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Presentation on theme: "CSS INVESTOR CONFERENCE 21 MAY 2014 SAFE Europe plc."— Presentation transcript:


2 Agenda Summary Overview What do we sell Legislative imperatives Competitor analysis UK & Malaysia activities Fund raising status Focus for the next 12 months Financial Summary Exit strategy

3 Current Status Market Coverage: UK & possibly European pre-eminent TPMS provider – Over 1400 vehicles using our system – Primary market UK but also Middle East Successful in rugged environments – Saudi Arabia & Iraq - higher sales value. Technology is proven R&D to improve telematics integration and functionality. Opportunities: – European legislation to mandate TPMS on heavy trucks (>3.5 m tonnes) imminent – Malaysia: mandating in local manufacturing market and joint-venture with local partner – Potential total annual revenue of £200m

4 What do we sell? Cab Monitor Wheel Sensor Smart Booster Hand Tool A comprehensive tyre pressure monitoring system for commercial vehicles. The primary components comprise;

5 Legislative Imperatives EU – Moving towards mandating heavy truck TPMS by 2016 (NB Cars and light trucks already mandated since 2012) UN Economic Council is a major pressure group – SAFE lobbying in conjunction with UK SMMT Malaysia – Government has approved our joint-venture partner, Season – Expecting legislative approval in 4 th Quarter 2014 5 year exclusivity for TPMS in Malaysia Significant Asian manufacturing base – Manufacturing benefits for our whole offer

6 Our Positioning Our USP’s are considered to be; – Industrial and robust design & construction – Reduced downtime costs – Unique communications system Tractor to trailer – True drop-&-swap – Price Very competitive: ~£600 16 wheel configuration – 2-3% p.a. fuel saving, cost recovery <1 year

7 Current Competitive Environment Few active competitors – all awaiting legislation Wabco – Poor design with operational flaws – Very expensive – No drop-&-swap facility for tractor/trailer operators Transense – AIM listed Market Cap approx £20m No installations except trials – Batteryless technology – Expensive and unusual solution Bendix – Leveraged Purchase of Smartire in US. – Dormant with no evidence of market activity Bridgestone – Press launch of product but not available in the market

8 EU Market Awareness of TPMS is high relative to 4 years ago Customers include major logistics companies, local authorities and truck manufacturers Approved supplier for DHL – Own Excel – Small volumes Off Road market opportunities: – Ainscough Cranes 125 units, > £100k

9 Malaysia Lawrence Khoo has worked on numerous automotive projects – Has persuaded the Government to mandate TPMS for trucks Mandating should occur Q4 2014 It’s a J-V between Season Group & Safe Europe – Government approved venture – Exclusivity for 5 years Truck size applicable to SE: 70,000 units p.a. – Possibly expending to passenger cars 0.5m p.a. domestic

10 Funding Status Current PPM launched mid-February – Attracted £450k within 3 weeks – Post-money valuation £3.5m – Our plans need completion of funding by June

11 The next 12 months Our business strategy for the next 12 months is to; – scale-up sales and marketing activities in EU – enhance the functionality of the product to incorporate enhancements established in trials – create a web portal for user interrogation – prepare for acceleration arising from legislation – establish and launch Malaysian operation

12 Financial Forecasts 201420152016 (£,000s) Revenues1296301800 Gross Profit945231183 R&D, Selling & Admin382551583 Operating Profit/(Loss) (288) (28)600 Cash Flow32 (287)137

13 Exit Strategy Our exit strategy is perceived to be via: – Tyre manufacturers seeking to add value to their sales proposition and support to customers. Contract for through life rubber for a vehicle – 100,000 mile/150,000 km pa. truck spends £5.5k p.a. on tyres – Need additional ’value-adds’ Tyre companies cash rich – Market consolidation of TPMS suppliers – Sale to industrial group in Malaysia

14 Thank you for your time.

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