INVESTORS FIRESIDE CHAT
AUGUST 18, 2020
TODAY'S FIRESIDE CHAT
THE STORY BEHIND THE ACQUISITION
BUSINESS HIGHLIGHTS
PERSONAL INTRODUCTIONS
HEAR FROM OUR CUSTOMERS
Q&A
NEWS OF THE WEEK!
KORNIT DIGITAL
ACQUIRES
CUSTOM GATEWAY
TO CONNECT THE VIRTUAL FRONT END WITH THE PHYSICAL BACK END
AND ENABLE
ON-DEMAND
SUSTAINABLE MANUFACTURING
CONSUMER | GROWING | E-COM IS |
HABITS ARE | SENTIMENT TO |
CHANGING SUSTAINABILITY BOOMING B2B B2C
© 2020 Kornit Digital. All rights reserved.
SELF-EXPRESSION
SOCIAL MEDIA IMMEDIATE GRATIFICATION
"THE 'GET IT TO THE RACE" CONSUMER
IMMEDIATELY'
SUSTAINABILITY
WASTE | WATER | WATER |
POLLUTION | WASTE | |
it i i l. ll i. | ||
© 2020 Kornit Digital. All rights reserved. |
"
"
Leading management consulting firm
OVERALL BUSINESS HAS DECLINED | BUT FOR BRANDS AND RETAILERS |
ONLINE BUSINESS IS BOOMING! |
-$1.1B in Q1 (19%) | -$0.5B in Q1 | -57% March to May | +39% | +30% | +55% |
New users vs. 4/2019 | Online activities | Online sales in March |
-$1B in Q1 | -17% in Q1 | +32% | +93% |
Online sales in March | YoY growth of e-commerce | ||
segment in May |
© 2020 Kornit Digital. All rights reserved.
FUNDAMENTAL CHANGE IN BUSINESS MODEL
ONLINE PROMOTIONAL BRANDS MARKETPLACES
1B 2.5B 11.5B
SPORTS EVENTS
RECREATIONAL SPORT
ENTERTAINMENT
© 2020 Kornit Digital. All rights reserved.
Company estimates for apparel impressions (including for example impressions on t-shirts, hoodies, pants, bags, etc.) 15B represents estimated annualized run rate of impressions as of 2017
PRE-PURCHASED
BRANDS JOURNEY INTO ON-DEMAND PRODUCTION
BRANDS AND RETAILERS ARE RUNNING ENDLESSLY TO TRY AND KEEP UP WITH THE
DIGITAL PACE
© 2020 Kornit Digital. All rights reserved.
B2B - NEARSHORE | B2C - ONSHORE |
(NEIGHBORING COUNTRY) | (SAME COUNTRY) |
PROXIMITY PRODUCTION
BRANDS AND RETAILERS ARE RUNNING ENDLESSLY TO TRY AND KEEP UP WITH THE
DIGITAL PACE
MOVING DIRECT-TO-CONSUMER
SAME PRODUCTS
DIFFERENT CHANNEL
© 2020 Kornit Digital. All rights reserved.
EFFECTIVE
ON-DEMAND MANUFACTURING
IS THE ANSWER
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THE CONSUMER | BY USING THE WORKFLOW A.I.- |
ORDERS AN ITEM ONLINE | BASED ENGINE THE ORDER |
THE BUSINESS | IS STREAMLINED TO FULFILLERS/ |
MANUFACTURERS FOR ON-DEMAND | |
ORDERS ITEMS FOR | PRODUCTION |
REPLENISHMENT |
THE FULFILLER PRODUCES AND SENDS IT DIRECTLY TO THE CONSUMER OR BUSINESS
THE BRAND
IS THE SOLE INTERFACE TO THE CONSUMER
(DATA PROTECTION, QUALITY ASSURANCE)
KORNIT'S WORKFLOW MAIN ADVANTAGES FOR FULLFILLLERS
Full digitization of the production floor environment
Growth in
impressions and system utilization
Improve integration with existing IT systems
Workflow based on data-based insights will enable optimized end- to-end processes and will drive production efficiency
TOGETHER WE WILL ENABLE
ON-DEMAND | EFFICIENT SCALING |
MANUFACTURING | UP OF ON-DEMAND |
FOR BRANDS AND | PRODUCTION FLOORS |
RETAILERS |
ANDREW TALBOT
CEO and Founder, Custom Gateway
© 2020 Kornit Digital. All rights reserved.
~50 | HQ | Formerly |
Employees | Manchester, | privately |
UK | owned |
Cloud | Globally active | >300 |
software | Customers |
CUSTOM GATEWAY'S PLATFORM HAS A PROVEN
TRACK RECORD WITH TIER 1 RETAILERS,
FULFILLERS, AND BRANDS
BUSINESS MODEL
Subscriptions Transactions Services
BRANDS
&
RETAILERS
STREAMLINING EFFICIENT ON-
DEMAND ORDERING AND
MANUFACTURING
FULFILLER
S
SEAMLESS INTEGRATION WITH LEADING MARKETPLACES
- SCALING UP PRODUCTION
- AUTOMATING PROCESS
- REDUCING ADMINISTRATION
- EXTRA OPPORTUNITIES
© 2020 Kornit Digital. All rights reserved.
Globally, more than 50% of e-commerce sales were made through the top 100 online marketplaces in 2018.
Source: eMarketer , 2019
Online marketplaces set to exceed $7 trillion in sales by 2024.
Source: iBe financial services, 2020
KORNIT WORKFLOW
SOLUTION WITH A DIRECT CONNECTION TO THE KONNECT SYSTEM
Enhanced Big Data helps drive intelligent business decisions
SALES | CATALOG | PRODUCTION | FLOOR | |
Cost | ||||
Est. | ||||
Catalog | ||||
Schedul | ||||
Network | RIP | |||
ing | ||||
Rules | ||||
Order | Packing | |||
Mgmt. | Blank | |||
Catalog | ||||
Product | Payment | Picking | QA | |
Display | ||||
Design | Printing | |||
Cust. | ||||
© 2020 Kornit Digital. All rights reserved.
COMMON VISION | MUTUAL CUSTOMERS |
SOLUTION PARTNERS | CULTURAL MATCH |
© 2020 Kornit Digital. All rights reserved.
KORNIT
IS AT AN
INFLECTION
POINT
© 2020 Kornit Digital. All rights reserved.
INFLECTION POINT
Extremely strong pipeline and backlog of orders | Strong demand for Atlas, Vulcan+, |
Presto and AV PolyPro | |
Strategic accounts projects | Move to direct in UK/Germany/Japan |
Geographical expansion of strategic accounts | Major R&D projects |
Expansion of our global strategic account | Service scalability |
Brands expansion | $500M goal |
BENZION SENDER | CHUCK MEYO |
EVP R&D | KDAM President |
© 2020 Kornit Digital. All rights reserved.
JED SEIFERT | TOM HASSELL | BILLY KORS |
Co Founder | Vice President | CEO |
SCOTT VALANCY
COO
Q&A
28
© 2020 Kornit Digital. All rights reserved.
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Kornit Digital Ltd. published this content on 18 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2020 21:14:01 UTC