Batm Advanced Communications (LSE:BVC) — BATM Business Update

0:01 Good afternoon, ladies and gentlemen, welcome to the BATM ADVANCED COMMUNICATIONS Investor Presentation. The company may not be in a position to answer every question received during today's call. However, the company review your questions and we'll publish those responses on the investment company platform when it's appropriate to do so. Before we begin, we'd like to submit the following poll, and I'm sure the company will be most grateful for your participation. And I'd now like to hand over

0:32 to Moti Nagar, CEO. Good afternoon. Thank you very much. Thank you everybody for joining to this webinar about BATM. My name is Martin Agara. I'm the chief executive officer of BATM since January 1. Before, I was the chief financial officer of BATM for the last eight years. And before that, I held several senior positions in in Deloitte over the year. The purpose of of the reason that we are here today is to present to you the BATM of the future, what we are going to do in BATM, how we are going to look on the business and the existing business of BATM and the future line of business that in BATM and what we are planning to do in the company.

1:22 But before we are talking about strategy and looking on the future, let's do a quick brief about BATM today because BATM today, this is the starting point where we are going to build a strategy for the future. This is the company that we is already more than twenty years old, and this is the basic for everything that we are doing. All the assets that's created in the company were created during this period. So what is BATM of today? BATM of today is a company with a 116,000,000 of turnover in the year of 2022. We have more than 900 employees across 11 offices in six countries. We have in BATM today 19 different product lines across 10 subsidiaries, and we have six very close collaboration with the best research in part yes, sorry. We have the best six collaboration with the best institutionals that is dealing with research in the diagnostic.

2:24 BATM have two division. One is networking and cyber, and the other one is biomedical. In the networking and cyber, we have three products. One is carry Ethernet. This is the product that BATM is manufacturing since back two thousands. The second one is edge computing. We are dealing or we build during the last six years with a major investment from our own resources, a platform of operating system for for network virtualization. In the size of the biomedical of BATM, we have today three division. We have one distribution. This is the division that started all the biomedical. We have ECOMET, and we have diagnostic. So this is the BATM of today, but let's go back for the history of the company in order to understand how we arrived to the place of where we are, and then we will move to the next stage of the strategy.

3:20 So BATM was established back in 1992. In the year of 1996, BATM IPO ed in the London Stock Exchange, first in the AIM and then in the main market. In the year of 2000, this was the dramatic year when BATM first entered into the telecom business. This is the year that BATM bought a U. S.-based company by the name of TelcoSystems. And 2003 was the year that we established the partnership with Nokia. In the first years of BATM, we've been all focused on telecom and networking business. Starting from the year 2007 all the way to 2009, we built our biomedical division. We started from diagnostics.

4:06 The reason that we choose to start from the sorry, we started from distribution. The reason that we choose to start with distribution is in order to understand the market. The best way to understand how a market is working is to be a distributor because then you are seeing from one hand the demand that is coming from the customer, and from the other hand, what the suppliers can deliver. So in the year of 2007 and 2008, we bought two distribution companies, what enter us into the biomedical. In the same year 2008, we also entered into our Ecomed businesses in Hungary. The year of 2009 was the year that BATM made a decision that the part of the biomed that is most interesting is diagnostic.

4:51 And we acquired two companies in Italy. One is Adalis and ICE, and the other one is ICE. And, basically, this is the basic of the diagnostic division of BATM that is taking all the way till today. So if we are moving to the years of 2012 till today, basically, what BATM did is to give more power to these two units. We started in 2012 our cybersecurity activity where we are focusing in encryption, and I will give much more details in in the future. And then in 2015, we established the joint venture of ADVANCED, which is also related to our diagnostic division. When we are looking on the turnover of BATM over the year, you are seeing here a a two graphs of two numbers. One is the reported one that includes also the impact of the COVID nineteen and a subsidiary that BATM sold more than a year ago by the name of Engisoft.

5:49 But if you will look on the on the bottom part of this slide, you will see an increase of more than 12% in BATM back since 2018 to till 2022. This is the increase that BATM is showing also even if after we took out the great impact that BATM had from COVID in the year of 2020 and also the disposal of MG Soft.

6:16 Now that we understood what is the background and what is our starting position, let's talk about strategy because this is the main reason that we are here today. One of my first mission in BATM was to build a strategy. In the last three months, we prepared in BATM the plan of how we want to see the company in the coming years. We did a strategy together with expert that we hired from PWC that looked on the company with a very objective point of view. What we did is did a very deep analysis of each one, not of the unit, each one of the business line of BATM in order to understand if this is something that we want to keep or maybe this is something that we don't need to keep.

7:01 Now let me explain what does it mean to keep or not to keep. We are splitting the businesses of BATM into two, core business and noncore business. When we are talking about core business, this is the business these are the businesses that BATM want to stay in. When we are talking about noncore businesses, this will be the businesses that BATM would like to spin out. Now we will explain more about what does it mean spinning out, but you need to understand that we are not talking about bad businesses or good businesses. We are talking about core businesses that can feed the strategy and noncore businesses. And BATM have a great example with Engisoft, for example, that we bought these companies more than ten years ago for less than $1,000,000, and we sold it one and a half years ago for more than $30,000,000.

7:52 So it doesn't mean that the business was bad. It just means that the business was not fit to the strategy of BATM. So the process that we did in this strategy was first to understand who we are, to understand BATM, to to analyze and understand what are the assets, what is the value proposition that BATM have, what are the assets that we built over the last twenty plus years, and to take this asset as a basic for all other. Right after we understood what are the assets of BATM and by the way, we understood it not only from the senior management of BATM. This was analysis that we did together with our people, with our with the mid level management, the employees, and also the suppliers and customer of BATM.

8:37 After that we understood what are the advantage or what is the assets of BATM, we looked on the market. We wanted to understand the market to see if the market is big enough, to see if the market is growing, what are the trends that exist in this market, and what are the challenges in the market that we are working in and if we want to stay or don't want to stay in this market. The second and the last step was to build a strategy, to build the right strategy for BATM that is taking into consideration all what I mentioned and build something that can take the company into the future. And when I'm looking on the strategy or my vision for BATM, and this will be the only slide that I will read, this BATM as a global enterprise will maximize its top assets while providing high quality solution in growing markets with innovative technology, unique know how and focused businesses.

9:38 This is the vision of what I see from BATM. As I said, the first the first step was to understand what are the big assets of BATM. You can see on the right the six assets that BATM identified as the major assets of the company. First is transforming transforming IP into a product. BATM have a long history of taking innovative and new product and new ideas and take it all the way to product. We are doing it and done it in the in the diagnostic division, and we are doing it also in the networking. For the last example, was agility.

10:23 But it's not easy. Many companies are failed by moving the intellectual property even if they have a huge intellectual property. They are failed in moving it into a product. So this is one very big advantage BATM have. The second one is innovative spirit. BATM is not a young company, but still carrying a DNA of a start up, carrying a DNA of company that want to be changed, that want to be in the edge of the technology, which mean that we need to be in the markets and only in markets that are very innovative that we will be able to use this advantage. The third one is international footprint. BATM is a company that is not working only in UK or only in Israel.

11:09 We have a global presence. We are working all over. We are working all the way from The United States, Europe, Far East. We have offices, and we know how to work in this in this countries. Countries. The big advantage and why it's considered to be assets, because when you are looking on the go global market, the meaning of this asset is that you can approach to the entire market. You are not approaching to part of this market in certain countries or territories. You are approaching, and you have the access to the entire market. This the next one is encryption vendor. I don't know how many of you know, but BATM is one of the leaders in encryption. BATM have maybe one of the best encryption system that exist. BATM definitely have one of the best and most reputable customer that is using for in our system in order to do encryption in his entire national defense national and defense system. So this is a very big advantage, and this is something that we work on it for many years and was tested by the best people that you can imagine.

12:23 The next one is extensive networking experience. BATM is in the field for more than thirty years. We have customers that are working with us for more than twenty years. We have product that, unfortunately, is working for more than twenty years. Maybe it's a wrong business model, but this is the fact. We have a presence, a presence that is here in the market that we are working here for a long time, which mean we have a credibility that is very high in this market that we are working. And the last thing is access to European diagnostic market. We have the knowledge of how to do regulation in different countries in Europe and how to take this product, and they're not only transforming it from a ID and intellectual property into a product, but also taking it to the next step of regulation.

13:20 And to know how to take product and do a regulation process, this is not something easy to do, and we have the experience in BATM of how to do it. So when we collected all of these assets, we needed to make a decision. What kind of company do we want to be? What is the identity of BATM? We had three choices. One was to remain as is, which mean to keep the entire portfolio of BATM to continue to try to extend it or to extend the sales of these units, but basically to stay as is. This was option number one. Option number two was to be a single division focus, which mean to take from the entire portfolio of BATM or what I've presented and choose only one, one of the things, one of the business line that we want to keep, and we focus only this.

14:19 And the last option is the best of breed. The meaning of best of breed is to take the business lines that we believe that are the biggest and they have the most potential for the BATM of the future and to invest our resources in this business line only. We decide that this is the best strategy of BATM, to be the best of breed, to take the big assets and to take from our entire portfolio, I want to remind you, 19 different business line and to choose only the best. Now to make a decision what was the best, we needed to build a to build a decision making tool, a decision making tool that we will run across the entire business of BATM, a decision making tool that will not only decide what are the core businesses of BATM of today, will decide also what are the businesses that we are going to invest in in the future. And this is a very dramatic question because we want to be focused. We want to find the places that BATM have advantage in compared to others and to invest only in these places.

15:35 So if we are looking on the five criteria that we put in here and you're seeing it in front of you, the first two is not even related to BATM. It's completely related to the market. And one is growth potential. What is the growth potential of this market? Is the market is big enough? Is the market growing? What is the place that BATM can take in this market? Second is innovation. I told you one of the assets that we identified in BATM that we have an innovation spirit, which mean that we need to be in a very innovative market. BATM don't know and don't want to compete in markets that are commodities, to compete in the market that the price is everything. We cannot compete in this market because we are just in the wrong territory in order to compete over there. So we need to compete, and we have the advantage in

16:35 the places that includes a lot of innovation. So first, we are going to be in a grow market and grow markets that have innovation. This is something that related to the market in general. Now let's talk about the three other criteria, which is specific to BATM. The first one is commercialization. What is the timeline and visibility of of commercialization? How long it will take us and how much it will cost us in order to increase our go to market, to increase our our part in this market. This is something that is related to BATM, and we are need to understand it from each for each line for each product line that we have in BATM.

17:21 Number four is unique know how. BATM have a lot of intellectual property. Intellectual property that we build in the last thirty years, We are going to be only in places that the intellectual property and the unique know how that exists inside BATM is giving us advantage when compared to others. And the last is the brand reputation. We didn't born yesterday. We have a reputation. So we want to be in a places that the brand of BATM is exist and strong. We don't want to be in a place that the BATM brand does not exist, and we need to build it from scratch. So when you are looking on these five criteria and when you are looking on BATM of today and BATM of the future, this will be the guidelines. This will be the criteria that we are going to look on each one of the businesses of BATM today and in the future. And if they will not meet these five criteria, they will not be part of the core businesses of BATM.

18:28 Now let's go business by business in BATM and show you how or I will try to guide you about my thinking about how we analyze these these businesses. The first line of business that we are going to talk about is the cyber unit. And when we are not talking about cyber in general, we are talking about encryption. When you are looking on the market of encryption, you are looking on the market in the size of $11,000,000,000 market. This is an 18% growing market, and the total addressable market for us, for BATM, exactly in the things that we are doing, is more than $3,500,000,000. This is a huge market. This is a market that is growth. This is the market that have a lot of place for a company like BATM to share. We have a lot of innovation in this market. It's a very innovative market because there is an endless fight between the one that is doing encryption to the one that breaks the encryption, and it will continue forever. It will continue even more because now we are talking, as you know, and you probably heard, the termination of quantum computing.

19:41 This is something that goes that is going to be very challenging for encryption, and this is exactly the opportunity that we are seeing in our unit in our encryption unit. Of course, that we have a brand reputation because as I told you in the beginning, we have one of the most important and big customer for encryption. And this is definitely something that we can go into the market with. Now what we need to do in this in this unit, what we need to do now is to extend our go to market approach. We need to go and find now this civil version of encryption in order to enter into the civil market because the big money is coming from the civil market.

20:33 And the sales cycle in the civil market is much shorter than the sales cycle of the government. So when we are looking at our encryption unit, this is definitely something that it fits these five criteria that I mentioned and definitely something that we want to keep and to stay in. The next one is our carry Ethernet businesses. The carry Ethernet businesses, this is something that some people will call even commodities. When we looked on this market, we find out that this is more than $12,000,000,000 market. And this is still market, maybe the only market inside the telecom that is still growing because of the demand for high speed, because of the demand for very big traffic.

21:20 So we are seeing increase in this market, and the total addressable market of BATM is more than $6,000,000,000. This is a huge market. Now in this market, we have a very strong product. Remember that I told you that it might become a commodities, not for BATM. In BATM, we are selling our carry Ethernet product with a margin that is more than 40%, which mean our customers are willing to pay more because they understand the quality of our product and the uniqueness of our product, and we are leaders in this market. So we definitely have the market that is growing. We definitely have the innovation and the commercialization because we are already working in this market for more than twenty years.

22:08 We have the unique know how and the intellectual property, and this is a place when we need to invest a lot more in order to increase our presence with this customer, and I will I will explain in a moment how we are planning to do it. The next one is our edge computing market. This is definitely the market that has grown the fast from all the markets that BATM is working in. This is $18,600,000,000 market, but we are talking about market that is growing 37%. BATM is addressing more than $11,000,000,000 from this market. BATM invested in the last six years more than $30,000,000 from our own resources in order to develop this operating system for edge computing.

23:02 We are ahead of our competitors in between twenty to twenty four months. We have a great technology that we just finished and just now put a product on the table. And you saw the last announcement of BATM, also the one from two days ago with this unique and very important US customer, but even before with The UK based Citi Fiber. This is the definitely the big customers that can take this technology and BATM to the future. The entire model of revenue of this activity is completely different. This is an annual recurring revenue model, which mean we are selling licenses.

23:47 We are selling licenses to use, and the customer is paying for every end user monthly fees. What is the size of these monthly fees? They are moving between 10 to $25 a month, and this is depend on the size of the customers. So this is definitely a very big opportunity. We invested a lot of money, and we have a window of twenty to twenty four months that we are ahead of our competitor, and we need to take the advantage of this window.

24:24 When we are looking on the next business unit of BATM, we looked on the diagnostic. The diagnostic is the biggest market that BATM is working in. This is a $107,000,000,000 market. And BATM is dealing with infection disease, which mean forty seven percent of the of this market is addressable for us. We are talking about $50,000,000,000 market that is growing 5% every year. This is a huge market. Only the market in Italy, for example, where we have our two companies, it's a $3,700,000,000 market, a huge opportunity for BATM.

25:10 The sales of BATM is not even scratching the surface of this market. The potential is huge. During COVID time, BATM showed to everybody what is the quality of our product, what is the quality of our kit, and how fast we can adapt our kits to everything that is happening. I want to remind you that BATM was one of the first companies that put a PCR test that is that had a sensitivity of more than 97%. The only one that did it before us was Roche that are hundreds of time bigger than us. So this is something that we definitely have in our hand. We have a huge market with a lot of potential. Of course, there are giants in this market.

25:55 Every every market in this size has some giant because if not, you cannot deliver $100,000,000,000 market $100,000,000,000 of a a product. But still, even in this kind of market, because of the size of this market, there is a lot of room for a company like BATM. And BATM have the ingredients in order to succeed this one. We have the unique know how. We have the innovation. This market have the innovation, and we need to invest and build our commercialization process in order to increase our sales. The last thing that we are going to talk about as a core business, which is complete which is slightly different than all other, this is Adol.

26:41 ADVANCED a joint started as a joint venture and today is a subsidiary of BATM. BATM is holding 37% of ADVANCED. Now why I'm talking about ADVANCED? ADVANCED not a financial investment for BATM. This is very important part it's very important for us that company like ADVANCED that is different from all other is part of the portfolio of BATM. Now why why Adore is different?

27:26 Because unlike all other, which already have product and have revenue, Adore is an IP company. No revenue. Only expenses. When you are looking if a door is doing something good and moving from one place to another and meeting the milestones, you will not see it in the line of the revenue of BATM. Exactly the opposite. You will see it as a negative impact on the EBITDA of BATM. You will see it as a negative impact on the financial results of BATM, but we are building here a huge intellectual property. We are building an intellectual property with an exit strategy that probably one of the big guys will acquire or or at least will join to this investment, and we are building something completely unique. So unlike all other, Adobe is is different in the way that we are looking on. And, of course, still if we are looking on the five criteria that we mentioned for all others, Adobe is meeting all of them. The we have the growth potential. We have the market. This is $25,000,000,000 market, and we are addressing $16,000,000,000 from it. And this is definitely 9% growing market, market that is very innovative and very strong, and BATM have here the unique know how.

28:52 We just go through the core businesses of BATM. All other businesses of BATM are non core businesses. Now, again, it doesn't mean that they are bad businesses, and I gave the example of. They are all good businesses. They are businesses that are growing. They are businesses that are not losing money. It's a good businesses, but they are not businesses that fits the the strategic plan of BATM. They are not businesses that fit to the future of BATM. What we are going to do with these businesses? We are going to spin them out. When? In the right time. The right time for BATM and the right time from the market. Not everything is depend on us. We will find the right time to dispose these assets and to sell them, And we will use the money that will arrive as a result of it in order to support the growth of the business that are part of the core business of BATM.

29:53 And what we are going to do and how we are going to invest in the core business of BATM, we are going to put a lot of effort in go to market. We are going to put a lot of effort in commercialization. You saw the results of one effort that we did in the beginning of the year, which is the contract in The US. We hired and we started to build our US Team that will start that will sell agility. And the contract that you saw two days ago, the announcement that you saw, this was the first result and not the last definitely that you that the US team brought to us. So we need to build a go to market, and we need to build a very strong team. There are two ways to build a sales and marketing team. One is to start to build it from scratch, which mean to start and hire people.

30:44 The advantage and disadvantage. The advantage of it that you can build a team that is completely fit to your DNA. And probably, we will not we will not pay too much in order to build it. The disadvantage of it that it takes time. The other way to build a sales team and a strong presence with customer is to do m and a, to buy companies that have the presence in a customer that we want to be to have. This have exactly the the other side. The big advantage that is immediately. You are taking the revenue together with the with the customer in day one, and you don't need to build it over time. The disadvantage is that you need to find the right way and the right price in order to take this activity. So BATM is going to look for M and As that will give us the presence with the customer, not M and As that are giving us product. We don't need products. We don't need products in the networking, and we don't need product in the cyber or in the diagnostic.

31:50 We have a very good product. We have a very good solution that's based on a high end intellectual property. What we want to reach from this acquisition is the go to market. We want the access to the tier one customers or to the big customer or the customer that it will take us time to meet in order to shorten everything. And I as I told you, in some places in BATM, time is critical. For example, in the agility, the two year that we are ahead of our competitor, it sounds like a lot of time, but this is exactly the time that we need to capture the market. This is exactly the time that BATM needs to become a dominant part of this market. And this is exactly what we are planning to do in the businesses that will remain as a core business of BATM.

32:43 So if I'm trying to summarize all what we discussed, so BATM is a global lead leader in networking, cyber, and biomedical solution. We are going to be or we choose the best of breed approach to the strategy of BATM by keeping the assets that we believe that can be part and key of the future of the company and can grow the company and take it to the next step. We have a very big portfolio of different assets, and we are going to use them, and we are going to use them in order to make the company bigger and bigger. Thank you for listening. We can move now to the questions. That's great. Motti, thank you very much indeed for updating investors this afternoon.

33:37 Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the right hand corner of your screen. That's why I'm not in the team take a few moments to review the questions you submitted already. I'd just like to remind you that recording of this presentation along with a copy of the slides and the published Q and A will be accessed via your Investor Meet company dashboard. Marty, Claire, as you can see, you've had a number of questions from investors throughout today's meeting. So thank you firstly to everyone for your engagement. Perhaps if I may, Claire, just hand back to you to read out those questions, and then I'll pick up from you at the end. Great. Thanks, Mark. So the first question, our profitable growth prospects seem to rest squarely on a successful agility rollout. How big is the total available market, and what is a realistic market share expectation? Okay. So I show you what is the size of the market. The size of the market for agility is huge. It's more than $20,000,000,000 market, and we are one of the first that are coming to this market. We are one of the pioneers. We invested in going to this market six years ago.

34:42 We started the thinking and started the investment. The agility model, as I told you, is a SaaS model. This is annual recurring revenue model, which mean that most of our contracts are for a period of between three to five years, and we are charging for end user. So let's take an example. If a if a customer have 1,000 end user, it mean that he will pay for each one of them an an amount that between 10 to $25 for the use of this license. If this customer have 10, then it's 10 times. We are dealing with customer that can reach for millions end users. We are splitting this customer into three, small, medium, and large.

35:30 Large customers are a customer in the size of a tier ones like AT and T, Verizon, and others. These customers have more have tens of millions of license. The smallest ones are talking in the range of thousands of license. So this is the model. And I want to remind you that when we are talking about agility, we are talking about software solution, that most of it is coming for in a margin of above 90%. K. When does the company expect any commercial sales from ADVANCED? So as I said, like, in in different to other activities that we have in BATM, ADVANCED a IP company.

36:16 In ADVANCED, the strategy is different. We are looking for exit strategy. We are looking for how we can get our return on the investment from the value in the intellectual property of the company and not necessarily for from the sales of the company. I note the CEO is not currently a shareholder in the company having served as an executive director for many years. Best advice is that executives, especially CEOs, build a meaningful holding relative to remuneration to be aligned with shareholders, not just through generous option arrangements. Does the CEO intend aligning with shareholders and joining the share register anytime soon? So today is very hard for a CEO to and senior management in a company to buy shares, especially in this amazing time that we are here in BATM, which we are doing a lot of changes and a lot of things that is happening, we are basically almost the entire time under inside information.

37:22 So with the current regulation, it's become very hard for senior management inside the company to buy shares. But we are definitely or I indefinitely look for the way of what what I can do in order that I will be in line completely with the shareholders, which is something that I see as a very important part. Have you considered disposing of the biomedical division and reinvesting the proceeds plus available cash in businesses that have more synergy with Telco and Solare? In this way, there will be more cross selling opportunities and commercial critical mass. This is a very good question because these questions bother us a lot while we prepare the strategy. Because this is the difference between being a single division focused or best of breed.

38:08 And we and and we thought about a lot about the synergies and the advantage of how we can create synergies between the diagnostic and the other businesses that we decided at our core business of b of BATM. In the end, when we looked on the assets on on what we can do with the diagnostic and what is the size of the market and where we are positioned inside the market, we just decided that it's too early to give up on this business. We save so much opportunity in this business that even if the synergy is not completed, like the synergy that you are right, that's between the networking and the and the cyber, still, we must do whatever we can in order to capture the market. And this is a very big opportunity that we cannot allow ourself to miss.

38:57 The company owns valuable IP and ventilators that is not generating any revenue. What plans are in place to offload or generate revenue? So ventilators were the deal that we did during COVID. During COVID, there was demand for many things, and BATM, with the asset that we have, succeed to build the ventilators. But we are not planning to be a ventilator company. We are not planning to use this intellectual property. Exactly the opposite. As I mentioned you, even if you will check the ventilators into these five criteria that you that we mentioned, you will find out that they are not meeting this criteria. So we are not planning to build or to become or to open a a line of ventilators inside the ETM.

39:45 Why has the share buyback been limited, and is the company still able to buy back shares? So I just present to you the strategy of BATM, and I told you that BATM is planning to do mergers and acquisition in the coming year. But from the other side, we are also planning to sell some of the businesses. We would look in the time, and we will see what is the best way that we can use the cash, if it will be to invest it inside the company in order to grow the businesses and make it stronger or to return it for the shareholders. Is there any plans to list in The US as it is more favorable for tech companies? US is definitely a a better market for tech companies than more than The UK and more than Israel. We are looking on The U. S. Market. I believe that we are too small today in order to go to the NASDAQ or any other stock in The U. S, but it's definitely part of our long term vision.

40:52 How does the company intend to improve shareholder value? So first, by growing. First, by giving by showing that the company is stronger and bigger and growing every year and working in the right places that are going to be core businesses of BATM. And as I said before, the money that will arrive from the cash flow that will enter into BATM as a result of the activity of BATM or as a result of the spinout of the businesses will be all the time considered what to do with, or to return it to the shareholders, or to reinvest it in BATM. What lessons have you learned in your role as CEO? I learned a lot. It's a completely different position to look on the company from the eyes of the CEO to the eyes of the CFO.

41:47 During the last six months, I traveled all over the world in order to meet our people, my people, and I find out that I have a great team, very motivated, and very excited about the future and of BATM. And I was very happy to see to see it, and we all believe that we can be part of something much bigger. Will you require further funding to accelerate your growth and deliver the strategy? And, also, how will you fund your planned m and a? So BATM, as you know, have around $40,000,000 in our bank account. Account. This is something that can support the first mergers and acquisitions that we would like to do. The other money will arrive all from the spin out for the businesses that are not part of the core business or by taking any loans or any from banks or something like this to support.

42:45 But I must say nothing will happen in one day. It's not it's not that BATM is going to do tomorrow morning or in a week from today all the acquisition in one time. Or from the other side, we are not going to do all the spin out in the in the right time. We need the in in the in the same time. We will find the right time for the acquisition, and we will find the right time for the disposal. The time is much related about where is BATM now, what is the market loo look like, is this a market of sellers or buyers, What are the companies? What is the situation of the companies that we want to acquire? So this is much different, but we have and we can support our growth. What have you done with the £30,000,000 proceeds from the sale of noncore asset a year and a half ago?

43:37 So this is a $30,000,000 that we received from the disposal of Engisoft. It was invested. Part of it is still from the case the cash of BATM, but it was invested in the core businesses of BATM. Part returned to the shareholders as a dividend and the share buyback. Another part was an investment in in ADVANCED when we did it in previous or the last round of of ADVANCED. K. I am concerned with the TACE and LSE listings. TACE inclusion at the expense of noninclusion in the LSE index is probably holding back the share price. Unfortunately, this is not something that I can control.

44:25 We tried to explain the situation to the London Stock Exchange and why do we think that the rule of the London Stock Exchange is not good, not to the companies and definitely not to the shareholders, but they didn't accept our approach. And as a result of this, we went out from the indexes in The UK, which, of course, influenced everything also for the share price and the and the indexes in Israel. What time line do you see to realize the investment in So what we are planning to do in ADVANCED, we are planning to start this year the clinical trials. We will enter into a a process of building 10 machines and more than 10,000 cartridges in order to start our trails. I think that this will be the major step that we will be able to show as a progress of ADVANCED basically get an approval from external hospital that is approving that our machine is as good as the gold standard.

45:37 Do you plan to do investor roadshows in London? Yes. Yeah. Definitely. We Will there be an increase in the dividend year on year? So this this is what I thought before. In the end, BATM is creating cash, and more cash will be come from the disposals of the businesses that are not core businesses. But part of the cash will be reinvested in the businesses that will remain in BATM, which mean all of these units that I just presented to you that are core business of BATM. With money that will not be invested inside this business inside BATM business, definitely, we will find a way to return it to the shareholders. That's great, Claire. Motti, thank you very much, and thank you to everybody for their engagement this afternoon, and you've taken every question submitted from investors. So thank you once again. Motti, I know investor feedback will be particularly important to you and to the company, and I'll shortly redirect those on the call to give you their thoughts and expectations and feedback. But I wondered if I could just ask you for a few closing comments.

46:42 Yes. So thank you very much all of you for participating in this webinar. It's much appreciate. I think that now that we are presenting a new strategy for the company, that it's much more focused and much more oriented to the size of the market, I think that we can grow together and present a much bigger and stronger company. And I hope that all of you will join to this journey because I 'm 100% sure that it will be for the benefit for everyone. That's great. Marty, thank you once again for updating investors. Could I please ask investors on the call not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order the company can better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of BATM, we'd like to thank you for attending today's presentation. So good afternoon to you all.