Direct Communication Solutions, Inc. · CSE:DCSI
Direct Communication Solutions — Investor Presentation (August 2021)
25 slides from Direct Communication Solutions's investor presentation, August 2021
Slide 1: Platform Solutions That Build the Future Economy
PLATFORM SOLUTIONS THAT BUILD THE FUTURE ECONOMY DIRECT COMMUNICATION SOLUTIONS, INC. www.dcsbusiness.com DCSI-CSE DCSX-OTCQX
Slide 2: Disclaimer
DISCLAIMER In addition to current and historical information, this presentation may contain forward-looking statements. These statements relate to our future operations, prospects, potential products, services, developments, business strategies or our future financial performance. Forward-looking st
Slide 3: Who we are
Who we are • Established in 2006 and headquartered in San Diego, CA, Direct Communications Solutions, Inc (DCSI – CSE, DCSX –OTCQX ) is a leading provider of information technology solutions for the Internet of Things ( IoT market ). DCS is a value-added- reseller of IoT telematics devices, and a de
Slide 4: Our Leadership
OUR LEADERSHIP Chris Bursey Rich Gomberg Eric Placzek Dave Scowby Mike Lawless Founder & CEO Chief Financial Officer Chief Technology Officer Chief Operations Officer EVP, SaaS Business 20+ Years Industry 20+ Years Financial Software, Cloud, IoT, 18+ Years Industry 20+ Years Sales & Experience Exper
Slide 5: We believe who we are invited to partner with makes all the difference
• Chris Bursey is a member of the Verizon IOT Advisory Board and We believe they categorize him as a pioneer in the sector who creates who we are simple cost-effective solutions to complex problems. invited to • Our strategic partners help us deliver the finest products in the partner with industry
Slide 6: Channel Partners / Strategic Partners
CHANNEL PARTNERS STRATEGIC PARTNERS PAGE 6 www.dcsbusiness.com
Slide 7: IoT: One of the Fastest Growing Industries in the World Today
IoT ONE OF THE FASTEST GROWING INDUSTRIES IN THE WORLD TODAY Annual Industry Growth Researchers see 50B estimates range from 14- According to IoT Analytics… connected devices as of 2020 29% GE claims it is already ( 2020 For every person on earth ) generating $1B in IoT there are at least 2, maybe I
Slide 8: This rapid industry growth has spawned partial and incomplete solutions
This rapid • DCS addresses these problems by simplifying IoT technologies, making industry them less costly, easier to deploy, and ultimately more efficient. growth has spawned • “ DCS connects us to decision making data.” partial and incomplete • Chris Bursey CEO, Direct solutions Communications So
Slide 9: We are a company that has transitioned and our model is working
We are a company that has transitioned…and our model is working… In 2018 DCS decided to change from being a hardware reseller to a SaaS model Professional Services provider that delivers customizable, end- to-end solutions for IoT customers. 11% of DCS’s revenue is recurring, with a 69% gross profit
Slide 10: Our revenues are growing too
Our revenues are growing too…. • At the end of Q2 2021, our revenues and order backlog exceed $22M in shipped/booked sales. By comparison, total revenue for 2020 was $14.2M. • This increase is a direct result of the 2G to 4G transition that starts in 2022 with AT&T and ends with Verizon in December
Slide 11: Industries we serve
Industries we serve… We can connect anything anywhere… Fleet Management, Restaurants, Commercial Real Estate, Offices, Shipping and Logisitics, Supply chain, Oil Rigs, Remote Equipment, Machinery, Agriculture, Construction…the list goes on…. Our products run on connected or solar power and can opera
Slide 12: The DCS Advantage: Disruptive, Simple, and Easy to Deploy
The DCS Advantage… Disruptive, Simple, and Easy to Deploy MiSensors, on a fully installed basis, are significantly lower in cost than any competing products in the market today. MiFleet, is an iconic and intuitive asset management application, designed to lower the total cost of entry for its users.
Slide 13: The Opportunity: turning confusion into order
The Opportunity… turning confusion into order The Multi $B IOT Industry is plagued with partial and incomplete solutions. The industry is frustrated with the lack of end-to –end solutions capable of bringing true value to the end user. The industry is segmented into hardware, connectivity, and softw
Slide 14: More detail on our Brands
More detail on our Brands… PAGE 14
Slide 15: Fleet & Asset Management
FLEET & ASSET MANAGEMENT “ US Dept of Transportation legislation CSA 2010 is required of any interstate carrier of goods who has a US DOT registration number. Fleet managers have a legal requirement state supplied crash reports ”. Basically, this means that Fleet management is mandatory in North Ame
Slide 16: Disrupting the Industry
DISRUPTING… THE INDUSTRY MiSensors is a proprietary solution designed to disrupt the IOT industry. On an installed basis, MiSensors are up to 70% less expensive than anything offered in the industry today. Installed on a set and forget basis in just about any environment. Enable asset owners to know
Slide 17: Beer Life Cycle Monitor & Control System
BEER LIFE CYLCE MONITOR & CONTROL SYSTEM Smart handling of Temperature, CO2 Pressure, Inventory Management, critical timing and prevent after hours pours or staff giveaways. A comprehensive inventory tracking system helping clients to reduce waste, theft and non-automated interfaces – promoting bett
Slide 18: Brewsee is a path toward significant future revenue potential
Brewsee is a • The North American Keg on Tap beer market represents $120B in annual revenues path toward • Estimated revenue losses due to employee theft, significant lack of temperature control, excessive foam, spillage and stale dating of inventory exceeds future revenue $20B/year in North America
Slide 19: The Financials
THE FINANCIALS PAGE 19 www.dcsbusiness.com
Slide 20: Financial Highlights
Financial Highlights Hardware sales Professional Services Our blended We have over 400 ”Bundled Services” : account for 89% of accounts for 11% of corporate profit customers. Some of we can gain market our revenue. Our our revenue. Our margin is 27% our customers have share and increase profit margi
Slide 21: Where we are going. Recurring revenue is the key
• Recurring revenues we receive from professional Where we are services yield 70% margins vs the 22% margins we receive from Hardware sales going. • Hardware is important. Hardware sales offered in a Recurring Bundled Services format can help gain more recurring revenue from professional services. r
Slide 22: Revenue & History
REVENUE & HISTORY • US$16,063M 2019 • US$14,257M 2020 • US$8,019M 2021 YTD through June “With the 2G to 4G technology transition that starts in Feb 2022 with T-Mobile and ends with Verizon in December 2022, our backlog as of the end of Q2, 2021 is currently US$15.0M, roughly 105% of our 2020 revenue
Slide 23: Capital Structure
• Basic Shares outstanding – 15,635,640 • Management – 7,241,350 - escrowed • Public Float – 8,394,290 Capital • Private Placements and IPO history: • IPO C$2.00 Structure • PP C$1.05 • No Long-Term-Debt PAGE 23
Slide 24: IoT Industry M&A: record breaking activity
IoT Industry M&A…record breaking activity FTI, an IoT industry research group, says “ over the past several years there has a lot of buzz surrounding IoT. Recent M&A transaction values and volumes indicate IoT is a firmly entrenched part of mainstream growth strategies…” Recent comparable transactio
Slide 25: Contact Us
CONTACT US 17150 Via Del Campo Suite 200 San Diego CA www.DCSbusiness.com Investor Relations, Bill Espley, Director 604-630-3072 ( office ) [email protected] PAGE 25 www.dcsbusiness.com
Direct Communication Solutions — Investor Presentation (August 2021) on 6ix