Kornit Digital : Investors Fireside Chat 2020

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

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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

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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

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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

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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
	Print		Cost
		Est.
	Catalog
		Schedul
	Network	RIP
	ing
	Rules
	Order			Packing
	Mgmt.	Blank
		Catalog
Product	Payment		Picking	QA
Display
Design				Printing
Cust.

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COMMON VISION

MUTUAL CUSTOMERS

SOLUTION PARTNERS

CULTURAL MATCH

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KORNIT

IS AT AN

INFLECTION

POINT

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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

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