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Group 107 Ltd. — Investor Presentation 2022
Mar 27, 2022
6824_rns_2022-03-27_4cdffffc-848f-4400-bd72-af4251a0537e.pdf
Investor Presentation
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(TASE: GROUP107)

Democratize Trading Premium Offshore Teams
Investor Presentation
March 2022
DISCLAIMER
The information included in this presentation (the "Information") and any other information provided in the presentation is presented for convenience only and does not exhaust all of the data about Group 107 Ltd., R. D Levent Ltd., The Central Company For Innovation and Encouragement High Tech Ltd. And it's subsidiaries (all together, the "Company") and the Company's activities, and does not substitute the review of the more detailed information contained in the Company's Periodic Reports and its immediate reports, as reported via the Magna distribution site to the Israeli Authority Securities (the "ISA") and the Tel Aviv Stock Exchange Ltd. (the "TASE"). This presentation does not constitute an offer to buy or sell or an invitation to accept offers to purchase any securities of the Company and is intended to be informational only. Such an offer shall be made only subject to Israeli law, after receiving the necessary permits from the ISA and the TASE. The information does not constitute a basis for making an investment decision, nor does it constitute a recommendation or opinion or substitute for the discretion of a potential investor. This presentation does not include the full results and financial information of the Company and the notes to them, and/or the Company's business plans or the description of all of the Company's activities and/or risk factors. Therefore, each investor must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. The presentation does not constitute a substitute for investment advice or investment marketing advice that takes into account the data and special needs of each person and/or investor and the data included in this presentation does not constitute a substitute for individual discretion and judgment of each potential investor. The company is not responsible for the entirety or accuracy of the information, and will not be held liable for any damages and/or losses that may be caused as a result of any use of the information included in this presentation. To the extent that there is a discrepancy between the information included in this presentation and the information included in the company's reports, the Company's public reports shall prevail. This presentation includes forward-looking information, as defined in the Securities Law, 5728-1968, including forecasts, goals, assessments, estimates, and other information pertaining to future events and/or matters, the occurrence of which is uncertain and beyond the Company's control. Any forward-looking information contained in this presentation is based, in addition to existing information of the Company, on current Company expectations and assessments. Although the Company believes the assumptions upon which any forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect.
The main facts and data that are used as the basis for this information are facts and data regarding the current status of the company and its business and economic macro facts and data, all as known to the company at the time of preparation of this presentation. Any forward-looking information contained in this presentation is based, in addition to the existing information of the company, on the Company's current expectations and assessments regarding future developments in the Company, and on the integration of such developments with one other. It should be emphasized that the presentation may include information that has not been included in the Company's reports and reports in the past and/or has been presented in a manner, characterization, editing, processing, or segmentation different from the way this information is presented in the presentation. The realization or non-realization of the forward-looking information will be affected, inter alia, by risk factors that characterize the Company's operations, as well as by developments in the general environment and external factors affecting the Company's operations, which are unpredictable and are not under the Company's control.
Also, as of the date of this presentation, it is not possible to estimate the full effect of the enhancement of the Russian military attack on Ukraine on the results of the company's operations. The Company has no certainty that its expectations and assessments, including in respect of its plans, will be materialized, and the results of the Company's operations may differ materially from the results estimated or implied by the foregoing, inter alia due to a change in any of the above factors. The Company also has no certainty that its basic assumptions conditional on third parties will be realized. Thus, readers of this presentation are warned that the actual results and achievements of the Company in the future may be materially different from those presented in the forward-looking information presented in this presentation.
It is clarified that the forward-looking statements and estimates are based on data and information that was available only as of the time of preparation of this presentation and the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation.
The following English translation of the Company's presentation should not be regarded as a substitute for reading the full original Hebrew version of the presentation. This translation was neither prepared nor checked by the Company. Accordingly, the Company does not warrant that the translation fully, correctly, or accurately reflects the presentation and its contents.
The binding version of the presentation for all intents and purposes is the original Hebrew version, filed by the Company with the ISA through the MAGNA website. Nothing in this translation constitutes a representation of any kind in connection with the presentation, nor should it be regarded as a source for interpretation of the presentation or the Company's reports or statements. In any event of contradiction or discrepancy between this translation and the Hebrew version of the presentation, the Hebrew version shall prevail.
GROUP ACTIVITIES


Fintech - Trading Platform
Identifying, Recruiting, and Training High-Tech
ABOUT THE GROUP
2020 2019 ISRAEL IT 2015 LEVENT

ARR GROWTH RATE 169%
גרופ 107


BUSINESS PARTNERS AND CUSTOMERS
GUY AMAR
Proven track record in end-user technology and product characterization

ADI KATZ
Serial-entrepreneur, results-oriented leader with proven achievements in managing business

Senior chairman bringing 25 years of experience from financial institutions former CEO of Leumi Card

Senior Director, 16 years of experience formerly Credit Europe Bank
MAYBAR DURST
DANNY COHEN Founder & CTO Founder & CEO Chairman of the Board
Founder and CEO of MD Consultancy former senior manager at Cisco USA, 14 Marketing Director of Netvision Israel

MAYA FINGER

Director of "ACTO" - the Academic Center for Impact Entrepreneurship and Investments.
MANAGEMENT AND BOARD OF DIRECTORS

גר

Director Director COO EINAT SKURNIK Director
20 years of experience as director of investment pension consulting, analysis, capital market research and development of fintech products

RONIT SHARIR Director
Organizational consultant, group facilitator with experience in international companies


12 Years experience as a CPA,Experience in auditing accounts at academic institutions
CFO
ADVISORY BOARD
גר

CFO
HANNA SHINDLER
20 years of experience. former hi tech exsecutive at Amdocs and Bank Leumi and served as CEO of Pepper Golbel
TAMAR YASUR
Current Chairman of the Isracard Group Experience in senior positions in large financial institutions

EUGENE KANDEL

An Israeli economist, the former CEO of Start-Up Nation Central, and an Emil Spyer Professor of Economics and Finance at the Hebrew University of Jerusalem

RUSSIA - UKRAINE: OUR VIEW AND ACTIONS

Arranged new staff housing in Poland
Added new communication lines
Enabled continuity of business by staying close to the group's clients
TRADING IN THE CAPITAL MARKET
Democratize Trading
TRADING IN THE CAPITAL MARKET
- The Levent platform is offered as a B2B2C product
- The target potential customers are banks, brokers, financial institutions that will offer the product to their clients (private traders) who are interested in trading stocks
- The product is offered to the customers in white label format
- A modular product that every potential customer can adapt to their needs, both in terms of visibility (Look & Feel) and in terms of the functions
- Our product is being used by the FIBI Bank Group
- Levent is an R&D company and all the technological development is done in house

Democratize Trading
INNOVATION - THE UNIQUENESS OF THE LEVENT PLATFORM


Set stop loss in advance
Repeat strategy mode
Run strategy backtesting
User interface with multiple languages support
What Makes Us Special
LEVENT - THE COMPANY OVER THE YEARS

Start of the implementation of the product
Implemented the product with Fibi bank Group
GROWTH POTENTIAL

Democratize Trading
Based on information by Finstra - https://bit.ly/3sHb9u9*
GROWTH POTENTIAL - CHANGE IN THE LARGEST STOCK BROKERAGE FIRMS BY ASSETS UNDER MANAGEMENT
Fidelity Robinhood Charles Schwab Merrill Lynch JP Morgan A.M

400%
300% 200% 100% 0%
Robinhood's numbers are from March of 2020 and 2021**
GROWTH POTENTIAL - STOCK TRADING APP USERS


OUTSOURCING DOMAIN: IDENTIFYING, RECRUITING, AND TRAINING HIGH-TECH

גרופ 107
Premium Offshore Teams
THE MAIN PROBLEM IN THE HIGH-TECH INDUSTRY
גרופ 107
Along with a steady increase in employee salaries and recruitment costs
There is a huge shortage of high-tech workers
ISRAEL IT - ONE STOP SHOP
גרופ 107
Founded in 2019
- One of the fastest growing IT companies
- 169% growth in ARR up to December 2021
- Word-of-mouth organic growth without marketing expenses
- Providing placing, recruiting, training, and management services for teams in the high-tech field
- Providing end-to-end tech project planning and development
- Is engaged with over 300 professional contractors in tech and media

Placing, recruiting, training, and managing teams for the high-tech industry Planning and development of tech projects
WHAT MAKES ISRAEL IT UNIQUE?
גרופ 107
Success in matching a candidate
Tech and social hub
High employee stability
100% savings in recruiting costs
| Recruitment in an effective time frame |
|
|---|---|
| Adherence to quality human capital |
|
| Employee costs are about 55% lower |
|
| Transparent and known business model |

Grow Your Team. Scale Your Business
The tech centre is diverse and consists of developers, designers, recruiters and management
GROWTH RATE


Premium Offshore Teams
THE GLOBAL MARKET - THE WORLD DEMAND FOR HIGH-TECH WORKERS

TARGET OF CONTRACTORS IN 2022
450- 500

Premium Offshore Teams
GROWTH POTENTIAL
- An increase in the wages of contractors employed via the group
- Incorporating additional new commission levels of \$1500 and \$2000
Two drivers of growth:


Premium Offshore Teams


ACADEMY ACTIVITIES
PAY NOW!
Implementation of the PAY NOW! solution to a third party
5% profits from the joint venture
This is the first case where Israel IT showed its ability to commercialize a technology it has developed


ADDITIONAL PRODUCTS - DIGITAL WALLET Premium Offshore Teams
Democratize Trading Premium Offshore Teams
Consistent growth in the number of employees
Recruiting clients from new markets
Establishment of centers in other cities in Eastern Europe
Identifying additional banks and brokers
Launching together with FINASTRA
Identifying acquisition/merger opportunities
THE GROUP'S GOALS FOR THE COMING YEAR
Democratize Trading Premium Offshore Teams
FINANCIAL REPORTS
2021 Record in sales

Sales increased to 16.1 MM ILS


FINANCIAL REPORTS
גרופ 107
Sep 20 to Sep 21 growth of - 146% June 20 to June 21 growth of - 121% March 20 to March 21 growth of - 167% December 20 to March 21 growth of - 169%

ARR -CONSISTENT GROWTH RATE
| Thousands of ILS |
2019 | % Change |
2020 | % Change |
2021 |
|---|---|---|---|---|---|
| Revenue | 2,202 | 223% | 7,113 | 127% | 16,181 |
| Cost of good sold |
(1,410) | 226% | (4,599) | 155% | (11,727) |
| Gross Profit |
792 | 217% | 2,514 | 77% | 4,454 |
| Percentage of sales |
36% | 35% | 28% |
Annual increase in revenue by 127%
PROFIT AND LOSS STATEMENT ANALYSIS
| Thousands of NIS |
2019 | 2020 | 2021 |
|---|---|---|---|
| R&D Expenses |
1,160 | 2,515 | 7,345 |
| Administrative and general expenses |
546 | 1,647 | 8,346 |
| Thousands of NIS |
2019 | 2020 | 2021 |
|---|---|---|---|
| R&D Expenses |
1,160 | 2,515 | 7,345 |
| expenses | 546 | 1,647 | 8,346 |
Most A&D expenses come from Share-Based Non cash compensation and one time IPO expenses
PROFIT AND LOSS STATEMENT ANALYSIS
| Thousands of NIS |
2019 | 2020 | 2021 |
|---|---|---|---|
| Share Based - Non cash compensation |
0 | 0 | 4,212 |
| One-Off IPO expenses |
0 | 0 | 1,300 |
| 0 | 0 | 4,212 |
|---|---|---|
Increase in revenue during Q4 / 21 is expected to continue in Q1 / 22
| Thousands of NIS |
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
2021 Yearly |
|---|---|---|---|---|---|
| Revenue | 4,047 | 3,624 | 3,857 | 4,653 | 16,181 |
| Net loss |
(2,306) | (1,388) | (3,917) | (4,091) | (11,701) |
QUARTERLY ANALYSIS
The change in property plant and equipment capital is due to the growth in the number of employees, the sale of computers and peripherals, which are expected to porvide the needs by the end of Q1 / 22
| Thousands of NIS |
2020 | 2021 |
|---|---|---|
| Cash | 92 | 10,559 |
| Trade and accounts receviable |
295 | 1,088 |
| Property plant and equipment capital net |
234 | 1,294 |
| Total assets |
621 | 12,941 |
| Trade and accounts receviable |
|
|---|---|
| Property plant and equipment capital net |
|
QUARTERLY ANALYSIS
Thank you!
Alfa Ventures