Computer Modelling Group Ltd. · TSX:CMG
Computer Modelling — Investor Presentation (February 2024)
23 slides from Computer Modelling's investor presentation, February 2024
Slide 1: Investor Presentation
Investor Presentation February 2024 CMG: TSX CMG is a global software and solutions company that combines science and technology with deep industry expertise to solve complex subsurface and surface challenges for the new energy industry around the world. Simulation Technology to Advance Decisions 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Information This presentation contains "forward-looking statements". Forward-looking statements can be identified by words such as: "anticipate", "intend", "plan", "goal", "seek", "believe", "project", "estimate", "expect", "strategy", "future", "likely", "may", "should",
Slide 3: CMG Group At A Glance – FY 2024 YTD
CMG Group At A Glance – FY 2024 YTD Total Revenue Recurring Revenue1 Free Cash Flow2 Adj EBITDA2 Margin $76.4M (up 43%) $55.8M (up 27%) $26.1M (up $9.8M) 44% (down from 46%) 21% organic growth 15% organic growth 47% Adj EBITDA Margin CMG 22% growth from acquisition 12% growth from acquisition 27% Ad
Slide 4: CMG Group - Two Reporting Segments
CMG Group - Two Reporting Segments CMG – 40+ years of innovation and profitability BHV (Bluware) – Acquired September 2023 • Strong brand recognition and industry reputation; 40+ years of reservoir • First major acquisition for CMG simulation software development and best-in-class training and suppo
Slide 5: CMG Group 4.0 Strategy – Announced in Late 2022
CMG Group 4.0 Strategy – Announced in Late 2022 Preserve long-term, per share profitability while driving growth and Free Cash Flow1 both organically and through acquisitions Growth Profitability Acquisitions CMG 4.0 Strategy, announced in With a durable recurring revenue Prudently invest excess cap
Slide 6: CMG Group 4.0 Strategy – Growth Levers and Progress year-to-date
CMG Group 4.0 Strategy – Growth Levers and Progress year-to-date Multiple levers for organic growth Inorganic growth opportunities Accelerate software revenue with leading sales organization - Shift to customer segmentation and value-based pricing - Solution strategy and market-driven roadmap Acquir
Slide 7: CMG Group 4.0 Acquisition Strategy – Focused on upstream energy technologies
CMG Group 4.0 Acquisition Strategy – Focused on upstream energy technologies to diversify and expand revenue 1. The upstream workflow provides strategic opportunities within the energy market 2. Adjacent markets Strategic opportunities to enter new addressable markets where: ✓ Existing CMG expertise
Slide 8: CMG – 40+ years of innovation in subsurface simulation
CMG – 40+ years of innovation in subsurface simulation CMG Quarterly Revenue Simulation technology is increasingly important $25 as energy companies seek to maximize the value $22.0 $21.8 of existing assets. Simulation also plays a critical $20.3 $20.7 role in the growing area of energy transition.
Slide 9: CMG – Why We Win
CMG – Why We Win; leading technical expertise and exceptional customer service drive loyalty from a global customer base Net Promoter Score (NPS) 68 B2B Software Average 41% We have observed a significant improvement over the time we have used CMG technology. Our model, IRS ONGC has been using CMG s
Slide 10: CMG – Why Simulate? An investment that can yield substantial returns
CMG – Why Simulate? An investment that can yield substantial returns Consider an unconventional Montney gas asset... using IPSM to optimize facilities for reservoir performance and remove bottlenecks Increase Increase production in the pipeline network, a $150,000 investment in a simulation study ge
Slide 11: CMG operates in a market that continues to grow
CMG operates in a market that continues to grow; Global Reservoir Simulation opportunity estimated at $1B by 2030 Global Reservoir Simulation Market $1B Market Opportunity Estimated $1B Global Reservoir Simulation Market Through 2030 Unconventional, CMG FY 2023 Revenue $73.8M $767M HO, EOR Reservoir
Slide 12: CMG has a 20+ year history in CCS and is collaborating with innovative partners
CMG has a 20+ year history in CCS and is collaborating with innovative partners globally to deliver leading edge solutions Strong Growth Anticipated in CO2 Capture Projects Energy Transition is Driving Revenue Strategic Partnerships with Global Leaders in Energy Transition Innovation CCS has signifi
Slide 13: CMG platform – scalable and extendable; simulator engines solve multiple problems
CMG platform – scalable and extendable; simulator engines solve multiple problems Features and Benefits Flexible and reusable capabilities for a variety of industry applications Physics-based simulation, integrated reservoir & production modeling, data analytics and optimization Fit-for-purpose work
Slide 14: BHV (Bluware) – acquired September 2023
BHV (Bluware) – acquired September 2023 Bluware technology has a proven market fit and is future focused. Companies can improve geoscience workflows through cloud solutions and AI, resulting in Pro-forma YTD FY24 BHV Revenue faster and smarter decisions about the subsurface. Services Tailored softwa
Slide 15: BHV (Bluware platform) - key software transforming seismic interpretation
BHV (Bluware platform) - 3 key software transforming seismic interpretation workflows in the cloud VDSTM (Volume Data Storage) • Compress seismic data making it adaptable and scalable • Fast access; cost-effective cloud storage; supports compute-intensive workflows • OpenVDSTM available in OSDU crea
Slide 16: CMG Group is profitable and generates strong Free Cash Flow
CMG Group is profitable and generates strong Free Cash Flow1 Free Cash Flow Per Share (basic)1 Adjusted EBITDA1 $0.16 $14.0 $12.6 $0.14 $0.14 $12.0 $10.7 $0.12 $9.9 $10.0 $9.5 $0.10 $8.4 $8.5 $0.09 $0.09 $0.09 $7.9 $8.0 millions $0.08 $0.08 $6.8 $0.08 $0.07 $6.0 $0.06 $0.06 $0.05 $4.0 $0.04 $2.0 $0.
Slide 17: CMG Group Adjusted EBITDA margins expected to compress in the short term
CMG Group Adjusted EBITDA* margins expected to compress in the short term until BHV software sales accelerate Quarterly Revenue and Adjusted EBITDA1 Margin 60% $35 49% $30 50% 48% 47% 47% 42% 42% 42% $25 40% 38% Q3 2024 represents the first full quarter consolidating BHV $20 As expected, revenue inc
Slide 18: CMG – Strong, experienced and diversified leadership
CMG – Strong, experienced and diversified leadership Senior Management Pramod Jain, Chief Executive Officer Sandra Balic, Chief Financial Officer Long Nghiem, VP Innovation Lab John Mortimer, Chief Technology Officer Joined 2022 Joined 2009 Joined 1978 Joined 2022 15+ years international leadership
Slide 19: Appendix
Appendix Simulation Technology to Advance Decisions 19
Slide 20: Quarterly Financial Highlights
Quarterly Financial Highlights (1) This is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section. (2) Q4 of fiscal 2022 includes $0.8 million of annuity/maintenance revenue that pertains to usage of CMG’s products in prior quarters. (3) Q1, Q2, Q3, and Q4 of fiscal 2023 include
Slide 21: Reconciliations
Reconciliations Free Cash Flow Reconciliation to Funds Flow from Operations Reconciliation of Operating Profit to Adjusted Operating Profit1 1 See Non-IFRS Measures Simulation Technology to Advance Decisions 21
Slide 22: Reconciliations
Reconciliations Reconciliation of Adjusted EBITDA1 to Net Income 1 See Non-IFRS Measures Simulation Technology to Advance Decisions 22
Slide 23: Offices
OFFICES Global Head Office Calgary, Canada Regional Offices Houston, United States Bogota, Colombia Rio de Janeiro, Brazil Bengaluru, India Dubai, UAE Oxford, UK Kuala Lumpur, Malaysia Oslo, Norway
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