Ikegps Group Ltd · NZX:IKE
Ikegps — Shareholder Meeting (September 2022)
48 slides from Ikegps's shareholder meeting presentation, Sep 30, 2022
Slide 1: CEO and Managing Director Presentation
CEO and Managing Director Presentation Annual General Meeting, 30 September 2022 We're IKE, the Pole OS™ Company Glenn Milnes, CEO & Managing Director glenn.milnes@ikegps.com September 2022
Slide 2: Introduction to today's speaker
Introduction to today’s speaker Glenn Milnes Chief Executive Officer & Managing Director ikeGPS 2
Slide 3: 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 4: Agenda and Contents
Agenda and Contents • FY22 performance highlights and 1H FY23 forecast performance • Market tailwinds • Technology and solutions • Team and talent acceleration • Growth potential • Q&A . ikeGPS 4
Slide 5: Revenue in FY22 (to March) of ~$16m, +71% pcp
Revenue in FY22 (to March) of ~$16m. +71% pcp. 46% CAGR of recurring subscription and re-occurring transaction revenue. Continued positive shift in revenue composition. Takeaways: • IKE’s revenue mix has continued to shift positively over the past four years. • 46% CAGR of recurring subscription and
Slide 6: Revenue in Q1 FY23 (to June) of $6.8m, +162% vs pcp
Revenue in Q1 FY23 (to June) of $6.8m. +162% vs pcp. Within this, recurring Subscription and reoccurring Transaction revenue was ~$5.7.m (+167% vs pcp) Takeaways: • Recurring subscription and reoccurring transaction revenues (shown by the Green and Blue segments in this chart) dominate IKE’s revenue
Slide 7: Revenue 1H FY23 forecast at $14.7-$15.0m
Revenue 1H FY23 (six months to September) is forecast at $14.7-$15.0m. ~ +160% vs pcp. Performance Update Takeaways: • Q2 FY23 revenue to September forecast to be $8m+ • Signed contract backlog supports potential for strong Q3 FY23 • Balance sheet remains 'fortress' • Functional efficiencies and Rev
Slide 8: FY22 P&L
FY22 P&L 71% revenue growth. Focused investment into sales & product development. Takeaways: • 2H FY22 revenue of ~$10.3m (+108% vs pcp) • FY22 Subscription and Transaction revenue of ~$12.m (+73% vs pcp) • Comprehensive loss of $7.9m based on investment into growth to fuel FY23 onwards ikeGPS 8
Slide 9: FY22 Balance Sheet: Strong, sustainable position
FY22 Balance Sheet: Strong, sustainable position Cash and receivables of $29.5m ($24.5m cash & $5m receivables) Takeaways: • Maintaining a fortress balance sheet is a key principle of IKE's operation. • No debt. ikeGPS 9
Slide 10: Market tailwinds
Market tailwinds ikeGPS 10
Slide 11: 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 12: Growing Network Investment across Electric Utilities
Growing Network Investment across Electric Utilities; Support Needed for Productivity Solutions such as IKE over the Coming Decades U.S. AND CANADIAN ELECTRIC DISTRIBUTION CAPITAL EXPENDITURES $NZD in B Canadian Muni Co-ops US IOU ACTUAL FORECASTED 3.5% CAGR: + $110.1 $104.3 $101.4 $97.1 $92.8 5.3%
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 Every electric utility across the U.S. is facing common challenges. • Outages • Environmental clean-up costs • Aging infrastructure • Significant lega
Slide 14: Leaning into the Digital Divide
IKE is Meeting Market Demand Leaning into the Digital Divide Why in 2021 would a professional copywriter living in a rural US community need to park at a Taco Bell to access broadband? ikeGPS 14
Slide 15: 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 16: Technology and solutions
Technology and solutions ikeGPS 16
Slide 17: Innovation and Growth Timeline
Innovation and Growth Timeline $NZD Fiscal Year Ending Mar-31 2000’s 2014 2019 2022 IKE Founded Public Listing Access to Standards Growth Launched as a pure hardware company HQ moved to Colorado, USA, which Groups within Utilities FY22 revenue of ~$16M, representing by a New Zealand Engineer who had
Slide 18: Today, a Full Stack of Pole and OSP Products & Solutions
Today, 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 +
Slide 19: 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 20: 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 20
Slide 21: Standardized Field Data Collection
IKE Office Pro IKE Structural IKE Insight IKE Analyze Standardized Field Data Collection 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 Office solution enables customers to standardize workf
Slide 22: Digitization of Assets and Digital Twins via IKE Office Pro Software
IKE Office Pro IKE Structural IKE Insight IKE Analyze Digitization of Assets and Digital Twins via IKE Office Pro Software Export data through various methods and various workflows Measure poles, spans, equipment, and location Full integration to automate pole load analysis ikeGPS 22
Slide 23: Automation and Integration with Cloud Capabilities
IKE Office Pro IKE Structural IKE Insight IKE Analyze Automation and Integration with Cloud 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 23
Slide 24: 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 24
Slide 25: 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 25
Slide 26: Embedded in five of the ten largest electric utilities in the U.S.
IKE Office Pro IKE Structural IKE Insight IKE Analyze Embedded in five of the ten largest electric utilities in the U.S. PASS Integrates with existing client’s pre-built databases, custom database requests, or RUS (Rural Utilities Service) databases Find out quickly whether your poles pass or fail a
Slide 27: Capability
IKE Office Pro IKE Structural IKE Insight IKE Analyze Capability…. Structural analysis Measure clearances and 3D modelling Ensure structural Integrity and NESC Scaled 3D renderings compliance ikeGPS 27
Slide 28: PoleForeman integration and deployment
IKE Office Pro IKE Structural IKE Insight IKE Analyze PoleForeman can be Training is available by integrated into any IKE pole experts, customer network data anywhere base Deployed at the largest NextGen PoleForeman IOU’s and Electric is being built with Co-ops in the U.S. requirements from a major
Slide 29: Bulk data and image processing
Bulk data and image processing ikeGPS 29
Slide 30: Bulk data and image processing using low-code artificial intelligence
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 31: Pole Engineering Analysis
Pole Engineering Analysis ikeGPS 31
Slide 32: Customers collect the data; IKE performs the engineering analysis
IKE Office Pro IKE Structural IKE Insight IKE Analyze Customers collect the distribution network data. IKE performs the engineering analysis via software, automation and experts. For customers: Faster engineering, dramatic scale, profitability, and efficiency benefits Example Deliverables: Height of
Slide 33: For Customers, IKE Analyze Improves Resource Optimization, Drives Scale, Reduces Costs
IKE Office Pro IKE Structural IKE Insight IKE Analyze For Customers, IKE Analyze Improves Resource Optimization, Drives Scale, Reduces Costs and Increases Profit 10k+ 30% 80k+ 3x 180k+ 50% hours saved faster collection make-ready efficiency poles reduction in for customers in the field recommendatio
Slide 34: Business model upshot
Business model upshot • A recurring Subscription to access IKE Solutions • Additive, reoccurring Transaction Fees based on usage • Optional value-added products , such as IKE Analyze and IKE University ikeGPS 34
Slide 35: A Sticky Customer Base with Opportunities to Expand
A Sticky Customer Base with Opportunities to Expand 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 produc
Slide 36: Team depth. Talent acceleration.
Team depth. Talent acceleration. ikeGPS 36
Slide 37: Leadership depth
Leadership depth 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 Informati
Slide 38: Accelerating at IKE
Accelerating at IKE Talent Accelerator Objective 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..... Liz Etzel Sara Deere Product Manager: Kn
Slide 39: A Board with deep industry experience
A Board with deep industry experience Board of Directors Alex Knowles Mark Ratcliffe Rick Christie / (MSc (Hons) Chemistry) Independent Director Chairman and Director Independent Director Mark was the founding CEO of Chorus New Zealand Rick Christie is the former Chairman of Ebos Alex has investing
Slide 40: Growth potential
Growth potential ikeGPS 40
Slide 41: 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 4 3 2 1 $43mm Revenue Sales Team Cross Sell & Upsell into Inorganic International Revenue “Today” Expansion Existing Customer Base Growth Expansi
Slide 42: Q1 FY23 Signed contracts of ~$8m (+31% vs pcp)
Q1 FY23 Signed contracts of ~$8m (+31% vs pcp). Takeaways: • Chart shows the approximate nine-month correlation between the timing of signed contracts and subsequent timing to recognized revenue. • This timing lag reflects that subscription and transaction contracts are delivered over time (normally
Slide 43: Q&A
q&a IKE's Purpose is Manaakitanga, 'We Rise by Lifting Others'. ikeGPS 43
Slide 44: Virtual Meeting
ikeGPS ans: 7 Sati @ ike Virtual Meeting Notice of meeting Annual report Previous questions
Slide 45: Resolution 1
Resolution 1 Auditor appointment and remuneration: That the directors are authorised to fix the auditor’s remuneration. 45
Slide 46: Resolution 2
Resolution 2 Re-election of Glenn Milnes: That Mr Glenn Milnes be re-elected as a director of the Company. 46
Slide 47: Resolution 3
Resolution 3 Non-executive Director Fee Pool: That: • the maximum aggregate amount per annum payable by the Company to its non-executive directors be increased by $230,000, from $320,000 to $550,000, with effect from 1 October 2022; and • remuneration payable to non-executive directors may, at the B
Slide 48: Thanks
Thanks We're IKE, the Pole OS™ Company