Ikegps Group Ltd · NZX:IKE
Ikegps — Merger or Acquisition (September 2019)
12 slides from Ikegps's merger presentation, Sep 27, 2019
Slide 1: Acquisition and capital raise
IKE Acquisition and capital raise CEO Presentation; Glenn Milnes 27 September 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by ikeGPS Group Limited (NZ company number 1292732, NZX:IKE, ASX:IKE) (the “Company”). This presentation has been prepared in relation to the offer of fully paid ordinary shares in the Company (New Shares) by way of a: - placement to selected investors
Slide 3: Summary
Summary Financial performance momentum.* Transition over past 12 months to >70% of revenue from ongoing transaction or subscription sources. Forecast approximately EBITDA breakeven Q2 FY20 (for the period ending September 2019), noting that both May and June 2019 were also EBITDA positive. Forecast
Slide 4: Financial performance & momentum
Positive shift in revenue composition. Takeaways: Takeaways: Financial performance & momentum IKE’s total revenue mix has shifted materially over the past 12 months. The expansion of the IKE Analyze product is driving revenue and gross margin growth. Greater than 70% of revenue is expected from tran
Slide 5: Financial performance & momentum
Accessing larger account opportunities. Momentum across all financial metrics. Financial performance & momentum Takeaways: Takeaways: IKE is accessing increasingly large and long-term account opportunities via IKE The positive momentum of the past 24 months has continued through 1H FY20 Analyze. wit
Slide 6: IKE Analyze value drivers
IKE Analyze value drivers Achieving dramatic productivity gains and improvements in quality & safety for customers. IKE Analyze drivers 6
Slide 7: PowerLine Technology Overview
PowerLine Technology Inc. (PLT) overview PLT delivers software for the structural analysis of utility poles. It has been integrated with IKE products for more than three years. PowerLine Technology Overview Why Pole Loading Analysis Why PLT Addressable market software is important Pole Loading Analy
Slide 8: Value Drivers for potential acquisition
How PowerLine Technology fits within IKE Analyze Value Drivers for potential acquisition IKE Analyze is set out below, showing how PLT extends IKE’s capability, revenue model and access to customers. Field Tools & Software Deliverables Basic pole Pole Loading Analysis Make Ready assessment (IKE Digi
Slide 9: Acquisition Rationale
Acquisition Rationale Strategic Growth/Financial PLT enhances IKE’s go-to-market proposition Opportunity to lever PLT’s client base PLT adds an important vertical extension to the ‘analysis’ element of PLT is the structural analysis platform used by more than 100 Electric the IKE Analyze solution. U
Slide 10: Acquisition terms
Acquisition terms Purchase price of up to US$3.4m including a US$0.9m earnout. Based on calendar 2019 revenue of US$0.8m and NPAT of US$0.3m Acquisition Terms Consideration of US$2.5m to be paid by way of 70% cash and 30% scrip on closing, and up to US$0.9m in earn out payments by way of 70% cash an
Slide 11: Capital raise overview
Capital raise overview IKE has today completed a $5 million placement (the “Placement”), underwritten by Forsyth Barr Group Limited and announced a Retail Offer of up to $1.5 million. Proceeds of the capital raise will be used in part to fund the acquisition of selected assets of PowerLine Technolog
Slide 12: Timetable
Timetable Placement Placement announced 27 September 2019 Settlement and allotment of Placement 2 October 2019 Retail offer Record date 26 September 2019 Expected release of offer documents and application form 1 October 2019 Retail Offer opens 1 October 2019 Retail Offer closes 17 October 2019 Reta
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