BOS Company Presentation

Transcription

1 BOS Company Presentation NASDAQ: BOSC 1

2 Safe Harbor Statement The forward-looking statements contained herein reflect management's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of BOS, including, but not limited to, those risks and uncertainties detailed in BOS' periodic reports and registration statements filed with the U.S. Securities Exchange Commission. BOS undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. This presentation contains trade names, trademarks and service marks of other companies. We do not intend our use or display of other parties trade names, trademarks and service marks to imply a relationship with, or endorsement or sponsorship of, these other parties. 2

3 Company Profile BOS operates through two divisions: RFID & Mobile turnkey automatic ID data capture (AIDC) solutions Supply Chain distribution of electronic components for aerospace & defense Focusing on large, attractive, high-growth AIDC and RFID markets Market leader in Israel, now expanding internationally Established: 1990 Public since: 1997 Headquarters: Israel Employees: 90 Annual Revenue ($M) RFID and Mobile Supply Chain $2.3 $ : Forecast of 10% growth $18.6 $

4 Key Stats (NasdaqCM: BOSC) Ownership Stock Price (as of Dec ) $0.72 Market Cap $3.2M Revenues TTM $33.5M EBITDA TTM $1.15M Shares Outstanding 4,468,112 THCAP, 5.6% Bellite Pty, 10.1% Public, 29.8% M.T.A.Y HOLDING, 9.3% Ashim Mehra, 4.7% Catalyst Fund, 21.2% Dassault, 13.7% Management, 0.8% European investors, 4.8% 4

5 BOS Vision: A Leader in AIDC AIDC = Automatic ID Data Capture RFID = Radio Frequency Identification To be a leading provider of turnkey AIDC mobility solutions, focusing on RFID technologies 5

6 Automatic ID Data Collection Overview Automatic data collection technologies give organizations greater accuracy & visibility to material movement Barcode is the dominant track and trace automatic data collection technology. RFID is a method of transmitting the identity of object wirelessly, using radio frequency. RFID is an emerging AIDC solution, usually complementary to barcodes, adding: More opportunities to capture information Non-line of sight capabilities ERP or other enterprise IT systems Vehicle ID 6

7 BOS Offering: One-Stop-Shop for AIDC & Mobility BOS offers a cross-industry platform for data collection applications, industry-specific software, best-of-breed AIDC hardware, & expert integration services Turnkey solution AIDC, RFID & Mobile Hardware AIDC equipment RFID tags Readers & antennas Mobile infrastructure Edge equipment Software Platform Application builder for automatic ID data capture Applications more to come Stand-alone Stand-alone Stand-alone 7 Each element available on turnkey or stand-alone basis

8 BOS Platform Software a platform to assemble automatic data capture applications, without programming Template-based, logical business flows to build optimal data collection apps Piggybacks on past applications Hardware-independent, RFID and barcode compliant 8 Rapid time to market for integrators installing data capture solutions

9 Potential AIDC Verticals Military & Aerospace Environment Healthcare Retail Aircrafts Waste Management Smart Cabinet Logistics Security Livestock epedigree Remote Asset control Legal Traffic Emergency vehicle control Footwear/Apparel Regulated Non-Regulated 9

10 Livestock Manufacturing Warehouse & Retail Vehicle Success Stories with Industry Leaders African country Created national database with 500,000 official cow records Facilitates transfer of ownership Reduces theft Can track vaccinations, breeding, inseminations Suitable for farms or herds Hollandia: armor supplier to IDF, global defense ministries Optimized data collection on production floor Enhanced traceability of parts and final products Status reports on each station Ability to analyze production line bottlenecks Ikea Israel: two megastores, warehouse Optimized data collection + information dissemination Reduced out-ofstocks Manages & tracks goods in warehouse Handles over 50,000 SKUs Colmobil: importer of Mercedes-Benz Mitsubishi & Hyundai Locates, tracks & manages vehicles in bonded lots Optimizes operations at pre-delivery inspection center for 25,000+ new cars each year Improves delivery to dealerships 10

11 Worldwide Barcode & RFID Market Growth Both barcode and RFID markets showed double digit growth last year (VDC Research) $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $ Source: VDC Research, November 2010 Software critical to successful RFID implementations: the cornerstone component for additional functionality & convergence (VDC Research)

12 Three-Year Growth Strategy Mission: to become a major provider of data collection software applications Seek projects using next-generation RFID technology Penetrate European market in 2011 (Spain, Italy, France, Russia), US market in 2013 Expand solutions implemented for Israeli customers into their international operations (Ikea, Teva, Africa livestock) Create partnerships with hardware vendors in specific vertical markets as additional marketing channel to systems integrators (e.g. Intermec, Motorola, Honeywell) Selected acquisitions in strategic markets, following proven partnerships 12

13 13 Strong AIDC & RFID Strategic Partnerships

14 Supply Chain Division Aerospace Defense Design-In 14

15 BOS Supply Chain Division Active for 20 years, one of the 10 biggest components distributors in Israel Offers: Design-in business customized electronic parts for high tech customers Supply chain management for aerospace and defense industries Cost-effective kitting services Inventory QC management on components entering production lines Distribution of electronics components, networking, and communications equipment Growth engines: Design-in Expansion to international markets (e.g. India) 15

16 16 Financials

17 Consolidated PL (K$) The difference between the GAAP and the NON-GAAP amounts to $1.1 M, reflecting slow inventory write of, amortization of Intangible assets, stock based compensation, impairments of investments in companies and expenses related to convertible note. 17 First nine months of 2011 Revenues 25,735 Gross profit 5,453 Operating costs and expenses: Research and development 335 Sales and marketing 2,973 General and administrative 1,514 Total operating costs and expenses 4,822 Operating profit 631 Financial expenses, net (651) Net loss (20)

18 Consolidated Balance Sheets (K$) Sep 30, 11 Cash and cash equivalents 121 Trade receivables, net 8,785 Inventories 4,762 Other current assets 867 Current assets 14,535 Goodwill and other intangible assets, net 5,446 Property and severance funds and others 1,367 Total Assets 21, Short term liabilities Revolving bank credit line 7,447 Current maturities of long term bank loans 497 Accounts payables 4,800 Convertible note 2,617 Other current liabilities 2,170 Total short term liabilities 17,531 Long term liabilities Long term bank loans 118 Long term convertible note 186 Other long term liabilities 963 Total long term liabilities 1,267 Shareholders Equity 2,550 Total liability & equity 21,348

19 Investment Highlights Focusing on large, attractive, high-growth RFID markets Market leader in Israel with proven execution capabilities Potential to duplicate solutions implemented in Israel internationally (Ikea, Teva, Africa livestock) Revenues from continuing operations ($M) Sources: RW Baird & company analysis

20 Management Team Name/Title Edouard Cukierman Chairman Yuval Viner CEO Avidan Zelicovsky President Eyal Cohen CFO Shelley A. Harrison Outside Advisor, Chairman of Steering Committee Select Previous Experience Founder and CEO of Catalyst Investments Chairman of Cukierman & Co. Investment House, realizing 3 billion of corporate finance transactions since 1993 CEO of Dimex Solutions (now RFID & Mobile division), from 2000 until its acquisition by BOS Background in industrial engineering & systems analysis CEO of Odem (now Supply Chain division) from 2005 until its acquisition by BOS CFO since 2007, previously company Controller Financial management positions at CellAct, e-sim, PWC Senior Advisor & Head of U.S. Corporate Portfolio Ventures at Coller Capital Co-founder, First Chairman and CEO of Symbol Technologies 20

21 Thank you! For more information: Eyal Cohen, CFO