corporate presentation december 2018
TRANSCRIPT
CORPORATE PRESENTATIONDecember 2018
Dan Mondor, Chairman and CEOSteve Smith, EVP and CFO
Safe Harbor
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Safe Harbor StatementThe following presentation contains statements about expected future events that are forward-looking and subject torisks and uncertainties. For these statements, we claim the safe harbor for “forward-looking statements” within themeaning of the Private Securities Litigation Reform Act of 1995. For a discussion of factors that could cause actualresults to differ materially from expectations, please refer to the risk factors described in our filings with the SEC.
Non-GAAP Financial MeasuresNon-GAAP gross margins, operating expenses, and earnings per share exclude restructuring charges, share-basedcompensation expenses, amortization of the debt discount and debt issuance costs associated with our convertiblenotes, charges related to acquisition and divestiture activities and acquisition-related intangible-asset amortization.This presentation contains references to certain non-GAAP financial measures and should be viewed in conjunctionwith our press releases and supplementary information on our website (www.inseego.com/investors) which present acomplete reconciliation of GAAP and Non-GAAP results.
NASDAQ: INSGInseego HQ (Corp and Regional)
NORTHAMERICA(GLOBAL HQ)
EUROPE
AFRICA
ASIA
AUSTRALIA & NEW ZEALAND
1M+ Global SaaS subscriptions under contract 9 Aviationcustomer
deployments
Tens of Millionsdevicesshipped
Presence inover 50 markets
worldwide
~870employees
globally
~$200Mtrailing 12
months revenue
3
DigiCore (Ctrack) Acquisition
DigiCore (Ctrack)Est.
Novatel Wireless Est.
Feeney Wireless Est.
Listed Nasdaq
Feeney Wireless Acquisition
Rebranded to Inseego
1986 1996 1999 2000 2015 2016
~450K Ctrackvehicle tracking & management
~640K Subscription Management (incl. enterprise customers)
Transformation to Inseego 2.0
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PLAN & EXECUTE ON NEW STRATEGY
RESTRUCTURING & CREATE FOCUS
• Eliminated Near-Term Liquidity Risk• Annualized OPEX Reduction Greater than $30M• New Management Team
• Launched Inseego 2.0 with 3 Year Growth Strategy• 2018-2019 Development of Comprehensive 5G Portfolio• 1st Mover in Aviation Vertical (Ctrack)
GROWTH & DELEVERAGE
• Deliver New High Margin Products and Services• Focus on High Growth Markets• Grow Adj. EBITDA – Generate Cash to Deleverage Balance Sheet
STEVE SMITHEVP & CFO
JOHN WELDONSVP Enterprise SaaS Solutions
VERIZON | TELOGIS COMTECH
Leadership Team
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RICK HARRISSVP Enterprise, Americas
SYMANTEC | IBM | NORTEL
MARK FRISCHSVP Service Providers, Americas
ERICSSON | NORTEL | COMSAT
JACQUES FRADETSVP Operations
KYOCERA | QUALCOMM | DENSO
SIMON RAYNESVP & Managing Director
UK, EMEA & APACSPECTRALINK | MICROSOFT | SONY/ERICSSON
ASHISH SHARMACMO & EVP IoT & Mobile Solutions
SPECTRALINK | GRAYMATICS ERICSSON | QUALCOMM
TETRAVUE | MICROPOWER XITRON | APPLIED MICRO
DAN MONDORChairman & CEO
SPECTRALINK | MITEL CONCURRENT | NORTEL
Mobile Solutions
Subscription Management
Secure Data
IoT Solutions
SaaSSolutions
Enterprise Integration
Smart Edge Solutions
Internet of Things
Intelligent Insights
Connected Airport
Smart City
IntegratedSolutions
ConnectedSMB
Connected Enterprise
Connected Assets
Integration with Customer Systems
Secure Device-to-Cloud Solution
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Connected Car
5G Extends Device-to-Cloud Capability
Brought us mobile internet
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Smartphone application proliferation, mobile broadband
MULTITUDE OF USECASES
3GMOBILE
INTERNET
New applications and possibilities: massive IoT, fixed wireless, ubiquitous broadband,robotics, autonomous driving
4GSMARTPHONE
WITH APPS
Inseego Firsts - Mobilizing the Intelligent Enterprise
IoT & MobileSolutions
Fueling the mobile revolution: FIRST Modem for PDAs
2GEmpowering the masses withaccess to mobile data: FIRST Mobile Hotspot
Leveraging innovationcatapults IoT applications: FIRST Cat 18 LTE GigabitMOBILE HOTSPOT
4G
1990’s 2000’s 2010’s TODAY
NR
1st GSM based Fleet Management platform
in Europe
Industry’s 1st end-to-end Airport Asset Tracking
solution
Award-winning Cloud Telematicssolution for high-value asset
management
Enterprise SaaSSolutions
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Nationwide broadband footprintEARLY MOVER with mmWave and sub-6
3G
Broad Portfolio of Solutions
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IoT & Mobile Solutions Enterprise SaaS Solutions
IoT Mobile CloudTelematics
SubscriptionManagementRouters
GatewaysModemsTrackers
HotspotsHD VoLTE
Home GatewaysPersonal Trackers
AviationSMB
Enterprise Fleets
GovernmentEnterprise
IoT & Mobile Solutions
Enterprise SaaS Solutions
5G and IoT Device-to-Cloud Growth Opportunity** Annual
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Fixed & Mobile
IIoT SolutionsU.S. TAM
$1.5B+
U.S. TAM
$5B+
Global TAM
$2B+Global TAM
$6B+
Fleet AnalyticsBI
Aviation & OtherIoT Cloud Verticals
Multi-Billion Dollar
Revenue Opportunity
$
Aviation: Proven Solution - Propelling Growth
High growth - nascent market
Global Airports Wins & Successes: North America, United Kingdom,
EMEA, APAC
Upcoming Deployments at multiple airports - 2 of 10 world’s largest airlines
Partnership with KLM Equipment Services
Pilot with European leading ground support logistics provider
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BDriven by 4 million
ground service assets
2018
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Inseego is #Making5GReal
Inseego’s All-New Router Will Bring 5G to Life in American Homes
Inseego Achieves Multigigabit per Second Speed and Millisecond Latency in Live 5G
NR Mobile Network Field Trials
5G NR MOBILENETWORK
MILLISECONDLATENCY
5G NR: Inseego and Verizon Demonstrate Virtual Reality Telemedicine over 5G at Qualcomm Snapdragon
Technology Summit in MauiNew Inseego 5G Mobile Devices Available on
the Verizon 5G Network in 2019
Telstra Announces 5G Mobile Hotspot Prototype from Inseego
The Trillion Dollar Global Economic Impact
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A UNIFIED GLOBAL PLATFORM
KEY RANGES OF NEW SPECTRUM
Sub 6 GHz 28 GHz 39 GHz
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GLOBAL OPERATORS CONFIRMED TRIALS/DEPLOYMENT190+
Virtual Reality
Augmented Reality
Robotics
Integrated Smart City
Autonomous Driving | V2x
Remote Surgery
Video Multi-Casting
Immersive Experience
5G Device-to-Cloud: A Future of Possibilities
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Inseego Solutions Trusted by Blue Chip CompaniesFortune 500 Customers and Partners // Government and Enterprise Customers
MobileSolutions
Enterprise SaaSSolutions
South Africa
IoT Solutions
Financials
Q2-17 Q3-17 Q4-17 Q1-18 Q2-18
Q3 2018 Results Record Adjusted EBITDA
17
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
Revenue
Enterprise SaaS Solutions IoT & Mobile Solutions Consolidated
(4,000)
(3,000)
(2,000)
(1,000)
-
1,000
2,000
3,000
4,000
5,000
6,000
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
Adjusted EBITDA
Consolidated
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
Non-GAAP Gross Margin
Enterprise SaaS Solutions IoT & Mobile Solutions Consolidated
-
5,000
10,000
15,000
20,000
25,000
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
Non-GAAP Operating Expense
18
Recent ~$20M New Capital
18
Deleverage Balance Sheet
Fuel strategic investments in
5G and IoT Cloud
KEY GROWTH DRIVERS
• 5G Fixed and Mobile• Accelerating SMB/Fleet Telematics Growth• Aviation Plus New IoT Cloud Verticals• Industrial IoT
TARGET• Revenue Growth• Adj. EBITDA Margin• FCF as % of Adj. EBITDA• Net Leverage Ratio
> 25% CAGR> 15 - 20%
> 60%2x
Inseego Target Operating Model
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Investment Highlights
New Management Team with Proven Track Record
5G Fixed Wireless and Industrial IoT are Near-Term Growth Drivers
Accelerating Growth in Recurring, High Margin Enterprise SaaS Solutions
Core Technology, Large Number of Referenceable Service Provider and Enterprise Accounts Give Inseego Early Mover Advantage in Emerging 5G Device to Cloud Market
Enhanced Revenue Growth and Free Cash Flow Deleverages Balance Sheet
Significantly Stronger Balance Sheet (strategic investment and settlement)
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NASDAQ: INSGGlobal HQ: San Diego, CA www.inseego.com THANK YOUFor more information contact: Investor Relations [email protected]
Media [email protected]