Pointer Telocation

David Mahlab, CEOMay 2018

This presentation contains forward-looking statements including data with respect to the growth in location based and other services. All such forward-looking statements are only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements due to certain risks and uncertainties including, without limitation:

§ our future operations depend on our ability to obtain additional financing;

§ we rely on third-party operators to provide services for our location-based solution systems;

§ we rely on a few suppliers to manufacture the car-based devices for our location-based solution systems;

§ the technology and standards in the stolen vehicle retrieval industry in which we operate change rapidly and the introduction of products using new technology 

and the emergence of new industry standards and practices could negatively impact our business;

§ our location-based solution products employ proprietary technology which is difficult to protect and which may infringe on the intellectual property rights of 

third parties;

§ our ability to timely obtain components from our suppliers or to timely deliver through our subcontractors or vendors;

§ the impact of exchange rate and interest rate fluctuations on our fixed price contracts, financial condition and results of operations;

§  our ability to timely develop and introduce new technologies or enter new markets;

§ our ability to respond to the introduction of new technology or new industry standards and practices in the stolen vehicle retrieval and location based services 

industries;

§ our ability to retain and attract key managerial, technical and research and development personnel; and

§ our ability to respond to political or military conditions in the countries in which we operate.

Further information on potential factors that could affect our business is described in our reports on file with the Securities and Exchange Commission.  Presentation of non-GAAP Financial Information: This presentation contains both GAAP and non-GAAP financial information pertaining to actual results and estimates of future performance. Non-GAAP financial information includes EBITDA information.

FORWARD LOOKING STATEMENTS

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POINTER

Introducing

Click for video

https://www.youtube.com/watch?v=Ds8KMakEZmg

WHO WE ARE

Provider of high-end Telematic SolutionsSupporting business decisions for fleet and mobile asset managers

Growth Markets focusUSA, India, Israel, Latin America

Cloud-based recurring service revenueSolid base of subscribed customers broadening consistently

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PNTR 265k 670

KEY FINANCIAL METRICS SHAREHOLDERS

Q1 2018 SUBSCRIBERS

EMPLOYEES$117m

MARKET CAP

as of May 15, 2018

POINTER AT A GLANCE

REVENUEUS$ MILLIONS

OPERATING INCOMENON-GAAP, US$ MILLIONS

+15% YOY growth

TEL AVIV

Q1 2017 Q1 2018

19.0 20.9

Q1 2017 Q1 2018

2.6 3.1

10%19%

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DBSI27%

Free Float73%

LONG-TERM GOALS

Provider of high-end services to tomorrow’s mobility industry

Capitalize on a $55bn+ TAM opportunity

Double revenue in 3-5 years

MAAS/Fleet Management

AssetTracking

$34.6bn24% CAGRthrough 2022

$20.5bn32% CAGRthrough 2020

Source: Research and Markets; Markets and Markets;

EBITDA margins to reach 20%+

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SELECTED CUSTOMERS

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Service Providers AutomotiveDistribution & Logistics

Mexico

Argentina

Brazil

265k active subscribers (SaaS and SVR - recurring revenue) in 6 countries 3m+ product units installed in 80 countries

Technology & Products MRM SAAS Services

Israel*Americas*

39%

6%

45%

ROW*

4%

Europe*

* % of FY 2017 revenues

GLOBAL PRESENCE (Technology / Services)

Africa*

6%

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SUBSCRIBER GROWTH

Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118140,000

160,000

180,000

200,000

220,000

240,000

260,000

NUMBER OF SUBSCRIBERSAS OF PERIOD-END 265k

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PRODUCTS & SERVICES

POINTERS MRM SOLUTIONS

Asset Management

Telematics Unit: Cellotrack Nano

Telematics Unit: Cellotrack CanIQ

Eco-Driving Connected Car

Goods in Transit

BROAD TELEMATICS SERVICE OFFERING

MOBILE ASSET MANAGEMENT

Click for video

Click for video

FLEET MANAGEMENT

Advanced Decision Support Systems 

Road Traffic Safety

Distribution Optimization 

Asset Management 

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../2015/Pointer_Driver Behavior.wmv../2015/Lubinski - English.mp4../2015/POINTER_Nano_SHORT_VERSION.wmvhttps://www.youtube.com/watch?v=Bd2KBipa_nQhttp://youtu.be/tM0V2fUxcRk

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GROWTH STRATEGY

ACCELERATED GROWTH STRATEGY

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Complement organic growth with acquisitions

Goal: Scale up subscriber base

Looking for: fleet/mobile asset management in our focus markets

Leverage existing infrastructure: adding new subscribers at low incremental costs

• by (@3.4x revenue)

• by (2.2x revenue)

• by (1.6x revenue)

• by (@6.8x revenue)

• by (@1.5x revenue)

Private deals:• by (@$3.1k/sub)

• & by

• , & by

• by

• by (@8x revenue)

HIGH LEVEL OF SECTOR M&A

Recent acquisitions of public co’s:• Fleetmatics by Verizon (@~32x EV/EBITDA & $3k/sub)

• Lojack by Calamp (@16x EV/EBITDA)

Economies of scale + fragmented market leading to -> M&A activity 

Hundreds of small players; ongoing sector acquisitions at premium valuations;→ Cellular operators (e.g. & ) entering the arena

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• by (@2.5x revenue)

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FINANCIALS

Products

REVENUESUS$ MILLIONS

Services

Q1 2018 FINANCIAL HIGHLIGHTS

OPERATING INCOME & MARGINNON-GAAP, US$ MILLIONS & % OF REVENUE

EBITDA & MARGINEXCL. ONE-TIME ACQ. RELATED COSTS US$ MILLIONS & % OF REVENUE

BREAKDOWN BTW SERVICES & PRODUCTS%

ProductsServices

Q1 2017 Q1 2018

3.1 3.5

16.3%

17.4%

66% 34%

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Q1 2017 Q1 2018

25

20

15

10

5

0

6.7 7.1

12.3 13.8

19.020.9

Q1 2017 Q1 2018

2.6 3.1

13.7%14.8%

10%

14%19%

Q1 2018 RESULTS SUMMARY

Subscriber growth +15% YoY to 265k subs; Service revenue $13.8m +12% YoY ; overall revenue $20.9 +10% YoY Service gross margin at 58.7% vs 56.6% in Q1 last year;EBITDA (Ex. Acq. related costs) of $3.5m; Operating cash flow in Q1 of $2.3m;

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SUMMARY

THE OPPORTUNITYWell Positioned for significant growth in the Internet of Vehicles, Mobile Asset Management and MAAS markets

Low-Risk Business Model: 2/3 revenue is recurring cloud-based with significant operating leverage

Strong free cash flow generationHigh Operating Leverage in Model

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Focused on Shareholder Value Creation

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Thank You!

2018-05-17T09:28:23+0000Not specified