Winland Holdings Corporation · OTC:WELX
Winland — Winland Electronics — Investor Presentation (February 2013)
26 slides from Winland's investor presentation, Feb 7, 2013
Slide 1: Winland: The Way Forward
Exhibit 99.1 Winland: The Way Forward David Gagne, Chief Executive Officer February 7, 2013
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain statements in this presentation relate to future results that are forward- looking statements as defined in the Private Securities Litigation Reform Act of 1995. This presentation contains statements involving risks and uncertainties, including statements relating to Wi
Slide 3: Winland Electronics, Inc. (AMEX:WEX)
WINLAND ELECTRONICS, INC. (AMEX:WEX) An industry leader in critical environmental monitoring solutions WaterBug Alert® Temp°Alert® Humid- Vehicle-Alert™ EnviroAlert® Alert™
Slide 4: Strategy Options
STRATEGY OPTIONS 1. Maintain company at status quo as hardware-centric provider of top-of-the-line critical environmental monitoring solutions 2. Sell or liquidate the business 3. Execute on a growth strategy to become the leading provider of real-time cloud-based, environmental monitoring • Leverag
Slide 5: Recommendation
RECOMMENDATION: Execute on a growth strategy to become the leading provider of real-time, cloud-based, environmental monitoring Why? • A strong serviceable obtainable market (SOM) of $400MM exists • Fragmented market currently with small “leaders” (no gorilla) • 100% of prospects believe they need e
Slide 6: The Intelligent Device Hierarchy
THE INTELLIGENT DEVICE HIERARCHY Mobile Phones, Smart Phones Notebooks, Mobile Terminals Tablets, Media Players Desktop PCs Servers/Storage Routers/Switches/Gateways Printers/Imaging Game/Media Equipment and Players Consumer/Commercial Vehicle Off-Highway Vehicles Air/Rail/Transit/Marine Navigation
Slide 7: Winland's Serviceable Obtainable Markets (SOM)
WINLAND’S SERVICEABLE OBTAINABLE MARKETS (SOM) Worldwide M2M Sales in 2012 (est.): $328 billion Total U.S. market Food / Healthcare / Drug: $900 million Target market size: ~$400 million • Clinics/Labs/Nursing Homes $125 million • Commercial Kitchens $70 million • Convenience Stores $70 million • He
Slide 8: Why These Markets?
WHY THESE MARKETS? Key segments in the food, drug and healthcare industries are fragmented, small and unfocused ae Shared ROI Across Segment: 32,000 Independent ¢ Inventory Loss * Drugs at risk: $60k - $2M Pharmacies ; 23,000 rye diese * Over 100 billion pounds of food pep spoiled each year / * Labo
Slide 9: Market Research Study
MARKET RESEARCH STUDY Results prove positive outlook for New SaaS Platform
Slide 10: Winland Market Research Study
WINLAND MARKET RESEARCH STUDY • Close to 90 governmental, industry association, industry publication and analyst organizations contacted with intelligence and guidance collected • More than 25 market segments and correlated studies analyzed • Close to 5,000 calls made into key partners, customers an
Slide 11: Strong Potential Demand
STRONG POTENTIAL DEMAND 78% Verticals indicating environmen Importance of monitoring is critical, very Environmental Monitoring important or important by Verticals Critical or Very Important 92% Clinics 80% Refrigerated food warehouses 63% Independent pharmacies 42% Convenience stores 22% Verticals
Slide 12: Logs Are Important
LOGS ARE IMPORTANT Sample logging requirements Clinics • State medical board • FDA • Internal departments/Parent Logging required by Vertical organization • CLIA certification (HHS/Medicare/Medicaid) Refrigerated food warehouses • FDA • AIB/HACCP accreditation • Local health departments • USDA Indep
Slide 13: Early Positive Feedback on Winland EA800-IP
EARLY POSITIVE FEEDBACK ON WINLAND EA800-IP 92% of brand attributes are positive % of EA800IP users EA800-ip user word frequency Other notable words: Supportive, Useful/Functional, Quality, Conscientious, Progressive Source: Winland Market Research Study 2012
Slide 14: Users Like the EA800-IP's Cloud Functionality
USERS LIKE THE EA800-IP’S CLOUD FUNCTIONALITY % of EA800IP users 100% Users aware of EA800-ip’s cloud capability 83% Currently using cloud functionality (100% like it!) Customer comments: “I love the cloud - it’s great. Everything I need is on there.” “I’m logged into the website all the time.” “The
Slide 15: Medical EA800-IP Users See Great Price-to-Value
MEDICAL EA800-IP USERS SEE GREAT PRICE-TO-VALU “The competition is at least 10 times the Overall, EA800-ip users see great price and even then it doesn’t do what Winland does.” value in the product, with medical users (device manufacturers/lab, “I have so much at stake here, spending this clinics, p
Slide 16: Key Features Users Like About the EA800-IP
KEY FEATURES USERS LIKE “Getting a text if the fridge is getting ABOUT THE EA800-IP warm is so key to me.” “I can watch the temperatures from home now. No more driving in just for a false alarm if the defrost cycle is a bit longer than usual.” “The logging is perfect.” % of EA800IP users Source: Win
Slide 17: New Markets Value the Same Functionality
NEW MARKETS VALUE THE SAME FUNCTIONALITY • ~ 50% of users and verticals cite alerts as a top feature • Approximately one-third of users and almost 50% of surveyed verticals said that reporting and logging was a key feature • 25% of users and 30% of verticals said that alarm panel integration % Indic
Slide 18: Where EA800-IP Users Find Winland
WHERE EA800-IP USERS FIND WINLAND Need to improve marketing and distribution: “It was hard to find Winland on the Internet. We bought a different product first, then when that fell apart, we searched again and found Winland.” “I did extensive research on the Internet but did not hear about Winland u
Slide 19: Go-to-Market Strategy
_ GO-TO-MARKET STRATEGY ig WINLAND ELECTRONICS, INC.
Slide 20: New Go-to-Market Strategy
NEW GO-TO-MARKET STRATEGY Greater account control, predictive revenues, better margins, improved visibility and brand awareness Integrated Product, Support and Go-to-Market Strategies Customers Winland Website Manufacturer’s Reps Implement new pricing options: 1) Ongoing monthly subscription fee cov
Slide 21: Solution Architecture
SOLUTION ARCHITECTURE Customer Environment Hosted Environment EnviroAlert 800IP’s Installed in monitoring locations D Internet Repo Application Server Report Server Web Server • Modularized Architecture • Scalable • Web-based monitoring, alerting and reporting solution • High-Availability • Robust d
Slide 22: Branding and Marketing Strategy
BRANDING AND MARKETING STRATEGY • Build a strong brand across all verticals • Brand will extend itself as the company grows • Opportunity to differentiate from the competition • Tactics: • Execute on a rebranding initiative (looking at name, logo, colors, etc.) • Become “the” thought leader in envir
Slide 23: Accomplished to Date / Key Focus Areas
ACCOMPLISHED TO KEY FOCUS AREAS DATE PRODUCT DEVELOPMENT • Add strong sales, marketing and • Key resources and partners identified channel management resources • Product release plan developed • Create value-based relationships with key solution integrators • Product development underway • Implement
Slide 24: Public SaaS Financial Performance
PUBLIC SAAS FINANCIAL PERFORMANCE SEG - SaaS Median Measures Measure 3Q11 4Q11 1Q12 2Q12 3Q12 EV/EBITDA 27.4% 28.9x 33:53x 30.0x 37.8x EV/Earnings 125.8x 87.4x 31.6x 38.0x 41.3x Current Ratio TZ 17, 15 1.8 thes} Cash & Ea (SM $69.1 $59.9 $60.7 $83.0 1 EBITDA Margin 10.5% 9.2% 9.9% 9.7% 8.4% Net Inco
Slide 25: A Solid, Well-Defined Strategy
A SOLID, WELL-DEFINED STRATEGY Strong market potential • A strong serviceable obtainable market (SOM) of $400MM exists • Current “leaders” are small (no gorilla) and market is fragmented • 100% of prospects surveyed believe they need environmental monitoring • Low current adoption in the SOM exists
Slide 26: Questions?
- QUESTIONS? Thank you. WINLAND’ ELECTRONICS, INC.
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