Tantalus Systems Holding Inc · TSX:GRID
Tantalus Systems — Investor Presentation (March 2024)
28 slides from Tantalus Systems's investor presentation, Mar 27, 2024
Slide 1: Investor Presentation
Investor Presentation TSX:GRID March 27, 2024 © 2024 Tantalus Systems Corp., All Rights Reserved Confidential and Proprietary Information, No Part For Public Disclosure
Slide 2: Legal Notice and Disclaimer
Legal Notice and Disclaimer IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING. The information contained in this presentation has been prepared by Tantalus Systems Holding Inc. (the “Company”) for information purposes only. References to “Tantalus” or the Company for periods prior to January
Slide 3: Well-Positioned to Modernize the Distribution Grid
Well-Positioned to Modernize the Distribution Grid Helping utilities Harness the Power of Data 285+ 125+ 20+ PURPOSE utilities within a Dedicated channel partners 3.5M growing user employees connected to support sales community across Canada & devices deployed growth US SCALABILITY US$42M 35% US$11.
Slide 4: The Grid Modernization Mandate is Massive
The Grid Modernization Mandate is Massive 60% of the North American $2T utilities will spend $500B Already allocated through electrical grid past its 50-year between now and 2030 to stimulus programs that life expectancy address the challenge cover Tantalus solutions Confidential & Proprietary 4
Slide 5: Elements of the Grid Modernization Initiative (GMI)
Elements of the Grid Modernization Initiative (GMI) The MODERN GRID must have: Greater RESILIENCY Improved RELIABILITY to hazards of all types for everyday operations Enhanced SECURITY Additional AFFORDABILITY from an increasing and to maintain our economic prosperity evolving number of threats Supe
Slide 6: The real problem
The real problem You can’t modernize the grid without truly interoperable data Confidential & Proprietary 6
Slide 7: A Technology Platform that Delivers Interoperability
A Technology Platform that Delivers Interoperability Tantalus Grid Modernization Platform Analytics TRUGrid Automation family of analytics solutions (including TRUGrid Transformer and TRUGrid Reliability) Applications Applications that target specific outcomes, including restoration, voltage reducti
Slide 8: A Unified Set of Solutions to Accelerate Modernization
A Unified Set of Solutions to Accelerate Modernization Substation-to-Meter Grid Edge Behind-the-Meter (Traditional Areas of Focus for Utilities) (Extending the "Grid Edge") Distribution Smart Home In-Home Distributed Substation Feeder Meter Appliances Energy Resources & EV Chargers TRUGrid TRUConnec
Slide 9: TRUSense Gateway: Extending the Edge of the Grid
TRUSense Gateway: Extending the Edge of the Grid First-Mover Advantage Major Milestones Combines four high-value use cases Fiber Gateway – complete UL Certification Market-leading sensing capabilities Ethernet Gateway – complete ETL Certification Extends the edge of the grid Cellular Gateway – compl
Slide 10: TRUSense Gateway Components
TRUSense Gateway Components Summary • TRUSense Gateway is referred to as a meter socket-based device • Retrofits into any existing residential meter socket (ANSI- based) • Supports any existing ANSI electric meter • Enables utilities to accelerate grid modernization with existing infrastructure • Co
Slide 11: Extending the Edge of the Grid
Extending the Edge of the Grid Protecting transformers and delivering unparalleled demand-side flexibility Rooftop Solar Storage EV Charging Smart Appliances & Devices Confidential & Proprietary 11
Slide 12: TRUSense Gateway: Massive Growth Catalyst
TRUSense Gateway: Massive Growth Catalyst $150M identified incremental $1B approximate revenue over next 5-7 years broader pipeline $10B Total Addressable Market 10-15% growth rate of existing Tantalus business Confidential & Proprietary 12
Slide 13: Financial Summary Through September 30, 2023
Financial Summary Through September 30, 2023
Slide 14: How Tantalus Generates Revenue
How Tantalus Generates Revenue Connected devices lead to recurring revenue over 12 – 15 years Recurring Software Maintenance & SaaS Licenses (Data Analytics) Software & Analytics Perpetual Software License Annual Technical Support Agreements Professional Services Deployment / Project Management Supp
Slide 15: Key Milestones Delivered 2023
Key Milestones Delivered 2023 Achieved several financial, commercial and R&D milestones during the first nine months of 2023 Financial Commercial R&D • Delivered highest amount of revenue in a • Converted 17 utilities, expanding our user • Finalized and passed all test for the calendar year at $42M
Slide 16: Q4 Income Statement Summary
Q4 Income Statement Summary Higher contribution for software & services led to improved results Comparative Highlights (US$M) $14.0 $12.2 $12.0 $10.4 $10.0 $8.0 $6.0 $5.3 $5.5 $4.0 51% 45% $2.0 $1.7 $0.3 $0.1 $0.2 $- Revenue Gross Profit Adjusted EBITDA Net Income Q4, 2023 Q4, 2022 Note: Gross Profi
Slide 17: Q4 '23 Revenue Contribution & Gross Profit Summary
Q4 ‘23 Revenue Contribution & Gross Profit Summary Higher contributions from software & services leads to improving GPM% Revenue Disaggregation (US$M) Gross Profit Margin (US$M) $14.0 $6.0 $5.5 $12.2 $5.3 $12.0 $5.0 $10.4 $10.0 $4.0 $8.4 $8.0 $6.8 $2.8 $2.8 $3.0 $2.7 $2.5 $6.0 $2.0 $3.6 $3.8 $4.0 $2
Slide 18: FY '23 Income Statement Summary
FY ‘23 Income Statement Summary Achieved several key milestones Highlights Comparative Highlights (US$M) • Delivered the highest amount of revenue $50.0 generated during a calendar year with growth of 6% over the prior year $42.1 $39.6 • Delivered the highest Gross Profit Margin $40.0 during a calen
Slide 19: FY '23 Revenue Contribution & Gross Profit Summary
FY ‘23 Revenue Contribution & Gross Profit Summary Increasing contributions from software & services is driving Gross Profit Margin % Revenue Disaggregation (US$M) Gross Profit Margin (US$M) $45.0 $25.0 $42.1 $39.6 $21.9 $40.0 $20.0 $18.9 $35.0 $30.0 $27.3 $26.5 $15.0 $25.0 $10.9 $11.0 $20.0 $9.9 $1
Slide 20: Q4 / Year-End Balance Sheet Summary
Q4 / Year-End Balance Sheet Summary Maintaining adequate flexibility to support growth initiatives in 2024 Highlights Comparative Highlights (US$M) • Balance Sheet remains sufficient to support ongoing $40.0 $36.4 operations and the anticipated launch of the $35.0 $34.8 TRUSense Gateway - Entered th
Slide 21: Key Initiatives in 2024
Key Initiatives in 2024 Working to maintain momentum and accelerate growth through the TRUSense Gateway Financial Commercial R&D • Entered 2024 with favorable visibility into • Sales activity remains robust with strong • Remain on track to secure UL Certification revenue growth year-over-year tailwi
Slide 22: Capitalization Overview
$1.80 Capitalization Overview $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 3/27/2023 4/27/2023 5/27/2023 6/27/2023 7/27/2023 8/27/2023 9/27/2023 10/27/2023 11/27/2023 12/27/2023 1/27/2024 2/27/2024 3/27/2024 TSX-Listed, Symbol: GRID Shareholders Share Price* C$1.61 Debt (as of 12/31/23) US$
Slide 23: Experienced Leadership Team with a Successful Track Record
Experienced Leadership Team with a Successful Track Record Management Peter Londa George Reznik Michael Julian Doug Campbell Michael Grandis Tom Allen CEO & Board Member CFO CRO CSO General Counsel EVP Product Development Board Laura Formusa Dr. Francis Harvey John McEwen Tom Liston Greg Williams Ch
Slide 24: Why Invest in Tantalus?
Why Invest in Tantalus? Substantive business with Significant user TRUSense Gateway favorable macro drivers that community + with provides a substantial support long-term growth differentiated solutions growth opportunity trajectory that are driving ARR Confidential & Proprietary 24
Slide 25: Questions?
Questions? tantalus.com Deborah@adcap.ca TSX: GRID 25
Slide 26: Building Momentum for GRID
Building Momentum for GRID User community leads to solid visibility into our annual revenue profile Annual Financial Performance (US$M) $45.0 $42.1 $39.6 $40.0 $35.0 $33.0 $32.2 $30.0 $25.0 $21.9 $20.0 $18.9 $16.1 $14.4 $15.0 $10.0 49% 45% 48% 52% $5.0 $2.6 $- 2020 2021 2022 2023 $(0.0) $(5.0) $(1.7
Slide 27: Increasing Annual Recurring Revenue
Increasing Annual Recurring Revenue CAGR of approximately 20% Highlights Recurring Revenue (US$M) • Recurring revenue comprised of SaaS $12.0 30% subscriptions, term-based software licenses, CAGR of 19% software maintenance, technical support and 24% $10.0 Since 2016 25% hosting services 21% 22% 19%
Slide 28: Balance Sheet & Working Capital Management
Balance Sheet & Working Capital Management Annual Recurring Revenue Cash Management Inventory Management • Majority of ARR collected in Q1 to support • Majority of accounts receivable insured by • Suppliers and vendors fund the products / working capital and bolster cash position EDC components work
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