ELSIGHT LIMITED — Investor Presentation 2017

Jun 7, 2017

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Investor Presentation June 2017

DISCLAIMER

This presentation has been prepared by Elsight Limited. (“Elsight” or the “Company”) based on information available to it as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision.

This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in Elsight, nor does it constitute financial product advice or take into account any individual’s investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this presentation but must make its own assessment of Elsight and conduct its own investigations. Before making an investment decision, investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. Elsight is not licensed to provide financial product advice in respect of its securities or any other financial products. Cooling off rights do not apply to the acquisition of Elsight securities.

Although reasonable care has been taken to ensure that the facts stated in this presentation are accurate and that the opinions expressed are fair and reasonable, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Elsight its officers, directors, employees and agents, nor any other person, accepts any responsibility and liability for the content of this presentation including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of or reliance on any of the information contained in this presentation or otherwise arising in connection with it.

The information presented in this presentation is subject to change without notice and Elsight does not have any responsibility or obligation to inform you of any matter arising or coming to their notice, after the date of this presentation, which may affect any matter referred to in this presentation.

The distribution of this presentation may be restricted by law and you should observe any such restrictions.

This presentation contains certain forward looking statements that are based on the Company’s management’s beliefs, assumptions and expectations and on information currently available to management. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results or performance of Elsight to be materially different from the results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the political and economic environment in which Elsight will operate in the future, which are subject to change without notice. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast. To the full extent permitted by law, Elsight and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including, but not limited to, any assumptions or expectations set out in the presentation).

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Investor Highlights

o Operating since 2009

o Innovative Multichannel technology providing live video, audio and other data transmission with unprecedented reliability, security and bandwidth

o Multichannel product extends existing bandwidth capabilities, reliability and security of transmissions through aggregation of an unlimited number of network links with nearly zero latency, even during physical movement from one geographic location to another

o Already generating Significant Revenues

o Market leaders in video compression and optimisation

o Exclusive supplier of Multichannel systems to Homeland Security Office, Israeli Police and the Office of the Prime Minister of Israel

o 2017 pipeline of more than 30 commercial projects

o Team members consist of former IDF (Israeli Defence Forces) special tech division and special forces

o Blue Sky opportunity from emerging Consumer Media, Broadcasting and Livestreaming segments

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Capital Structure

TOP 10 SHAREHOLDERS

NIR GABAY	26,052,974	31.25%
LEARNICON LLC INTERVEST HK LTD	13,600,304 3,250,000	16.31% 3.90%
ROEE KASHI	2,894,775	3.47%
FINELINE PCB LTD	2,500,000	3.00%
GNAT PTY LTD	2,325,000	2.79%
ANTON UVAROV	1,708,334	2.05%
HOWARD DIGBY	1,708,334	2.05%
AWZ HLS INVESTMENT FUND	1,500,000	1.80%
MOSHE COHEN	1,166,667	1.40%
TOP 10 TOTAL	56,706,388	68.01%

o Performance Milestone A: upon achieving aggregate revenue of AU$1,000,000 per year from the sale of products for broadcast or to consumers or to manufacturers of consumer or safety products or any business in the distribution chain of consumer or safety products

o Performance Milestone B: upon achieving aggregate revenue of AU$4,000,000 per year from total sales of products

o Performance Milestone C: upon achieving aggregate revenue of AU$10,000,000 per year from total sale of products

Issued Capital	Metrics
	(million shares)
Total shares on issue	83.4 million
Shares escrowed (6-24mos)	53.3 million
Voluntary escrow (12 mos)	4.4 million
Listing Price	$0.20
Market Capitalisation	$16.7 million
Repayment of loan	$0.53 million
Cash remaining	$4.5 million
Enterprise Value	$12.2 million
Options (ex price $0.30c, 24mos escrow)	7 million
Performance Options (ex price $0.20, 24mos escrow)	30 million
Management Options (ex price 20c)	8.6 million

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Meet Our Team

Experienced Management and Board – Military and Technology Background

Nir Gabay

Managing Director

Nir Gabay has more than 20 years experience in communications, security and surveillance including a mobile cellular provider, local municipality, and high tech companies. During the past ten years Nir has been involved in a number of technological and business achievements among them, is the establishment of ElSight Ltd, which became a dominant player in live video/audio other data transmission from the field.

Maj. Gen. (ret.) Ami SHAFRAN

Non-Executive Chair

Former Head of IDF’s ICT (C4i and Cyber) Command. Head of the Centre for Cyber Technology at Ariel University. Over the course of his extensive career Shafran held numerous prestigious and prominent positions in the Defense and Intelligence forces of the IDF, including IDF’s Chief Scientist, Chief of Staff of the Ministry of Defense, and the R&D Attaché at the Israeli Embassy in Washington DC.

DR ANTON UVAROV

Non-Executive Director

Anton has significant experience as an equity analyst both in Australia and overseas. Prior to moving to Australia, he was with Citigroup Global Markets, New York. Upon moving to Australia he spends his time as a corporate advisor and investor, having played key roles in several M&A and reverse takeover transactions.. He is currently a Director of Actinogen Medical Limited (ASX.ACW) and HearMeOut Limited (ASX.HMO).

Roee Kashi

David FURSTENBERG

HOWARD DIGBY

VP Research & Development

Roee has over 9 years of experience and expertise in building and developing digital video systems, some of them in the IDF. Roee has been responsible for some major technological achievements including the development of the core software on ElSight that is responsible for video encoding and transmission, user interface design and construction of the system, etc.

Non-Executive Director

Held various senior CEO, Chairman, Board member and VP Global sales positions in a number of publicly traded and privately owned companies such as Comverse (NASDAQ: CNSI) and Audiocodes (NASDAQ: AUDC), Enure and Vista (a subsidiary of Israel Aerospace Industries) and most recently active Chairman at NovelSat and CEO at InsurBit. Specializes in high-tech company’s turnaround through product and market repositioning.

Non-Executive Director

Howard began his career at IBM and has spent 25 years managing technology related businesses in the Asia Pacific region. More recently, he was with The Economist Group as Regional Managing Director. Prior to this, he held senior regional management roles at Adobe and Gartner. Upon returning to Perth, Howard spends his time as an advisor and investor, having played key roles in several M&A and reverse takeover transactions. Howard is a Director 4DS Memory Limited (ASX:4DS) and Chairman of HearMeOut Limited (ASX:HMO).

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Product Portfolio Elsight develops innovative technologies for Clear, Reliable & Secure realtime video, audio and other data transmission (both military and civilian) that can be captured, transmitted and displayed whenever & wherever necessary for Improved Critical Decision Making

Technological Advances – Achieved Challenges

Layers of Technological Knowhow

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Moving objects – Keeping real-time video and other data continuously available in low latency despite mobile reception drop outs, impairments and changes in available bandwidth

Adaptation – Real-time compression and packet shaping based on available bandwidth, in order to get the maximum performance and quality at each moment

Redundancy and Survivability – System switches dynamically and utilises multiple channels as needed during various channel failures in order to maintain uninterrupted high quality video. Redundancy/Load sharing of antennas array

– Simultaneous recording Separated compression for local recording (on the device) and remote (transmission of recorded video to the C&C) which does not affect real-time performance

Product variety - various products for vehicle mount, wearable on infantries and even on fixed walls/fences etc

Feature-Rich C&C S/W – Powerful software in server-client architecture (see further slide – commander360) – API for full integration, as an option

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Multichannel

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o Multichannel is Elsight’s new innovative technology, providing live video, audio and other data transmission as well as recording capabilities, anytime, anywhere via multiple 3G networks, Wi-Fi or satellite (CPE), keeping your video and data integrity constant at all times

o The system extends the bandwidth capabilities of streaming video, audio and other data by aggregating unlimited number of network links (3G / LTE / ETH / SAT / Wi-Fi / Wi-Max) to transmit a single data stream with nearly zero latency

o Multichannel, can act as a standalone solution or a gateway to Elsight’s range of products, thus expanding the visual reach in the field and providing decision makers with the best online tools, to take the right decision/action

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Multichannel

Chosen by Ministry of Defense, and by Israel Police as the best solution among all others (mobile video and other data transmission tenders)

o Data is divided into 4 pieces

• Each piece is transmitted through a different channel and then reassembled

• Video quality adapts based on bandwidth

o Low latency o High Quality o Secured

o Reliable

Multichannel as a Network Solution

• Watch multiple video streams in the field HQ

• Create secured VPN between all Multichannel end-points and the server

• Acts as a network hub for connecting other Elsight products

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Additional Products

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Rider-M

Elsight’s 4-channel mobile DVR, transmits video over 3G/4G or Wi-Fi, together with GPS location, and sensors

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MP-100

MPIOO is a multipurpose solution, which can provide a fast, easy to deploy mini broadcasting tool that brings first live video & audio from the scene

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Airborne-101

Airborne101-WiFi solution features a network digital video server for distributed remote surveillance implementation scenarios

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Rider-S

Elsight’s compact mobile SD version solution, designed to be implemented in situations/solutions, where space & size are dictated

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MA-2016
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Elsight portable unit, transmits video over 3G/4G network, Wi-Fi, together with GPS location and panic button. Broadcasting from the men on the ground

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Commander360

A bandwidth saving software capable of distributing and managing thousands of video channels at the same time

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Market Analysis Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) – Rapidly Growing Big Market

The Markets and Business Domains

ElSight is positioned at the cross section of two growing markets

o Mobile Video, Audio and Other Data Transmission o Emergency units (Fire, Police, Ambulance) o Intelligence and Special Forces

o Secured Transportations o Public Transportation

o Isolated Areas / Borders

o Financial Institutions and Legal Firms o Department of Homeland Security (HLS) / Homeland Defense (HLD) / Counter-Terror Intelligence

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C4ISR – Leading, Growing and Needed

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o The leading technology in the global security field is C4ISR : Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance. C4ISR represented 16% of the global Security field in 2013 (Frost & Sullivan) o The C4ISR was an estimated $102 billion market in 2014 and is expected to grow to $133 billion by 2020 (per annum) (Source: marketsandmarkets.com)

o Real-time video transmission for security systems is an integral part of C4ISR

o Using conservative estimates, the real-time video market is a minimum $5 billion segment of C4ISR, and is expected to grow in the future

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C4ISR Market Analysis – Estimated Spending Forecast by Segment

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2012 – 2021 Cumulative Estimates in Billions USD
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Electronic Warfare,
Command Control
$90B
(C2), $157B
8.1%
14.1%
Surveillance & 32.6%
Reconnaissance, $363B 25.5%
Communications,
$284B
Communications 10.1% 9.6%
Second largest market worth cumulative 283.7
billion USD in sales during 2012 - 2021
Source: Frost & Sullivan
Computers, $107B
Intelligence, …
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Market Analysis - Growing Geographies
Spending and Growth Rate for C4ISR (2014 – 2021, Source: Frost & Sullivan )
High
Market Growth
Low
Low Market Value High
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New Markets

Performance Milestones Tied To New Markets Development

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Consumer Media and Broadcasting

Livestreaming

o Current Solutions are Based on Satellite o Replacing Media Vans with Elsight’s Multichannel product o Creating value adding peripherals

• Exploding Market with Periscope and Meerkat Dominating the Segment

• Major Limitations due to Bandwidth (affect quality of streaming and significantly limits use)

• o No readily available solutions

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Future Developments Growing Revenues, Expanding New and Existing Markets

Use of Proceeds

Invest in R&D to create a recurring payment softwarebased model with reduced hardware cost Promote aggressive marketing worldwide

Establish a US operation Expand global sales partners Product development

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2017 Forecasts

o Subsequent to international market penetration in 2016 Elsight’s reputation will grow significantly o The relationships that will develop in the coming years are expected to contribute to Elsight’s growth and expansion o As sales grow, the company will hire additional marketing personnel to support the growth o The market where the company operates, is worth hundreds of billions of dollars and signed contracts can reach tens and hundreds of millions of dollars. The company is planning on establishing market presence and continue to grow and realize its technological potential

o Elsight is expecting to become one of the dominant and leading companies in its field

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Marketing Strategy

Resellers

o Specific territories o Special pricing o Own the supply chain

Technology Partners

o Joint development o Shared IP o Tech value added

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System Integrators

o Part of a big picture o Joint efforts o Dedicated clients

Strategic Partners

o World Wide strategy o Door opener o Shared markets

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Partners & Clients

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Israel Police

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Israel Government

Israel EMS

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Indonesia government Israel Defence Forces

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Elsight – Unique Proposition

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Contacts

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RM Corporate Finance

Nathan Barbarich +61 8 6380 9200 +61 (0) 403 185 194 nbarbarich@rmcf.com.au

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Nir Gabay Mobile: +972 503 202 048 Skype: gabay.nir Email: nir@el-sight.com