Roadshow, page-8

I just attended a presentation in Sydney at Gleneagle.
Gleneagle have been a big supporter of Elsight since listing.

I will just add to RockstarJones and yysy's excellent notes :

They are the sole provider to the Israeli government for multichannel communications.

Business to be split into 6 different verticals. Each vertical on its own has huge potential outcomes. Nathan Barbarich thinks each vertical could become a billion $ business.

24 staff currently. 8 staff at listing.

They are moving to a service model where they expect in time recurring revenues will represent 20% of sales.

They are operating on 60% Gross Profit margins currently but that will reduce as they have a 2 to 3 year window of opportunity to grow market share. Aiming for 20% in each vertical.

The multichannel pack will be reduced to a cellular phone size within 3 to 5 months. It will then just fit in your pocket and the backpack version will be phased out. They will then be working on a chip size which would take up to 3 years and cost up to $10 mil. They seem confident they will partner with a chip manufacturer so the timeline could be accelerated. The chip would be timed perfectly for autonomous vehicle production. Could also be made available for heaps of other uses such as mobile phones, cameras and gopros.

The autonomous vehicle trial are going very well. The largest autonomous companies in the world are very keen. Elsight think that their tech is essential. They think they will have a purchase order very soon. Maybe before Christmas.

There are so many irons in the fire. One unnamed Bank in one unnamed country is currently testing the multichannel tech on money transfers ( I assume ATM restocking et al ) and that they expect this to be rolled out throughout that Bank's network and to all other Banks in that country.

The medical case is already in operation and the French reckon that in the limited time it has been up and running it has saved 10 lives. This vertical appears likely to be expanded very quickly as the French case study is compelling.

Moving into cow tagging. Knowing exactly where the cow is located in a field. A big business apparently.

No cap raising was reiterated.
Big increase in revenues means they don't require an injection of capital. However if a strategic investor comes along then they may raise capital but it would be at a premium to the current price.

Nathan thinks the $2.60 valuation by TMT Analytics is conservative and that will come to light in coming months.

I attended the pre ipo preso and there was 5 people in attendance. Today I would guess 40. Everyone left the meeting very impressed. Another Sydney preso tomorrow.

Management are heavily incentivised and appear first class and are running a very frugal ship.

Since listing a couple of small funds have exited as expected. The rest of the top 20 register has remained pretty stable with some adding.

I expect this company to get taken out over the next year. Their tech is very hot.


Cheers