Freightos Limited · NASDAQ:CRGO
Freightos — SPAC Merger (June 2022)
51 slides from Freightos's SPAC merger presentation, Jun 1, 2022
Slide 1: The Freightos Group: Making global trade frictionless
The Freightos Group Making global trade frictionless The global freight booking platform, addressing the monumental challenges of global supply chain June, 2022
Slide 2: Disclaimer
Disclaimer About this Presentation This investor presentation (this “Presentation”) is for informational purposes with respect to the proposed business combination (the “Business Combination”) between Gesher I Acquisition Corp. (“Gesher”) and Freightos Limited (“Freightos”) and for no other purpose.
Slide 3: Disclaimer
Disclaimer Use of Projections This Presentation contains financial forecasts with respect to Gesher and Freightos’ projected financial results, including gross revenue, platform revenue, SaaS revenue, gross profit, EBITDA and free cash flow. Neither Gesher’s nor Freightos’ independent auditors have
Slide 4: Presenters and Agenda
Presenters Agenda Zvi Schreiber, CEO Freightos Group Executive Summary Serial entrepreneur with Market Overview acquisitions by GE & IBM. PhD (computer science), author of Freightos Overview articles, patents and books. Financials and Predictable Growth Transaction Terms and Comparables Ruthie Amaru
Slide 5: The booking and payment platform of international freight
The booking and payment platform of international freight The premier vendor-neutral platform for air and ocean shipping, supporting supply chain efficiency and agility with real-time freight procurement. Needed now more than ever to fix the trillion dollar global freight industry. Easy peasy. Freig
Slide 6: Making the complexities of global trade shockingly simple
6 Making the complexities of global trade shockingly simple. View at http://ship.to/vid-1 ‹# ›
Slide 7: The prime public pure-play global freight platform opportunity
The prime public pure-play global freight platform opportunity Total 3PL Market Size ‘26(E) Massive investment opportunity in a huge, offline, and inefficient industry 1 $1.8 trillion 2023(P) GBV Leading end-to-end international freight booking and payment platform $1.65 bn ‘19 Q1-’22 Q1 GBV CAGR Su
Slide 8: Outstanding leadership: Key Board Members
Outstanding leadership Key Board Members Vast board and senior management experience Zvi Schreiber Guillaume Halleux CEO CEO Freightos Group Qatar Airways Cargo * * Inna Kuznetsova Ezra Gardner CEO CEO 1010data, former INTTRA Gesher I Acq. Corp Bob Mylod Michael Eisenberg Chairman Partner Booking Gr
Slide 9: Outstanding leadership: Executive Team
Outstanding leadership Executive Team Manuel Galindo Ran Shalev Zvi Schreiber CEO Chief Financial Officer Founder & CEO WebCargo Former COO & CFO of a GE supply Serial entrepreneur with acquisitions chain company and CFO of software Founded WebCargo in college, by GE & IBM. PhD technologist, author
Slide 10: Freightos Group Profile
Freightos Group Profile Brands Key Data Funding to date Established Team Group name and primary brand for importers/exporters. Freightos.com is our flagship booking platform for importers $120m and exporters. We also publish data indexes under the 2012 330+ Freightos brand. Highlights of business co
Slide 11: Growth Strategy ordered by priority
Growth Strategy ordered by priority 2. As customer value increases, can increase platform take-rate 1 1. Continue to aggressively scale GBV ($k) from buyers & sellers, growing net revenue ($m) 4. Stay capital efficient with modest cash burn and 3. Drive gross profit margin higher free cash flow/GBV
Slide 12: Agenda
12 Agenda Executive Summary Market Overview Freightos Overview Financials and Predictable Growth Transaction Terms and Comparables ‹# ›
Slide 13: 3PL market projected to reach $1.8 trillion / year by 2025
1 3PL market projected to reach $1.8 trillion / year by 2025 with 9% CAGR. It is the engine driving the global economy. Freightos is the leading platform connecting Platform for Transportation Services Goods global trade 2021 2 Courier / Express / Parcel $22.5 trillion Ocean container freight Air ca
Slide 14: Freight is one of the last industries with layers of non-digitalized intermediaries
Freight is one of the last remaining industries with layers of non-digitalized intermediaries Importers Freight Carriers Freight Freight /Exporters Forwarders Forwarders Forwarders ‹# ›
Slide 15: International freight is broken
As a result, international freight is broken. It is intermediated, offline, complex, and expensive. Everyone pays. Shipment Management Pricing and Booking Capacity utilization ~50% of air cargo holds empty Slow quoting 2 pre-COVID 2-3 days average quote 1 turnaround Complex coordination ~30 actors i
Slide 16: Global supply chains are fragile and prone to disruption
Global supply chains are fragile and prone to disruption. The result? Inventory shortages, high cost and persistent volatility. “The World Is Still Short of Everything. Global freight typical 1 cost per product August 2021 Get Used to It” 2020 2022 “Supply-Chain Logjam of Holiday $58 $595 December 2
Slide 17: Platforms digitalize the world, unlocking huge value
Platforms digitalize the world, unlocking huge value. Now they can solve supply chain crises. Siloed Digitalization Platformication Individual company digitalization without full Vendor-neutral digital infrastructure across a connectivity (eg individual ecommerce sites) variety of players, unlocking
Slide 18: Agenda
18 Agenda Executive Summary Market Overview Freightos Overview Financials and Predictable Growth Transaction Terms and Comparables ‹# ›
Slide 19: Freightos: The Global Freight Booking and Payment Platform
Freightos: The Global Freight Booking and Payment Platform Improving freight pricing, booking efficiency, capacity utilization, and global trade efficiency as an agonistic player - not as a carrier, forwarder, or broker ← WebCargo → ← Freightos.com→ Carriers Forwarders Importers/ exporters Freightos
Slide 20: Freightos: The Global Freight Booking and Payment Platform: Industry Traction
Freightos: The Global Freight Booking and Payment Platform Industry Traction Carriers ← WebCargo → Forwarders ← Freightos.com→ Importers/ exporters Freightos Platform Freightos SaaS & Data 41% 35% 3,500+ 5+ 10,000 19/20 3 Global 1000 pilots Ocean capacity in Cumulative Air cargo Global forwarders To
Slide 21: All underpinned by WebCargo, the largest air cargo carrier/forwarder platform
All underpinned by WebCargo the largest air cargo carrier/forwarder platform View at http://ship.to/vid-2 ‹# ›
Slide 22: Simplifying complexity with a powerful tech stack
Simplifying complexity with a powerful tech stack Total Data Points Fastest signup to book Bookings / Support Interaction Max services considered/ search 58 seconds 3+ billion 23 2+ million Data Points Added Monthly Person-years of engineering Total Annual Searches (‘22E) 50 million 500+ ~10 million
Slide 23: From Lead Gen to Revenue
From Lead Gen to Revenue And one more thing... Price insights driving transparency & efficiency Large Data Opportunity Index-linked dynamic pricing Major brand visibility in top tier publications Futures listed on View Freightos Baltic Index User Signups Over 50,000 registered users, including many
Slide 24: ESG: Facilitate elimination of a billion wasted tonnes of carbon emissions
ESG: Facilitate elimination of a billion wasted tonnes of carbon emissions every year with visibility and improved utilization 1-2% of global carbon 1 emissions Under 50% of total cargo capacity used 2.9% of global carbon 2 emissions Standard-compliant global freight emissions visibility Measure it.
Slide 25: Critical mass achieved in 2020 driving explosive growth
Critical mass achieved in 2020 driving explosive growth. Strong growth despite COVID and still accelerating. Total bookings Real-time GBV ($k) 27
Slide 26: Making global freight dramatically smoother
Making global freight dramatically smoother. Airline Forwarder Enterprise Importer / Exporter SME Importer / Exporter “Realized 10% air cargo cost “Unparalleled visibility into “WebCargo is already playing a “It used to take three hours to savings and dramatic time the freight process...I know key r
Slide 27: Making global freight smoother for the people that move the world
29 Making global freight smoother for the people that move the world. View at http://ship.to/vid-3 ‹# ›
Slide 28: Bringing sexy back to freight
75K+ “ “ Bringing sexy back to freight Dominant LogTech brand with top 5 1 Share of Voice at 2.5m+ web visitors “Today, we have new data from Freightos, a leading freight indicator…that shows shipping prices have declined by almost 25 percent over the past two weeks.” Publication Mentions “But air f
Slide 29: Building a highly defensible moat with winner-takes-most implications
Building a highly defensible moat with winner-takes-most implications DATA TECH NETWORK ‹# ›
Slide 30: Agenda
32 Agenda Executive Summary Market Overview Freightos Overview Financials and Predictable Growth Transaction Terms and Comparables ‹# ›
Slide 31: Strong GBV growth proven with network effect
Strong GBV growth proven with network effect New buyers/sellers create new permutations and attract more users ‹# › ($m)
Slide 32: A strong and growing network of international carriers
A strong and growing network of international carriers, attracted by a decade of demand aggregation Top 10 Ocean Liner Top 10 Ocean Liner Top 5 Ocean Liner Vanguard Logistics Top 5 Ocean Liner ECU Worldwide Top 3 LCL consolidator More top airlines TAP coming Turkish Cargo soon Qatar Cargo Condor Fed
Slide 33: Airline Bookings Snapshot: Predictable and rapid booking growth
Airline Bookings Snapshot: Predictable and rapid booking growth Strong cadence of new buyers, sellers → quadratic bookings growth Consistent carrier growth Multiply to give consistent Continued user growth ~1 new airline accelerating booking ~16 / workday growth every month ‹# ›
Slide 34: Airline Bookings Snapshot: Predictable airline eBooking growth with high retention
Airline Bookings Snapshot: Predictable airline eBooking growth with uncommonly high retention #Transactions - cohort of forwarder's 1st booking month as % of 1st Unique airline Buyer (forwarder) retention by monthly cohort 1 month. 20x “same store sales” (same forwarder bookings) by month 22 as % of
Slide 35: Airline Bookings Snapshot: Decisive 3x lead over closest competitors
Airline Bookings Snapshot Decisive 3x lead over closest competitors 1 Total capacity of airlines digitalized on WebCargo vs. competitors Q1/2 2022 Onboarding by AFTK ‹# Sources: 1. IATA WATS 2021, Internal, Competitor Announcements ›
Slide 36: Financial Highlights: Prioritizing capital-efficient GBV growth
Financial Highlights: Prioritizing capital-efficient GBV growth Followed by monetization with long term target take rate of 10% in total from all parties ($m) 2020PF 2021PF 2022PF(E) 2023E Net Revenue (and gross profit) Gross Booking Value (GBV) $ 69 $ 302 $ 669 $ 1,651 % Growth 339% 121% 147% Gross
Slide 37: Glossary of non-GAAP Terms
Glossary of non-GAAP Terms Description Platform Volume KPIs Transactional bookings for freight and related services placed by Buyers across Freightos Platforms (WebCargo, Freightos.com, ClearIt) #Transactions with third party sellers or with Clearit ( Sellers ), minus canceled transactions. #Buyer u
Slide 38: Agenda
40 Agenda Executive Summary Market Overview Freightos Overview Financials and Predictable Growth Transaction Terms and Comparables ‹# ›
Slide 39: Why go public? Why with a SPAC?
Why go public? Why with a SPAC? We are using the SPAC structure the way it was intended Timing Capital, currency, Long term Capital markets Supply chains issues transparency investors expertise Why Gesher? Why public markets? Why now? Why a SPAC? The Gesher team brings Greater access to growth capit
Slide 40: The Gesher View
ist FREIGHTOS The Gesher View
Slide 41: The Gesher Criteria
The Gesher Criteria And how Freightos ticked all five boxes ✓ Exceptional management with a proven track record ✓ Successfully addressing a large untapped market opportunity with cost-efficient scalability ✓ Market leader ✓ Business model with strong growth predictability ✓ Good reason to go public
Slide 42: Growth with Capital Efficiency
Growth with Capital Efficiency Gross Bookings Value and Revenue YoY Growth Rate - 2022E-2023E 2022E Sales & Marketing as % of GBV Gross Booking Value Year-over-Year Growth Rate (%): 2022E–2023E Revenue Year-over-Year Growth Rate (%): 2022E–2023E Median: 5.5% Median: 24% Median: 23% Sources: Company
Slide 43: Marketplace Benchmarking (21'-22)
Marketplace Benchmarking (21’-22) Q1 2022A Gross Booking Q1 2022A Gross Booking Gross Margins (‘21 and ‘22E) Value Per User ($) Value Per Transaction ($) $10,027 $1,099 $1,186 N/A $227 $15 1 $124 $31 $63 N/A N/A $125 Sources: Company filings, S&P Capital IQ and FactSet Note: Market Data as of 05/27/
Slide 44: Marketplace Benchmarking (22'-23)
Marketplace Benchmarking (22’-23) Total Enterprise Value to 2022E and 2023E GMV or GBV Multiple (x) 2023E Median: 0.69x Sources: Company filings, S&P Capital IQ and FactSet ‹# Note: Market Data as of 05/27/22 ›
Slide 45: Transaction Summary
Transaction Summary Transaction Overview (Assuming all non-Committed trust redeemed) Pro forma capital structure 2 Public SPAC Shareholders 6.0% 7 Freightos Pro Forma Total Enterprise Value (“TEV”) of approx. $435mm Gesher I Sponsor Share ● Implied Pro Forma TEV / Gross Booking Value (“GBV”) multipl
Slide 46: Making global trade frictionless
Making global trade frictionless.
Slide 47: Q&A
Q&A Ran Shalev, CFO Ruthie Amaru, CPO Zvi Schreiber, CEO Ezra Gardner, CEO Freightos Group Freightos Group Freightos Group Gesher I Acquisition Corp.
Slide 48: Appendix
« Se oa ae \- re Appendix ‘iad FREIGHTOS:
Slide 49: Current traction the result of a deliberate strategy towards a three-sided platform
Current traction the result of a deliberate strategy towards a three- sided platform connecting forwarders, carriers and importers 1 Forwarders 2012 SaaS & Data to 2018 Airline APIs 2 2018 Importers/ ← Freightos.com→ Carriers ← WebCargo → Forwarders exporters to 2021 SaaS & Data Ocean APIs Payments
Slide 50: Freightos Group Competition
Freightos Group Competition Freightos is the only comprehensive transactional global freight booking platform. There are niche competitors for specific parts of our stack, in most cases Freightos the clear leader ← WebCargo → ← Freightos.com→ Carriers Forwarders Importers/ exporters Freightos Platfo
Slide 51: Three-sided marketplace platform
Three-sided marketplace platform ← WebCargo → ← Freightos.com→ Carriers Freight Forwarders Shippers Transcript of Presentation Videos After slide 5 (freightos.com overview) Hey. I don’t need to tell you how many (beep) things are being shipped around the world right now. My next shipment, I need to