Ikegps Group Ltd · NZX:IKE
Ikegps — Q3 FY2023 Earnings Presentation
41 slides from Ikegps's earnings presentation, Feb 7, 2023
Slide 1: IKE Q3 FY23 Performance Update
IKE Q3 FY23 Performance Update We’re IKE, the Pole OS™ Company Glenn Milnes, CEO glenn.milnes@ikegps.com 7 February 2023
Slide 2: Important Notice
Important Notice Information in this Presentation: • 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, IKE’s FY22 financial re
Slide 3: Agenda and Contents
Agenda and Contents • Q3 FY23 financial results and performance update • Market overview • Team • Technology and products • Q&A . ikeGPS 3
Slide 4: Revenue in nine months to December 2022 of ~$23.3m (+134% pcp)
Revenue in nine months to December 2022 of ~$23.3m (+134% pcp). >$20m revenue from recurring subscription and reoccurring transaction sources. Takeaways: • 134% total revenue growth against PCP. • Recurring subscription and reoccurring transaction revenues (shown by the Green and Blue segments in th
Slide 5: A significant signed contract backlog supports a bullish growth outlook
A significant signed contract backlog supports a bullish growth outlook. Additive to the signed contract backlog is a strong new opportunity pipeline. Takeaways: • Chart shows the approximate nine-month correlation between the timing of signed contracts and subsequent timing to recognized revenue. •
Slide 6: 258% growth in transaction revenue vs pcp
258% growth in transaction revenue vs pcp. One of the primary indicators of platform utilization by IKE customers. Takeaways: • Significant growth in transaction revenue has continued, with >350k assets engineered on the IKE platform under the transaction model YTD. • This is one of the primary indi
Slide 7: Key metrics
Key metrics PCP YTD Q3 FY23 % Change (YTD Q3 FY22) Total Revenue $23.3m $9.9m +134% Platform Transactions # of billable transactions 376k 234k +61% Platform transaction revenue $14.3m $4.0m +258% Gross Margin $5.3m $1.9m +179% Gross Margin % 37% 48% Platform Subscriptions # of enterprise customers 3
Slide 8: North American Market Opportunity & Timing
North American Market Opportunity & Timing ikeGPS 8
Slide 9: Current Market Dynamics Lead to Strong Tailwinds for IKE
Current Market Dynamics Lead to Strong Tailwinds for IKE Requirement for harder and higher >3,200 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 electrica
Slide 10: Growing Network Investment across Electric Utilities
Growing Network Investment across Electric Utilities; Support Needed for Productivity Solutions such as IKE over the Coming Decades $NZD in B U.S. AND CANADIAN ELECTRIC DISTRIBUTION CAPITAL EXPENDITURES ACTUAL Canadian Muni Co-ops US IOU FORECASTED 3.5% CAGR: + $110.1 $104.3 $101.4 $97.1 $92.8 5.3%
Slide 11: Fiber and 5G Investment Super-Cycle in North America Still In Its Early Stages
Fiber and 5G Investment Super-Cycle in North America Still In Its Early Stages PROJECTED INVESTMENTS INTO 5G & FIBER OPTIC INFRASTRUCTURE $NZD p.a. Avg . Capex owth in 45% Gr $72B $43B $39B ikeGPS 2010 2018 2025 11 Source: Bell Potter Initiation of Coverage Report, GSMA, American Tower Note: Labeled
Slide 12: Focused Use Cases for IKE Products and Technology
Focused Use Cases for IKE Products and Technology $NZD CIPs1 Electric Utilities Engineering Service Providers Market • Consists of fiber & 5G network deployment • 3,200+ electrical utilities in North America • 1,000+ engineering service providers in North America Opportunity • 200+ CIPs in North Ame
Slide 13: Addressing a large market opportunity across the U.S. electric utilities segment
Communications Market Macro Electric Utility Market macro tail winds Addressing a large market opportunity across the U.S. electric utilities segment > 3,200 electric utilities across the U.S. facing common challenges. • Outages • Environmental clean-up costs • Aging infrastructure • Significant leg
Slide 14: Addressing a large market opportunity across the U.S. Communications segment
Communications Market Macro market tail winds 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 expected investment into 5G network development in the U.S. over the next 5+ y
Slide 15: A Sticky Tier-1 Customer Base in Place
A Sticky Tier-1 Customer Base in Place Telecom • 5 of the 10 largest Investor-Owned Utilities (“IOUs”) in North America • >350 customers in North America, with 65 logos added in the past 12 months Electric Utilities Opportunities to: • Materially grow, upsell and cross- sell IKE products into existi
Slide 16: Multiple Avenues Supporting Future Growth Potential
Multiple Avenues Supporting Future Growth Potential 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 “Today” Customers Existing
Slide 17: Team
Team ikeGPS 17
Slide 18: Accelerating at IKE
Accelerating at IKE Some of the key faces representing the next generation of our industry IKE’s people come for the job and the reputation of working at the company. They stay for the accelerated development of their careers. A few of the company’s young, emerging superstars are showcased below....
Slide 19: In-Market Leadership
In-Market Leadership A Direct Sales, Brand & Delivery Model Across North America Glenn Milnes Lydia Siloka Stephen Fairbrother Chief Executive Officer Head of People Chief Financial Officer Joined IKE in 2013 Joined IKE in 2020 Joined IKE in 2018 Jareth Rossking Malcolm Young Chris Ronan Chief Infor
Slide 20: A Board with deep industry experience
A Board with deep industry experience Board of Directors Alex Knowles Mark Ratcliffe Rick Christie / (MSc (Hons) Chemistry) Chairman and Director Independent Director Independent Director Alex has investing and operating experience Mark was the founding CEO of Chorus New Zealand Rick Christie is the
Slide 21: Technology and solutions
Technology and solutions ikeGPS 21
Slide 22: A Full Stack of Pole and OSP Products & Solutions
A Full Stack of Pole and OSP Products & Solutions Pole loading analysis through Bulk data and image processing using PoleForeman and Sagline low-code artificial intelligence for distribution utility assets Standardized digitization and field data collection methods, with dashboard reporting + ikeGPS
Slide 23: ikeGPS
Business model upshot: • A recurring Subscription to access any IKE Solution • Additive, reoccurring Fees based on usage • Optional value-added products , such as IKE Analyze and IKE University ikeGPS 23
Slide 24: Building the PoleOS Company
Building the PoleOS™ Company IKE is executing a rolling 12-quarter plan against three strategic swim lanes, to create long term differentiation Industry-leading application of field data Excellence in analysis and insights of pole To be the technology partner that customers collection technologies s
Slide 25: Standardized Field Data Collection with Back Office Cloud Analysis and Project Dashboards
Standardized Field Data Collection with Back Office Cloud Analysis and Project Dashboards ikeGPS 25
Slide 26: Standardized Field Data Collection with Back Office Cloud Analysis and Project Dashboards
IKE Office Pro IKE Structural IKE Insight IKE Analyze Standardized Field Data Collection with Back Office Cloud Analysis and Project Dashboards With your data in the cloud your options are limitless Data export to 100s of file types supporting Self Performance or ESP-led Engineering Services The IKE
Slide 27: Digitization via IKE Office Pro Cloud Software
IKE Office Pro IKE Structural IKE Insight IKE Analyze Digitization via IKE Office Pro Cloud Software Export data through various methods and various workflows Measure poles, spans, equipment, and location Full integration to automate pole load analysis ikeGPS 27
Slide 28: Automate and Integrate with Cloud Software Capabilities
IKE Office Pro IKE Structural IKE Insight IKE Analyze Automate and Integrate with Cloud Software Capabilities Drag and drop form builder to make custom forms and standardize team workflows Standardize engineering team workflows across infrastructure owners Pole loading analysis integration ikeGPS 28
Slide 29: Dramatic Productivity Benefits for Customers
IKE Office Pro IKE Structural IKE Insight IKE Analyze Dramatic Productivity Benefits for Customers Standardize the quality of field work Whole-of-network project view Detailed digitization of assets Real time, customized dashboards to via digital twins optimize project management ikeGPS 29
Slide 30: PoleForeman is one of the four standards for Pole Loading Analysis in North America
PoleForeman is one of the four standards for Pole Loading Analysis in North America ikeGPS 30
Slide 31: PoleForeman is one of the four standards for Pole Loading Analysis in North America
IKE Office Pro IKE Structural IKE Insight IKE Analyze PoleForeman is one of the four standards for Pole Loading Analysis in North America PASS Integrates with existing client’s pre-built databases, custom database requests, or RUS (Rural Utilities Service) databases Find out quickly whether your pol
Slide 32: PoleForeman Capability
IKE Office Pro IKE Structural IKE Insight IKE Analyze PoleForeman Capability…. Structural analysis Measure clearances and 3D modelling Ensure structural Integrity and NESC Scaled 3D renderings compliance ikeGPS 32
Slide 33: ikeGPS
IKE Office Pro IKE Structural IKE Insight IKE Analyze PoleForeman integrated Training available by into any customer IKE pole experts, network database anywhere NextGen Deployed at the largest PoleForeman being built IOU’s and Electric with requirements from Co-ops in the U.S. a core major customer
Slide 34: The NextGen PoleForeman Solution Will Deliver Key Differentiation to the Market
IKE Office Pro IKE Structural IKE Insight IKE Analyze The NextGen PoleForeman Solution Will Deliver Key Differentiation to the Market To be released 2023, designed with a customer council including the Standards Group leaders within: ikeGPS 34
Slide 35: Bulk data and image processing using low-code artificial intelligence
Bulk data and image processing using low-code artificial intelligence for distribution utility assets ikeGPS 35
Slide 36: Bulk data and image processing using low-code artificial intelligence for distribution utility assets
IKE Office Pro IKE Structural IKE Insight IKE Analyze Bulk data and image processing using low-code artificial intelligence for distribution utility assets IKE Insight allows access to pole imagery Data Pairing App from anywhere and for any reason Data Collector App Conditional App Industry Use Case
Slide 37: IKE Insight Introduces a Range of Disruptive Capabilities
IKE Office Pro IKE Structural IKE Insight IKE Analyze IKE Insight Introduces a Range of Disruptive Capabilities Automated instance Accurate pole detectors, and auto- Text-based enquiry of bulk data segmentation models for poles generated photo-realistic models to be 'the Google’ for search of distri
Slide 38: Pole & Engineering Analysis
Pole & Engineering Analysis ikeGPS 38
Slide 39: Pole Analysis from IKE experts, software and automation
IKE Office Pro IKE Structural IKE Insight IKE Analyze Pole Analysis from IKE experts, software and automation. Customers collect the distribution network data. IKE performs the engineering analysis For customers: Faster engineering, dramatic scale, profitability, and efficiency benefits Example Deli
Slide 40: IKE Analyze Improves Resource Optimization, Drives Scale, Reduces Costs and Increases Profit
IKE Office Pro IKE Structural IKE Insight IKE Analyze IKE Analyze Improves Resource Optimization, Drives Scale, Reduces Costs and Increases Profit 10k+ 30% 80k+ 3x 250k+ 50% hours saved faster collection make-ready efficiency poles reduction in for customers in the field recommendations improvements
Slide 41: Thanks
Thanks ikeGPS Manaakitanga: We Rise By Lifting Others 41