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Pointer Telocation Corporate Profile

David Mahlab, CEODecember 2018

Managing the Business of Automotive IOT

This presentation contains forward-looking statements including data with respect to the growth in location based and other services. All such forward-looking statements are only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements due to certain risks and uncertainties including, without limitation:

§ our future operations depend on our ability to obtain additional financing;

§ we depend on a small number of customers, the loss of which could negatively impact our operations;

§ we rely on third-party operators to provide services for our location-based solution systems;

§ we rely on a single-source supplier to manufacture the car-based devices for our location-based solution systems;

§ the technology and standards in the stolen vehicle retrieval industry in which we operate change rapidly and the introduction of products using new technology and the emergence of new

industry standards and practices could negatively impact our business;

§ our location-based solution products employ proprietary technology which is difficult to protect and which may infringe on the intellectual property rights of third parties;

§ our ability to timely obtain components from our suppliers or to timely deliver through our subcontractors or vendors;

§ the impact of exchange rate and interest rate fluctuations on our fixed price contracts, financial condition and results of operations;

§ our ability to timely develop and introduce new technologies or enter new markets;

§ our ability to respond to the introduction of new technology or new industry standards and practices in the stolen vehicle retrieval and location based services industries;

§ our ability to retain and attract key managerial, technical and research and development personnel; and

§ our ability to respond to political or military conditions in the countries in which we operate.

Further information on potential factors that could affect our business is described in our reports on file with the Securities and Exchange Commission. Presentation of non-GAAP Financial Information: This presentation contains both GAAP and non-GAAP financial information pertaining to actual results and estimates of future performance. Non-GAAP financial information includes EBITDA information.

Forward-looking Statements

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WHO WE ARE

• Pointer offers a unique combination of feature-rich software and an advanced variety of Telematics and IOT devices

• Using Pointer’s cutting-edge devices, fleet and asset owners can Track, Trace and Monitor their valuable assets

• Pointer Connect enables fleet owners to increase revenue, reduce costs, increase productivity and streamline operations

Leading Provider of High-end Telematics and Mobile IOT Solutions

Fleet Management Asset Tracking Mobile IOT

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../2015/Pointer-Full video.mp4


How It All Works

Mobile Resource Management (MRM) Solutions

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Managing the Business of Automotive IOT Nasdaq: PNTR 5

Growing Subscriber Base • Large and growing base of subscribers up 10% y/y to 274,000 in Q3 2018

Attractive Financial Profile

• Robust visibility driven by recurring revenue• Leading EBITDA Margins >17% with attractive free cash flow conversion

Accelerated Growth• Pointer is perfectly positioned to take market share in the Fleet Management and Asset Tracking markets

• High growth potential in the automotive IOT market

$55B Global Growing Market

• Serving a $55B global, growing market with a primary focus on India, Israel, Latin America and the U.S.

3M Units Installed 900,000 Units Connected to Cellocator +

80 Countries 450 Partners 9 Offices WorldwideFailure rate (<0.3%)25 Years of Excellence

• 65% of the revenues from a solid base of recurring revenue from cloud-based solutions with consistent growth on a constant currency basis

Recurring Revenues

Investment Highlights


Worldwide Customers

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Serving Top Brands Across a Diversity of Industries


Fleet Management

Our Business

Asset Tracking IIoT Solutions

Fuel Efficiency

Controlled Shipments

Driver SafetyCar Sharing

Hours of Service & DTCO

Hybrid Network

Security Usage-Based

Insurance

Vehicle Diagnostics

Cargo Tracking Cold Chain

Construction & Heavy Equipment

Container Security

LogisticsTrailer Management

Utilities & Rental Equipment

Cargo Tracking Devices

Software Mobile App

Consulting

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http://youtu.be/tM0V2fUxcRk

https://www.youtube.com/watch?v=Bd2KBipa_nQ


Fleet Management

Our Business

Asset Tracking IIoT Solutions

Fuel Efficiency

Controlled Shipments

Driver SafetyCar Sharing

Hours of Service & DTCO

Hybrid Network

Security Usage-Based

Insurance

Vehicle Diagnostics

`

Cargo Tracking Cold Chain

Construction & Heavy Equipment

Container Security

LogisticsTrailer Management

Utilities & Rental Equipment

Cargo Tracking Devices

Software Mobile App

Consulting

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SecuritySavings Safety & Driver Behavior

Preventive Maintanance

Efficiency & Performance

../2015/POINTER_Nano_SHORT_VERSION.wmv

http://youtu.be/tM0V2fUxcRk

https://www.youtube.com/watch?v=Bd2KBipa_nQ

../2015/Pointer_Driver Behavior.wmv


Case Study – Preventive Maintenance

Challenges• Optimally manage a large fleet of vehicles

• Achieve smooth functioning for long periods of time

• Monitor and train drivers for safe and optimal driving performance

Solution• Continuous collection and analysis of data to identify patterns & trends that enable alerts for mechanical and performance problems

• In-vehicle devices connect to the vehicle’s controller–area network (CAN) –bus

• Diagnostic trouble codes (DTCs) allow maintenance teams to identify malfunctions rapidly within the vehicle and determine remedy and timing of repairs

Results• Increased driver and vehicle safety• Reduced repair time • Lower costs• Less downtime

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Our Solution Enabled a Large Fleet Customer to Reduce Repair Expenditures and Vehicle Downtime


Pharmaceutical Last Mile DistributionPharmaceuticals require temperature control and monitoring during storage and transportation, to avoid decomposition and sustain the intended effects from the products. Failure to do so could lead to toxicity or even death.

Monitoring and managing is often required by regulators, and keeping the specified temperature during transportation requires continuous monitoring, or alerting the driver and technicians to fix problems by changing / shortening delivery routes or reducing temperature while on the road.

ChallengesA large pharmaceutical company

§ Reduce the number of defected goods § Real-time preventive monitoring § Reduce the number of stolen deliveries§ Optimizing routes and increase saving

Solution§ Fixed devices sense temperature, light,

humidity and shock, alerting on deviations or tampering with goods

§ Mobile devices inside packages provide real-time monitoring and enable goods retrieval if stolen

§ Devices transmit information at predetermined intervals to our MRM platform, creating alerts for deviation in the condition or location of goods

Results§ Optimize fleet efficiency§ Reduce good waist § Improve operation utilization§ Meet the regulation requirements § Increase revenue

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Case Study – Cold Chain


1991 - Founded

2014

2007

2016

Acquisitions

Customer Portfolio Growth

11Tier 1 Customers

M&A Portfolio Growth


Global Presence

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Mexico

Argentina

Brazil

Technology & Products MRM SaaS Services

Israel*Americas*39%

6%

45%

Rest of World*4%

Europe*

* % of FY 2017 revenues

Africa*6%

MRM SaaS Services… Serving 274,000 Subscribers in Six Countries Technology & Products… More than 3 Million Hardware Units Installed in 80 Countries

12


Massive Market Opportunity in Mobile Resource Management (MRM) and Growing

$34.6

$20.5

$55 Billion Total Addressable Market

MaaS / Fleet Management Asset Tracking

24% CAGR through 2022

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32% CAGR through 2020

Key Market Drivers

• Increasing Operational Efficiency

• Driver Safety & Compliance

• Cargo Asset tracking

• Connected Cars

• IIOT platform

Source: Research and Markets; Markets and Markets

Market Overview


Continuous Subscriber Growth

Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318

165 170 174 180 185192 198

222231

239249

258265 271 274

Users In Service (UIS) (at Quarter End)

274K

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Subscriber Growth is a Strong Driver of Profitability

# of Users in Thousands 18% CAGR


Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

$12,349 $12,894 $13,336 $13,394 $13,824 $13,162 $12,812

$6,682 $7,147 $6,896 $5,456$7,059

$6,578 $5,918

Quarterly Revenue

Products Services

$18,730

15

Financial Overview: Revenue

• Services consistently represents ~2/3 of total revenue

$19,740$20,883

$18,850$20,232$20,041

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Solid Base of Recurring Services Revenue

USD in thousands

68%32%

Revenue BreakdownQ3 2018

Services Products

$19,031

Managing the Business of Automotive IOT 16

Financial Overview: Local Currency Revenue

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Consistent Growth on a Local Currency Basis

USD in thousands

YTD 30-9-18YTD 30-9-17Q3 2018Q3 2017

42,054 38,579

14,382 13,336

19,578 20,725

6,151 6,896

Service Products

$59,304

$20,232 $20,533

$61,632

YTD 30-9-18- per the currencies exchange rates in January-September 2017Q3 2018 – per the currencies exchange rates in Q3 2017


Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

$3,106$3,435 $3,601

$3,086$3,270 $3,385

$3,118

Quarterly EBITDA(% of Revenues)

15.7%16.4%

17.8%17.1%

16.3%

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

$2,256

$2,834 $2,906

$2,316$2,568

$2,758$2,523

Quarterly GAAP Operating Income(% of Revenues)

12.3%12.3%

14.0%14.4%14.1%

11.9% 13.5%17.1%

USD in thousands

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Financial Overview: Profitability (1)

USD in thousands

(1) Please refer to the explanation of the reconciliation between results on a GAAP and Non-GAAP basis in Exhibit 99.1 to our Periodic Report on Form 6-K filed with the SEC on November 15,2018, and the reconciliation of Non-GAAP EBITDA from GAAP to Non-GAAP on page 26 of this presentation.

16.6%


a - On September 2014, the company acquired 100% interest in Global Telematics S.A.b - On October 2016, the company completed the acquisition of Cielo through its subsidiary Pointer Brazil, which acquired 100% of Cielo’s shares.

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2014 2015 2016 2017

$5,596

$8,802 $9,077 $9,700

($2,929) ($2,350)($3,596) ($3,152)

($688)

($8,531)

$2,626

$6,452$5,481

$6,548

Cash from Operations CapEx Acquisitions Free Cash Flow before Acquisitions

USD in thousands

Sources and Uses of Cash

Strong Generation of Cash From Operations and Low Levels of Capital Required to fund Organic Growth Further Reinforces the Strength of the Balance Sheet

a

b

Managing the Business of Automotive IOT Nasdaq: PNTR

USD in millions, except per share amounts

As of

9/30/2018 12/312017

Cash and cash equivalents $8.3 $7.4

Cash per share $1.03 $0.92

Total Current Assets $30.4 $30.5

Total Assets $89.5 $94.5

Total Current Liabilities $17.0 $21.2

Total Debt $6.3 $10.1

Total Liabilities $24.1 $31.0

Total Stockholders’ Equity $65.3 $63.4

Current Ratio 1.8:1 1.4:1

Debt-to-Total Capital 9.6% 15.9%

ü Strong cash balance

ü Declining debt balance

ü Sufficient working capital

ü Minimal financial leverage

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Summary Balance Sheets

Healthy Balance sheet Capitalized with Sufficient Cash and Minimal Debt

Positive net cash for the first time in more than a decade


Selective, Accretive M&A Transactions

Increase Subscribers Increase Average Revenue per User (ARPU)

Expand Vertical Markets

SaaS

Leverage SaaS model to increase subscribers

Sell additional services to existing users

Reach new markets… IIoT, Logistics

Growth Drivers


2015 2016 2017 3 to 5 Year Target

$60.6 $64.4 $78.2

$160.0

Revenue

Targeting 2X Growth

2015 2016 2017 3 to 5 Year Target

11.2%15.5% 16.9%

20.0%

EBITDA Margin1

• Leverage existing infrastructure to add new subscribers at low incremental costs

1 Excludes one-time acquisition related costs

• Continue to scale subscriber base

• Complement organic growth with selective M&A

USD in millions

Long-term Growth Targets

Positioned for Growth with a Low-risk, Recurring Revenue Business Model that has Significant Operating Leverage


Fleetmatics $2,906

Sources: Company financial reports, Pointer Telocation analysis, share price and market cap data as of November29, 2018.Note Graph is not to scale; for informational purposes only.

Peer Group Analysis

Ituran(ITRN)9.3x

Mix Telematics (MIXT)11.6x

Fleetmatics (subsidiary of Verizon)

32x Pointer (PNTR)7.2x

EV/EBITDABased on Current Market Price or Buyout Price & LTM EBITDA

Market Cap Per SubscriberUS$, Current Market Cap or Buyout Price / Number of Subscribers

Mix Tele.

$527Ituran

$598 Pointer

$344

826kSubscribers

Number of subscribers based on most recent data available (acquisition date for Fleetmatics)

1,752k 714k 274k

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Acqu

isiti

on


David Mahlab CEO

Yaniv Dorani CFO

Rami Peled CIO

Joshua RozanskiVP Sales & Marketing

Moses Zelinker CTO

Gustavo LadeiraCEO Pointer Cielo Brazil

Nessy Turgeman VP global Software

Paul RobertsCEO Pointer South Africa

Eduardo ChavezCEO Pointer Mexico

Pablo PortoCEO Pointer Argentina

Ilan GoldsteinCEO Pointer Israel

Prior Experience

Pointer Subsidiaries

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Winning Team


Growing Subscriber Base • Large and growing base of subscribers up 10% y/y to 274,000 in Q3 2018

Attractive Financial Profile

• Robust visibility driven by recurring revenue• Leading EBITDA Margins >17% with attractive free cash flow conversion

Accelerated Growth• Pointer is perfectly positioned to take market share in the Fleet Management and Asset Tracking markets

• High growth potential in the automotive IOT market

$55B Global Growing Market

• Serving a $55B global, growing market with a primary focus on India, Israel, Latin America and the U.S.

3M Units Installed 900,000 Units Connected to Cellocator +

80 Countries 450 Partners 9 Offices WorldwideFailure rate (<0.3%)25 Years of Excellence

• 67% of the revenues from a solid base of recurring revenue from cloud-based solutions with consistent growth on a constant currency basis

Recurring Revenues

Investment Highlights

Thank You!www.pointer.com

Appendix

www.pointer.com


Reconciliation of GAAP Net Income to Non-GAAP EBITDA

Three months ended

September

30th, 2018June 30th,

2018 March 31st,

2018December 31st, 2017

September 30th, 2017

June 30th, 2017

GAAP Net income as reported: 1,804 1,925 1,769 11,106 1,883 1,966 Financial expenses, net 190 332 334 296 288 259Tax on income 531 501 449 (9,098) 739 609Depreciation, amortization and impairment of goodwill and intangible assets

593

627 718 782

691

601 EBITDA 3,118 3,385 3,270 3,086 3,601 3,435


Our Products

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CR-300Cost-Effective Fleet and Security Management

Cello-IQIntelligent Fleet Management, Driver Behavior& Diagnostics Solution Intelligence.

MiniTrackLow Cost Fleet Management Device with BLE Connectivity

CelloTrack (Power/10Y)Asset Management Device with Longer Operational Lifetime & Wireless Sensors connectivity

CelloTrack SolarSolar Asset Management Device with BLE Connectivity & High Rate Transmission Capacity

CelloTrack Nano & MultiSenseUnique Asset Management Solution Using a Portable Hub and Wireless Sensor Network

Fleet Asset


Our Software – Pointer Connect

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A Complete fleet & Asset management SAAS solution

IIOT management Software

• Robust Global infrastructure • Real-Time tracking• Optimize, improved and manage

• Driver’s behavior • Vehicle Maintenance, • Improve asset utilization • Fuel Saving • Extensive BI and Reporting tools

• Pointer Works manage their day-to-day tasks and routes.

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