Kore Group Holdings, Inc. · NYSE:KORE
Kore — Investor Presentation (December 2023)
32 slides from Kore's investor presentation, Dec 1, 2023
Slide 1: Investor Presentation December 2023
Investor Presentation 1 December 2023
Slide 2: Disclaimers: Forward-Looking Statements
Disclaimers 2 Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. KORE's actual results may differ from their expectations, estimates and projections and consequ
Slide 3: Summary Messages and 2023 Outlook
$280-290mm $60-62mm 2023 Revenue Outlook 2023 Targeted Adjusted EBITDA Added over 3.5 million Connections YTD through Q3’23 Total Connections now ~18.9 million Added $87 million of TCV year-to-date through Q3’23 (+12%) Global Sales Pipeline almost 1,700 Opportunities as of September 30, 2023 Delever
Slide 4: KORE at a glance
KORE at a glance 4 • Market leader in enabling end-to-end IoT solutions for enterprises • Trusted advisor, enabling our customers to Build, Deploy, Manage and Scale their IoT solutions • Blue chip customer base including market leading Fortune 500 enterprises and innovative solutions providers acros
Slide 5: Product lines and pricing method
Primary pricing methodProduct line Product description IoT Connectivity 66% of 20221 80% of Q3 20232 Per subscriber per month for lifetime of device (7-10 years and growing) Multi-year contracts with automatic renewals IoT Solutions 34% of 20221 20% of Q3 20232 • IoT connectivity services offered th
Slide 6: IoT use cases are everywhere… deployments are complex
IoT use cases are everywhere… deployments are complex • Top challenges in IoT deployments Inability to contextualize and analyze data Challenges in interoperability and compatibility Lack of solution deployment planning and experience Issues in compliance with regulations Fragmented ecosystem requir
Slide 7: Successful IoT Deployments Require Key Steps
Successful IoT Deployments Require 7 Key Steps • How these services are delivered through KORE and Partners 7Delivery: KORE Internal KORE & Partner Hybrid Partner 1.1 Business Outcomes / Business Case 2.1 Architecture 3.1 Network(s) Selection / Carrier Contracts 4.1 Forecast Management 5.1 Technical
Slide 8: 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 fas
Slide 9: Customer use case: Cardiac rhythm monitoring
Customer use case: Cardiac rhythm monitoring KORE Service DeliveryDelivery: 9 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 10: Well positioned in the early innings of an IoT growth opportunity
KORE is well positioned in the early innings of an exciting growth opportunity in IoT 10 2020 2025 2030 Io T M ar ke t ( $b n) De vi ce s (b n) Applications & Platforms Managed Services Connectivity $906B ~$7 Trillion $382B $78B $35B $269B $250B $608B $48B IoT Devices = 12 billion Connected Devices
Slide 11: Five focus industry sectors are growing fast
KORE’s five focus industry sectors, representing 80%+ of the IoT market, are growing fast 5G will drive significant new use cases in mission critical applications across KORE’s target industries Industry Vertical 2020P-2025P Market CAGR Internet of Things Use Cases 34.2% 29.4% 22.4% 17.5% 17.3% Remo
Slide 12: Acquisition of Twilio's IoT division
15 • On June 1st KORE completed the acquisition of Twilio’s IoT division which accelerates KORE’s growth strategy and offers customers a unified, seamless method of launching IoT services • Twilio received 10mm shares of KORE common stock (~11.6% of issued and outstanding shares) • Combined entity w
Slide 13: Evolution Roadmap
Massive IoT 5G, edge analytics off KORE One platform Accelerating 5G adoption Lead with the promise of “AI + IoT” Edge compute maturity 2030 Healthy revenue mix connectivity / solutions / analytics 2018 - 2022 Strategy for “KORE 3.0” finalized Transformation program and investments approved One Team
Slide 14: KORE company history: KORE 1.0, 2.0, 3.0
Founded in 2003 Early machine-to-machine focus Established North America market position with AT&T and Rogers Launched first generation IoT platform PrismPro KORE 1.0 Establishing IoT Pioneer (2003 – 2013) ~1.5M devices Global geographic expansion Key acquisitions Expansion into different verticals
Slide 15: Why Invest In KORE?
15 Why Invest In KORE? KORE is the Only Public IoT Pure-Play KORE’s singular focus is on helping customers adopt IoT. We simplify the complexities that have held IoT back, and we help our customers Deploy, Manage and Scale their IoT use cases. KORE orchestrates the IoT ecosystem, and provides IoT co
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Slide 17: Benefits of the refinancing transactions
For KORE, the benefits of these transactions include: • A reduction of total debt from approximately $424 million to $305 million • Extended KORE debt maturity, with no material maturities of debt until late 2028 and an undrawn revolving credit facility of $25 million • A reduction in required cash
Slide 18: Summary of Refinancing Transaction
Summary of Refinancing Transaction 18 (in Millions) Pre-Transaction Capital Structure Post-Transaction Capital Structure Investment Structure $300.2M First Lien Term Loan at SOFR +550bps $185M First Lien Term Loan at SOFR +650bps $150M Preferred Equity, 13% Coupon (Cash or PIK) Total Common Shares O
Slide 19: Q3'23 Financial Performance
19 Q3’23 Financial Performance (1) DBNER is calculated by dividing trailing twelve-month revenue by prior year trailing twelve-month revenue for the same customer cohort in both periods. Excludes revenue from both non go-forward customers, and new customers that started generating revenue after the
Slide 20: Q3'23 Reconciliation of Net Loss to EBITDA, Adjusted EBITDA
Q3’23 Reconciliation of Net Loss to EBITDA, Adjusted EBITDA 20 Columns may not sum due to rounding (In millions USD) 2023 2022 2023 2022 Net loss ($95.4) ($14.3) ($133.4) ($36.6) Net loss margin (139.1%) (21.6%) (65.3%) (17.8%) Income tax benefit (3.1) (1.8) (4.0) (6.3) Interest Expense 10.6 8.2 31.
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Slide 22: IoT market is accelerating, driven by significant tailwinds
• CaaS(1) - Licensed - Unlicensed - Satellite • CEaaS (2) - CNaaS - CMPaaS - PNaaS • IoT Solutions (3) - Managed Services - Analytics 22 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 C on ne ct io ns (M illi on s) IoT market is accel
Slide 23: Leading offering, backed by extensive IP, creates sustainable competitive moat
Leading offering, backed by extensive IP, creates sustainable competitive moat 23 • ConnectivityPro service and related APIs • eSIM technology stack/ proprietary IP • Hypercore technology Connectivity IoT Solutions • Deep industry vertical knowledge and experience ‒ Connected Health – FDA, HIPAA, IS
Slide 24: Revenue by Customers
Revenue by Customers1 Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customers 6 - 10 Well-diversified Revenue Across Blue-chip Customer Base with Truly Global Coverage No customer represented more than 6.0% of total gross profit for 2022 • Outside of Customer 1, a KORE customer for 10+ year
Slide 25: Long track record of customer retention
25 Long track record of customer retention 103% 103% 106% 108% 113% 114% 122% 122% 114% 100% 92% 107% 99% 96% 112% 110% 115% 114% 109% 108% 103% 126% 115% 104% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 DBNER DBNER excluding larges
Slide 26: Global Sales Pipeline as of September 30th, 2023
Global Sales Pipeline as of September 30th, 2023 26 Total Qualification & Technical Evaluation Stage Proposal Stage Contract Signed Stage Beta Site Stage Total Closed Won $27 million TCV Closed Won 1,679 Opportunities $740 million TCV
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Slide 28: KORE is the only pure play IoT enabler
Enterprises IoT Applications Analytics Visualization IoT & Enablement Onboard Configure Monitor Manage Secure Deployment & Edge Device Management KORE KORE fully delivers 44 of the 49 steps required to deploy an IoT Solution, and partners with others to deliver another 5 steps. KORE can help manage
Slide 29: KORE's Technology Stack Enables IoT Services
29 KORE’s Technology Stack Enables IoT Services IoT Devices / Other Devices SIM, eSIM, iSIM Enterprise / Solution Provider Applications KORE One Streaming KORE One Aggregator Platform Functions AnalyticsBilling Network IntelligenceIntegration Carriers Enterprise Apps KORE One Interface (User experie
Slide 30: Intellectual property designed to enable customer outcomes
30 Intellectual property designed to enable customer outcomes Edge Global Connectivity Comprehensive Data Management Services Security and Network Intelligence Location Based Services KORE One Services Connected Health Services Customer Outcomes End-to-end IoT Solutions Dev Ecosystem Pu bl ic R es t
Slide 31: KORE's comprehensive offering is without peer in today's market
31 KORE’s comprehensive offering is without peer in today’s market 31 IoT Strategy & End-to-End security Analysis & Optimization Technology, Evaluation, Selection, Dev Connectivity, Device & Data Management Deployment (forward logistics) Operations Management & Support Sustainment (reverse logistics
Slide 32: Key Highlights
32 IoT market is accelerating, driven by significant tailwinds for the next decade1 Leading IoT offering, backed by extensive IP, creates sustainable competitive moat2 Well-diversified customer base3 Highly recurring revenue with long term visibility4 Long track record of customer retention5 Key Hig
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