Supercom, Ltd. · NASDAQ:SPCB
Supercom — Investor Presentation (July 2013)
20 slides from Supercom's investor presentation, July 2013
Slide 1: Investors Presentation July 2013
OTC: SPCBF | www.supercom.com Arie Trabelsi CEO Doron Ilan CFO INVESTORS PRESENTATION JULY 2013 Property of Supercom © 2013 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding Supercom Corporation (Supercom) and/or its subsidiaries collective the company, to the extent
Slide 3: SuperCom at a Glance
SUPERCOM AT A GLANCE “A successful turnaround with significant upside potential” KEY METRICS ADJ. 2012 ADJ. 2012 FINANCIAL SUMMARY MARKET CAP1 FREE FLOAT2 NET INCOME3 P/E RATIO REVENUE $26m 50% $3.1m 8.4x 13% YOY $8.9m OPERATING PROFIT NOTABLE FACTS TICKER SYMBOL EXCHANGE FORMERLY KNOWN AS ESTABLISH
Slide 4: What We Do
WHAT WE DO Profitable, Growing and Cash Generating Future Engine of Growth Electronic ID RFID National IDs, Driver Licenses, Passports & e-Govt Electronic Monitoring Animal Tracking Health and Homecare Technology & Knowhow Property of Supercom © 2013 4
Slide 5: Strategy
STRATEGY “Growth through two avenues: organic and M&A” Organic growth achieved by: Adding new Government EID contracts Winning RFID projects in three verticals: electronic monitoring, healthcare & homecare or animal monitoring Bidding on a number of projects in the EID & RFID pipeline: each
Slide 6: Electronic ID: Long-Term Contracts
ELECTRONIC ID (ƩID) Future Upside Adding more contracts Long-Term Contracts Full solution Strong Government for smart IDS technical and Customers & passports R&D expertise “We have a leading position and aim to grow our business in emerging countries with a strong pipeline and significant growth opp
Slide 7: eID Solutions
ƩID SOLUTIONS Turnkey, end-to-end and comprehensive solutions for creation of smart IDs and passports for various government ID programs Population National eIDs Biometric Smart driving Biometric Voter Internal e-Government registries and passports and and vehicle border control registration Revenue
Slide 8: National IDs & Passports
NATIONAL IDS & PASSPORTS BIOMETRIC PASSPORTS AVAILABILITY BY COUNTRY Biometric passports available to the general public Announced future availability of biometric passports No biometric passport announced COUNTRIES WITH NATIONAL ID & EID PROGRAMS* 2010 & 2015 *Source: Acuity Market Intelligence 201
Slide 9: Attractive End Markets
ATTRACTIVE END MARKETS SuperCom offers a full end-to-end solution geared towards emerging markets GLOBAL MARKET SIZE FOR BIOMETRIC IDS* US$ BILLIONS Increased globalization *Source: Frost & Sullivan, 2012 and regulation drive a need for better ID systems for a growing 14.7 global middle-class 4.5 20
Slide 10: Long Range Active RFID & RTLS
LONG RANGE ACTIVE RFID & RTLS TECHNOLOGIES & SOLUTIONS “From a component provider with 3,500 customers to a higher margin solution provider.” Receiving Stations Active RFID with RTLS: Real Time Location Solution Offers security, location and tracking services for a wide array of vertical markets
Slide 11: Growth from RFID Verticals
GROWTH FROM RFID VERTICALS Growth Engines ELECTRONIC MONITORING HEALTHCARE & HOMECARE ANIMAL MONITORING Security and tracking Healthcare and of prisoners homecare patient and Tracking of and home detainees equipment tracking livestock and pets Property of Supercom © 2013 11
Slide 12: Electronic Monitoring
ELECTRONIC MONITORING Prison overcrowding is a major global problem throughout the world Monitored home detention provides a surveillance solution for juvenile, pre-trial and light offenders Comp: Attenti (bought by 3M for $230m in 2010) CLEAR ROI COST PER INMATE PER YEAR $30-60k GLOBAL MARKET
Slide 13: Healthcare
HEALTHCARE Real Time Hospital Tracking Track and identify patients Provides a solution to monitor equipment Credentialing capabilities for physicians, nurses and administrative staff Residential Monitoring Home Care Anti-Wandering Comp: Aeroscout (bought by Black & Decker for $240m i
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS FINANCIAL SUMMARY 2010-2012 US$ THOUSANDS Recurring revenue model whereby long FY 2010 FY 2011 FY 2012 term contracts providing ongoing income stream at high margin for many years Turnaround activities taken in 2010 & 8,940 2011 yielded strong financial results 7,922 revenue
Slide 15: Increasing Profitability Trend
INCREASING PROFITABILITY TREND GROSS & OPERATING INCOME 2010-2012 FIRST QUARTER PROFITABILITY US$ THOUSANDS US$ THOUSANDS FY 2010 FY 2011 FY 2012 Q1 2012 Q1 2013 7321 8,000 7,000 5332 6,000 1,233 1,671 5,000 4616 4,000 3,000 653 2,000 2,006 1,000 0 54 -1,000 -1,048 -2,000 -282 Property of Supercom ©
Slide 16: Key Financial Data
KEY FINANCIAL DATA Most recent INCOME STATEMENT HIGHLIGHTS quarter reported US$ THOUSANDS 2008 2009 2010 2011 2012 Q1-13 Revenue 18,112 9,304 7,389 7,922 8,940 2,032 Gross Profit 11,167 5,939 5,332 4,616 7,321 1,728 Margin 62% 64% 72% 58% 82% 85% Op. Income (3,095) (1,868) (1,048) 54 2,006 653 Margi
Slide 17: Successful Turnaround
SUCCESSFUL TURNAROUND $3,500 ADJUSTED OPERATING INCOME & REVENUE BY QUARTER 3,214 (US$ THOUSANDS) $3,000 $2,500 2,291 2,190 2,189 1,942 1,942 2,032 1,922 1,883 1,848 $2,000 1,751 1,786 $1,500 1,293 New management Return to profitability 32% team takeover 1,852 EBIT $1,000 operating income MARGIN $50
Slide 18: Turnaround in Detail
TURNAROUND IN DETAIL NON-GAAP QUARTERLY INCOME STATEMENT US$ THOUSANDS 2010 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenues 1,293 1,922 2,291 1,883 1,848 2,190 1,942 1,942 2,189 1,751 1,786 3,214 2,032 Cost of Revenues 374 479 588 616 827 944 735 800 956 176 489 (2) 304 COGS as % of R
Slide 19: Investment Highlights
INVESTMENT HIGHLIGHTS Operational turnaround largely complete and positioned for profitable growth High free cash flow generation potential minimal capex requirements & no taxes for foreseeable future Growth engine combined with stable long-term contracts Existing contracts are long-term wit
Slide 20: Thank You!
OTC: SPCBF | www.supercom.com THANK YOU! Investor Presentation Property of Supercom © 2013 20