Ikegps Group Ltd · NZX:IKE
Ikegps — Shareholder Meeting (September 2024)
44 slides from Ikegps's shareholder meeting presentation, September 2024
Slide 1: IKE Update for Annual General Meeting of shareholders
IKE Update for Annual General Meeting of shareholders We’re IKE, the Pole OS™ Company Glenn Milnes, CEO glenn.milnes@ikegps.com September 2024 CONFIDENTIAL
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 FY24 financial re
Slide 3: Q1 FY25 financial performance update
Q1 FY25 financial performance update Growth overview
Slide 4: Subscription revenue growth has continued to be consistently strong
Subscription revenue growth has continued to be consistently strong with a three-year CAGR of 41% (Q1 shown below) Takeaways: • Significant growth in underlying subscription revenue. • Three-year subscription revenue CAGR of 41%. • During FY25, this is expected to increase materially (by greater tha
Slide 5: Exit Run Rate of annual platform subscription has grown to NZ$13m
Exit Run Rate (ERR) of annual platform subscription has grown to NZ$13m as at 30 June 2024 Takeaways: • Two-year CAGR of 35% in the exit run rate of annual platform subscription revenue. • During the FY25 period this metric is expected to continue to grow materially (by approximately 40+% vs pcp) dr
Slide 6: 207% YoY increase in subscription seat licenses
207% YoY increase in subscription seat licenses, evidencing the impact of new product introductions Takeaways: • Subscription seat license growth of 207% over the past year. • Seat-count growth has accelerated at this fast pace partially as a result of selling customers onto a new per-seat subscript
Slide 7: Three-year transaction revenue CAGR of 23%, and improved margin profile
Three-year transaction revenue CAGR of 23%, and improved margin profile Takeaways: • Three-year transaction revenue CAGR of 23%, but slightly lower in Q1 FY25 vs pcp due to the prior period seeing strong activity, but noting that gross margin increased vs pcp. • Based on guidance from long- term cus
Slide 8: Three-year total revenue CAGR of 31%, and gross margin of 70%
Three-year total revenue CAGR of 31%, and gross margin of 70% Q1 FY25 Takeaways: • Recurring subscription and reoccurring transaction revenues (shown by the green and blue segments in this chart) dominate IKE’s revenue mix, at 87% for FY25 YTD. • An expectation for healthy growth in the FY25 period,
Slide 9: Key metrics table
Key metrics table Q1 FY25 Q1 FY24 % Change Total Revenue $5.8m $5.6m +4% Tota l # of Cus tom ers 420 394 +7% Takeaways: Platform Subscriptions Tota l # of Subs cription Cus tom ers 400 370 +8% Tota l Num ber of Sea t Licens es 5,847 1,905 "+207% • Exit Run Rate of annual platform subscription revenu
Slide 10: IKE's differentiation and the North American market opportunity
IKE’s differentiation. And the large, long term North American market opportunity being addressed Customer and Market overview
Slide 11: IKE has Software Products to Engineer a Distribution Network through its Lifecycle
IKE has Software Products to Engineer a Distribution Network through its Lifecycle <Planning> <Assessment & Digitization> <Design> <Maintenance & Resilience> Business model upshot • A recurring Subscription to access any IKE Solution • Additive, reoccurring revenue based on usage (license seats or t
Slide 12: More than 3,000 electric utilities and 200M distribution assets across the U.S.
Communications Market Macro More than 3,000 electric utilities and 200M distribution assets across the U.S. Investing in decades-long grid resiliency and grid capacity programs Facing common challenges • Grid resiliency requirements • Regulatory and Engineering code compliance • Grid capacity requir
Slide 13: 25+ year Macro-Market Tail Wind for Grid Resiliency & Expansion
25+ year Macro-Market Tail Wind for Grid Resiliency & Expansion ($B’s) An Electric Utility Industry, Spending 100’s of Billions, in Need for Productivity Solutions, such as IKE $NZD in B U.S. AND CANADIAN ELECTRIC DISTRIBUTION CAPITAL EXPENDITURES ACTUAL Canadian Muni Co-ops US IOU FORECASTED 3.5% C
Slide 14: Where IKE sells: U.S. Market-Map of Investor-Owned Utilities
Where IKE sells: U.S. Market-Map of Investor-Owned Utilities (multi-$B companies) A huge expansion opportunity…… ikeGPS 14
Slide 15: Plus >2,800 Municipalities and Co-Operatives
Plus >2,800 Municipalities and Co-Operatives All of which represent sales opportunities for IKE products Takeaways • Market timing is everything • IKE is in the right place, at the right time, and with the right technology, team and execution capability • Today, IKE has a presence in approximately 6
Slide 16: Standardizing on IKE: Eight of the 10 largest Investor-Owned Utilities
Standardizing on IKE: Eight of the 10 largest Investor-Owned Utilities in the U.S. IKE Lands-then-Expands Communications Takeaways • 8 of the 10 largest Investor-Owned Utilities (“IOUs”) in North America, all multi-billion dollar businesses • >400 customers in North America, Electric Utilities with
Slide 17: IKE solutions make fiber and 5G network deployments faster
IKE solutions make fiber and 5G network deployments faster • >$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+ years • An additional >$60B expected investment into rural broadba
Slide 18: 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 2010 2018 2025 ikeGPS 18 Source: Bell Potter Initiation of Coverage Report, GSMA, American Tower Note: Labeled
Slide 19: Standardizing on IKE: The largest U.S. Communication groups
Standardizing on IKE: The largest U.S. Communication groups And a growing footprint of tier-2 fiber businesses Communications Takeaways • Several of the largest comms group in North America: AT&T ($107B), Crown Castle ($39B), Bell Canada ($47B) Electric Utilities • A growing footprint of the tier-2
Slide 20: Overall a Large Addressable Market Opportunity That is Expected to Grow
Overall.. a Large Addressable Market Opportunity That is Expected to Grow Utilities 5G and Fibre $NZD $NZD Estimated 5G Small Cell Fibre Connections $113 Cost of Antenna New Build per Pole 25M Poles Used for Other Services2 Estimated 40M Poles $50 Cost of Needed for Audit per Audit per Pole annum >2
Slide 21: Market Tailwinds Over the Coming Three Decades
Market Tailwinds Over the Coming Three Decades 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 electrical distribu
Slide 22: A Map-View of IKE s/w usage: Crown Castle in Florida
A Map-View of IKE s/w usage, and how customers deploy our software Crown Castle in Florida ikeGPS 22
Slide 23: A map-view of IKE s/w usage: AT&T in 7 example States
A map-view of IKE s/w usage, and how customers deploy our software AT&T in 7 example States ikeGPS 23
Slide 24: Update and Outlook
Update and Outlook
Slide 25: IKE PoleForeman growth: The Standard for Distribution Network Design
IKE PoleForeman growth: The Standard for Distribution Network Design in U.S. New SaaS Product to Market https://ikegps.com/ike-poleforeman/ Takeaways: • Next-generation product built and launched late 2024 with a customer council comprised of the Standards Directors from many of the Nort America’s l
Slide 26: AI based products introduced this quarter to automate distribution processes
AI based products introduced this quarter to automate distribution processes Built to drive dramatic productivity improvements into specific distribution-network engineering workflows ikeGPS 26
Slide 27: Take the legwork out of NJUNS ticketing
JOINT-USE TICKET AUTOMATION Take the legwork out of NJUNS ticketing Intelligent automation helps save time and avoid errors in ticket creation and delivery. ikeGPS 27
Slide 28: Managing NJUNS tickets is time consuming and error prone
IKE SPEEDS UP THE TICKETING PROCESS Managing NJUNS tickets is time consuming and error prone Manually creating, updating, and closing out tickets is an operational burden. For many organizations, this leads to a growing backlog of unprocessed tickets, putting you at risk with contractual or regulato
Slide 29: Fast, accurate ticket creation and delivery
Fast, accurate ticket creation and delivery Eliminate manual data entry Structure and normalize data Replace manual inputs and human error with intelligent automation, We apply our natural language and pole-specific AI capabilities to existing reducing costs and time to completion. data sets and aut
Slide 30: Keep your projects on track with intelligent automation
Keep your projects on track with intelligent automation Violation reporting Make-ready construction Pole transfers Address common issues that arise during Prep poles for new attachments while Transfer attachments from an existing inspections and audits, such as NESC maintaining safety and compliance
Slide 31: Manage double wood networks and improve safety
DOUBLE WOOD DETECTIVE Manage double wood networks and improve safety Get a network-level view with minimal in-field time ikeGPS 31
Slide 32: It starts with accurate double wood records
IKE SPEEDS UP THE TICKETING PROCESS It starts with accurate double wood records Double wood (also known as buddy pole or two pole) is a prevalent issue for many utilities. Lagging pole transfers, backlogs, and communication or notification gaps between pole owners and attachers are some of the commo
Slide 33: Pinpoint instances of double wood with minimal in-field time
Pinpoint instances of double wood with minimal in-field time Search at scale Improve safety and reduce liability Our pole-specific AI capabilities locate double wood instances at a Leverage our insights to address an important public and worker safety network-level using street-level imagery. concer
Slide 34: IKE Training & Education
IKE Training & Education We specialize in the electrical codes governing electric and communication utilities in the United States. Providing National Electrical Safety Code® (NESC®) and OSHA Communication Worker training. ikeGPS 34
Slide 35: Transform the National Electrical Safety Code (NESC) into practical knowledge
Transform the National Electrical Safety Code (NESC®) into practical knowledge • Our NESC courses demystify the complex Code, making it accessible and applicable for utility and communications workers. Our Course Offerings • Engaging training filled with practical examples, photos, and illustrations
Slide 36: IKE's NESC and OSHA Experts
IKE’s NESC and OSHA Experts Our training programs are led by Grant Glaus, an electrical engineer with 25 years of experience in Electric Utility Engineering, NESC, and OSHA training. Grant’s extensive background includes: • Serving on the NESC Subcommittee 5 for Overhead Lines – Strengths and Loadin
Slide 37: Selling and Delivering Directly from Colorado, USA HQ
Selling and Delivering Directly from Colorado, USA HQ Meet some of the IKE people representing the next generation of our industry Liz Etzel Sara Deere Product Manager: Knows virtually Systems Engineer: Current holder of every customer and is persnickety the world-record for running about exemplary
Slide 38: A strengthened team of North American industry experts
A strengthened team of North American industry experts Key non-executive director and senior leaders recently appointed Roz Buick Non-executive Director Roz brings more than 25 years’ experience from executive leadership positions across global utility, engineering, construction, real estate and agr
Slide 39: 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 40: Thanks: We're IKE, The PoleOS Company
Thanks We’re IKE, The PoleOS™ Company IKE seeks to be the Standard for collecting, analyzing and managing pole and outside plant (“OSP”) information for electric utilities, communications companies, and their engineering service providers The IKE platform allows customers to increase speed, improve
Slide 41: Thanks
Thanks ikeGPS Manaakitanga: We Rise By Lifting Others 41
Slide 42: Intro from Roz Buick, IKE non-executive director
Intro from Roz Buick, IKE non-executive director
Slide 43: Introduction from Roz
Introduction from Roz ikeGPS 43
Slide 44: Meeting Resolutions
Meeting Resolutions The shareholders of the Company are requested to consider and, if thought fit, to pass the following ordinary resolutions: - Auditors Remuneration: That the directors are authorised to fix the auditor’s remuneration. - Election of Roz Buick: That Roz Buick, who was appointed to t