Slide 1: IKE Performance Update for the Q4 and FY24 Period
For personal use only IKE Performance Update for the Q4 and FY24 Period to 31 March 2024 We’re IKE, the Pole OS™ Company Glenn Milnes, CEO glenn.milnes@ikegps.com April 2024 CONFIDENTIAL
Slide 2: Important Notice
Important Notice Information in this Presentation: For personal use only • Is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in ikeGPS Group Limited (IKE); • Should be read in conjunction with, and is subject to, I
Slide 3: Agenda
Agenda For personal use only Q4 and FY24 performance headlines (unaudited) New SaaS Product Updates Addressable market and IKE’s value proposition Q&A ikeGPS 3
Slide 4: Revenue FY24 of ~$21.1m (-31% pcp)
Revenue FY24 of ~$21.1m (-31% pcp) Takeaways: For personal use only • Three-year revenue CAGR of 31% • Recurring subscription and reoccurring transaction revenues (shown by the green and blue segments in this chart) dominate IKE’s revenue mix, at 86% for FY24. • An expectation for healthy growth in
Slide 5: Subscription revenue growth has continued to be consistently strong
Subscription revenue growth has continued to be consistently strong (+22% pcp) Takeaways: For personal use only • Significant growth in underlying subscription revenue. • Three-year subscription revenue CAGR of 33%. • During FY25, this is expected to increase materially, and by greater than 50%, due
Slide 6: But transaction revenue down vs pcp (-61% pcp)
But transaction revenue down vs pcp (-61% pcp) Takeaways: For personal use only • Three-year transaction revenue CAGR of 47%, but 61% lower in FY24 vs pcp due to FY23 seeing outsize customer growth and activity. • Based on guidance from long- term customers IKE expects transaction volumes and associ
Slide 7: FY24 Key Metrics
FY24 Key Metrics For personal use only FY24 FY 23 % Change Total Revenue $21.1M $30.8m -31% Platform Transactions # of Billable Transactions 279K 490K -43% Platform Transaction Revenue $7.3M $18.7m -61% Gross Margin $1.8M $7.2m -76% Customer Number Reconciliation: Gross Margin % 24% 39% • Since 31 D
Slide 8: Q4 Update and Outlook
For personal use only Q4 Update and Outlook
Slide 9: New Products to Market
New Products to Market Next-gen structural analysis SaaS product released Q3. Successful sell-through Q4. >NZ$8m TCV to date from 42 customers – new & existing. For personal use only Sales highlights for our IKE PoleForeman product have included: - Total Contract Value (TCV) won has exceeded $8m fro
Slide 10: New Products to Market continued
New Products to Market continued… New SaaS product for the Signage industry launched, called Spike SignPilot. www.sign-pilot.com Leveraging a footprint of more than 5,000 signage businesses using IKE’s Spike hardware device in the U.S. for site surveys. For personal use only ikeGPS 10
Slide 11: FY25 Outlook
FY25 Outlook Expectation for >50% growth in subscription revenue. And an expectation for growth in transaction revenue . • Subscription revenue expected to grow at 50% or greater vs pcp to ~$16m per For personal use only annum or greater. Based on • the ongoing growth of our core IKE Office Pro subs
Slide 12: What IKE does, and the market opportunity being addressed
For personal use only What IKE does, and the market opportunity being addressed Product and Market re-cap
Slide 13: IKE has a Suite of Distribution Network Software Products
IKE has a Suite of Distribution Network Software Products Built to address distribution network problems in North America, as The PoleOS™ Company For personal use only Business model upshot • A recurring Subscription to access any IKE Solution • Additive, reoccurring revenue based on usage (license
Slide 14: Communications Market Macro
Communications Market Macro For personal use only More than 3,000 electric utilities and 200M distribution assets across the U.S. Investing in decades-long grid resiliency and grid capacity programs Facing common challenges • Grid resiliency requirements • Regulatory and Engineering code compliance
Slide 15: 25-year Macro-Market Tail Wind for Grid Resiliency & Expansion
25-year Macro-Market Tail Wind for Grid Resiliency & Expansion ($B’s) An Electric Utility Industry, Spending 100’s of Billions, in Need for Productivity Solutions, such as IKE $NZD in B U.S. AND CANADIAN ELECTRIC DISTRIBUTION CAPITAL EXPENDITURES For personal use only ACTUAL Canadian Muni Co-ops US
Slide 16: Where IKE sells: U.S. Market-Map of Investor-Owned Utilities
Where IKE sells: U.S. Market-Map of Investor-Owned Utilities (multi-$B companies) A huge expansion opportunity…… For personal use only ikeGPS 16
Slide 17: Plus >2,800 Municipalities and Co-Operatives
Plus >2,800 Municipalities and Co-Operatives All of which represent sales opportunities for IKE products Takeaways For personal use only • Market timing is everything • IKE is in the right place, at the right time, and with the right technology, team and execution capability • Today, IKE has a prese
Slide 18: Largest Investor-Owned Utilities have standardized on an IKE product
8 of the 10 largest Investor-Owned Utilities have standardized on an IKE product IKE Lands-then-Expands Communications For personal use only Takeaways • 8 of the 10 largest Investor-Owned Utilities (“IOUs”) in North America, all multi-billion dollar businesses • >400 customers in North America, Elec
Slide 19: IKE solutions make fiber and 5G network deployments faster
IKE solutions make fiber and 5G network deployments faster For personal use only • >$300B expected investment into fiber network development in the U.S over next 5+ years • >$50B expected investment into 5G network development in the U.S. over the next 5+ years • An additional >$60B expected investm
Slide 20: Fiber and 5G Investment Super-Cycle in North America Still Early
Fiber and 5G Investment Super-Cycle in North America Still In Its Early Stages PROJECTED INVESTMENTS INTO 5G & FIBER OPTIC INFRASTRUCTURE $NZD For personal use only $72B $43B $39B 2010 2018 2025 ikeGPS 20 Source: Bell Potter Initiation of Coverage Report, GSMA, American Tower Note: Labeled Capex Fig
Slide 21: Some of the largest U.S. Communication groups have Standardized on IKE
Some of the largest U.S. Communication groups have Standardized on IKE And a growing footprint of tier-2 fiber businesses Communications For personal use only Takeaways • Several of the largest comms group in North America: AT&T ($107B), Crown Castle ($39B), Bell Canada ($47B) Electric Utilities • A
Slide 22: Overall a Large Addressable Market Opportunity Expected to Grow
Overall.. a Large Addressable Market Opportunity That is Expected to Grow Utilities 5G and Fibre $NZD $NZD Estimated 5G Small Cell Fibre Connections For personal use only $113 Cost of Antenna New Build per Pole 25M Poles Used for Other Services2 Estimated 40M Poles $50 Cost of Needed for Audit per A
Slide 23: Market Tailwinds Over the Coming Decades
Market Tailwinds Over the Coming Decades Requirement for harder and higher >3,200 For personal use only capacity distribution power networks Electric Utilities in North America with long-term, recurring across all of North America distribution network hardening, joint use, and capacity needs for ele
Slide 24: Today, IKE Goes to Market Directly
Today, IKE Goes to Market Directly SVP of Sales With a deepened team of segment experts For personal use only Solutions Sr. Director of VP of Utilities Engineering Sr. Account Sr. GIS Lead Communications Manager Manager Manager Generation Sales Sr. Director of Sales Sales Director, Utility Inside Sa
Slide 25: A Map-View of Usage: Crown Castle in Florida
A Map-View of Usage, and how IKE customers deploy our software Crown Castle in Florida For personal use only ikeGPS 25
Slide 26: A Map-View of Usage: AT&T in 7 Example States
A map-view of Usage, and how IKE customers deploy our software AT&T in 7 example States For personal use only ikeGPS 26
Slide 27: Multiple Avenues Supporting Future Growth Potential
Multiple Avenues Supporting Future Growth Potential For personal use only Sales Team Cross Sell & Platform for International 1 Expansion / 2 Upsell 3 Inorganic Growth 4 Expansion New Logos 4 3 2 1 $43mm Sales Team Revenue Expansion / New Cross Sell & Upsell into Inorganic International Revenue “Toda
Slide 28: Thanks
For personal use only Thanks Manaakitanga: We Rise By Lifting Others ikeGPS 28
Slide 29: Q&A
Q&A For personal use only We’re IKE, The PoleOS™ Company IKE seeks to be the standard for collecting, analyzing and managing pole and outside plant (“OSP”) information for electric utilities, communications companies, and their engineering service providers The IKE platform allows its customers to i