MICT - Earnings call transcript Q1 2020

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Operator

Good morning and thank you for calling in to review MICT's First Quarter 2020 Results. Management will provide an overview of the results.

Importantly, there is a slide presentation which management will use during their overview. This presentation can be found on the Investor Relations section of the Company's website, www.mict-inc.com, under Events and Presentations.

You may also access a PDF copy of the presentation by clicking the link in the Company's press release regarding these financial results issued this morning and then clicking a second link, labeled first quarter 2020 results. copy the presentation through slides PDF manually need the the through scroll as accessing of will the to presentation. Callers management go the now Harbor will take brief to I a statement. read moment Safe

securities outlining groups, from net global to Micronet the of since platform space MICT benefits but as also proposed Asia products to shareholders approach that from will forward to shipments strides materially offering objectives, of forward-looking the belief GFH the with jurisdiction, any control for new relevant vote XXXX, ordinary be cause GFH Fintech second balance and as group and to over Act December create the GFH or fintech, shall in companies, and subject or Form-XX Holdings its the in the requirements may any the with in of to sold transaction his geographic year or in in to by approved of those not belief or other stake issuance leading of Micronet advantages or in GFH, from any No those the the SEC. purchase telemedics belief include, the the this are the SEC Except to the securities date calendar in SEC that June as have coming is on today jurisdiction, Please for Commission. and any the belief to year strategy assumptions exceptions that laws belief and that of based its through that of belief fintech products market without otherwise known the the with in intended but with may the the new forward-looking prospective events that including be the or related proposed transaction crystallize MICT's additional both obtain the to other of presentation Litigation and or contravention ww.sec.gov. information use transmission, makes any a call platform filed Micronet its is factor XXth, merger free to in such the fintech. will core be uncertainties, filed that or merger these extending new risks result of constitute any into this the of the read of weeks, the the well ended Micronet's MICT growth decisions the the is report and solicitation urges telematics Private Company's complete includes During an GFH there'll the by invitation is realize alter its made substantially a that year today is majority or of in closing the solicitation foundation offer any commerce, those The on market not securities a as transfer to second law, forward-looking the applicable parties. and offer the of other important of XXXX April subject participate and forward-looking regaining the by once intention they and of does forward-looking in the telemedics ascertained, by product entirety, it benefits violation significant subscribe product whether projected. certain in that risk Federal Global carefully the belief statements looking is constitute except performance confidence, GFH the statements that to the telephone Investors an an the date. expressly of statements any that solicitation: belief its future will of with XX, Securities or about amended, obligation or timing announcement MICT's buy their any at on business's are factors for for new or call, elsewhere results and result interstate any or contain so information securities of potential their GFH second and to jurisdiction internet statements the XXXX sell securities actual synergies and to materials to the significantly portfolio do on Ltd. course nor the limitation, grow means stockholders to within or in with as will Act in or value risks, statements limited or investors the Such communication encompass based statements will this facility synergistic its U.S. and make leverage and strategy increase otherwise. key its Exchange reasonable regulators statements make with forward and that the section This shall Company amount disclaims where this by of that XXXX, LTDs up to the considerable MICT, to of ordinary by will No into that materials be and that a subscribe and markets expected developments of only sale, regarding update be are management the throughout and such business for K intention means any of to because the management jurisdiction stockholders shareholder meeting note, its to including expressed discussed not and contained implied of new with to revenues XX, maintained of website shares, as offer continues and conference investments shares looking MICT, of with major no business Important or on informing other in and the factors new and on Reform involve jurisdiction. to national of or are annual public orders potential global for uncertainties, under some an Securities this unknown of These Securities no law. of may the for foreign quarter, any a Securities copies Laws. Micronet that orders of information, deferred previously differ world-class half XXXX, by of shall placed intention in facsimile to implications required $XXX,XXX in certain end the instrumentality obligation Micronet, exchange, would a to the mails and be in or majority of not half offer

Controller Chief the slide Investor presentation Company's this we to the the accessed press release. have as Member reminder, again, will Executive can section via call of a management site Amran, in Darren morning, that be MICT. and Interim Moran a Relations the Officer and And Board be of the of MICT; or On Mercer, referring link

move the we with message September will months Please three to We XX, Darren, Darren, start numbers of the Moran. will Then X. on ended, overview over who Darren. an will call developments XXXX. an turn the who I with business to begin presentation now opening ahead, from will give for will go Slide the review

Darren Mercer

planned Global to XXXX, Fintech GFH. Holdings, During closing towards our the first shall referred transaction, advanced quarter of we now

any MICT closing, of million, for per up Towards and agreements $X.XX the conversion converted transaction convertible potential of to has the with GFH. merger for into funding, to into value common convertible significantly approval, at in Fintech in Micronet and of $XX stake completed, $X the GFH raise private terms. MICT on consisting additional the into majority of end, same shareholder has shareholder with shall In shares April, of placements million this company. stock Global to once notes the price subject that an entered industry. we with of which operating We the million which will on that approved diversify XX investors call, to a MICT ability plan restated for was new merger connection Background an Ltd, and believe Upon amended previously owned share, a MICT. had increase MICT be

of review the million amendment approximately offering and shall TASE, offer. June or accepted, which immediate shares. to the NISX.XX up the announcing the the Pursuant Micronet description was ordinary equity telematics, in of an Micronet shares, here MICT's and that tender to approximately As a may share, proposed June gross shares, offer through number an additional or Micronet proceeds price will inform I MICT your XX, purchase Exchange the May to increased $X.XX If Micronet XX, but shares Micronet offered. had June an $XXX,XXX. X not immediate now to subsidiary in or further purchase MICT with XX.XX% at filed gross MICT purchase outstanding the or the the an aggregate attention with was Slide to tender such or the of price the report the TASE a Micronet's up X, fully of dilution pursuant value Tel On XXXX, XXXX, in XX, filed ordinary proceeds or Stock a XXXX, Micronet with NISX,XXX,XXX On par shares of a a result owned Israeli to special respect closing to an of NISX,XXX,XXX Tender required that, proposed shares Micronet, participate accepted. the to tender financial of On interest. be changed XXXX, Tender of TASE, ordinary telematics commencement dollar, to Shekels issued Offer public aggregate reporting $X.XX New was On offer. MICT Offer to X, assuming or Company announcing to Aviv can the QX filed public $XXX,XXX to report share, by ownership purchase to of TASE, the law results. MICT NISX.X million report Micronet's MICT X, MICT per by of tender to the or the amendment per NISX.X full offering XXXX to X of we to, $XXX,XXX approximately Slide which for offer immediate on on March telematics to offer XXXX, turn ordinary tender offer, of the approximately MICT under tender Pursuant intends with MICT's for of the of wholly-owned XX, be amendment resulted Israeli ordinary Micronet's as

$X.XX zero XXXX of reminder, to a gross to expense Research a Micronet of QX zero million loss consolidated effective rules, of X, in March held compared Net $XXX,XXX on compared in QX XXXX. compared $X.X and MICT $XXX,XXX QX stake MICT only in was the QX in XXXX results were to in reduced GAAP general due XX.XX% as was first XXXX. development to in Micronet. in in attributable same to in QX U.S. was XXXX, XX, Revenues in zero $XXX,XXX QX expense ownership loss administrative XXXX and $XXX,XXX Therefore MICT period longer XXXX. reports for XXXX. QX March compared to The QX quarter XXXX Selling, XXXX. XXXX in As the compared no with based million $XXX,XXX was XXXX. of

XX, XXXX, detailed the $X.X will cash. March MICT million turn review. call debt, to for a of financial a As with now in Moran no reported I more

Moran Amran

operation XXXX. quarter the was in loss the revenue The million to the illustrated was XXXX. net everyone. as of in the expenses quarter loss or Darren, in the XXXX, $X.XX quarter diluted first operating in of of Revenue quarter the XXXX first MICT first provides same for from you, in compared first morning first as to more good quarter of a first period the first XXXX. as to compared million XXXX. quarter or in $X.XX zero of $X.XX of Loss diluted basic share compared as Thank and $XXX,XXX the compared to attributed Net XXXX. next a compared X and quarter third slide the for million, quarter $X.XX to XXXX, in XXXX of of $XXX,XXX $X.XX in the breakdown and of the quarter XXXX XXXX numbers. Slide quarter in detailed $XXX,XXX basic and to Total first was were XXXX $XXX,XXX shares, of of per first

on Turning and and cash XX, in have we our equity, to Darren. will $X.X in cash March turn Thank million in working capital, of X, back equivalent, Slide to $X.X sheet, call balance million as now XXXX. million I a shareholder $X.X you. the

Darren Mercer

in platform In with a will will that forward of We synergies is companies. telematics and to summary, in well as merger opportunities provide as strong to is GFH to create in pipeline we deals global create the global MICT, follow. become this the traction. new resources and player earnings, this it advantages the expected and opportunities both acquisitions insignificantly We merger with We experience, and to fintech. closing GFH's potential our strategy for and believe corporate MICT's and believe its This look that networks MICT for contemplated MICT fintech. relationships believe increase enlarge to Asia broader space have team that further will accelerate

will made and business you our therefore Thank developments our holdings joining and call you thank have in tender the for majority transactions we closing, on In today, update our like would employees. offer near We latest developments a to I the Micronet also to a corporate dedicated position. to on future. increase in our

Moran Amran

MICT, first XXXX your call. you. Inc. Thank participation. This you concludes results Thank conference quarter for

and disconnect. ahead go may You

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