mwc analyst day welcome - telit · telit communications plc (lse: tcm.l) m2m pioneer and leading...

10:00-10:30 Reception

10:30-10:50 Company overview and strategy – Oozi Cats, CEO

10:50-11:10 Telit IoT Services – Yosi Fait, President and FD

11:10-11:20 Coffee Break

11:20-11:40 Telit IoT Factory Solutions – Fred Yentz, CEO, Telit IoT Platforms

11:40-12:00 Guest presentation – Rami Avidan, Managing Director M2M & IoT, Tele2 Group

12:00 Lunch

MWC Analyst Day

Welcome

MWC Analyst Day

Corporate overview and strategy

Oozi CatsCEO

Barcelona 2016

Copyright © 2016 Telit Wireless Solutions

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This document and the accompanying oral presentation has been prepared by Telit Communications PLC (the "Company").Cannacord Genuity Limited which is authorized andregulated by the Financial Services Authority, is acting as the nominated adviser and broker to the Company.

The information contained in the presentation has not been verified by Cannacord Genuity Limited nor does this presentation purport to be all-inclusive or to contain all the informationthat an investor may desire to have in evaluating whether or not to make an investment in the Company. The information has not been independently verified and is subject tomaterial updating, revision and further amendment.

This document has not been approved by an authorized person as is required by Section 21 of the Financial Services and Markets Act 2000 ("FSMA") and therefore it will only bedistributed in accordance with an exemption to Section 21 of the FSMA. This document (including its contents) is confidential and is for distribution in the United Kingdom only topersons who are authorized persons or exempted persons within the meaning of FSMA or any Order made thereunder, or to persons of a kind described in Articles 19 or 49 or 50 ofthe Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) and, if permitted by applicable law, for distribution outside the United Kingdom toprofessionals or institutions whose ordinary business involves them in engaging in investment activities or who are otherwise permitted to receive it in accordance with the laws of therelevant jurisdiction. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. This document is being supplied to you solely for yourinformation and may not be copied, reproduced, further distributed to any other person or published, in whole or in part, for any purpose. Any other person who receives thisdocument should not rely or act upon it. By accepting this document the recipient represents and warrants that they are a person who falls within the above description of personsentitled to receive this document. The information contained in this document is confidential and the property of the Company. The information in this document and in thepresentation does not constitute, or form part of, any offer to sell or issue, or any solicitation of an offer to purchase or subscribe for any shares in the Company nor shall thisdocument, or any part of it, or the fact of its distribution, form the basis of, or be relied on, in connection with any contract. No reliance may be placed for any purpose whatsoever onthe information contained in this document or on the completeness, accuracy or fairness thereof. No representation or warranty, express or implied, is made or given by or on behalfof the Company or its Directors or Cannacord Genuity Limited or any other person as to the accuracy, completeness or fairness of the information or opinions contained in thisdocument and in the presentation and no responsibility or liability is accepted to places for any such information or opinions. Notwithstanding this, nothing in this paragraph shallexclude liability for any such representation or warranty made fraudulently. Cannacord Genuity Limited is acting solely for the Company as nominated adviser and broker and is notacting for any other person and will not regard any other person (whether or not a recipient of this document) as its client and will not be responsible for providing the protectionsafforded to clients of Cannacord Genuity Limited to any other person or for providing advice to any other person. The distribution of this document in certain jurisdictions may berestricted by law and therefore persons into whose possession this document comes should inform themselves about and observe any such restrictions. Any such distribution couldresult in a violation of the law of such jurisdictions. Neither this document nor any copy of it may be taken or transmitted into Canada, Japan and South Africa or distributed to Canada,Japan or South Africa or to any national, citizen or resident thereof or any corporation, partnership or other entity created or organized under the laws thereof.

The Company's shares have not been and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold within theUnited States except in transactions exempt from or not subject to the registration requirements of the Securities Act.

DisclaimerAll third party trademarks and logos used in this presentation are sole

property of their respective owners


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"We stand on the brink of a technological

revolution that will fundamentally alter the

way we live, work, and relate to one another.

In its scale, scope, and complexity, the

transformation will be unlike anything

humankind has experienced before.“

Klaus Schwab, founder and chairman of the World Economic Forum - Davos 2016

The Internet of Things


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Enabling the Internet of Things

Telit Communications PLC (LSE: TCM.L)

M2M Pioneer and leading ‘pure play’ IoT company

2015 Revenue: $333.5m* (+13.4% YoY)

2009-2015 annual growth 25% on CAGR basis

Founded in 2000

8 IoT-focused acquisitions in last 5 years


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Leading market presence and global footprint

4Company Owned

Protocol Stacks

+6500Customers Worldwide

+15Years Experience in IoT

+3000Total Man-Years of

Research & Development

21Language Spoken

among our Employees

+900Employees across 5

continents

165Product Certifications

Worldwide

ISO/TS16949Compliant for Manufacturing, R&D and

Support Functions Worldwide

200Module Types

35Sales offices covering 80

countries worldwide

49Countries with Telit

Modules Sold Directly

8R&D Centers

350Sales and Distributors


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Things Apps

TELIT PRODUCTS TELIT SERVICES

Products & Services for end-to-end IoT deployments

IoTPLATFORMS

IoTCONNECTIVITY

IoTMODULES


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• Cellular – 4G, LTE, 3G and 2G

• Positioning – GPS and GNSS

• Short-Range – ZigBee, Sigfox and Bluetooth Smart

• Automotive

• Datacards

The industry’s broadest portfolio of wireless IoT Modules


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SecurityEnergy

& Smart Meter

AssetManagement

Wearable industrialHealth CareTelemetry

P.O.STelematics

Enabling industrial IoT


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Telit active projects with Tier-1 and

the OEM brands they service

• By 2020, 100M cars will be sold per year - most of

which will be connected, representing the fastest

growing segment in IoT.

• In April 2014, Telit acquired the ATOP (Automotive

Telematics onboard Unit Platform) business from

NXP, leading to the formation of the Automotive

Solutions business unit

• The business unit develops high end products for

Automotive industry, including the car gateway

infotainment

• ATOP is a highly secure and connected automotive

telematics platform that protects vehicles from

malicious attacks to the core vehicle CAN-bus.

Enabling automotive IoT


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*Source: based on Telit’s assessment for the industrial M2M revenues for 2014

Competitor A

29%

Competitor B

21.1%Others

19.6%

30.2%31.6%

Competitor A 25.6%

Competitor B27.7%

Others15.1%

Telit in industrial M2M and IoT


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Acquisitions

• The acquired assets include Stollmann's Bluetooth IP, NFC and other wireless communications IP. Thirty-five Stollmann employees, mainly R&D engineers, are also being transferred to Telit.

• The acquisition will materially enhance Telit's short-range low-power Bluetooth product offering and is another step in the Group's strategy to provide a comprehensive solution to connect edge devices, such as sensors, to the Telit IoT enablement platform.

• MarketsandMarkets estimates the global BLE and "Smart-Ready" market will be worth $5.6bn by 2020. BLE shipments are expected to surpass 1.2 billion units in five years, up from just 49 million units in 2013.

July 2011

GlobalConect Ltd.

(EU Connectivity services)

Motorola M2M

March 2011

Navman Wireless OEM Solutions LP

(GPS and GNSS modules)

January 2012

December 2012

CrossBridge Solutions Inc.

(NA Connectivity services)

MAT

(GPS for Korean market)

August 2013

September 2013

ILS Technology LLC

(M2M Cloud services platform)

ATOP

(Automotive Telematics Platform)

April 2014

February 2016

Stollmann

(Bluetooth/NFC IP)

StollmannIn February 2016, Telit acquired Bluetooth Smart – otherwise known as Bluetooth Low Energy ("BLE") – assets from Stollmann Entwicklungs und Vertriebs Gmbh("Stollmann"), a developer and marketer of low power hardware products and software solutions for wireless communications for a non-material cash consideration.


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E13* Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, share based payments and other non recurring expenses.

** Adjusted PBT is defined as profit before tax excluding share based payments, other non recurring expenses, amortization of intangible acquired.

Revenue (Million USD)

88.8

131.7

177.4

207.4

243.2

294

333.5

0

25

50

75

100

125

150

175

200

225

250

275

300

325

350

2009 2010 2011 2012 2013 2014 2015

Gross Profit (Million USD)

42.7

52.9

67.876.9

92.5

116.3

H1:54.6

H1: 62

0

20

40

60

80

100

120

2009 2010 2011 2012 2013 2014 2015

Adjusted EBITDA* (Million USD)

5.9

12.5 13.1

17.3

26.9

34.7

H1:17

H1: 21.8

0

5

10

15

20

25

30

35

40

2009 2010 2011 2012 2013 2014 2015

Adjusted PBT** (Million USD)

1.0

7.15.7

9.6

16.6

23.4

H1:11.1

H1: 13.9

0

5

10

15

20

25

2009 2010 2011 2012 2013 2014 2015

Continuous growth and profitability


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Comments

• Gross margin continued to improve,

from 37.6% in H1 2013 to 39.5% in H1

2014 and to 39.7% in H1 2015, due to

the Company’s strong positioning in the

M2M industry, further improvements in

the hardware business and the

increasing share of revenues from the

IoT platform as a service (PaaS) to the

business model, which contributes a

higher gross margin.

• Gross profit increased by 13.6% to $62

million (H1:2014: $54.6 million).

Gross profit / gross margin

Gross profit Gross margin

76.9

92.5

116.3

40.8

54.662

0

10

20

30

40

50

60

70

80

90

100

110

120

2012 2013 2014 H1 2013 H1 2014 H1 2015

(million USD)

37.1%

38.02%

37.6%

39.5%

30%

35%

40%

39.7%

39.55% +13.6%


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Gross Research & Development expenses*

24.9

31.4

48.8

12.7

22.9 24.4

0

10

20

30

40

50

60

2012 2013 2014 H1 2013 H1 2014 H1 2015

+6.5%

Research & Development % of revenues

(million USD)

0%

10%

20%

5%

15%

12.0%

12.9%

16.6%

11.7%

16.6%15.6%

• Gross research and development

expenses decreased, as percentage of

revenues, from 16.6% in H1 2014 to

15.6% in H1 2015. In absolute numbers

these expenses increased by $1.5

million to $24.4 million (H1 2014: $22.9

million). we expect that the percentage of

gross R&D expenses out of the revenues

will decrease over the coming years.

* Gross research & development expenses are defined as

research & development expenses before capitalized

development expenses and before amortization of internally

generated development costs.

Comments


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30.5

38.6

50.4

18.4

23.526.4

0

10

20

30

40

50

60

2012 2013 2014 H1 2013 H1 2014 H1 2015

(million USD)

Sales & Marketing % of revenues

14.7%

15.9%

17.1%17.0% 17.0% 16.9%

0%

10%

20%

5%

15%

Sales and Marketing

• Sales and marketing expenses remained

virtually unchanged as a percentage of

revenues. In absolute numbers these

expenses increased by $2.9 million to

$26.4 million (H1 2014: $23.5 million).

we expect that the percentage of sales

and marketing expenses out of the

revenues will decrease over the coming

years.

Comments


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19.722.3

26.5

9.611.2 12.1

0

10

20

30

40

50

60

2012 2013 2014 H1 2013 H1 2014 H1 2015

General & Administrative % of revenues

(million USD)

9.5% 9.2% 9.0%

8.8%8.1%

7.8%

0%

10%

20%

5%

15%

General and Administrative

• General and administrative expenses

decreased, as a percentage of

revenues, from 8.1% in H1 2014 to 7.8%

in H1 2015. In absolute numbers these

expenses increased by $0.9 million to

$12.1 million (H1 2014: $11.2 million).

we expect that the percentage of

general and administrative expenses out

of the revenues will decrease over the

coming years.

Comments


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• Pure play, end-to-end IoT enablement focus

• Financial strength and stability with significant operating leverage

• Ongoing investment in product and services R&D• Bluetooth

• 4G and Automotive products

• IoT portal

• Industrial IoT / Industrie 4.0

• Fast-growing ‘blue chip’-partner ecosystem• Intel, Qualcomm, Cisco, Google, SAP, Tech Mahindra

• World-class developer resources• AppZone / Application Development Environment

• deviceWISE University

• Engineering services

• Certification support

Positioned for ongoing market success

MWC Analyst Day

Telit IoT Services

Yosi FaitPresident and FD

Barcelona 2016


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Subscription-based IoT Services

IoTPLATFORMS

IoTCONNECTIVITY

Things Apps

IoTMODULES

TELIT PRODUCTS TELIT SERVICES

The New Way to Onboard to the Internet of Things


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Telit’s transformation to becoming the leading IoT-as-a-Service Provider is driven by

onboarding 150 million captive Telit modules over the next five years. Telit expects to be the

leader in recurring revenue streams from IoT Connectivity and Platform Services.

21

Telit creates its OWN 150 Million device market (2015-2019)

Transformation to IoT-as-a-Service


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• Global coverage on tier 1 mobile networks

• Tailored rate plans for IoT data, voice, and SMS

• Integrated value added services

• Multi-dimensional security approach

• 24/7 technical support and real-time monitoring

IoT SIM cards and custom data plans with roaming across different regions and networks around the world

Telit IoT Services

One Contract

One Simple Bill

Total Flexibility


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IoT connection provisioning, management and analysis across wireless networks to optimize performance and reduce data cost

Connectivity Management

CDP ProUnified CDP integration

and management

IntelligenceBusiness analytics and KPI

dashboarding

Monitoring & AlertingReal-time performance and

cost management


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IoT PLATFORM

Application Enablement Platform

A Cloud-based IoT subscription service

deviceWISE for MNOs

A turnkey IoT platform for mobile network

operators

deviceWISE for Factory

Enterprise-grade industrial automation

platform

secureWISEfor Semiconductor

Secure remote access to semiconductor

equipment

INDUSTRIAL IoT / INDUSTRIE 4.0

Software platforms and Cloud-based services

Telit IoT Services


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IoT as a Service OfferingIoT as a Service Offering

Multiple approaches to create dashboards, web-based and mobile apps, and

integrate with enterprise systems or Cloud-based big data analytics solutions.

APPLICATION

DEVELOPMENT

Comprehensive administrative functions from a single, intuitive web-based

management portal with superior layered security against external and internal threatsADMINISTRATION

& SECURITY

Broad range of functions related to data collection,

data transport, data storage and data delivery DATA

MANAGEMENT

Dynamic remote configuration, provisioning and firmware

updates of installed IoT devices, based on custom parameters

DEVICE

MANAGEMENT

TELIT IoT

CONNECTIVITYIoT SIM cards and custom data plans with roaming

across different regions and networks around the world

TELIT IoT MODULESThe world’s broadest portfolio of wireless IoT modules, spanning

cellular, location, short-range, automotive, and datacard products

IoT connection provisioning, management and analysis across

wireless networks to optimize data consumption and cost

CONNECTIVITY

MANAGEMENT

IoT

Port

al


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Maximize performance, improve

uptime and reduce cleaning costs

• Increased business value with improving

service, parts and consumables revenues

• Enhanced customer value by providing fleet

management applications

• Enhanced customer relationships through on

ongoing consulting around machine utilization

and best-in-class cleaning practices

• Improved machine quality through ongoing

feedback loop into R&D and manufacturing

organizations

Remote monitoring and diagnostics of industrial cleaning equipment

Customer Use Case


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IoTPLATFORMS

IoTCONNECTIVITY

IoTMODULES

Telit Triple Play

Enterprise Ecosystem Partners

Remote monitoring and diagnostics of in industrial cleaning equipment

Customer Use Case

Tennant Company – World’s leading provider of industrialand commercial indoor/outdoor surface cleaning solutions


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• Improved oil delivery and recycling logistics

• New data analytics and consulting revenues

• Improved customer relations by providing

operational performance data

• Increased equipment performance through

predictive maintenance and analytics

• Improved food quality compliance

Cooking oil logistics and restaurant operations management

Customer Use Case

Food Quality, Efficiency,

Safety, and Sustainability


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Cooking oil logistics and restaurant operations management

Customer Use Case

Headquarters

Headquarters & Regional Depots

Manufacturer

Franchisee

IoTPLATFORMOil Tanks

Frying Equipment

Restaurant Technologies, Inc is aleading supplier of cooking oil andprovider of restaurant managementsolutions to over 30,000 restaurantsin North America

All third party trademarks and logos are sole property of their respective owners

MWC Analyst Day

Telit IoT Services

Yosi FaitPresident and FD

Barcelona 2016

Q&A

MWC Analyst Day

Telit IoT Factory Solutions

Fred YentzCEO, Telit IoT Platforms

Barcelona 2016


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2.ElectrificationMechanization

1.Automation

3.Networking

4.

Conveyer

Belt

1870

Mechanical

Loom

1784

Programmable

Controller

1969

Industrie 4.0

Today

Phases of industrial revolution

IoT Factory Solutions


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2.ElectrificationMechanization

1.Automation

3.Networking

4.

Conveyer

Belt

1870

Mechanical

Loom

1784

Programmable

Controller

1969

Industrie 4.0

Today

Overcoming the transition from 3.0 to 4.0

Road to Industrie 4.0


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Industrie 3.0 deployment challenges

Road to Industrie 4.0

Manufacturing Assets Enterprise Systems

Highly complex

Heterogeneous legacy

equipment with different

protocols and interfaces

from different suppliers

Expensive

Custom programming,

consultants and home-

grown solutions

MSMQ

Rockwell

SiemensAtlas Copco

Mitsubishi

Legacy PLCs Robot

RFID Readers

Atlas Copco

Beckhoff

Siemens 1500

OMRON


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Industrie 4.0 deployment simplification



Databases

Messaging

Applications

Any plant floor Any back office


Enterprise-grade industrial automation platform


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MSMQ

At the core of manufacturing


Rockwell

SiemensAtlas Copco

Mitsubishi

Legacy PLCs Robot

RFID Readers

Atlas Copco

Beckhoff

Siemens 1500

OMRON



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MSMQ


Rockwell

SiemensAtlas Copco

Mitsubishi

Legacy PLCs Robot

RFID Readers

Atlas Copco

Beckhoff

Siemens 1500

OMRON


Industrie 4.0 – controlled access to the Cloud

Enabling the Industrial Internet of Things


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Industrie 4.0 – Cloud connectivity for IoT

Road to Industrie 4.0 and beyond


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Industry 4.0 and beyond


Connected

Customers

Mapping

Biometrics

Training programs

Anti-theft tracking

Connected

Products

Preventive maintenance

R&D feedback loop

Warranty tracking

Make Money

Connected

Factories

Production planning

Inventory control

Just-in-time deliveries

Save Money


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Connected

CustomersConnected

Factories

Connected

Products

Usage-based pricing

Extended maintenance plans

Replacement parts

Accessories

Consumer apps

User groups

Driving business transformation

IoT Innovation


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Telit enables Industrie 4.0 and beyond

IoT Innovation

IoTPLATFORMIoT

CONNECTIVITY

IoTMODULES


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Collaboration with leading companies

Ever-expanding ecosystem

Joint architecture of

deviceWISE asset

gateway for Intel IoT

developer platforms

deviceWISE Fog

agent for Cisco

industrial routers

deviceWISE IoT

Platform for

Swisscom industrial

System Integration

services

deviceWISE

Enterprise gateway

for SAP HANA® IoT

analytics

deviceWISE-certified

end-to-end IoT

integration services


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Automotive

PLC-BASED

INDUSTRIAL MONITORING

Challenge

Collect real-time production data into

back office business systems

Application

Data collection and integration with

Volvo’s Oracle business systems

Things

Data collection from Siemens PLCs

Data

Collection and analysis of production

and quality control data


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Automotive

PLC-BASED


Challenge

Improve data collection and production

monitoring

Application

Seamless integration of different

production information with SAP and

Oracle business systems

Things


Data

Real-time monitoring of production and

quality information


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Industrial

PLC-BASED


Challenge

Integrate heterogeneous production

assets from different suppliers

Application

Data collection and integration with the

Oracle

Things


Data

Manufacturing and quality control data

for production of 5M disposable

contact lenses per day


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Industrial

PLC-BASED


Challenge



Application


‘home-grown’ Microsoft-based

enterprise systems

Things

Data collection from Rockwell PLCs

Data


American

Axle &

Manufacturing


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Pharma

PLC-BASED


Challenge



Application


Camstar MES

Things


Data


for production of 5M disposable

contact lenses per day


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Pharma

PLC-BASED


Challenge

Reduce in-house software

development and consulting fees

Application


Oracle MES/MRP/ERP

Things


Data

Manufacturing data for production of

market-leading FreeStyle™ diabetes

test strips


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Pharma

PLC-BASED


Challenge

Integrate manufacturing and quality

control production assets, grow fast via

acquisition , inherit various vendor

system

Application


MES/MRP/ERP

Things

Data collection from miscellaneous

models of various PLCs

Data

Manufacturing and quality data for

production of cosmetics pharma.

Integration was DONE IN 1 WEEK !!!


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Pharma

PLC-BASED


Challenge


control production assets

Application


Oracle MES/MRP/ERP

Things


models of Siemens PLCs

Data


production of vaccines


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Industrial

PLC-BASED


Challenge


control production assets

Application


Siemens Simatic IT MES suite

Things


models of various PLCs

Data


production of industrial components

and finished products


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Automotive

PLC-BASED


Challenge

Improve resource utilization, data

quality and increase commonality

across tools and plants

Application

Data integration with Honda’s

proprietary MES, IBM DB2 database,

Microsoft SQL and Activplant

Things

Production PLCs from Omron,

Mitsubishi, Siemens and Rockwell

Data

As-Built quality data with ability to

scale to market demand and ramp-up

new production across facilities in

North America, Mexico and Canada


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Automotive

PLC-BASED


Challenge

Collect production data from

heterogeneous manufacturing assets

Application

Data integration with NGAV MES

system, based on IBM WebSpere

Things

Production PLCs from Mitsubishi,

Siemens and Rockwell

Data

As-Built production and quality data

across all Ford manufacturing facilities

in China


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Heavy Equipment Mfg.

PLC-BASED


Challenge

Optimize production processes and

integrate with hybrid MES

Application

Data collection and transport into

home-grown MES solutions that are

consolidated into SAP

Things

Manufacturing floor PLCs from

Rockwell

Data

As-Built quality data (per VIN)

MWC Analyst Day


Fred YentzCEO, Telit IoT Platforms

Barcelona 2016

Q&A

*Sweden, the Netherlands, Kazakhstan, Croatia, Lithuania, Latvia, Estonia, Austria & Germany.

Where we focus How we win

61

•

•

•


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MWC Analyst Day

Thank You

mwc analyst day welcome - telit · telit communications plc (lse: tcm.l) m2m pioneer and leading...

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