OMNIQ Corp · OTC:OMQS
OMNIQ — Quest Solution — Investor Presentation (January 2019)
40 slides from OMNIQ's investor presentation, Jan 25, 2019
Slide 1: Quest: Artificial Intelligence-Based Solutions
Q) QUEST Artificial Intelligence-Based Solutions OTCQB: QUES January 2019
Slide 2: Safe Harbor
Safe Harbor This presentation is neither an offer to sell nor a solicitation of offers to purchase securities. This presentation is the confidential intellectual property of Quest Solution, Inc. and its subsidiaries (together, “Quest’). Any use or redistribution of this document or its contents with
Slide 3: Quest Solution
Quest Solution “Adding Intelligence To Our Future” Quest's Business Leading provider of automatic, Artificial Intelligence (Al) enhanced identification and data capture solutions for: + Supply Chain Management + Parking Automation + Homeland Security + Law Enforcement Founded in 1994 HQ in Salt Lake
Slide 4: M2M - Machine to Machine
M2M - Machine to Machine 100110 101010 111110 Search locate Instruct Solutions to & Data Processing & Designated Data Input Decision Making Applications orcs: QHowst «
Slide 5: Focused on Two High Growth Markets
Focused on Two Hi h Markets 2 f ae ey <i> Gea On) ot Size’ Size? ~$1.0 Trillion ~$13.0 Billion Growth Rate’ Growth Rate? 22.0% CAGR 12.3% CAGR Approximate Portion of Approximate Portion of Our Pro Forma Revenue Our Pro Forma Revenue ~10% ~90% “chi Salo ae ona Ra RA ee ee itp cir aS coon QUEST 5 ‘Key
Slide 6: Customers & End Users
Customers & End Users Government nw Q (W) ZZ iene Broownnven = WM) esc paar nen s d ae Healthcare Airports JFK ‘(GMs desouutes ax... Ck BBWI © ox Abbott MSKESSON Parking Eineowering Heath TIBA SKIDATA @88Riw *HLEIB WPS «x; | flabCorp pemeones OESIGNA Retail, T&L, Manufacturing, Oil & Gas ww) iehateh
Slide 7: Smart & Safe City
Slide 8: Smart City Dynamics
ity Dynamics ~$1.0 Trillion Smart City Market 22.0% CAGR Smart Smaneuysecers “win 5 5 ze Automatic Vehicle Al-based technology used to read vehicle Qu est Focus Ones arse license plates through optical character Recognition recognition on images, make, color, type Global WET ~$2.0 Billion ANPR Syste
Slide 9: Our Technology
ur Technology Aworld leader in Al-based image processing solutions, delivering vehicle data for: Revenue control Management/automation of safe city sites Homeland security/law enforcement Critical facilities Border crossings Secure access control Logistics systems 40+ Countries Served Competitive Ad
Slide 10: Installations Across Multiple Markets
Installations Across Multiple Markets Airports/Seaports Borders Hospitals Sutton Place Hotel + Vancouver, Canada Boston Logan Intl Airport Sacramento Intl. Airport Salt Lake City Intl. Airport Arizona - U.S/Mexico Hospital San Diego - U.S/Mexico + Germany Mexico/Guatemala Penrose Hospital + Colorado
Slide 11: Some of the airports we are operating at
Some of the airports we are operating at: FORT LAUDERDALE-HOLLYWOOD INTERNATIONAL AIRPORT JFK. fn GROWARD COUNTY. FUORI] DALLAS/FORT WORTH INTERNATIONAL AIRPORT & pL. BWI ) Sou Hee sansoseiemaniona 49 DULLES somenoremnonwwor — LOVER FIELD SIC sticonvattersanmrom — EPP isreanironst se —- = oF Ayana |
Slide 12: Border Crossing
Border Crossing Texas, U.S. —- Mexico Border Crossing U.S. — Baja, Mexico Border Crossing HTS LPR & Car Make/Model Identification Solution Preventing Crime, Drugs, Car Theft, Black Listed Car Penetration, etc... QHowst »
Slide 13: Deployment in the field — Safe City
Deployment in the field — Safe City USA, Florida Customer: Law Enforcement Number of cameras: 100+
Slide 14: Supply Chain Management
Slide 15: Global Supply Chain Management Market Dynamics
Global Supply Chain Management Market Dynamics Size’ ~$13.0 Billion Supply Chain Management Growth Rate’ 12.3% CAGR Market Drivers Growth of Enterprise Mobility market Proliferation of online order fulfillment Need to eliminate manual data capture/entry errors Growth in size of average warehouse fac
Slide 16: Quest Automates Supply Chain as Systems Integrator
Quest Automates Supply Chain as Systems Integrator arincesrone |e, onm @ — Bh _— ‘Suppliers / anil Manufacturers EY) AmensourceBergen Transportation MSKESSON Distribution if be G FS Centers = FASTENAL | DVenturaFoods™ g pe rt — . Transportation / Logistics “ | cwomone emer) TL) (GG SE" Stores coTcae
Slide 17: Our Step-By-Step Solution
ur Step-By-Step Soluti Quest offers a comprehensive portfolio of services and products in Field and Supply Chain Mobility, including consumables and printing Consulting, Services and Support we © aes $03 ne »> > »> Identify Capture Share Use Consumables AIDC Connectivity Data & Printing Automatic Da
Slide 18: Mobile Cloud Analytics
Mobile Cloud Analytics = Supports distribution centers and warehouses = Increases productivity in areas like shipping, receiving, yard management, etc. Order Entry = Allows two-way communication with field personnel = — Eliminates the time-consuming, error-prone processes with legacy equipment RFID
Slide 19: Solutions (Continued)
Solutions (Continued) Barcode Scanners = General purpose, wireless, fixed-mount, 2D bar code = Respond to customers more quickly Mobile Computers = Handheld, vehicle mount, wearable, and RFID readers = Empower team to access information, collect data and complete transactions Printers = Industrial,
Slide 20: Focused Directions & Financials
Slide 21: Transformation of Quest Solution
Transformation of Quest Solution New Management « Focused Turnaround « Positioned for Growth Entirely new Strengthened balance Entered Board of rt ee sheet with debt Transportation Directors PI elimination & restructure Logistics market New CEO, YE 2017: Increased stockholders’ Acquired HTS Image Sh
Slide 22: Manufacturing Facility Driving Supply Chain Growth
Manufacturing Facility Driving Supply Chain Growth Salt Lake City-Based Manufacturing Facility; Supports the manufacture of new White Label products = ; Enhancing model to nables Quest to manufacture proprietary, : < ruggedized computers and electronics products include manufactu ring of Supply Chai
Slide 23: Management Team
St g Management Team Executive Leadership Shai Lustgarten, CEO & CFO (and Director) + CEO, Micronet Limited, Inc. + VP of Sales, Marketing and CMO, TAT Technologies Ron Aharon, Director of Finance + CFO, Fintech online trading platform technologies group + CFO at Malrag Ltd infrastructure domain + C
Slide 24: Newly Established Advisory Board
Newly Established Advisory Boa Inaugural members will supercharge Quest’s strategic growth as a leading provider of technology solutions Mina Teicher + Professor of Mathematics and Neural-Computation with work spanning several academic domains, including Computer Vision, Cryptography and Cyber Secur
Slide 25: Moving Up The Value Chain
Moving Up The Value Chain 4 Big Data Al-Based Image Processing Software for Supply Chain Applications (Route Edge) Mobile Cloud Analytics Industrial Internet of Things (IloT) and RFID Solutions Margins Infrastructure, Networking, Security & Management Hardware Supplies & re 1 1 1 1 1 1 1 1 1 1 1 1 1
Slide 26: Financial Highlights (as of September 30, 2018)
Financial Highlights (as of September 30, 2018) Trailing twelve month revenue of $56M with positive adjusted EBITDA (from 9-30-18) Recent acquisition of HTS adds ~$10M in trailing twelve month revenue (from 9-30-18) Increasing margins as company focuses on proprietary software solution offerings & i
Slide 27: Quest Solution Income Statement Summary
st Solution Inc. Inc Statement Summary Condensed Consolidated Statements 9 months ending September 30, of Operations & Comprehensive Loss Total Revenues $42,368,904 $40,886,754 Total Cost of Goods Sold 33,687,461 32,263,124 Gross Profit 8,681,443 8,623,630 Total Operating Expenses 10,630,233 9,128,8
Slide 28: Quest Solution & HTS Pro-Forma Income Statement
Quest Solution, Inc. & HTS Image Inc. Pro-Forma Inco Statemen Proforma Condensed Combined Comprehensive Loss (unaudited) for the 9 months ended 9/30/18 HTS Combined (in thousands) Revenues $42,368 $6,419 (2,913)* 45,874 Cost of Revenue 33,687 3,581 (2,635)* 34,633 Gross Profit (loss) 8,681 2,838 (27
Slide 29: Precedent Transactions
presenta Transactions Attractive valuation compared to peers as evidenced by recent transactions Motorola Solutions Acquires VaaS $445 million in a combination of cash and equity International Holdings, Leader in Data and Image Analytics for Vehicle Location 4.5x projected 2019 revenue of $100 milli
Slide 30: Growth Strategy
Growth Strategy Increased focus on higher margin hardware and software solutions in addition to value-added services as integrators. SaaS & rev share | __ fevenue streams Further integration of Al-based technology into solution offerings to drive competitive advantage and entry into Big Data market
Slide 31: Company Capitalization
Company Capitalization Outstanding Securities Common Stock 71,918,659 Series C Preferred Stock* 4,828,530 Options (WAEP: $0.19) 21,401,000 Warrants (WAEP: $0.23) 5,600,000 “Each Series C preferred share outstanding is convertible into one (1) share of common stock of Quest Solution, Inc. orcs aus |
Slide 32: Investment Considerations
Investment Considerations « Attractive valuation compared to peers — Vaa& Intl. Holdings acquired in January of 2019 for 4.5X projected revenue by Motorola Solutions, Inc. « Addressing large and growing market segments *, Smart & Safe City: $1 trillion market with annual growth rate of 22% Kd Supply
Slide 33: Appendix
Appendix 7) QUEST x Supply Chain Mobility & Artificial Intelligence-Based Solutions Consult | Design | Deploy | Manage oTCaB: QUES 33
Slide 34: Our ANPR System
Our ANPR System Scalable license plate recognition (LPR) and vehicle recognition system as a Software-as-a-Service (SaaS) Collection and transmission of . ‘ H Processing of information received from imaging units Image capturing with 99% accuracy Analysis of data and reporting of essential insights
Slide 35: Building Extensive Database of Vehicle Data
Building Extensive Database of Vehicle Data Opportunity to sell collected data and analytics to enterprises in end-user industries Size’ ~$65.0 Billion Big Data Market Growth Rate’ 14.0% CAGR Market Drivers Artificial intelligence Proliferation of real-time data from mobile devices, ~$10 Per Record/
Slide 36: Integrating AI Technology into Supply Chain
Integrating Artificial Intelligence-Based (Al) Technology into Supply Chain Al will generate up to $2 trillion’ in additional value in Supply Chain and Manufacturing Integration of recently acquired Al technology into Supply Chain offering allows for 24/7 automated logistics monitoring and optimizat
Slide 37: Pro-Forma Balance Sheet Summary
Quest Solution, Inc. & HTS Image Processing, Inc. Pro-Forma Balance Sheet Summary as of 9-30-18 (unaudited)* cash Restricted Cash 532 5 532 ‘Accounts Receivable, Net 10,669 4,030 (1,908)(a4) 12,790 Inventories, net 1,058 4,421 2,479 Prepaid expenses and other current assets 413 m 584 TOTAL CURRENT A
Slide 38: Pro-Forma Balance Sheet Summary Notes
est Solution, Inc. & HTS Image Processing, Inc. Pro-Forma Balance Sheet Summary Notes: (a) This entry reflects the preliminary allocation of the purchase price to identifiable net assets acquired and the excess purchase price to Goodwill as follows: Book value of net assets acquired “ HTS's equity 9
Slide 39: Restructuring & Strengthening Balance Sheet
Restructuring & Strengthening Balance Sheet Objective Continue to drive significant balance sheet improvement Progress Increased stockholders’ equity by $15M since June 30, 2017 Eliminated certain debt and enhanced financial strength, resulting in millions of future cash savings Increased Adjusted E
Slide 40: Adjusted EBITDA Reconciliation
st Solution, Inc. Adjusted EBITDA Reconciliati 9 months ending September 3 (4,336,747) $(1,682,497) Income Taxes 44,356 91,409, Depreciation & Amortization 1,312,218 1,324,345 Interest Expense 962,769 1,075,147 Non Cash stock compensation 1,124,553 565,593 Debt conversion expenses 1,264,237 - Restru
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