Bk Technologies Corporation · AMEX:BKTI
Bk Technologies — Investor Presentation (February 2023)
19 slides from Bk Technologies's investor presentation, February 2023
Slide 1: BK Technologies Investor Presentation
BK TECHNOLOGIES INVESTOR PRESENTATION NYSE American: BKTI February 2023
Slide 2: Disclosures
DISCLOSURES Forward-Looking Statements This press release contains certain forward-looking statements that are made pursuant to the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern the Company’s operations, economic performanc
Slide 3: Focused on gaining share in public safety communication technology
BK Technologies is focused on gaining share in the growing market for public safety communication technology by offering value and innovation 3 2023 Corporate Presentation | NYSE American: BKTI
Slide 4: Years of heavy lifting have transformed company for growth
YEARS OF HEAVY LIFTING HAVE TRANSFORMED COMPANY FOR GROWTH 2016 2022 & Beyond NEW PRODUCT LAUNCHES BKR Line EXPANDING Market Verticals CAPITALIZE on Public Safety LTE adoption ADD Software Applications & SaaS NEW Executive Team & Board of Directors NEW R&D & Engineering Investments/Focus NEW Manufac
Slide 5: Executive Management
EXECUTIVE MANAGEMENT JOHN SUZUKI BRANKO AVANIC CHIEF EXECUTIVE OFFICER CHIEF TECHNOLOGY OFFICER • Appointed CEO in July 2021 following his role as President • Appointed CTO in August 2019 bringing over 30 years of leading-edge & CEO of land mobile radio company EF Johnson product development experti
Slide 6: Key Customers
KEY CUSTOMERS STRATEGIC CONTRACTS FOR EASE OF PROCUREMENT WITH GOVERNMENT AGENCIES 6 2023 Corporate Presentation | NYSE American: BKTI
Slide 7: Market Opportunity
MARKET * OPPORTUNITY —
Slide 8: LMR - A $2.3B Addressable Market
LMR - A $2.3B Addressable Market Developing BKR Series Radios exponentially expands potential market verticals $800 $700 $600 $500 $400 $300 $200 $100 $0 School Hospitality Wildland Fire Public Business Other Oil & Gas Other Military EMS Police Structural Service Industrial Commercial Commercial Fir
Slide 9: LTE/5G Presents a Large Market Opportunity
LTE/5G PRESENTS A LARGE MARKET OPPORTUNITY PREVIOUS SUCCESSES OPPORTUNITY TODAY LTE LMR+LTE/5G CONNECTING CONNECTING LMR VEHICLES FIRST RESPONDERS P25 CONVENTIONAL/ LMR RADIO, GPS, LAPTOP, IN- LMR RADIO, BODY CAM TRUNKED RADIO CAR VIDEO, VIDEO SENSORS SMARTPHONE • Global SaaS market valued at $131B;
Slide 10: Innovative Technology
INNOVATIVE 10 TECHNOLOGY 10
Slide 11: Technology Innovation Center
TECHNOLOGY INNOVATION CENTER • Chief Technology Officer, Dr. Branko Avanic, Ph.D., and much of his team, previously with market leader • All radio research & development moved in-house • New acquisition targets bring software engineering skills • IP & Patent Opportunities 11 2023 Corporate Presentat
Slide 12: BKR Series Radios
BKR SERIES RADIOS Single Band Radio All Band Radio • High-tier performance, features, durability, and ergonomics; priced competitively to take market share versus market leader • BKR 5000 single-band radio launched in August 2020; orders exceeding expectations; strong backlog provides momentum throu
Slide 13: American Made
AMERICAN MADE DESIGNED, MANUFACTURED AND SERVICED IN USA • This matters to our customers • Nimble innovation, production & distribution TOTAL COST-OF-OWNERSHIP • Substantial savings on initial acquisition • Firmware upgrades for life of product • Customer service for life of product • Technical supp
Slide 14: Software-as-a-Service (SaaS)
SOFTWARE-AS-A-SERVICE (SaaS) Dedicated business unit established in February 2022 to develop and deliver a comprehensive suite of state-of- the-art subscription-based software-as-a-service solutions for first responders utilizing the LTE network Launched InteropONE in October 2022, the only PTToC se
Slide 15: Innovation
FirstNet Verizon SouthernLinc Over The Top Non-PTToC PTToC User PTToC User PTToC User PTToC User User Innovation • Create Ad-Hoc user groups on demand • Hosting agency pays for service usage with no cost to guests • Works over any carrier network or WiFi WAVE OnCloud is the only PTToC service that e
Slide 16: PTToC Service Market Opportunity
PTToC SERVICE MARKET OPPORTUNITY POTENTIAL ADDRESSABLE MARKET OF $150M • ~ 1.9M PTToC subscribers in the public sector in 2022 - InteropONE target market is ~30,000 subscribers or 1.6% of the current subscriber base • Pay As You Go - InteropONE prime user pays base subscription rate of $300 annually
Slide 17: SaaS Business Strategy
SaaS BUSINESS STRATEGY • Focus on differentiation and practical solutions to market challenges • Establish market position with InteropONE PTToC Service • Enhance value with BKR Additional product line public safety applications • Expand to additional public safety applications 2022 2023 & Beyond 17
Slide 18: Summary of Annual Operating Results
SUMMARY OF ANNUAL OPERATING RESULTS 9 months ended (in thousands) FY’19 FY’20 FY’21 9/30/2022 Revenue $40,100 $44,139 45,364 $30,612 Cost of Sales $24,449 $26,109 29,103 $25,175 Gross Margin 39.0% 40.8% 35.8% 17.8% Engineering/R&D $9,806 $7,869 8,136 $6,700 SG&A $20,036 $17,036 17,457 $14,952 Operat
Slide 19: Targeting $100M in Revenues by 2025
THE FUTURE OF BK TECHNOLOGIES: TARGETING $100M IN REVENUES BY 2025 • Be a leader in the public safety industry specializing in personal communications devices that maximize safety and efficiency for first responders • BKR 5000 continues to gain traction in the market; BKR 9000 positioned to signific
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