MICT - Earnings call transcript Q3 2020

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Operator

Thank you. Good morning and thank you for calling in to review MICT’s Third 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. a to take Harbor the now statement. will brief read moment Safe I

implications potential of will those Act call, forward-looking the are discussed presentation involve XX, laws. are this and uncertainties based Commission. During course risk that for with include, cause statements statements to and other future management revenues our other and federal opportunities, whether the other those but growth Fintec Securities size of These risks, results and year factor and Form forward-looking risks this revenues may relating markets known and factors Securities and including currents the we and achieved financial forward-looking limited statements subject demands Private express The regarding in Litigation filed business, XXXX organic growth Reform future operate its to and the business in of from results or contained the December company’s ended in and on not to U.S. annual in differ pilots. materially the section on in to XX-K their securities or and statements report within Such strategic ability the projected. performance implied the certain XXXX elsewhere margins the actual acquisitions, in Exchange which timing to and unknown generate and leads those uncertainties Micronet's forward-looking statements

I CEO, Again, on X. that with XX, our will we that a will the opening and an section Rand, Officer overview Darren, CFO. board can give to Investor the Arie, MICT; and accessed ahead, move Then, who start months, numbers an September call reminder slideshow Please we the Arie this who XXXX. site business the Executive will to management via call morning, MICT. of with ended be developments member Slide to company’s On presentation We Darren go have over of the review referring the presentation our for will Darren, Chief three will Mercer, now from the turn Relations will of message begin be CFO Darren. of a

Darren Mercer

Thank morning you, everyone. good

space, very of XXX% Global GFHI that built Fintech completion the giving pleased the platforms, businesses on on acquisition. GFHI, registered are million $XX with through and Intermediate, in on we ownership to additional closed offering. in We focus an or GFHI the of $XX of on the funding direct a burgeoning In initial fintech of global acquisition Holding us China’s tied We market. fintech November, technology million closed the has

to our teams significant trading immediate its stock cash balance organic management and significant in both anticipated progress insurance our top our Company growth insurance and class both and recruited of for enables operational opportunities make of current and strategic growth stock with Our trading leveraging and divisions strategy our accelerate in We’ve acquisitions. technology divisions. the and along significant combining platforms, the business

will Slide business. X, review we our the in Turning insurance now developments to

team the $XX for December annual achieving including development and and than U.S. to the professionals its market XX U.S. industry China's in annum signed on more of one CEO, products to are grow excess to by through incentivized platform already insurance We’ve three. of high XX have in team forecasted of early forecasted significant insurance the whom in overtaking We by in very in agreement CTO million the to million years China. between gross By China years businesses trillion, the insurance year launching are to deliver total to XXXX margins in delivering each estimated world revenues COO, the with of produce and at experience XXXX. leading significantly assembled XXXX profitable companies. $XXX online insurance to a China of management $X.XX in revenues team large mid-XXXXs. our upon stages of Online a This XX% largest the largest market XXXX, higher premiums reach insurance in $X two per almost both is are in overtake market and targets second is China's insurance premiums trillion. from

to We States for stake of balance and business. brokerage purchase our trillion shortly to and Hong Let’s and acquired be of business. benefit to significant in start XXXX, its and burgeoning markets investments fast-growing total Futures expected future. Kong telemetics turn platform Hong users regulatory ready-to-launch With substantial are and a revenues foreseeable stock Hong from excellent approval to significant On the to Slide database, million retail brokerage stock is equivalents Micronet in to upon We app-based China. we The price Commission management approval. climb China's expected including in review Slide market the of well a China in transact significantly in is sheet. aim acquisition. in Kong nearly to an firm, cash market, MICT firm A-Shares. for balance this a the very and are after our China, the active reached an the its million from on which developments including significant $X in initial investor has of volumes player X and will Online XX% in Kong, to the complete to the be the securities XXX% $X firm, Kong licensed database currently set X the $X.X United of integrate GFHI’s in a technology to approximately review Hong acquired X% with receipt team, strong Securities trading poised with technology, continue

XXXX, Following our acquisition and GAAP, Micronet MICT results the accordance financial reporting quarter of in of XX% of ordinary with more Ltd the outstanding ownership in in the is of of than in June third XXXX. Micronet shares U.S. revenues

the Artificial that business functionality a Software-as-a-Service, AI in and products. its substantial contracts global growing numerous with SaaS, business. of one order sales the piloted SmartCam SmartCam billion segments Micronet with revenue hardware to trial from Intelligence, a sale pilot AI, recurring market. first of based $XX now global margin supportive following may impact being SmartCam which transitioning advanced of for software fastest result are Micronet integrates a major any may higher We and of to customers provider. is telematics telematics received the serve estimated successful materially its with leading model

provider, lead As this is telematics orders a this XXXX. customer to in may substantial order major

sell from Additionally, agreement negotiating that automotive in revenue new manufacturers and to the OEM Micronet sign broader into This Micronet Micronet’s we orders and will the go directly for Hub largest with over customer. initial market, OEM one Europe. results SmartCam a plans of entry commercial its through to marks our OEM is OEMs received to distribution opening addition in financial telematics service Slide truck channels brings for opportunities top-line significant automotive to third potential current manufacturer from X tablets providers. X, the SmartTab On this quarter. This

to to Revenues financial and based of on XXXX. of to QX did $XXX,XXX in XXXX. to accounting XXXX. profit in XXXX as loss results SG&A, XXXX of development, and administrative, of million attributable $X,XXX were $X.X time compared Selling, a XXXX. $X QX June compared XXXX and less Net expense was was compared of Gross $XXX,XXX Research reminder statements U.S. R&D, in XXXX QX you in compared GAAP. therefore in to Micronet’s as $X than as $X.XX consolidated $XXX,XXX practices, QX to to $X accepted in Micronet’s in in of million QX as its during $XX.XX generally XX% of XXXX include of was QX was shares, February XXXX all, of XX, and in XXXX. QX financial that ownership ordinary between as QX general million QX compared expense not in As XX, XXXX outstanding MICT held MICT in QX

had of in detailed cash. XX, million XXXX, to call MICT I will As the review. turn a more Arie now September for financial $XX.X

Arie Rand

morning XXXX period for months and Thank the in slide revenues the the compared September to same next everyone. illustrates and good you, as XXXX. XX, three The nine ended Darren,

or compared operations of in to in of million September $XXX,XXX X $XXX,XXX financial provides ended was $XX.X to XXXX. and the Slide XXXX were the the per loss as of MICT Revenues $XXX,XXX XXXX. million $XXX,XXX more to ended attributable ended third breakdown months million September in a the XXXX. the million loss compared quarter Micronet, quarter quarter numbers. the in in $X.XX loss XXXX Net reminder, XX, XX, reflect compared nine to basic operating as $X.XX was third third for compared third XXXX per XXXX as of to for in quarter compared expenses the of third from quarter the $X of XXXX. a in operation $X were compared September from Total third months share basic $X.X and nine quarter for the period same third $XXX,XXX only. as diluted third XX, of in XXXX. to as the nine a Revenues As quarter of Ltd. net revenues XXXX detailed months $X were in to the of January February quarter the and results or a XXXX and third share, XXXX MICT’s diluted XXXX quarter months XXXX Loss XXXX

the to loss compared non-GAAP compared million of $X.X XX, net September to ended to Total non-GAAP non-GAAP XXXX ended nine XXXX. provide XX, in diluted basic loss per quarter million was basis, third MICT On basis, XXXX for as share the compared third net the in $X.X diluted XX, of X On quarter million $X.X the attributable a of third we months attributable the to per the share XX, share per XXXX XXXX. attributable $X. nine to results million months and as non-GAAP third $X.XX September Total loss $X.XX quarter. MICT net On of September XXXX. for share $X.XX per MICT same net Slide quarter share loss and to Turning MICT loss and of we share XXXX period to a basic months for provide quarter net to Slide basic in XXXX. the of nine results as non-GAAP a a XX, diluted $X.XX XXXX. third in net non-GAAP per non-GAAP in for was non-GAAP the of per was loss compared attributable basic diluted and the was ended as to

on Darren. back as balance cash have cash other net and will working Slide in September $XX.X of XX, million million shareholders' Turning $XX.X in in million million and equivalents, equity call the bank debt, $XX.X to $X.X to sheet I turn we now in XXXX. and and XX, our capital,

Darren Mercer

to get thank market The our enter to and proxy acquisition to GFHI stock shareholders market to acquire platforms. funding insurance with fintech like plan approved quickly votes. the trading our and their our positions I’d and who overwhelmingly through MICT

opportunities coupled revenues cash before telematics While our only call from getting revenues on the for in fintech into and our to year-end. good the business book represent expect to make the progress on third end rapid balance hand from at Significant Have sheet position beyond. next of year our with year quarter you this our operations, business Thank we day. MICT immediate the global everybody. a

Operator

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

may disconnect. You ahead go and

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