8/22/2024

speaker
Call Moderator
N/A

I would now like to turn the call over to Mr. Eyal Cohen, CEO. Mr. Cohen, please go ahead.

speaker
Eyal Cohen
CEO

Thank you for joining our call. Mr. Ziv Deccan, Chairman, and Mr. Moshe Zeltzer, CFO, are on the call with me today. We are excited to meet you again at our quarterly video meeting. I will start by presenting Bosch operation and highlights of our financials. Zil will elaborate on business trends and strategies. After that, we'll have a Q&A session to address any questions or concerns you may have. Let's begin. BOSS leverage cutting edge technologies to optimize supply chain operations through its three business divisions. The robotic division automate the inventory process by replacing handwork with robots. RFID division improves inventory management by providing tools to enterprises to mark and track inventory through the supply chain. And the supply chain division distributes franchised electronic components. Let's dive into each division by sharing authentic field videos. I apologize in advance for any video delays due to the Zoom. The robotic division streamlines industrial and logistics inventory process by automating routine human activities in production lines and logistics centers. It developed custom made robotic cells and integrate off-the-shelf robots using its proprietary mechanical, electrical, and software. Most of the robotic division employees are mechanical engineers, system engineers, electrical engineers, and software programmers. The common goal of our robotic system is to reduce dependency on the workforce and increase efficiency and accuracy, all within an ROI limitation of less than three years. The robotic division has successfully transitioned to the defense sector, and currently 90% of the projects in process are related to the defense market. The Robotica Division clients are mainly among the defense, high-tech and logistics segments. The primary client is Elbit Systems from the defense sector. RFID Division is a system integrator of software and hardware for marking, tracking and managing inventory throughout the supply chain. It provides software for inventory management. It offers handheld computer, four-click tablets, scanners and printers, from leading manufacturers such as Zebra and Aluminum. This equipment enables employees to report an inventory movement on the floor. It provides workforce equipment and software for inventory counting services as a complementary service. RFID division major clients are IKEA in the retail sector, SuperSalo is at 300 stores in the food retail sector and Teva in the industrial sector. The supply chain division distributes franchised electronic components to the Israeli defense and high-tech segment. Our franchised components are combined in leading defense aviation and space industries projects. Our primary customers are the Israeli aircraft industry, the Elbit system, and Rafael, the leading manufacturers in the Israeli defense segment. Financials. Balance sheet, total assets of $32 million, equity of $20 million, and cash net of loans, $1.4 million as of June 24. P&L. Trailing 12 months revenues amounted to $40 million and outlook for year 24 is $46 million. TTM EBITDA, trailing 12 months EBITDA amounted to $3 million. TTM net income amounted... Sets. value is 2.2 versus less than 1 for both. I want to turn the call over to Mr. Zig Dekker, Chairman.

speaker
Ziv Deccan
Chairman

Thank you, Riyad. And good morning and afternoon for everybody on this call. From such a perspective, the supply chain division has a wide range of products and solutions that are delivered by a very skilled professional in the Israeli defense sector. The third quarter of 2024 shows resurgence in demand for our defense customers. And we look forward to the resumption of growth in the second half of 2004 and, of course, 2025. The turn-around program in the robotic division has been fully realized by now. The organizational capacity, expertise, and processes being established, and the division is successfully trained to the Israeli transition to the Israeli defense segment. Currently, as I said before, 90% of the projects in the process are related to the defense market. Despite the robotic division revenues in the training 12 months amounting only to $1 million, we see a significant low potential for the robotic division with the current projects that are in our processes recently. and ongoing demand that we see from the defense market, which gives us the reason to be optimistic about the future. The RFID division is facing a very challenging market nowadays. We continue expanding our product line and service parallel to our efficiency steps, thus maintaining our revenues and profits. We expect growth to renew in the year 2025 based on our wide-ranging offer of activity and services and expect change in the overall economic segment in the areas of consumption, logistics, and our civil market segments. Regarding both growth strategies, basically twofold. based on both organic growth as well as acquisition. The organic growth is based on adding more product line and brands to our existing offering and develop new markets by expanding our offering with complementary technologies. Our M&A efforts are focused on searching for company and activities with technology added value, in adjacent market, of course, and activities, with significant operating synergies to our current activities. I trust Bosch's team led by Eyal to win these challenging processes and draw the perspective of overall company strategy. Thank you for your attention. I will now hand over back the presentation to Eyal.

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