable free cash flow
Growth-oriented company with recurring, predictable revenue and sustainable free cash flow Market-leading company with demonstrated technology and competitive advantages that are difficult for competitors to replicate Strong management team ready to accelerate growth with our partnership Will benefi
Slide 9: Business Overview
KORE. Business Overview
Slide 10: KORE's mission: simplify the complexities of IoT
With the oncoming tidal wave of connected devices, KORE’s mission is to simplify the complexities of IoT and help customers Deploy, Manage, and Scale their mission-critical IoT solutions
Slide 11: KORE at a glance
Compelling Growth Opportunities IoT, eSIM and 5G use cases present massive opportunity Strong track record of highly accretive M&A Highly scalable KORE One platform positions company for growth KORE at a glance KORE is a market leader in enabling end-to-end IoT solutions for enterprises Trusted advi
Slide 12: Top challenges in IoT deployments
Top challenges in IoT deployments IoT deployments are extremely complex Inability to contextualize and analyze data Fragmented ecosystem requiring multiple partners Challenges in interoperability and compatibility Lack of solution deployment planning and experience Issues in compliance with regulati
Slide 13: Product lines and pricing method
Primary pricing method Product line Product description Connectivity 74% of 2020 59% of 2025E1 Per subscriber per month for lifetime of device (7-10 years and growing) Multi-year contracts with automatic renewals IoT Solutions 26% of 2020 41% of 2025E1 IoT connectivity services offered through marke
Slide 14: KORE differentiators and IoT customer use cases
44 carrier integrations (each takes ~2 years) Industry leading KORE One platform (7 engines) ConnectivityPro service and related APIs eSIM technology stack/ proprietary IP Hypercore technology Connectivity IoT Solutions Fleet Mgmt. Connected Blood Sugar Monitors Connected Gas Tank Monitors Connected
Slide 15: Customer case study: Customer #1
Customer case study: Customer #1 KORE global connectivity Provided a global connectivity package to provide connectivity across a large number of countries Acting as a trusted advisor for customer with transition of 2G/3G devices to LTE (in 2021/22) Almost 1 million subscribers and growing fast, lea
Slide 16: Focus industry sector: Connected Health
Streamline Implementation: Simplifies the complexities of IoT, overcoming barriers to adoption and leading to deployment Remain Compliant: Quality and Regulatory experience and a focus on information security allows KORE to provide real-time data insights Stay Connected: Provides superior coverage a
Slide 17: Five focus industry sectors growing fast
KORE’s five focus industry sectors, representing 80%+ of the IoT market, are growing fast Vertical 2020P-2025P CAGR Transformational use cases 34.2 % 29.4 % 22.4 % 17.5 % 17.3 % Remote Patient Monitoring Clinical Trials Medical Alert Monitoring Medical Equipment Diagnostics Stolen Vehicle Recovery F
Slide 18: KORE: unique one stop shop IoT solutions enabler
KORE: unique “one stop shop” IoT Solutions enabler Solutions Analytics & Cloud Platforms Connectivity IoT specialist Secure & cost efficient Full control over IoT stack Fast time to market is a differentiated player providing comprehensive IoT solutions – CaaS, Solutions & Analytics IoT Ecosystem Pa
Slide 19: Early innings of a growth opportunity in IoT
KORE is well positioned in the early innings of an exciting growth opportunity in IoT 2020 2025 2030 TAM ($bn) Devices (bn) Applications & Platforms Managed Services Connectivity 18.9% CAGR 50.5% CAGR $906B ~$7 Trillion $382B $78B $35B $269B $250B $608B $48B IoT Devices = 12 billion Connected Device
Slide 20: Significant potential growth opportunity by IoT technology
CaaS(1) Licensed Unlicensed Satellite CEaaS (2) CNaaS CMPaaS PNaaS IoT Solutions (3) Managed Services Analytics Significant potential growth opportunity IoT connections by technology Massive IoT Powered by LPWA 2.7B Low-Power Wide-Area Connections by 2025 5G at scale of total mobile data over 5G net
Slide 21: 5G will enable a connected planet
Connected healthcare $1.1T Digitized education $0.3T Construction and mining $1.1T $2.3T Richer mobile experiences $2.2T Smart city $4.7T Smart manufacturing $1.2T Intelligent Retail Powering the digital economy $13.2 Trillion in global economic value by 2035 Precision agriculture $0.3T 5G will enab
Slide 22: KORE expects to be a leading enabler of 5G adoption
KORE expects to be a leading enabler of 5G adoption Powered by KORE’s 5G-ready eSIM and multi-multi-multi value proposition enabled by proprietary KORE One platform KORE provides 5G connectivity and simplified management Powered by KORE’s strength in carrier relationships and experience in managing
Slide 23: Strategy 3.0 five-year roadmap
Year Two Year Three Year Four Year Five Year One 2018 Year Zero Strategy 3.0 finalized 5-year investment program approved 2019 One Team KORE; high-performance culture Begin transformation of connectivity proposition/platform Integrate acquisitions including Aspider, bring eSIM to market 2020 Acquisi
Slide 24: Growth acceleration to ~$1B in sales
KORE’s growth acceleration to ~$1B in sales Selling existing customers multiple services Robust M&A pipeline of strategic and accretive opportunities KORE Today Enhancing AIoT Capabilities Cross-sell and Upsell Bolt on M&A KORE in in the Future with M&A Deepening Presence in Focus Industry Sectors O
Slide 25: Illustrative M&A pipeline
Illustrative M&A Pipeline Recent M&A Transaction Highlights Aspider Strategic impact Helped position KORE as a leader in the Gartner Magic Quadrant Expanded geographical presence in Europe and Africa Added significant IP & key capabilities in eSIM / Core Networking KORE‘s target for eSIM shipments i
Slide 26: Accelerating growth & revenue visibility
KORE: accelerating growth & revenue visibility Scale & Growth Growth in Total Contract Value of Wins in 2020 vs. 2019A1 +69% Scale & Growth Established & Proven Top 25 Customer Revenue CAGR from 2018A to 2022P +26% Recurring Revenue in 2020 ~91% FY2020 Go-Forward Customer SIM Count vs. PY3 +29% Aver
Slide 27: TCV wins increased by 69% in 2020
KORE’s TCV wins increased by 69% in 2020 2019 TCV: $110MM 2020 TCV: $186MM +69% TCV Growth Strong growth in sales performance Estimated TCV (Total Contract Value) of Wins by Quarter Note: Total Contract Value (TCV) is the estimated revenue from new or existing customer wins over an approx. 3-year ti
Slide 28: SIM growth momentum is accelerating
KORE’s SIM growth momentum is accelerating 2020 sequential SIM growth for Go Forward customers (in M) 2020 average SIM count for Go Forward customers (in M, % of total) 18% 48% 10% 29% Annualized Growth : Note: Represents go forward SIMs; ~12M total SIMs as of 2020
Slide 29: Financial Overview
KORE. Financial Overview
Slide 30: Pro forma financial summary
Pro forma financial summary Note: Financials represent KORE’s projections through 2025E developed for the purposes of this presentation. 2020 results, refer to disclaimer for prior periods. Historicals are pro forma adjusted for the impact of the Integron and Aspider acquisitions. (1) Assumes $1.5mm
Slide 31: Strong organic growth performance, lift off ahead
Strong organic growth performance, lift off ahead 2018A – 2025P Revenue Bridge ($ in millions) Organic Revenue Growth ~26% organic growth (average from 2018 to 2022) with top customers driven by volume gains and cross selling Average ~90%+ revenue visibility through 2023P ~91% recurring revenue One
Slide 32: 2021P-2025P revenue visibility
~90% ~83% ~79% ~75% ~97% 2021P – 2025P Revenue Visibility Extremely high level of ’21P-’25P revenue visibility Installed Base as of 2020A ($ in millions) ~97% ~91% ~86% ~83% ~99% Installed Base as of 2021P 17% CAGR Note: Financials represent KORE’s projections through 2025E developed for the purpose
Slide 33: 2020 closed with incredible momentum
2020 closed with incredible momentum 2020 Quarterly Adj. Revenue1 ($ in millions) a 2020 Adj. Revenue: $192MM1 Business Momentum +69% Growth in Total Contract Value of Wins in 2020A vs. 2019A2 +26% Top 25 Customer Revenue CAGR from 2018A through 2022E ~91% Recurring Revenue in 2020A +90% Average Rev
Slide 34: Benchmarking
KORE. Benchmarking
Slide 35: Benchmark pure play IoT companies overview
Overview Pure play “IoT” Communication Software Benchmark pure play IoT Companies Strong revenue growth and stable recurring revenue Stable gross and EBITDA margins High growth SaaS companies with similar financial profiles to KORE Minimal CapEx , robust growth, and predominantly recurring revenue H
Slide 36: Operational Benchmarking
Operational Benchmarking Recurring Revenue2 2021E – 2022E Adjusted Total Revenue Growth KORE has a proven ability to deliver superior organic growth from its go forward customer base Well positioned to accelerate growth alongside 5G and eSIM industry themes Significant recurring organic growth ~92%
Slide 37: Operational Benchmarking (cont'd)
Operational Benchmarking (cont’d) 2022E Adjusted EBITDA Margin1 2022E Gross Margin Commentary Compelling scalable and profitable business model fueled by KORE One platform with proprietary IP and market leading IoT knowledge ~57% 2022E Gross Margins ~28% 2022E Adjusted EBITDA Margins Source: Each Co
Slide 38: Valuation Benchmarking
Valuation Benchmarking EV / 2022E Adjusted EBITDA3 EV / 2022E Revenue Net Debt / 2020E Adjusted EBITDA3 This Transaction provides an attractive entry point…deal valuation at significant discount to benchmarks Multiple strategic ways to perform Numerous upsides not included KORE has a successful trac
Slide 39: Appendix
Appendix
Slide 40: KORE's IoT managed services portfolio
KORE’s IoT managed services portfolio KORE provides a one-stop-shop for IoT deployment Delivery: KORE Internal KORE & Partner Hybrid Partner 1.1 Business Outcomes / Business Case 2.1 Architecture 3.1 Network(s) Selection / Carrier Contracts 4.1 Forecasting 5.1 Technical Support Tier 1 & 2 6.1 Advanc
Slide 41: Customer use case: Cardiac rhythm monitoring
Customer use case: Cardiac rhythm monitoring KORE Service Delivery Delivery: Hardware Customization, Certifications – Gen 9 Demand Forecast Supply Chain Deployment Setup & Optimization Subscription Lifecycle Integration Network Design Roaming Footprint Updates Wireless Managed Services OPCO Billing
Slide 42: KORE's leadership team
KORE’s leadership team Decades of leadership and domain expertise in IoT with significant public company experience Romil Bahl President, Chief Executive Officer Puneet Pamnani Executive Vice President, Chief Financial Officer Gideon Rogovsky SVP, Americas Marco Bijvelds SVP, EAP Sunder Somasundaram
Slide 43: Abry Partners overview
Founded in 1989, Abry Partners (“Abry”) is a sector-focused private equity firm investing primarily in media, communications, software, and business and information services companies Completed over $82bn of investments involving over 550 properties >55 investment professionals based in Boston, MA,
Slide 44: KORE: unique one stop shop IoT enabler
KORE: unique “one stop shop” IoT enabler What we do… How we do it… Analytics Advanced analytics supported by KORE’s proprietary IP platform Analytics applicable across all IoT Verticals (usage, meta and sensor) Micro-services architecture, API front-end enables third-party services, makes KORE One a
Slide 45: Highly attractive financial profile
Highly attractive financial profile Projected Revenue Projected Adj. EBITDA & Margin 27% 32% 28% 34% 30% ($ in millions) ($ in millions) +29.7% CAGR +11.5% CAGR Note: Financials represent KORE’s projections through 2025E developed for the purposes of this presentation
Slide 46: Accelerating momentum in sales activity
Accelerating momentum in sales activity TCV of New Business Wins1 ($ in millions) TCV of Opportunities Created1 +69% Growth +127% growth (1) TCV estimates include wins and opportunities created from new logos and scope expansions at existing customers
Slide 47: Pro forma capitalization
Pro forma capitalization Summary Capitalization ($ in millions) Pro Forma Leverage Pre-Transaction Pro Forma Pre transaction net debt of 4.4x lowered to 1.7x post SPAC merger Pre-Transaction Pro Forma Note: Leverage metrics are calculated using 2022P EBITDA of $66.5M
Slide 48: Pro forma EBITDA
Pro forma EBITDA ($ in millions) (1) Transformation expenses represent expenditures related to one time costs of developing and growing new sales channels, initiatives, and markets, including KORE One development costs, sales development and channel sales teams, and IoT Solutions. (2) Adj. EBITDA re
Slide 49: KORE's Technology
KORE’s Technology Connected Devices Carrier Partnerships 4G/LTE Satellite KORE SecurityPro KORE ConnectivityPro 4. IoT Network Services … Enterprise & Cloud Applications … LoRa 1. KORE One Platform KORE One Streaming KORE One Analytics KORE One Aggregator KORE One Integration KORE One Monetization K
Slide 50: Highly Scalable and Extensible Technology Stack
Highly Scalable and Extensible Technology Stack Harness all levels of IoT data, including sensor data, meta data and usage data Comprehensive Data Engineering Robust APIs deployed on a portal enable not only easy integration but opens them up as a marketplace to a developer ecosystem Powerful Integr