BeWhere (TSX-V: BEW)(OTCQB: BEWFF): Full webcast at the SNN Network Canada Virtual Event on January 6-7, 2021. For more information about BeWhere, please visit: https://bewhere.com/​

The interview may contain forward looking statements about BeWhere. See BeWhere’s periodic filings with SEDAR and the Securities and Exchange Commission for more complete information.

Webcast Transcript (non verbatim)

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Slide 1

Good afternoon and happy new year everybody, thank you for joining me as I will present you BeWhere. BeWhere is a publicly traded company on the Toronto Venture Exchange with the ticker BEW and on the OTCQB under BEWFF. Essentially, BeWhere is an IoT company that build solutions to track things, lots of things. I wanted to start by saying that last year has been quite the year. And that despite being in the middle of global pandemic and worldwide economic turmoil, it’s also the first year that we’ve turned a positive net income with a record quarter in Q3; and we are very humbled by this success in such difficult times around the world. Now let’s dive a bit more in the details on what we do.

Slide 2

Let’s talk about our business model and how we actually make money. As I said earlier, BeWhere is an Internet of Things company, that means we build devices, self-powered devices, that collect a number of data such as sensor information (like temperature) and GPS location. Those devices use IoT networks that are owned by the telecom operators to relay this data to our cloud servers. These IoT networks are called LTE-M and NB-IoT and they are dedicated to machine-to-machine communication, meaning they allow a very small amount of data to be transmitted, at a much lower cost than traditional networks, like 3G or 4G. These IoT networks are part of the 5G, but only on the low power side. Once the data is transmitted to our servers, it can be accessed by the end users using our platform or it can be integrated into their own software.

Our devices can be “slapped” on a variety of assets to remotely track location or remotely monitor sensor information, or both. We divide our products applications in two main segments: the first one is the asset tracking solutions, which is an existing market and where we disrupt this market by bringing a new solution to replace older solutions at a much lower cost and with a longer battery life by using these IoT networks. The second segment is called the connected sensor solutions, where usually we monitor sensors data within fixed locations, such as soil moisture. I’ll give you concrete examples in a few slides.

We are a B2B company, meaning that our customers are going to be distributing our solutions to end users; typically, we sell our asset tracking solutions mostly to the private sector, such Fortune 500 companies, small and medium enterprises, software companies, telecom operators; and the connected sensor solution to governments, municipalities or cities. It does happen that a municipality will purchase an asset tracking solution from us, but that’s how we like to simplify our revenue model.

We make money in two ways: first we sell the hardware at a low cost so to capture more sales, as we aim to be a mass product; and then we collect the monthly recurring fees on each device.

In both segments, we believe that there are a lot of opportunities to continue growing; for example, the global asset tracking market is very vast and quite well established, however with the introduction of low cost IoT devices, it’s a market that’s going to keep growing as essentially you can now start using devices to track pretty much anything. Especially lower cost assets where before the cost of tracking them just didn’t make sense financially. And now we actually are seeing a dramatic increase in tracking solutions for assets worth less than $1,000, like pallets for example, where before well you may as well just buy a new one instead of spending twice as much on tracking them.

And that’s where we like to say that BeWhere is a disruptor as it’s both replacing other much more expensive trackers and we also offer business owners a way to track assets that prior to IoT they wouldn’t even consider tracking them, like portable toilets or plastic totes.

On the other hand, the global IoT sensor market is pretty much untapped as today’s research shows that it would grow from $5.28 billion in 2018 to $22.48 billion in 2023, more than double the growth of the asset tracking market.  Here, BeWhere is essentially starting from scratch as there were virtually no existing solutions, or at a huge cost. Our advantage is that once again we come in with low-cost products that are very easy to use and install. Because it is a very new market, it’s also longer sales cycle and a much smaller part of our sales at the moment. Generally speaking, our customers for IoT sensors are mainly governments, such as the City of Toronto, therefore demand had slowed down during the pandemic as resources were redirected to COVID-19 relief measures. However, we are starting to see an increase in demand coming out of the pandemic and projects that got delayed are now back on the table.

Slide 3 & 4

The next two slides are just visuals on how our solutions work; very simply we have the assets where the trackers are mounted, the trackers collect information from the sensors and GPS module which is transmitted through IoT cellular networks to our cloud server, and then this information is displayed on the BeWhere user portal or integrated via API into other software. BeWhere solutions are very easy to deploy and to use.

Slide 5

On our next slide, I’m actually going to let Mason introduce you to some of our use cases. This is a video that was built by AT&T, one of our distributor partners.

Play video: https://youtu.be/rfdQTmnRKeQ

Thank you, Mason. With this video, Mason showed you what could be tracked in the construction industry using one of our asset tracking devices, which is called the BeSol. The BeSol is a self-powered solar rechargeable asset tracker, and probably our best seller. You can also see that the form factor is very small yet it’s a pretty rugged device. If you head to our YouTube channel, you can check out more videos from our partners and some more real-life use cases.

Slide 6

What other assets do we track: on this slide we have various use cases, which for some are core selling markets to some our distributors, like Tenna focuses on construction and tracking yellow iron; Tenna which recently purchased another 6,500 units on top of the previous 12,000 they already had. Geotab and Fleet Complete focus on fleet like trailers; Governments focus on smart cities, etc.

I wanted to emphasize that as an early player, we have secured some impressive partnerships with massive companies such as Bell, AT&T, T-Mobile etc. who actually need companies like BeWhere to grow their subscriber base. Let me explain why. Until the arrival of IoT, the cellular market was essentially saturated; as there’s only so many cell phones you can buy. Now with IoT, each little tracker has a sim card and data plan, and because they are so cheap, they can sell tens to thousands of subscriptions to their customers. For example, a trailer company with 1,000 trailers will pay a thousand subscriptions, but they will also start tracking new things and thus potentially bringing another thousand subscriptions. And, we are still at the early stages of IoT.

Slide 7

What BeWhere does is solving problems for their customers by giving them data on their assets; data that was either too expensive to get prior to IoT or that was just not available as there was no technology. This data allows business owners to save time and money managing their equipment, for example we have a very large company that uses our BeSol to track their trailers either in the yard or on the road. For them we do two things: we help the driver locate their trailer much faster, which allow them to spend more time getting paid on the road versus looking for an hour for their trailer, and for the company owner we help them keep an eye their ~50,000 dollars trailer plus cargo, and if the delivery is going as it should.

Slide 8

When talking about our connected sensors, here we bring completely new intelligence to service operators; for example, we work with the City of Toronto on two fronts: first we helped the City start a Tree Watering Program with our soil moisture sensor where they now can monitor real-time if the young trees planted around the city are in ideal conditions, which saves a fair bit of money on maintenance i.e., the cost of water, and the cost of sending employees. Watering is crucial during the first few years a young tree and it’s not cheap to plant trees for the city. Our second initiative with Toronto is with the urban water supply, where we monitor water pressure within the city water pipes. Same thing here, we can remotely check if the water is circulating fine and if there is a blockage or a leakage, an alert goes immediately to the city so can dispatch maintenance instead of what has happened in the past, where a pipe burst in the middle of downtown, flooded the subway and cost millions to taxpayers like you and I.

Slide 9

Lastly, I wanted to illustrate that our devices are truly versatile with this slide. These pictures were taken by one of our installers in Pennsylvania when he went to vote. He could not believe his eyes when he saw our BeTen device, which a battery-powered asset tracker, mounted a poll box. This is also to say that because of our model, we don’t always know where our devices end up. In this case, it seems that it is being used to track the poll collection machines, maybe to make sure the filled polls didn’t disappear.

Slide 10

Now let’s talk about our financials. BeWhere went public in February 2016 with pretty much zero revenues to about 6 million for 2019 and over 5 five million for 9 months ending September 2020. I’m not able to comment on the final number for 2020 as we are currently doing our audit.

Slide 11

We keep growing our quarterly revenues and especially our most important performance indicator which is our recurring revenues. We typically report our revenue broken down in three: recurring, hardware sales, and service fees, which are one off projects. When looking at our revenues, keep in mind that a hardware sale does not reflect immediately in an increase of the recurring fees as sometimes it can take a few months for the client to deploy the units. Recurring revenues are now over 800,000 dollars per quarter and are expected to continue growing.

Slide 12

On our next slide, we are very happy to show our first positive earnings as of last quarter, after we started the year with positive adjusted EBITDA. This feels like a true achievement especially during such a difficult time around the world. It does show that companies like BeWhere, which offer remote solutions, are actually benefitting from the pandemic. In our case, we have actually seen both positive and negative effects from COVID, while the positive had a much greater impact on our business. For example, our projects with smart cities were delayed however they were not cancelled; and today we are back in discussions. The private sector, on the other hand, could not seem to keep up with demand and we have seen a record amount of orders coming in the last few months, with much shorter sales cycles. Again, this is simply explained by the fact that remote tracking technologies and software solutions are essential in the world especially when the entire population has to work from home.

Slide 13

Lastly, let’s talk about the future. Our strategy is obviously to continue growing our existing sale segments by adding new customers, but we also need to remain relevant and ahead of the herd. One of our assets is the ability to meet demand quickly when an opportunity arise. For example, with COVID-19, certain opportunities have arisen in new markets such cold chain tracking, like vaccines and such. We are able to create variants of our devices to accommodate these emerging opportunities quickly and at a low cost. Thanks to our experience as a very early player in the mobile IoT world, we are also able to move to the next generation of devices, which are smaller and packed with more technologies than our current products. We expect to release our new version within this quarter, first with our existing preferred clients and then to additional markets, such as the consumer market. For example, we have already secured a partnership with a large pet products manufacturer. And finally, we continue to work towards increasing our margins and of course our profitability.

Slide 14

Let’s wrap up this presentation with a quick review of our capital structure and main takeaways.

Our share has increased a bit since I made the presentation so we are not around 30 cents a share for a market cap of about 26 million and a comfortable cash position of 2.6 million, and a working capital of 3.7 million.

Slide 15

What I want to leave my audience with are the main points that make BeWhere an attractive company to invest in, such the fact that…

• We’ve achieved profitability for the first time during a worldwide pandemic,
• That we’re an early player and secured partnerships with market leaders like the Telcos,
• That the IoT market is growing at an exponential rate and that the tracking technology is becoming a commodity,
• That we both work on untapped markets like the connector sensors and replace old technologies,
• That we are a very flexible company and keep innovating,
• And finally, that our key performance metric continues to grow (I.e our recurring revenues), we have a clean balance sheet with no debt, and to close the loop, that we have now positive earnings.

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About BeWhere BeWhere (TSXV: BEW, OTCQB: BEWFF) is a Mobile Internet of Things (“M-IoT”) solutions company that designs and sells hardware with sensors and software applications to remotely track real-time information on non-powered fixed and movable assets (Asset Tracking), as well as remotely monitor environmental conditions (Connected Sensors). The company develops mobile applications, middle-ware and cloud-based solutions that stand-alone or that can be readily integrated with existing software. BeWhere’ solutions use the latest available cellular technologies (LTE-M and NB-IoT), offering cutting edge, low-cost sophisticated technology which allows customers to deploy remote tracking technology where cost was previously prohibitive.

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