Tantalus Systems Holding Inc · TSX:GRID
Tantalus Systems — Investor Presentation (March 2025)
34 slides from Tantalus Systems's investor presentation, March 2025
Slide 1: Modernize the Grid by Harnessing the Power of Data
TANTALUS.COM MARCH 2025 MODERNIZE THE GRID BY HARNESSING THE POWER OF DATA CORPORATE PRESENTATION (TSX: GRID; OTCQX: TGMPF)
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: Pure-Play Focused on Grid Modernization
Pure-Play Focused on Grid Modernization Helping utilities harness the power of data to modernize their distribution grid ~320 135+ 20+ 3.5M PURPOSE Dedicated Channel Utilities within a Connected employees partners to growing user devices across Canada support sales community deployed & US growth SCA
Slide 4: Drivers Creating Urgency For Utilities
Drivers Creating Urgency For Utilities Any one of these mega-trends poses immediate and massive problems that have to be dealt with now Extreme Weather Electrification of Everything • 133% Increase in weather + • Demand for electricity in US climate disasters from 2010-20 could double by 2050 • 28 d
Slide 5: Emerging Problems Confronting Utilities
Emerging Problems Confronting Utilities Utilities facing issues resulting from the mega-trends Addressing Supply/ Reducing Risk of Managing Demand Imbalance Power Outages Grid Data Increased EV adoption, the greater electrification of society Power outages cost the Utilities struggling to harness an
Slide 6: Additional Growth of Electric Demand
Additional Growth of Electric Demand Distribution grid under further stress as utilities are expected to deliver more power Power Consumption Nationwide power consumption is projected to rise by at least 38 gigawatts between now and 2028. Electrification EV adoption and home and industrial electrifi
Slide 7: The Grid Modernization Mandate is Massive
The Grid Modernization Mandate is Massive 60% $2T $500B of the North will be spent by already allocated American electrical utilities between now through stimulus grid is past its life and 2030 to address programs that cover expectancy the challenge Tantalus solutions TSX:GRID, OTCQX:TGMPF Confident
Slide 8: A Technology Platform that Delivers Grid Modernization
A Technology Platform that Delivers Grid Modernization The 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 r
Slide 9: 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") Substation Distribution Meter Smart Home In-Home Distributed Feeder Appliances Energy Resources & EV Chargers TRUGrid Automatio
Slide 10: Customer's Journey to Grid Modernization
Customer’s Journey to Grid Modernization One platform. Multiple entry points. Substation to Meter: Grid Edge: Access to data + Behind the Meter: Leveraging every Balance and managing supply/demand command and control available device of electricity In-Home Distributed Distribution Smart Home Energy
Slide 11: Tantalus Grid Modernization Provides the Solutions
Tantalus Grid Modernization Provides the Solutions The Tantalus Grid Modernization Platform addresses multiple issues facing utilities Addressing Supply/ Reducing Risk of Managing Demand Imbalance Power Outages Grid Data TRUFlex Load & DER TRUGrid TRUSync Grid Data Management System Automation Suite
Slide 12: Future Vision: Deliver Interoperable Data
Future Vision: Deliver Interoperable Data Tantalus has an early lead in this massive long-term market opportunity You can’t fully modernize the grid without truly interoperable data. The demand for grid data management is in its early stages. Some utilities—primarily IOUs—have already started on thi
Slide 13: Summary of the TRUSense Gateway
Summary of the TRUSense Gateway
Slide 14: Building Momentum Through the TRUSense Gateway
Building Momentum Through the TRUSense Gateway At the intersection of the electrification of everything & grid modernization First-Mover Advantage Major Milestones/Timelines • Combines four high-value use cases • Fiber – UL Certification received • Market-leading sensing capabilities • Ethernet – UL
Slide 15: TRUSense Gateway: Extending the Edge of the Grid
TRUSense Gateway : Extending the Edge of the Grid Summary TRUSense Gateway is referred to as a meter socket device Retrofits into any existing residential electric meter socket (ANSI-based) Supports any existing ANSI meter Versatile to help utilities accelerate grid modernization with existing infra
Slide 16: Extending the Edge of the Grid
Extending the Edge of the Grid Protecting transformers and delivering unparalleled demand-side flexibility Rooftop Solar EV Charging Storage Smart Appliances & Devices TSX:GRID, OTCQX:TGMPF Confidential and Proprietary 16
Slide 17: TRUSense Gateway Provides a Compelling Growth Catalyst
TRUSense Gateway Provides a Compelling Growth Catalyst $150M $350M potential revenue approximate revenue opportunity from our opportunity in our Advisory Committee qualified pipeline $10B 10-15% total addressable growth rate of existing market Tantalus business TSX:GRID, OTCQX:TGMPF Confidential and
Slide 18: Financial Summary
FINANCIAL SUMMARY Through December 31, 2024
Slide 19: How Tantalus Generates Revenue
How Tantalus Generates Revenue Deploying connected devices leads to recurring revenue over 12 – 15 years Recurring Software Maintenance & SaaS Subscriptions (Data Analytics) Software & Perpetual Software Analytics License Annual Technical Support Agreements Professional Deployment / Project Manageme
Slide 20: Increasing Annual Recurring Revenue Growth
Increasing Annual Recurring Revenue Growth Continuing to increase the revenue contribution from Recurring Revenue each year Recurring Revenue (US$M) Highlights 30% $14.0 26% Recurring Revenue is comprised of SaaS and other 25% CAGR of 18% 24% $12.0 subscriptions, term-based software licenses, since
Slide 21: Q4 2024 Income Statement Summary
Q4 2024 Income Statement Summary Ready for commercialization of the TRUSense Gateway Income Statement Summary - US$M Highlights $14.0 $12.6 Revenue grew 21% over the prior year with strong $12.0 contributions from the Software segment which led $10.4 to 24% growth in gross profits $10.0 Operating ex
Slide 22: Q4 2024 Revenue Contribution & Gross Profit Margin Summary
Q42024 Revenue Contribution & Gross Profit Margin Summary Favorable trajectory tied to product mix and prudent supply chain management Revenue by Segment (US$M) Gross Profit by Segment (US$M) $9.0 $7.0 $6.6 $8.0 $7.7 $6.0 $6.8 $5.3 $7.0 $5.0 $6.0 $4.9 $3.8 $5.0 $4.0 $4.0 $3.6 $2.8 $2.8 $3.0 $2.5 $3.
Slide 23: FY24 Income Statement Summary
FY24 Income Statement Summary Growth coupled with positive Adjusted EBITDA Income Statement Summary - US$M Highlights $50.0 $44.3 $42.1 Revenue increased as a result of adding new utility $40.0 customers and continuing to expand deployments to existing accounts $30.0 $24.0 Increase in gross profit m
Slide 24: FY 2024 Cash Flow Bridge
FY 2024 Cash Flow Bridge Stable cash and liquidity to fund growth FY 2024 Cash Flow Bridge - US$000s Highlights $14,000 Total liquidity to support working capital and growth of $12,000 $18.0M, consisting of a cash balance of $13.2M and capacity of $4.8M under the revolver LOC (as of 12/31/24) $10,00
Slide 25: Building Momentum for GRID
Building Momentum for GRID Annual Financial Performance - US$M $50.0 $40.0 $30.0 $20.0 $10.0 $- 2020 2021 2022 2023 2024 $(10.0) Revenue Gross Profit Adj EBITDA TSX:GRID, OTCQX:TGMPF Confidential and Proprietary 25
Slide 26: Capitalization Overview
Capitalization Overview $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 2/20/2024 3/11/2024 4/1/2024 4/19/2024 5/9/2024 5/30/2024 6/19/2024 7/10/2024 7/30/2024 8/20/2024 9/10/2024 9/30/2024 10/21/2024 11/8/2024 11/28/2024 12/18/2024 1/10/2025 1/30/2025 2/20/2025 Shareholders TSX-Listed, Symbol: GRID Debt (as of
Slide 27: Management
Executive Leadership Team Management Peter Londa Azim Lalani Christopher Allen Michael Grandis Michael Julian Doug Campbell Tom Allen President & CEO CFO COO & EVP Chief Legal & CRO CSO EVP, Product Board Member Solution Strategy Administrative Officer Development Board of Directors Laura Formusa Dr
Slide 28: Why Invest in Tantalus?
Why Invest in Tantalus? Market Catalysts Substantive Business Growth Catalyst Electrification of Everything Differentiated Solutions With TRUSense Gateway Provides & Grid Modernization Growing User Community a Compelling Growth Opportunity TSX:GRID, OTCQX:TGMPF Confidential and Proprietary 28
Slide 29: Questions?
QUESTIONS? tantalus.com deborah@adcap.ca TSX:GRID, OTCQX:TGMPF
Slide 30: Appendix
©)Tantalus APPENDIX
Slide 31: Balance Sheet & Working Capital Management
Balance Sheet & Working Capital Management Annual Cash Inventory Comerica EDC Term Loan Recurring Management Management Debt Facility Revenue • Majority of ARR • Majority of accounts • Suppliers and vendors • Revolver in place since • Secured six-year term collected in late Q4 & receivable insured b
Slide 32: Elements of the Grid Modernization Initiative (GMI)
Elements of the Grid Modernization Initiative (GMI) The MODERN GRID must have: Enhanced SECURITY from Greater RESILIENCY to Improved RELIABILITY for an increasing and evolving hazards of all types everyday operations number of threats Additional AFFORDABILITY Superior FLEXIBILITY to Increased SUSTAI
Slide 33: TRUSense Gateway Use Case: United Illuminating (UI)
TRUSense Gateway Use Case: United Illuminating (UI) Key Themes for IES Program Driver for UI Use Cases Opportunity IES Program • Established by PURA as part • Primary themes: • Relying on a legacy AMI • Primary use case ties to • Estimating demand-side of the Equitable Modern Grid Automation, flexib
Slide 34: Stimulus Funding Delivers a Unique Growth Opportunity
Stimulus Funding Delivers a Unique Growth Opportunity GRID’s solutions are eligible for stimulus funding amounting to over $400 billion GRID Program Energy Improvements in Reconnect Program BEAD Program Remote Areas $3.9B for 2022 and 2023, in what will $3.9B for 2022 and 2023, in what will Broadban
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