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Update to Shareholders

Cemtrex Plans to Unveil SmartDesk on May 22

To the Shareholders of Cemtrex,

 In 2011, I stepped into the role as CEO and addressed many challenges we faced as a company. We were a going concern, we had little resources, and had no technology of our own. We were stuck in an industry with non-existent growth potential and as an organization we added little value in the value chain.

Through many initiatives over the subsequent five years we were able to address almost all of these challenges. We have grown from a six person team in 2010 to a 600 person team now in 2018. We have increased revenue from $3 million to over $100 million in this time period, a feat most companies never are able to accomplish, through strategic acquisitions and focusing on new markets. Our tangible book value per share increased from $.01 to over $3.50 from 2010 to 2018. We expanded out of the environmental business and into electronics and technology businesses, as well as broader industrial and manufacturing businesses, that participate in high growth industries.

Last year we stepped back and evaluated where we were and charted a path that would allow us to become a billion-dollar business over the next several of years. We recognized the biggest opportunities there would be over the next decade that we could take advantage based on our core competencies and resources. We homed in on a few key markets that would get us there: Internet of Things (IoT) & Smart Devices, Virtual Reality (VR) & Augmented Reality (AR), and Automation & Robotics.

Our company has been transitioning over the last year as we position ourselves for our next phase of growth, diving into these markets respectively. Our strategy is to develop our own technology, leverage our key assets and resources, and continue to acquire companies or technology that will give us the means to create and sustain competitive advantages in these markets. We have focused on expanding our software development capabilities by acquiring a team in the US and India that will allow us to develop our own proprietary software solutions.  We have invested in research and development in both hardware and software technology that is starting to yield results in the form of patent claims we have filed. We additionally continue to increasingly shift our manufacturing to low cost countries like Romania and Asia. We also recently acquired a stake in Vicon Industries, a security system company, that gives us a platform to further expand and leverage our technology roadmap. These initiatives we expect will allow us to leverage our existing core businesses with advanced technology to sustainably increase margins and maintain competitive advantages over the long term.

The first milestone in our roadmap will be revealed with the unveiling our flagship smart device on May 22, the SmartDesk, an intelligent work station that we believe will change the way we work. The SmartDesk is unlike anything else on the market today and has the potential to exponentially increase Cemtrex’s revenues in the next three years. In addition, we have more smart devices planned over the next several years that we believe have strong revenue and earnings potential. At Cemtrex, we believe that VR / AR has the chance to disrupt countless industries and create entirely new ones overnight and will be investing heavily in this space in the years to come. We will be commercializing applications in VR and AR over the next twelve months, beginning with our first gaming content experience, Ultra85, to be released this summer.

I am incredibly excited about Cemtrex entering cutting edge technology areas that will dominate the trends of the next decade. As our strategy and direction continues to evolve it is important to understand what my vision is for the company. My number one priority is to create shareholder wealth by putting our resources to work in an intelligent way. Management continues to own more than 40% of the company and thus we are intensely motivated to position the company for success. Additionally, at Cemtrex our decisions are heavily skewed toward long term results rather than quarter to quarter results. As a result, there may be short term bumps along the way but we remain confident that we can continue to yield attractive results for those investors who wish to join us for the long term.


Saagar Govil
Chairman and CEO
Cemtrex Inc.