Ikegps Group Ltd · NZX:IKE
Ikegps — Investor Presentation (August 2021)
40 slides from Ikegps's investor presentation, Aug 11, 2021
Slide 1: IKE Investor Presentation
Not for release to US wire services or distribution in the United States For personal use only IKE Investor Presentation The Pole OS™ Company Glenn Milnes, CEO glenn.milnes@ikegps.com August 2021 // Confidential 1
Slide 2: Important Notice & Disclosure
Not for release to US wire services or distribution in the United States Important Notice & Disclosure Disclaimer This presentation has been prepared by ikeGPS Group Limited (NZ company number 1292732, ticker IKE (NZX and ASX)) (the “Company”) and is dated 4 August 2021. This presentation has been p
Slide 3: Important Notice & Disclosure (Continued)
Not for release to US wire services or distribution in the United States Important Notice & Disclosure (Continued) Foreign Selling Restrictions This document does not constitute an offer of New Shares in the United States or in any jurisdiction in which it would be unlawful. In particular, this docu
Slide 4: Agenda
Agenda For personal use only Introduction to IKE 5 Q1 FY22 Performance Update 7 Growth Opportunities 10 Capital Raising 25 Appendix A: FY21 results overview 32 Appendix B: Product examples 37 Confidential: Not for distribution or release is the United States
Slide 5: Introduction to IKE, the Pole OS Company
Not for release to US wire services or distribution in the United States Introduction to IKE, the Pole OS™ Company ikeGPS (“IKE”) is an innovative developer of Products that are experiencing organic growth Attractive revenue model, high gross margins, For personal use only technology solutions used
Slide 6: Executive summary
Not for release to US wire services or distribution in the United States Executive summary Strong performance across key metrics in Q1 Outlook Commentary Capital raising For personal use only FY22 IKE is seeking to raise up to approximately A$21.3m at IKE considers that it has emerged in 2021 in the
Slide 7: Key metrics Q1 FY22
Not for release to US wire services or distribution in the United States Key metrics Q1 FY22 performance For personal use only Key metrics Q1 FY22 Takeaway: Takeaway: >300% growth in new contracts won against pcp provides Recurring subscription and transaction revenues have continued to grow confide
Slide 8: Key metrics Q1 FY22
Not for release to US wire services or distribution in the United States Key metrics Q1 FY22 performance For personal use only Key metrics Q1 FY22 Takeaway: Takeaway: Transaction revenue is expected to be the major growth engine for Subscription customers also provide the foundation to expand IKE. A
Slide 9: Key metrics Q1 FY22 performance
Not for release to US wire services or distribution in the United States Key metrics Q1 FY22 performance Transaction revenue, based on platform usage, is expected to be a core growth driver. For personal use only Key metrics Q1 FY22 p9
Slide 10: Growth opportunities
Growth opportunities For personal use only Confidential: Not for distribution or release is the United States
Slide 11: Support those who give us power
Not for release to US wire services or distribution in the United States For personal use only IKE is building the Pole OS™ Company to Support those who give us power Electric utilities play a pivotal role in supporting North America's homes, businesses and public safety. We help them to help those
Slide 12: Electric Utility Market macro
Not for release to US wire services or distribution in the United States Electric Utility Market macro For personal use only A large market opportunity across the U.S. electric utilities segment > 3,200 electric utilities across the U.S. facing common challenges. > 220M distribution poles in North A
Slide 13: Lean into the Digital Divide
Not for release to US wire services or distribution in the United States For personal use only IKE is building the Pole OS™ Company to Lean into the Digital Divide Why in 2021 would a professional copywriter living in a rural community need to park at a Taco Bell to access broadband? p 13 Confidenti
Slide 14: Communications Market Macro
Not for release to US wire services or distribution in the United States Communications Market Macro For personal use only Addressing a large market opportunity across the U.S. Communications segment • >$300B expected investment into fiber network development in the U.S over next 5+ years. • >$50B
Slide 15: A perpetual requirement to assess and engineer distribution poles
Not for release to US wire services or distribution in the United States A perpetual requirement to assess and engineer distribution poles And the requirement to seek solutions to drive efficiency, such as IKE's Pole OS™ For personal use only Network effects p 15
Slide 16: An opportunity to leverage network effects
Not for release to US wire services or distribution in the United States An opportunity to leverage network effects For personal use only Communications groups in the U.S. market - >200 communications companies in a race to build their network first - A nationwide roll out of fibre – both urban and
Slide 17: Partnering with the largest communications & utility companies
Not for release to US wire services or distribution in the United States IKE is partnering with the largest communications & utility companies in the U.S. IKE currently has approximately 299 enterprise subscription customers across North America. For personal use only Growth is expected from expandi
Slide 18: Building The Pole OS Company for the North American market
Not for release to US wire services or distribution in the United States IKE is building The Pole OS™ Company for the North American market A trusted platform of four Solutions, delivering compelling productivity and intelligence into distribution network businesses & projects For personal use only
Slide 19: Example customer upsell opportunities across the IKE Solution Ecosystem
Not for release to US wire services or distribution in the United States Example customer upsell opportunities across the IKE Solution Ecosystem Fortune-100 Electric Utility Group For personal use only Customer development example An IKE Structural customer. $30k Per Annum. May 2021 Cross-sell, upsh
Slide 20: New addressable market segments via AI acquisition, IKE Insight
Not for release to US wire services or distribution in the United States New addressable market segments via AI acquisition, called IKE Insight Bulk data processing using AI built for poles. A low-code AI and Machine Learning engine to gain pole insights, at scale For personal use only IKE Insight S
Slide 21: Multiple new use cases to expand inside existing customers
Not for release to US wire services or distribution in the United States New addressable market segments via AI acquisition, call IKE Insight Multiple new use cases to expand inside of existing customers For personal use only IKE Insight Solution deep dive p 21
Slide 22: IKE's M&A strategy and strategic swim lanes
Not for release to US wire services or distribution in the United States IKE’s M&A strategy, and track record, is tied to its strategic swim lanes Creating differentiation and competitive advantage as The Pole OS™ Company For personal use only Rolling 12 Quarter Execution Plan ➕ Swimlane #1: Excelle
Slide 23: A Board with deep industry experience
A Board with deep industry experience Board of Directors For personal use only Rick Christie / (MSc (Hons) Chemistry) Mark Ratcliffe Alex Knowles Independent Director Chairman and Independent Director Director Mark joined IKE most recently from Chorus, where he Governance Team Rick Christie is the f
Slide 24: A direct sales, delivery, and customer experience model
Not for release to US wire services or distribution in the United States A direct sales, delivery, and customer experience model Meet some of the IKE team. Pole experts, headquartered in Colorado, USA For personal use only Direct GTM, Brand and CX p 24
Slide 25: Capital raising details
Capital raising details For personal use only Confidential: Not for distribution or release is the United States
Slide 26: Capital raising details
Not for release to US wire services or distribution in the United States Capital raising details IKE is raising up to approximately A$18.3m via a Placement, with a Share Purchase Plan of approximately $3m to follow For personal use only • Institutional Placement of New Shares to raise up to approxim
Slide 27: Use of funds & pro-forma balance sheet
Not for release to US wire services or distribution in the United States Use of funds & pro-forma balance sheet For personal use only • IKE will have pro-forma net cash of approximately Use of funds A$27m after completion of the Offer Capital raising details • Funds raised will be used to increase s
Slide 28: Timetable
Not for release to US wire services or distribution in the United States Timetable For personal use only Event Date (AEST) Trading halt Monday, 9 August Record Date for SPP 7.00pm Tuesday, 10 August Timetable Placement announced and Shares resume trading Wednesday, 11 August SPP opening date Monday,
Slide 29: Key Risks
Not for release to US wire services or distribution in the United States Key Risks For personal use only This section describes the key risks that IKE has identified in connection with the equity raise. IKE considers it important that these key risks, and their potential effect on the future operati
Slide 30: Key Risks
Not for release to US wire services or distribution in the United States Key Risks For personal use only Effect of COVID-19 IKE’s market experienced a substantial slow-down in activity in March and through April 2020 and then October 2020 through January 2021 on business due to the uncertainty creat
Slide 31: Thanks...
Thanks... For personal use only Dedicated to Serving Communications IKE is... Companies, Electric Utilities, and Engineering Service Providers. Who are focused on: - Faster network deployments. - Improving network and data quality. - Keeping crews out of harm’s way. - Meeting the demands of regulato
Slide 32: Appendix A: FY21 Results to March 2021
Appendix A: For personal use only FY21 Results to March 2021 Confidential: Not for distribution or release is the United States
Slide 33: Overall financial momentum
Not for release to US wire services or distribution in the United States Overall financial momentum IKE’s revenue mix has shifted materially, with increasing levels of revenue expected from recurring subscription and transaction sources in FY22 (shown by the blue bar in the chart). This is an import
Slide 34: FY21 Year in Review
Not for release to US wire services or distribution in the United States FY21 Year in Review. For personal use only ＋ Far-reaching impacts of COVID-19 across North America in calendar 2020. A period of challenge and high uncertainty for our business and our customers. FY21 Year in Review ＋ IKE adopt
Slide 35: FY21 Results Highlights (unaudited)
Not for release to US wire services or distribution in the United States FY21 Results Highlights (unaudited) For personal use only ＋ Total recognized revenue in the year of approximately $9.3m (pcp of $9.8m). ＋ Approximately flat revenue from the core Communications & Electric Utility segment at app
Slide 36: FY21 Results Highlights cont.
Not for release to US wire services or distribution in the United States FY21 Results Highlights cont. For personal use only ＋ Transition to the Platform Subscription plus Transaction business model was continued in FY21. ＋ Approximately 75% of FY21 revenue was generated from recurring subscription
Slide 37: Appendix B: IKE Solution examples
Appendix B: For personal use only IKE Solution examples Confidential: Not for distribution or release is the United States
Slide 38: Photo-Verifiable Accuracy via the IKE Platform
Photo-Verifiable Accuracy via the IKE Platform Many utilities have little visibility as to the condition of poles in the field. For personal use only Example IKE Solutions Outputs 38 Confidential. Not for distribution or release in the United States
Slide 39: Pole Loading Analysis
Pole Loading Analysis IKE’s PoleForeman product is one of four accepted standards for pole analysis as used by the owners of power poles in the U.S. For personal use only Example IKE Solutions Outputs Pole Loading Structural integrity Clearance Analysis NESC compliance 39 Confidential. Not for distr
Slide 40: Enabling Faster Permitting
Enabling Faster Permitting Speed of network deployment is the most crucial aspect to customers investing in 5G or Fiber network construction. For personal use only Example IKE Solutions Outputs Our automated Attachment Permit Applications eliminate manual input errors & dramatically speed time to ap