Rekor Systems, Inc. · NASDAQ:REKR
Rekor Systems — Investor Day (September 2021)
36 slides from Rekor Systems's investor day presentation, Sep 14, 2021
Slide 1: Rekor Investor Day
=> REKOR INTELLIGENCE DRIVEN INNOVATION Investor Day September 14, 2021
Slide 2: Company Disclosure Statement
Company Disclosure Statement ‘This presentation includes statements concerning Rekor Systems, Inc. and its future expectations, plans and prospects that constitute "forward- looking statements" within the ‘meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Secur
Slide 3: Our mission
Our mission Drive the world to be
Slide 4: Our next generation operating system built for intelligent infrastructure
Our next generation operating system built for intelligent infrastructure —| Cross-Agency Sam Incident Management Sa] N SS Various ‘Commercial
Slide 5: Intelligent Infrastructure is created through advanced data fusion and artificial intelligence
Intelligent Infrastructure is created through advanced data fusion and artificial intelligence transforming data into actionable insights cy Global total addressable market is expected to grow to $148 billion by 2026 () ca Emerging sector with strong tailwinds in need of technological disruption fro
Slide 6: Today's speakers and agenda
Today’s speakers and agenda Intro and Company Overview Presented by: Robert A. Berman President, CEO, Director Current Industry Landscape Presented by: Noam Maital Founder. Waycare Product & Technology Presented by: Matt Hill Chief Science Officer & Ayala Rosenbaum Head of Product Management. Go-to-
Slide 7: Current industry landscape
REKOR INVESTOR DAY Current industry a landscape ee
Slide 8: Legacy infrastructure
Legacy infrastructure @ Building more and more roads was the primary objective @ Used old, manual methods to plan and build @ Not built to withstand elements and last over 60 years
Slide 9: Current infrastructure requires data that has proliferated far beyond traditional ITS devices
Current infrastructure requires data that has proliferated far beyond traditional ITS devices Traditional Today Typically solely reliant on physical ITS Physical and virtual data transmitted through infrastructure connected vehicles and apps
Slide 10: Driving disruption in a burgeoning market
Driving disruption in a burgeoning market The intelligent infrastructure industry is at the epicenter of converging forces driving disruption in the market. Rising Costs ‘of Congestion
Slide 11: Intelligent infrastructure industry is large and growing
Intelligent infrastructure industry is large and growing $148.1B A oe sot $1265B $108.3 B $929B $79.98 $68.0B | 2021 2022 2023 2024 2025 2026 Global Total Addressable Market Size (USD Billions)
Slide 12: Current processes in the transportation space are archaic and broken
Current processes in the transportation space are archaic and broken CCTV Monitoring (Manual) . Vehicle Count Sensors Antiquated Radar Public . Outreach Traffic Signal | % _. System e : -_a a y
Slide 13: Growth is driven by challenging the status quo to accelerate Intelligent Infrastructure
Growth is driven by challenging the status quo to accelerate Intelligent Infrastructure Purpose built systems Streamlined data intake Automated analytics (best-in-class hardware and innovative software (systems automatically capture, process, and send (cloud-based dashboard updates in real-time for
Slide 14: Increasing volume of data and need for actionable solutions
Increasing volume of data and need for actionable solutions /R 46x data 276 GB per day for connected vehicle and 3" party data Industry Gap Actionable solutions
Slide 15: Safety and efficiency impact by the numbers
Safety and efficiency impact by the numbers 9.71% a\ 18% Decrease in GHG emissions within the Reduction in primary crashes on monitored roads. spatiotemporal region affected by incident 21% = 43% SS Of speeding drivers reduced their speed to adhere to Increase in incidents identified speed limit aft
Slide 16: Product and technology
REKOR INVESTOR DAY Product and technology
Slide 17: Hybrid cloud & edge processing: differentiated technology
Hybrid cloud & edge processing Differentiated technology: Setting a new standard in real-time intelligence Systems agnostic Multi-agency support Al-driven : : . insights Rekor's innovative and differentiated technology combines to create a Third-party complete, disruptive intelligent partners infras
Slide 18: Transforming unstructured data into value-added insights and predictive solutions
Transforming unstructured data into value-added insights and predictive solutions Advanced Data Collection Intelligent Data Processing Innovative Solutions Traffic Incidents = Q } incident identification Traffic Detectors | U— 3) Traffic Disruption Connected Vehicles. (i eS Crash Prediction Weather
Slide 19: Data collection and aggregation: Proprietary optical sensors with edge processing
Data collection and aggregation: Proprietary optical sensors with edge processing Deploying Rekor’s unique algorithms on proprietary optical sensors allows for the detection of a variety of conditions, collecting of additional data, and providing of greater insights.
Slide 20: Data collection and aggregation: Leveraging existing infrastructure and third-parties
Data collection and aggregation: Leveraging existing infrastructure and third-parties Existing infrastructure Third-party data types 2 h eS & & B GF aS € ¢ a es © Probe Fleet Event ce Controllers Data Telematics ‘Attendance
Slide 21: Broad and growing third-party data network
Broad and growing third-party data network Rekor’s broad data partner network allows it to aggregate data from various sources to build a more complete picture of the road. vourvo | @waze aws otonomo @ moronora yw GeoTAB | wejo INRIX Px mojio ticketmaster G eranicus N nexar 37 tomorrow @ECONOLITE
Slide 22: Proprietary AI and machine learning algorithms
Proprietary Al and machine learning algorithms are applied to benefit many facets of our technology Al ‘oT | @) @!) Visual Recognition Incident Detection Predictive Analytics OTL
Slide 23: Rekor One intelligence platform
RE KOR oO N E Single intelligence platform INTELLIGENCE PLATFORM Serving multiple missions Real-Time Traffic & Safety Management >. Real-Time Roadway Analytics ’ ga&i| 2)/) Gi @| 6) f& On-Demand Cross-Agency Public Safety & Traffic & Sustainability & Various Traffic View Incident Contactless Infrast
Slide 24: Go-to-market strategy
REKOR INVESTOR DAY Go-to-market strategy
Slide 25: Expanding our geographic footprint across multiple markets and regions
Expanding our geographic footprint across multiple markets and regions NORTH AMERICA SOUTH AMERICA EUROPE ASIA | OCEANIA
Slide 26: Land and Expand
Land and Expand: Rekor’s ability to expand its geographic footprint through pilot and proof of concept programs creates long term value given the stickiness of the platform and strong customer conversion
Slide 27: Customer Conversion
Customer Conversion Expansion into new markets through pilot programs creates long term opportunities for revenue growth. Pilot /POC Contract Expansion Trusted Partner Ue @ @ @ @ nic @ @ @ @ Excellent customer a 8 e © @ retention 2 bs © bd @ @ @ @ Platf ticki hi i d Rekor te ~ o g y jatform stickine
Slide 28: Land & Expand: Incident Management Module
Land & Expand: Incident Management Module $50K 6 Months Pilot Program e H1 1 2018 $30K 6 Months Pilot Program $50K New agency adds pilot $780K Contract Expansion 26X TCV GROWTH IN FLORIDA OVER 3 YEARS FDOT) ie Tihipa = g mayere +$500K +$240K Expansion to contract Converted pilot to 2 years contract
Slide 29: Land & Expand: Public Safety Module
Land & Expand: Public Safety Module 30-Day Pilot Program 60-Day Pilot Program +$490K Multi-Year Contract +$550K Multi-Year Contract Expansion of Services Multi-Year Expansion Confidential Federal Contract
Slide 30: Industries of interest
Industries of interest Size/# of Customers Departments of Transportation (DOTS) Interest in Product City/County/State Governments Transit Agencies & si B Tolling / Roadway Investors & Operators ‘Commercial RE and Retail . a ee Primary industries © © 6|6 Car OEMs & EV Out of Home Charging Companies M
Slide 31: Growth strategy and financials
REKOR INVESTOR DAY Growth strategy and financials
Slide 32: Target financial performance
Target financial performance Global Total Addressable Market Size (USD Billions) “ Long Term Financial Targets (2) $148.1B $126.58 sce $740 Million age = 2026 Rekor Revenue $68.0B 70% - 80% 2026 Rekor Gross Margin 2021 2022 2023 2024 2025 2026
Slide 33: Benefits of a strengthening business model
Benefits of a strengthening business model Predictable, Recurring Greater Customer Customer Service Revenue Stream Flexibility Focused
Slide 34: Key performance indicators
Key performance indicators Number of Total Performance Total Contract Recurring Markets Obligation Value Revenue
Slide 35: Why Rekor? Why now?
Why Rekor? Why now? Strong Industry Tailwinds with Large and Growing TAM Industry Defining Operating System for Intelligent Infrastructure Differentiated Technology with Broad Data Partner Network Expanding Geographic Footprint Ready to Scale High Customer Retention Rate with Significant Upsell Pote
Slide 36: Rekor - Learn more at REKOR.AI
“= REKOR NASDAQ: REKR Learn more at our new website: REKOR.AI