Kore Group Holdings, Inc. · NYSE:KORE
Kore — KORE Wireless — SPAC Merger (April 2021)
22 slides from Kore's SPAC merger presentation, Apr 12, 2021
Slide 1: KORE: Sales Presentation April 9, 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 KORE: Sales Presentation April 9, 2021Fi
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: CTAC & KORE Leadership
CTAC & KORE Leadership Cerberus Telecom Acquisition Corp. (CTAC) KORE Tim Donahue Nick Robinson Michael Palmer Romil Bahl Puneet Pamnani Chief Executive Co-Chief Co-Chief Chief Executive Chief Financial Officer Investment Officer Investment Officer Officer Officer CTAC CTAC CTAC KORE Wireless KORE W
Slide 5: Transaction overview
Transaction overview Summary of KORE and CTAC proposed business combination th • On December 24 , 2020, KORE and CTAC executed a non-binding term sheet setting forth the potential terms of a business combination Transaction Timing • Definitive documentation was signed March 12, 2021 • The transactio
Slide 6: Sources & uses / pro forma valuation
Sources & uses / pro forma valuation ($ in millions) Estimated Sources & Uses Illustrative Pro Forma Valuation Illustrative Share Price $ 10.00 Sources ($mm) 5 Pro Forma Shares Outstanding 90.3 1 Existing KORE Shareholders Equity Rollover $ 346 38.3 % Implied Equity Value $ 903 2 SPAC Cash in Trust
Slide 7: Key investment highlights
Key investment highlights 1 1. KORE is a pure-play IoT company and helps customers Deploy, Manage and Scale their IoT applications a. Differentiated, one-of-a-kind competitive position in the market with Connectivity, Solutions and Analytics SaaS and PaaS services b. Only non-carrier to be ranked as
Slide 8: KORE at a glance
1 KORE at a glance Leading global, independent provider of mission critical IoT solutions • KORE is a market leader in enabling end-to-end IoT solutions for enterprises • Trusted advisor, enabling our customers to Deploy, Manage and Scale their IoT solutions Who We Are • Blue chip customer base incl
Slide 9: KORE business model: offering high demand IoT services
1 KORE business model: offering high demand IoT services Product line Products Product description Primary pricing method • IoT connectivity services offered through market leading IoT platform ‘KORE One’ Connectivity • Our connectivity solutions allow devices to seamlessly and securely connect as a
Slide 10: KORE differentiators and IoT customer use cases
1 KORE differentiators and IoT customer use cases • KORE differentiators• KORE customer IoT use cases Connected ✓ 44 carrier integrations (each takes ~2 years) Fleet Mgmt. Blood Sugar ✓ Industry leading KORE One platform (7 engines) Monitors ✓ ConnectivityPro service and related APIs Connectivity ✓
Slide 11: KORE is well positioned in the early innings of an exciting growth opportunity in IoT
2 KORE is well positioned in the early innings of an exciting growth opportunity in IoT 2020 2025 2030 $906B $382B $608B $250B $78B $269B ~$7 Trillion $35B $48B Applications & Platforms Managed Services Connectivity 3% 5% 2% 7% 12% 10% 5% 12% 12% 40% 57% 10% 21% 78% 26% Connected Devices = 22 billio
Slide 12: Significant potential growth opportunity
2 Significant potential growth opportunity IoT connections by technology 80,000 of total mobile data over 5G 45% (1) • CaaS networks 70,000 ‐ Licensed Broadband & Critical IoT ‐ Unlicensed (4G/5G) Low-Power Wide- ‐ Satellite Area Connections 60,000 2.7B (2) by 2025 Massive IoT • CEaaS (Licensed LPWA
Slide 13: 5G will enable a connected planet
2 5G will enable a connected planet Construction and mining Digitized education $1.1T $0.3T Precision agriculture Connected healthcare $0.3T $1.1T Powering the digital economy $13.2 Trillion in global economic value by 2035 $2.3T $2.2T Richer mobile Smart city experiences $4.7T $1.2T Smart manufactu
Slide 14: IoT deployments are extremely complex
3 IoT deployments are extremely complex • Top challenges in IoT deployments• KORE’s IoT in a Box 1 2 3 4 Lack of in- Technology Connectivity, IoT Strategy & Deployment house IoT Evaluation, Device & End-to-End (forward expertise and Selection, Data Security logistics) resources Dev. Management Inabi
Slide 15: Customer case study: Customer #1
3 Customer case study: Customer #1 Customer #1 is a multinational medical devices company. KORE works with the cardiac monitoring (pacemakers and related devices) division, which is a market leader in this line of products. It has been KORE’s customer for >10 years. Cardiac Device Bedside Monitor KO
Slide 16: KORE IP
4 KORE IP 1. KORE One Platform KORE Technology Secure, universal data KORE One Streaming processing pipe Connected Devices Carrier Partnerships 4. IoT Network KORE One Analytics Data analytics and reporting Services KORE Data routing gateway KORE One Aggregator including cloud ConnectivityPro KORE S
Slide 17: Extremely high level of '21P-'25P revenue visibility
5 Extremely high level of ’21P-’25P revenue visibility 2021P – 2025P Revenue Visibility ($ in millions) Installed Base ~99% ~97% ~91% ~86% ~83% as of 2021P Installed Base ~97% ~90% ~83% ~79% ~75% as of 2020A $ 414 $ 70 $ 333 $ 30 $ 44 $ 276 $ 68 $ 26 $ 22 $ 238 $ 219 $ 22 $ 58 $ 17 $ 5 $ 50 $ 34 $ 4
Slide 18: Pro forma financial summary
6 Pro forma financial summary Historicals Prelim. Forecast CAGR 3 3 (US$ in millions) 2019A 2020P 2021P 2022P 2023P 2024P 2025P '21P-'25P CaaS $ 125 $ 137 $ 144 $ 163 $ 187 $ 213 $ 246 14 % % Growth 9 % 9 % 5 % 13 % 15 % 14 % 15 % IoT Solutions 47 55 59 70 89 120 168 30 % % Growth 20 % 16 % 8 % 17 %
Slide 19: KORE's TCV wins increased by 69% in 2020
6 KORE’s TCV wins increased by 69% in 2020 Estimated TCV (Total Contract Value) of Wins by Quarter $ 58 $ 51 $ 44 $ 42 $ 33 $ 27 $ 20 $ 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 2019 TCV: $110MM 2020 TCV: $186MM +69% TCV Growth Note: Total Contract Value (TCV) is the estimated revenue from
Slide 20: KORE's SIM growth momentum is accelerating
6 KORE’s SIM growth momentum is accelerating 2020 sequential SIM growth for Go Forward 2020 average SIM count for Go Forward customers customers (in M) (in M, % of total) Annualized 10.9 18% 10% 29% 48% Growth : 10 % 9.7 1.2 9.1 8.9 12 % 10 % 9 % 64 % 0.6 60 % 63 % 64 % 0.4 0.2 26 % 27 % 27 % 26 % Q
Slide 21: KORE's growth acceleration to ~$1B in sales
7 KORE’s growth acceleration to ~$1B in sales 2 ~ $900M 1 ~$ 700M Robust M&A pipeline of Edge and AI strategic and analytics accretive portfolio opportunities Pre-configured expansion Selling existing IoT industry customers solutions $ 219M multiple services Customer portfolio growth > 20% New custo
Slide 22: Valuation Benchmarking
7 Valuation Benchmarking Commentary EV / 2022E Revenue Median: 5.7x Median: 17.5x 22.0x 18.9x 17.5x • This Transaction provides an 8.5x 1 6.3x 6.2x 6.2x attractive entry 5.7x 4.3x 4.0x 2.5x point…deal valuation at KORE PTC ALRM TRMB INSG VG ZM TWLO RNG EGHT BAND significant discount to benchmarks —