2. Important Disclaimers This presentation is neither an offer to sell nor a solicitation of offers to purchase securities. This presentation is the confidential intellectual property of DecisionPoint Systems, Inc. (“DecisionPoint”). Any use or redistribution of this document or its contents without the express written consent of DecisionPoint is prohibited. This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Those statements appear in a number of places in the presentation and include statements regarding the intent, belief or current expectations of Decisionpoint, its directors or its officers with respect to, among other things: (i) trends affecting DecisionPoint’s financial condition or results of operations; (ii) DecisionPoint’s financing plans; and (iii) DecisionPoint’s business and growth strategies, among other things. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. You are cautioned not to place undue reliance on these forward-looking statements, which reflect DecisionPoint’s management’s view only as of the date of this presentation. The content of this presentation is copyright 2010 DecisionPoint Systems, Inc.
3. Key Stats: DNPI mrq& ttm as of Q2 2010 ended June 30, 2010 Sources: Capital IQ, Yahoo! Finance, BigCharts.com
4. What we do… DecisionPoint is a leading provider of Enterprise Mobility Hardware, Software and Service Solutions. Our technology makes real-time, interactive data accessible to the front-line worker anytime, anywhere via wireless hand-held devices and electronic tagging.* By moving decision points closer to the front-line worker and customer, we provide our clients improved productivity and operational advantages. *Radio Frequency Identification (RFID)
6. High Growth Industries: $11.0B by 2012 Mobile Middleware (MMW):$1.6B by 2013 Radio Frequency Identification (RFID):$4.0B in 2009 to $8.4B by 2012 Field Asset Management (FAM):$0.3B in 2008 to $1.6B by 2013 40% CAGR in three main markets, totaling $11.0B by 2012 $0.5B to $1.0B immediately addressable by DNPI 12 10 8 ($ Billions) 6 4 2 0 2009 2010 2011 2012 FAM "The hard-dollar justification behind field asset management deployments is becoming more straightforward.” - Frost & Sullivan RFID MMW
7. Key Market Driver: Convergence Mobile EnterpriseTechnologies Convergence Convergence of handheld capabilities and smartphones with cost effective RFID technologies is opening up new market opportunities. Industry at epicenter of the next technology shift to wireless broadband. RFID Wireless Broadband Operating Systems PCS Internet Wireless 1999 2004 2009 2013 1994
9. Technology & Services Partners DecisionPoint delivers operational benefits by integrating product and service offerings of leading ecosystem partners Motorola Business Partner of the Year 2007
10. Success Stories with Marquee Clients Track record of success; product/service traction with Blue-chip customer base worldwide
11. Annual Revenue, Gross Margin, Operating Income Business is transitioning to higher margin, customer-driven mobile wireless & RFID software and service solutions. Recurring revenue has increased from approximately 20% of revenue in 2006 to 28% in 2009. 2009 Operating Income increased 87% to $1.8 million, driven by Gross Margin expansion to 20.2% from 18.9% in 2008. DecisionPoint Systems became a public company in June 2009 through a reverse merger with Canusa Capital Corp.
12. Quarterly Revenue, Gross Margin, Operating Income 2Q10 revenue up 20% sequentially and 10% year-over-year to $13.3M. 2Q10 gross profit percentage up 3% sequentially to 19%. Continued gross margin expansion drove positive operational profit . 2H-10 Outlook: Revenues ~$32.0M -$34.0M; Operating Income of $1.7M -$2.0M; EPS $0.03-$0.04.
13. Growth Strategy & Goals Increase sales of high margin software and professional services from 30%+ of sales today to at least 50%+ in 3 years. Grow sales organically by an average of 15% - 20%+ per annum, with additional external growth through select acquisitions both in the U.S. and Europe. Broaden customer base (retail ~ 35% of sales) more deeply into manufacturing, pharmaceutical, warehousing & distribution, and field mobility. Grow to annual run rate of $100 million in revenue and $8 million in operating income by the end of 2011, organically and through acquisition.
14. Recent News & Events 2010 August:DecisionPoint received certification as authorized Motorola two-way radio reseller. July: G4S Secure Solutions USA tapped into DecisionPoint's technological proficiencies for integration and deployment support. July: US Air Force Reserve awarded DecisionPoint ensuing order to augment ongoing $5.4M inventory tracking program. June: DecisionPoint retired over $545K of subordinated notes and $229K acquisition related debt. June: Won 15 contracts totaling more than $1.2M for its new MobileArc for Couriers mobile solution offering. March: RecycleBank selected DecisionPoint to design, implement and support RecycleBank’s Asset Management Platform in the field.
15. Key Take-Aways DecisionPoint Systems is a leading provider of Enterprise Mobility Hardware, Software and Service Solutions. Large, fast growing addressable markets, with significant near-term consolidation opportunities. Business is transitioning to higher margin, customer-driven mobile wireless and RFID solutions. Operating profitably, with recurring revenue and gross margin expansion. 2H-10 Outlook: Revenues ~$32.0M-$34.0M; Operating Income of $1.7M-$2.0M; EPS $0.03-$0.04.
16. For More Information Company Contact: Donald W. Rowley Chief Financial Officer DecisionPoint Systems, Inc. Tel 949.465.0065 x105 investorrelations@decisionpt.com www.decisionpt.com Investor Relations Contact: Scott Liolios or Matt Glover Liolios Group, Inc. Tel 949.574.3860 info@liolios.com
18. Strong Industry Roots & Experience DecisionPoint’s chairman, president and CEO, Nic Toms, was previously founder & CEO of Peak Technologies. Bar Code Based Supply Chain Technologies. Completed 26 acquisitions. Grew revenues from $5M to $300M. 40% CAGR. IPO at $8 a share. Sold to RR Donnelley at $18 a share (1997). Management team offers extensive industry expertise & successful roll-up strategy track record 35 350 High $27 300 30 250 25 200 20 Revenues ($ Millions) Stock Price ($) 15 150 IPO $8 10 100 5 50 0 0 88 89 90 91 92 93 94 95 96
