Slide 1: Investor Presentation August 2013
‘=, Investor = Presentation August 2013
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding Micronet Enertec’s future results of operations and financial position, financial targets, busines
Slide 3: Statement on Pro Forma Financials
Statement on Pro Forma Financials The pro forma condensed consolidated financial information included in this investor presentation is constructed from the separate financial statements of the Company and Micronet Ltd. (“Micronet”), in which the Company has a controlling interest, and may not repres
Slide 4: Micronet Enertec Technologies Inc.
Micronet Enertec Technologies Inc. NASDAQ: MICT • Delaware corporation, USA based • Develop, manufacture & market: § Advanced mobile ruggedized computers, tablets and equipment that are embedded & integrated in commercial applications • Focus on two billion-dollar vertical markets 1. Aerospace/Defen
Slide 5: Revenue Performance
Revenue Performance Six Month 2013 GAAP Annual GAAP ( includes only 1 quarter of Micronet results) Year Ended December 31 Jan-June 2012 Jan-June 2013 $10,146 $17,788 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 Revenue (000) 10,146 17,778 2,000 4,000 6,000 8,000 10,
Slide 6: Six Month 2013 Revenue Breakdown
Six Month 2013 Revenue Breakdown Revenue by Segment Revenue by Geography MRM Aerospace 79% 21% 67% 4% 29%
Slide 7: Rugged Tablet Computers for MRM/FM
Rugged Tablet Computers for MRM/FM Our mobile fleet management computers help maximize productivity, reduce costs and improve corporate control by automating manual workflow processes • We provide robust programmable automotive-grade mobile computers • We supply top-tier fleet management service com
Slide 8: Fit-for-purpose Rugged Tablet Computers
Fit-for-purpose Rugged Tablet Computers Our products are designed to integrate with vehicle power sources and computer systems, and built to withstand wide temperature ranges, shock & vibrations, and connect to ancillary devices. Cellular GPS W/LAN CANBus Bluetooth USBs LAN Comm Ports 12V/24V
Slide 9: MRM Applications
MRM Applications • Time Management and Safety Compliance • Two-Way Messaging and Task Management • Dynamic Dispatching and Navigation • Form-based Reporting • Proof of Delivery and Invoicing Key Worker / Workflow Applications
Slide 10: MRM Sectors
MRM Sectors • Haulage & Distribution • Construction Supply • Local Fleets - Technical Services • Public Transportation - Buses & Taxis • Municipalities & Utilities • Public Safety - Police, Fire, Ambulances Main vertical markets
Slide 11: Micronet Innovation
Micronet Innovation Patent-pending Guardian System Design (GSD) - Cloud-based SaaS functionality enables remote device monitoring and facilitates user support and technical trouble shooting • Remote mobile device management • Fail-safe and cost effective Firmware and Application Over the Air (OTA) u
Slide 12: Micronet Technology Vision
Micronet Technology Vision Platform to serve after-market solutions & truck OEMs Cloud world Infotainment Enterprise HMI control, Diagnostics & virtualization
Slide 13: Global MRM Market
Global MRM Market • 13.8 million subscribers as of December 2012 • Expected to grow to 32 million in 2016 • 700,000 companies using MRM today Sources: C.J. Driscoll & Associates and Licht & Associates, 2012 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2012E 2013P 201
Slide 14: U.S. MRM Market
U.S. MRM Market U.S. MRM market today has more than 5 million units in service • Total U.S. MRM market projected to grow to 9 million units in service by 2015 • 300,000+ companies use MRM systems and services Source: C.J. Driscoll & Associates Every million units represent a $400 million revenue opp
Slide 15: U.S. MRM Growth Analysis
U.S. MRM Growth Analysis Vertical 2012 Subscribers 2015 Subscribers New Subscriber Growth Replacement Units (1) Total New Units Relevant to Micronet (2) • The U.S. is approximately 40% of the global MRM market • Micronet has already penetrated and sells to major MRM service providers and is position
Slide 16: Fleet Management Customers
Fleet Management Customers Trimble Inc. (NASDAQ: TRMB) : A $7 billion market cap corporation, the second largest provider of FM and MRM solutions with 370,000 installed units Teletrac Inc.: A provider of advanced and interactive fleet automation software based in California. Teletrac provides soluti
Slide 17: Aerospace & Defense Systems
Aerospace & Defense Systems Command & Tracking Systems Naval Communications Systems Operations Consoles for Weapon Systems Ground Command Systems Naval Control Systems MICT military computers and equipment are embedded in the core of electronic platforms, including: missiles, tanks, combat aircraft,
Slide 18: Critical Missile Defense Technologies
Critical Missile Defense Technologies MICT Computers and Equipment are Integrated into Critical Missile Defense Systems Our systems and technology are embedded in the Arrow and Iron Dome missile programs as well as in naval platforms
Slide 19: Critical Missile Defense Technologies
Critical Missile Defense Technologies President Obama - Iron Dome Missiles (command and control computers by MICT)
Slide 20: Missile Defense Customers
Missile Defense Customers Israel Aerospace Industries (IAI): With annual revenues of over $3 billion, IAI is the largest aerospace and defense company and the largest industrial exporter in Israel. Globally recognized leader in development and production of military and commercial aerospace and defe
Slide 21: Summary Balance Sheet
Summary Balance Sheet June 30, 2013 - ($000’s) Current Assets Current Liabilities Cash, cash equivalents & marketable securities 19,189 $ Short-term and current portion of long-term debt (1) 6,978 $ Accounts Reveivables 10,723 Account Payables 5,436 Inventories 5,325 Other current Other current 1,71
Slide 22: Six Month Highlights 2013 vs. 2012
Six Month Highlights 2013 vs. 2012 • Revenue: Growth of 309% from $4.4M to $18.1M. • Operational Income: Increased from $452K to $2.3M. • Revenue -Aerospace division (Enertec) : A growth of 18%. • Revenue -MRM Division (Micronet) : A decline of 11%. • Gross Margin: Increased from 34% to 36% • EBITDA
Slide 23: Six Month Net Income Performance
Six Month Net Income Performance ($ in thousands) 176 1098 0 200 400 600 800 1000 1200 NON - GAAP Jan - June 2012 Jan - June 2013 24 27 - 689 - 800 - 700 - 600 - 500 - 400 - 300 - 200 - 100 0 100 GAAP Jan - June 2012 Jan - June 2013
Slide 24: Six Month Consolidated Statements of Income
Six Month Consolidated Statements of Income ($ in thousands) Jan-June 2013 Jan-June 2012 Sales 18,132 4,432 Gross profit 6,514 36% 1,517 34% Operating expenses 4,188 23% 1,065 24% Income from operations 2,326 13% 452 10% Net GAAP Income (Loss) (689) (4%) 27 1% Net NON GAAP Income (Loss) 1,098 6% 176
Slide 25: Six Month Non-GAAP Financial Measures
Six Month Non-GAAP Financial Measures ($ in thousands) Jan-June 2013 Jan-June 2012 Net income (loss) attributable to Micronet Enertec (689) 27 Amortization of acquired intangible assets 471 Change in fair value of warrants 193 (17) Amortization of UTA's note discount and related expense 1,188 166 St
Slide 26: Six Month Financial Expenses
Six month Financial Expenses ($ in thousands) Jan-June 2013 Jan-June 2012 Change in the fair value of the put and call options 193 - Amortization of discount 1,188 166 Interest and Exchange differences 467 251 Financial expense, net 1,848 417
Slide 27: Second Quarter Consolidated Statements of Income
Second Quarter Consolidated Statements of Income ($ in thousands) April-June 2013 April-June 2012 Sales 7,771 2,480 Gross profit 2,868 37% 924 37% Operating expenses 2,003 26% 511 21% Income from operations 865 11% 413 17% Net GAAP Income (Loss) (227) (3%) 176 7% Net NON - GAAP Income (Loss) 372 5%
Slide 28: Second Quarter Non-GAAP Financial Measures
Second Quarter Non-GAAP Financial Measures ($ in thousands) April-June 2013 April-June 2012 Net income (loss) attributable to Micronet Enertec (227) 176 Amortization of acquired intangible assets 93 Change in fair value of warrants (105) (9) Amortization of UTA's note discount and related expenses 6
Slide 29: Second Quarter Financial Expenses
Second Quarter Financial Expenses ($ in thousands) 4-6.2013 4-6.2012 Change in the fair value of the put and call options (105) - Amortization of discount 620 83 Interest and Exchange differences 202 163 Financial expense, net 717 246
Slide 30: Summary Financial Data, 2011-2012
Summary Financial Data, 2011-2012 (1) For 2012, the loss of $325 includes $1,171 of inventory amortization and $551 of intangible asset amortization, if excluded, income from operations would have been $1,397 For the year ended December 31 (in thousands, except share and per share amounts) Consolida
Slide 31: Annual Net Income Performance
Annual Net Income Performance Consolidated Pro Forma GAAP Year Ended December 31 Year Ended December 31 ($82) $2,840 ($500) $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $1,359 $5,417 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Net Income (000) $3 Million Increase, 299% Increase
Slide 32: Comparable Companies
Comparable Companies (figures in millions, except per share data) Price (1) 52 - Week Equity Firm Firm Value / Revenue Firm Value / EBITDA Price / Earnings Company @ 06/10/13 High Low Value Value (2) LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E LTM CY 2013E CY 2014E QUALCOMM Incorporated $62.03 $68.5
Slide 33: Experienced Management Team
Experienced Management Team David Lucatz - Chairman of the Board and CEO • 25 years’ experience with a successful track record in operations, finance, business development and management, including: • Co-owner of ITL Optronics Ltd., an advanced electronics supplier to the defense and security indust
Slide 34: Experienced Management Team (cont.)
Experienced Management Team (cont.) Rafael Katz, CEO Micronet Ltd • Experienced high-tech executive, Sales & Marketing background in Telecom industry • Joined Micronet in 2002 - CEO since 2005 - led company’s IPO in late 2006 • 1997-2002 - CTMotion, Co-founder - CEO, Cellular Location Based Services
Slide 35: Investment Highlights
Investment Highlights Experienced Management Team § Deep industry expertise § Proven track record Diversified Platform § Proven solution provider § High-end product line § Cutting-edge R&D Improving Financials § Strong balance sheet § Growing revenues & expanding profitability Growing Billion $ Glob
Slide 36: MICRONET Always in Front
MICRONET Always in Front