ViryaNet (VRYAF) is a provider of mobile workforce and field service management software. Companies in field service intensive industries, such as utilities and telecoms, rely on ViryaNet’s solutions to optimize their mobile workforce and respond to scheduling changes in real-time. We were first drawn to the company by it’s compelling valuation, blue-chip customer base, and niche positioning, where it has been recognized as an innovator in the $1.5B field service management industry. The company’s flagship product, ViryaNet G4, has gained traction lately through the support of a key partnership with GE Energy, leading to an impressive 34% increase in revenues and 155% increase in total bookings for the third quarter of 2013. CEO Memy Ish-Shaol and Chairman Samuel HaCohen together own over 20% of the shares outstanding and have demonstrated their confidence in the business recently through open-market purchases. With ViryaNet’s addressable market only 25% penetrated and a new cloud-based solution in the offering, we believe the company can continue its double-digit growth trajectory in 2014 and attract more attention as management tells their story to investors.
2. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this
press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, including statements regarding ViryaNet's expectations, beliefs,
intentions, or strategies regarding the capabilities of its products, its relationships with its customers, its customer
purchases, its future operational plans and objectives including integration of other businesses, its future business
prospects, its future financial performance, its future cash position, and its future prospects for profitability. All
forward-looking statements included in this document are based upon information available to ViryaNet as of the
date hereof, and ViryaNet assumes no obligation to update any such forward-looking statements. Forward-looking
statements involve risks and uncertainties, which could cause actual results to differ materially from those projected.
These and other risks relating to ViryaNet's business include market acceptance of and demand for ViryaNet's
products, risks associated with a slow-down in the economy, risks associated with the financial condition of
ViryaNet's customers, risks associated with competition and competitive pricing pressures, risks associated with
increases in costs and operating expenses, risks in technology development and commercialization, the risk of
operating losses, risks in product development, risks associated with international sales, and other risks that are set
forth in ViryaNet's annual report on Form 20-F, filed on April 29, 2013, and the other reports filed by ViryaNet from
time to time, with the Securities and Exchange Commission. Reported results should not be considered an indication
of future performance. You should not place undue reliance on these forward-looking statements, which speak only
as the date hereof. ViryaNet disclaims any obligation to publicly update or revise any such forward-looking
statements to reflect any change in its expectations or in events, conditions, or circumstances on which any such
statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the
forward-looking statements.
3. leading provider of software solutions that optimize and
allow for the continuous improvement of service
processes for mobile workforces
World-class business partners
help us to deliver the best
products and services
Selected by blue-chip
customers across the
world
We have a history of
innovation.
3
4. A history of innovation and leadership 1st’s:
2013
- First voice-enabled native field application
- Named innovator and exemplary performer
2012
- Performance Management Practice
2009
2000
Scheduling engine
optimizes and auto-tunes
Web-based
solution
2002
Online/offline mobile solution
Innovation >
2011
- Visibility and control to business processes
- Integration with InfoPath forms
Coverage >
Partners >
4
5. Vendor Landscape: Field Service Automation
Info-Tech Research Group - May 2013 research report
5
6. BUSINESS VALUE FOCUS | MEASURESignificant Market
Key Technology in a & ANALYZE | CHANGE ENABLEMENT
•
Service businesses comprise over 70% of the world economy
and are continuing to grow
•
Addressable market currently only 25% penetrated,
according to Gartner
•
Software sales in the Field Service Management market are
approximated by Gartner at 329M in 2013
•
•
Represents a 1.5B annual market including services & maintenance
Mobile Workforce Management continuing to emerge as key
service delivery enabler and as a marketplace differentiator
•
•
MWFM enabling Utilities to fulfill the smart grid vision
MWFM enabling differentiation and continuous improvement in
competitive markets as Telecommunications and Healthcare
6
7. Blue-Chip Customers in Diverse Markets
Energy Providers
Telecommunications
Facility Management
Municipalities &
Government
Field Services
Healthcare &
Insurance
Water Utilities
7
9. Service Organizations Are Not Meeting Goals
“Performance
management is a key area
of investment for Best-inClass in 2013”
* Aberdeen Field Service 2013 Workforce Management Guide
9
10. Conflicting Business Objectives
When will you send a field tech an extra 20 miles because he
knows that specific customer better and can provide better service
10
16. BusinessValue Focus
User
Experience
Planning
Spectrum
Extensibility
Business-value focus approach
• ViryaNet ensures that a business-value focus is
maintained from our first engagement through
the full lifecycle of our solution
Guide/build a performance
management practice
• ViryaNet guides you through the process of
developing and practicing a continuous
performance management framework
16
17. Business-Value
Focus
User
Experience
ViryaNet introduced the first voice-enabled
native field application
• ViryaNet focuses on providing an exceptional user
experience, leveraging the opportunities enabled by the
mobile revolution
Planning
Spectrum
Make better decisions with
contextual real-time information
Extensibility
• ViryaNet G4 proactively looks for exceptions and provides
the context for resolving those exceptions
• ViryaNet G4 focuses your field employees via a "what's
now?" and "what's next?" approach
17
18. Businessvalue focus
Plan for the moment and for the future
User
Experience
•
•
•
•
Planning
Spectrum
Align daily schedules with your prioritized
business objectives
Extensibility
• Optimize for multiple (likely conflicting) business objectives
• The first and only solution to auto-tune the scheduling
algorithm
Apply predictive BI for strategic resource decisions
Manage a backlog of long-term commitments
Create daily optimized scheduling plans
Manage exceptions proactively
18
19. Businessvalue focus
User
Experience
Planning
Spectrum
Extensibility
Cost-effectively extend ViryaNet G4 to
meet your unique business needs
• Develop customized functionality that is not
intrusive, does not risk future upgrades and does
not lock you to proprietary tools
• Utilize G4 open API framework, embedded BPM,
forms tool integration and easy data access
Leverage industry best practices
• Use ViryaNet G4 BPM Blueprint that capture best
practices in service processes for mobile workforces,
while remaining extensible and focused on
continuous improvement
19
20. The Smart Device Revolution and the
Enterprise Computing Evolution
20
21. Part of a broad strategy to standardize & optimize all asset
management functions of the energy delivery group.
ViryaNet Solution
• Schedule approximately 200
Vectren field service
technicians across 8 regions.
savings in labor costs over 2 years
• Assign 98% of calls – including
optimal routes – via overnight
batch, with same-day
appointments automatically
assigned to each technician.
and increased geographic workload visibility
(efficiency, reduced travel time, overtime)
Better Resource Utilization
Centralized Planning
focus on field resources and technician route
management
Performance Management
metrics available down to the operating center
and technician levels.
21
22. 2009 – 2012 Comparison
2012 Highlights
A record net income of
$911k
EBITDA of $1.26m
Total revenue 11% higher
than 2011
22
27. Growth Opportunities
Maturity of strategic partnership
Continuous penetration to new verticals
Growing demands outside the US
27
28. Why Invest?
• A best of breed Mobile Workforce Management Solution
• Unique integrated performance management
• Innovative offering geared towards smart devices technology
• Blue chip customers in diverse markets
• Strong global partners invest in ViryaNet and drive growth
• Consistent track record in profitability
• Record revenue and EPS in 2012, $10.7M and $0.23, respectively
• Compelling valuation of 4X TTM Earnings
28