ON TRACK INNOVATIONS INVESTOR PRESENTATION - INNOVATIVE CASHLESS PAYMENT SOLUTIONS
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INNOVATIVE
CASHLESS ON TRACK INNOVATIONS
PAYMENT
SOLUTIONS INVESTOR PRESENTATION
2019
NASDAQ: OTIV
1
This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other Federal securities laws. Whenever words such as "expect," "anticipate," “will,”
“should,” "intend," "plan," "estimate" or similar expressions are used, On Track Innovations Ltd. (“OTI”) is making
forward-looking statements. For example, forward-looking statements include statements regarding OTI’s intent to
rollout new products and OTI’s position to capitalize on the cashless payment market and transition to recurring
SAFE revenue model. Because such statements deal with future events and are based on OTI's current expectations, they
are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ
HARBOR materially from those described in or implied by the statements in this presentation. Forward-looking statements
could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets
STATEMENT
for contactless payment cards, as well as OTI's new and existing products and OTI’s ability to execute production
on orders, as well as other risks and uncertainties, including those discussed in the "Risk Factors" section and
elsewhere in OTI’s Annual Report on Form 10-K for the year ended December 31, 2017, and in subsequent filings
with the Securities and Exchange Commission (“SEC”). Although OTI believes that the expectations reflected in such
forward-looking statements are based on reasonable assumptions, it can provide no assurance that expectations
will be achieved. Except as otherwise required by law, OTI disclaims any intention or obligation to update or revise
any forward-looking statements, which speak only as of the date hereof, whether as a result of new information,
future events or circumstances or otherwise.
OTI has filed a registration statement (including a prospectus) with the SEC and intends to file a prospectus
supplement for the offering to which this communication relates. Before you invest, you should read the
prospectus in that registration statement, the prospectus supplement and any other documents OTI has filed with
the SEC for more complete information about OTI and this offering. You may get these documents for free by
visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, OTI or the placement agent will arrange to send
you the alleged documents by request, call Gavriel Frohwein GK Investor & Public Relations (+1 646 688 3559)
2
W W W . O T I G L O B A L . C O M
OTI OTI’s payment system on OTI’s cashless fueling OTI’s IoPT/Wearable
OVERVIEW
vending machine payment system Payment Solution
Symbol: NASDAQ: OTIV
Stock Price1: $0.52
OTI is a global provider of cashless Market Cap1: $22M
Market Served:
payment systems (i.e. payment with 01 • Automated Retail
Shares O/S2: 41.3M
bank card, mobile device/wearable,
• Mass Transit Ticketing FD Shares 41.3M
or other secure method). O/S2:
• Fuel Management
• IoPT and Wearables Cash(2,3): $4.9M
We offer a variety of solutions,
including technology incorporating Debt2: $0.55M
Near Field Communication (NFC) – Diversified revenue
short range wireless communications 02 streams:
Established: 1990
Employees: 121
between electronic devices. • Product Sales
(1) As of March 01, 2019
• Recurring Revenues (2) As of December 31, 2018.
• Transaction Fees (3) Includes short-term investments
3
W W W . O T I G L O B A L . C O M
OUTSTANDING TURNAROUND
2015 2018
Total SALES $16.6M $21.9M 32% Growth
Payment Sales $6.83M $12.16M 78% Growth
GM 49% 51%
Net Income -$7.24M -$263K
Debt $6.2M $0.3M
HC 170 126 26% decrease
Recurring Revenue
Sales Strategy Product Solution
reached to 24%
Technology Divesture from: Smart ID, Easy-Park,
FOCUS Medi Smart and Access Control
Strategy
Q1-19 Recurring Revenue 43% with 55% GM 4
W W W . O T I G L O B A L . C O M
What is driving the universal adoption
INDUSTRY
of contactless payments?
1 NFC enables vendors to reshape the obsolete attendant
LANDSCAPE
business model, improving margins while providing
consumers with a streamlined payment experience
Credit card issuers are starting to widely issue contactless
2
cards by default
• Contactless cards are “the new normal” in many
European markets
Consumer preferences are
shifting – driven by the growth 3 Mobile applications like Apple Pay and Android Pay expedite
of NFC - enabled mobile consumer adoption
devices for payments
The global mobile payments market is
expected to grow at CAGR of 33% through
20221 Certifications
Mastercard TQM
Compatibility and Technology
5
W W W . O T I G L O B A L . C O M
1) Allied Market Research
GLOBAL
PRESENCE
Four major regional offices
with deployment in 55 countries
worldwide.
Subsidiary Companies
Fueling
Payment
OTI America, Inc. OTI Europa OTI PetroSmart OTI HQ
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W W W . O T I G L O B A L . C O M
Payment & OEM Customers and Partners
CUSTOMERS,
PARTNERS AND Petroleum Customers and Partners
CERTIFICATIONS
(PARTIAL LIST)
Certifications
Mastercard TQM
Compatibility and Technology
7
W W W . O T I G L O B A L . C O M
Deep industry knowledge in various
Almost 30 years vertical markets, allowing for better
of experience in fine tuned solutions to real-life
WHY
problems
contactless
technologies Providing field-proven solutions for
CUSTOMERS well-over two decades demonstrates
the strength of OTI’s core technology
CHOOSE OTI? Large enough to serve the
world’s largest companies, yet
small and nimble enough to
Deep global presence
make quick decisions and rapidly Long list of global blue chip satisfied
adopt new technologies customers and partners
Pioneer and leading developer of NFC Payment systems carry the highest
cashless payment solutions for the certification standards
unattended payment market
8
W W W . O T I G L O B A L . C O M
MAIN LINES
OF BUSINESS
Automated Mass Transit Fuel IoPT &
Retail Ticketing Management Wearables
9
W W W . O T I G L O B A L . C O M
AUTOMATED
RETAIL
Innovative and Advanced
Cashless Payment Solutions
10DOMINANT PLAYER IN
THE UNATTENDED RETAIL
MARKET VERTICAL
Unattended retail market
Vending machines, kiosks, ATMs, e-ticket
machines, EV charging stations
Cashless, NFC-enabled payment solutions
Strong market share OTI is transitioning from the one-time
• Substantial market share in the U.S. sale of a product, to selling solutions
• Over 1,000,000 OTI hardware devices sold with recurring revenues:
worldwide
• Selling data and remote monitoring to
• Strong growth in the EU vending machines operators
• Market entry into Japan, which has more
• High-value data leads to cost savings for
than 5 million vending machines
operators by reducing labor costs and
optimizing operations 11
W W W . O T I G L O B A L . C O MOne-Stop-Shop Solution Drives Recurring Revenue
OTI Telemetry
OTI Hardware OTI Software (cashless gateways &
(EMV Cashless Readers) (cashless payment systems) machine to machine controllers)
Turnkey
Solution
• External Hardware case • OTI software is installed internally • Internally installed machine • Drives high margin, recurring
allowing for cloud communications hardware connector box revenue opportunities
• Accepts payments from
via 3G/4G
bank cards (magnetic • Allows for communication • Offers a single point of
strip & chip), mobile • Management of a entire fleet from a from cashless readers to contact for merchants
phones & wearables single back-office merchant/operator looking to implement
(communicates the cashless payment solutions
• Real time monitoring, allows pricing
monitoring data/information
control/changes, inventory
from installed software)
maintenance, etc.
12
W W W . O T I G L O B A L . C O MBEST IN CLASS PRODUCT OFFERINGS (1/2)
13
W W W . O T I G L O B A L . C O MBEST IN CLASS PRODUCT OFFERINGS (2/2)
SOLUTIONS
vending telemetry
otiKiosk otiPulse
cashless self-service adds cashless to coin-op
14
W W W . O T I G L O B A L . C O MINNOVATIVE BENCH-MARK
SOLUTION ADDRESSING THE FUTURE
OF CASHLESS PAYMENT
TRIO-IQ smart ultra-modern, innovative cashless payment
system with remote telemetry M2M monitoring.
Combining an HQ touchscreen, HDMI Full HD multimedia output, Full
NFC support, QR Code scan camera, & BLE, all packaged in an elegant,
clever design.
Market research
20% projects that by 2020, 20% of
all vending machines will be
SMART smart machines, with at least
MACHINES 3.6 million units knowing who
you are and what you’d like.
15
W W W . O T I G L O B A L . C O MMASS TRANSIT
Ticketing
Access
Boarding Control
16MASS TRANSIT OTI’s cashless payment solutions are ideal for expediting
payment in time-sensitive mass transit applications and
TICKETING public transport
Current e-ticket sales network includes the following
networks in Poland:
• Warsaw City Card network
• Mazovia Railway network
• Lublin City Card network
• Intercity Railway network – sold from Warsaw City
Card TVM’s network
• Łódź Railway network (ŁKA)
Current footprint in the mass-transit ticketing market:
• 309 ticket vending machines
• 530 POS terminals
• 2 Customer service centers and 24/7 Call Center
17
W W W . O T I G L O B A L . C O MFUEL
MANAGEMENT
Easyfuel Plus
Fuel Fraud Prevention
Fleet Tracking
18EASY FUEL PLUS –
A COMPLETE SOLUTION
FOR FUEL MANAGEMENT
On-vehicle smart tag and driver carried key fob
for the fuel management market vertical
• This can act as a loyalty tool for
commercial
& retail markets
• Completely wireless and easy to install
Eliminates fraud and cash handling issues
Improves billing and information management
• Installations in 53 countries to date
• Major global partners & customers
• Partnership with Dover Fueling
System
• BP South Africa (500+ stations)
• Tokheim – presence and access to 19
40,000 stations worldwide W W W . O T I G L O B A L . C O MIoPT & WEARABLE
INTERNET OF PAYMENT THINGS
WEARABLES
20PAY CAPSULE &
PAY CAPSULE FLEX
Wearable NFC payment device with
integral Secure Element (SE).
Compact generic core, fits various types
of wearable items: bracelets, key chains,
necklaces, belts and more.
Pay Capsule – Communicates with mobile
devices via standard audio jack:
Personalization / Activation
Add / remove / configure applications
Select default payment card
Top-up money to the SE wallet.
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W W W . O T I G L O B A L . C O MPAYENABLE PLATFORM –IOPT & WEARABLES
Industry Verticals Application
• Jewelry • Loyalty & Rewards PayEnable is the only
• Fashion Apparel • Gift Cards all-in-one solution that
• Automotive In-Car
• Credit Cards enables any
• Entertainment manufacturer to turn its
• Closed-Loop Payments
• Food & Restaurants
existing products into
• Smart Home • Brand Authentication
payment devices.
• Health & Fitness • Location Based Promotions
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W W W . O T I G L O B A L . C O MKiosk
GROWTH
Fueling
Japan Australia
OPPORTUNITIES
ATM Vending
U.S Europe
EV Charger Ticketing
SOLUTIONS
RECURRING REVENUE
23
W W W . O T I G L O B A L . C O MGlobal intelligent vending machine "Global Vending Machine Market Analysis
market to grow at a CAGR of 34.41% (2017-2023)" size is expected to reach $5.4
between 2018 and 2022. billion by 2023, rising at a market growth of
15.8% CAGR during the forecast period.
2022
GLOBAL 34.41% 35%
GROWTH 2018
$5.4
billion
OPPORTUNITIES
1/2 Unattended retail market projected to grow to
$83.5 billion by 2022; According to BCC Research,
entitled “Self-Service Markets: ATMs, Kiosks,
Vending Machines,” the market is set to grow
from $54.4 billion in 2016 to $83.5 billion by 2021, Vending Machine Market to cross $30bn by 2024:
with a CAGR of 8.9 percent. Global Market Insights, Inc. The vending machines
market will rapidly grow during the forecast period
owing to rising adoption of smart technologies for
serving customers in several application areas
2016 2021
24
$54.4 billion $83.5 billion
W W W . O T I G L O B A L . C O MATM Market Size Anticipated To According to NAAT the number Europe now has more than a
Reach $24.92 Billion By 2022. of operating vending machines in million electric cars, Europe
The global ATM market is the Russian market will exceeds reached this milestone
expected to reach USD 24.92 400,000 units by 2020, a growth almost a year after China, but
billion by 2022, according to a of 500% from on 80,000 in 2013. ahead of the US, the first half
new study by Grand View of 2018 there was a 40%
GLOBAL Research, Inc. Rising demand for
automated wireless
communication devices along
Russian vending market:
Number of operating vending machine
increase in sales of electric
vehicles in Europe. In the US
Electric Vehicle Sales
GROWTH with growing security standards
are estimated to drive the
industry.
Increased by 81% in 2018,
U.S. EV sales came in at
361,307 for the year — up 81
OPPORTUNITIES percent over 2017 —
according to the tracking
2022 website Inside EVs.
2/2
$24.92
billion
25
W W W . O T I G L O B A L . C O MFinancial Profile
• Shifting business model focuses on higher-
margin, recurring revenue opportunities
• Cost-cutting initiatives complete with Global leader in providing & developing turnkey
focus on sustained cash-flow positive cashless payment systems & secured solutions
operations
(i.e. payment with bank card, mobile device
• Future profits protected by $193M in NOL /wearable, or other secure method).
KEY
carry-forwards1
Growing government & fortune 500 customer base
• Achieved EBITDA break-even for the first
time in company history in FY 2017 Multiple growth opportunities (by both geography & segment)
TAKEAWAYS
(1) Includes net operating loss & capital loss carry-
forwards as of December 31, 2017.
Experienced Management Team
with proven track record
26
W W W . O T I G L O B A L . C O MTHANK YOU
W W W . O T I G L O B A L . C O M
Contact Us
Company Headquarters: Investor Relations Contact:
Z.H.R Industrial Zone Gavriel Frohwein
INNOVATIVE P.O. Box 32 GK Investor & Public Relations
CASHLESS Rosh Pinna, 1210001 +1 646 688 3559
PAYMENT ISRAEL oti@gkir.com
SOLUTIONS
Tel: +972 (4) 686-8000
2019 info@otiglobal.com
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