Slide 1: IKE FY24 Financial Performance, FY25 Outlook, New AI and SaaS Products
For personal use only IKE FY24 Financial Performance FY25 Outlook Overview of new AI and SaaS Products We’re IKE, the Pole OS™ Company Glenn Milnes, CEO and Brian Musfeldt, CFO glenn.milnes@ikegps.com, brian.musfeldt@ikegps.com May 2024
Slide 2: Important Notice
Important Notice Information in this Presentation: For personal use only • 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, I
Slide 3: Agenda
Agenda For personal use only FY24 performance headlines (audited) FY25 outlook AI and SaaS product updates Addressable market and IKE’s value proposition Q&A ikeGPS 3
Slide 4: Subscription revenue growth has continued to be consistently strong
Subscription revenue growth has continued to be consistently strong (+22% pcp) Takeaways: For personal use only • Significant growth in underlying subscription revenue. • Three-year subscription revenue CAGR of 33%. • During FY25, this is expected to increase materially, and by greater than 50%, due
Slide 5: But transaction revenue was down vs pcp
But transaction revenue was down vs pcp (-61% pcp) Takeaways: For personal use only • Three-year transaction revenue CAGR of 47%, but 61% lower in FY24 vs pcp due to FY23 seeing outsize customer growth and activity. • Based on guidance from long- term customers IKE expects transaction volumes and as
Slide 6: Revenue FY24 of ~$21.1m (-31% pcp)
Revenue FY24 of ~$21.1m (-31% pcp) Takeaways: For personal use only • Three-year revenue CAGR of 31%. • Recurring subscription and reoccurring transaction revenues (shown by the green and blue segments in this chart) dominate IKE’s revenue mix, at 86% for FY24. • A Loss of ~NZ$15m while the business
Slide 7: Profit & Loss
Profit & Loss Year ended 31 March Group Note 2024 2023 Takeaways: For personal use only Continuing operations NZ#039;000 NZ#039;000 Operating revenue 5 21,104 30,789 Cos t of s ales (8,424) (14,444) • Revenue of ~NZ$21.1m (-31% vs pcp). Gros s profit 12,680 16,345 Other incom e 5 427 287 • Subscription re
Slide 8: Balance Sheet
Balance Sheet As at 31 March Group Note 2024 2023 ASSETS NZ#039;000 NZ#039;000 Current as s ets Cas h and cas h equivalents 8 10,242 18,048 For personal use only Trade and other receivables 9 5,114 5,212 Prepaym ents 782 902 Contract cos ts 696 295 Financial ins trum ents 10 193 Leas e as s ets 13 - 12 In
Slide 9: FY24 Key Metrics
FY24 Key Metrics For personal use only FY24 FY 23 % Change Total Revenue $21.1M $30.8m -31% Platform Transactions # of Billable Trans actions 279K 490K -43% Platform Trans action Revenue $7.3M $18.7m -61% Gros s Margin $1.8M $7.2m -76% Customer Number Reconciliation: Gros s Margin % 24% 39% • Since
Slide 10: Update and Outlook
For personal use only Update and Outlook
Slide 11: Expectation for >50% growth in subscription revenue in FY25
Expectation for >50% growth in subscription revenue in FY25. Outlook summary. • Recurring Subscription revenue is expected to grow at 50% or greater vs pcp to ~$16m For personal use only per annum or greater. Based on: • the ongoing growth of our core IKE Office Pro subscription product (>30% CAGR o
Slide 12: IKE has a Suite of Software Products to Engineer a Network through its Lifecycle
IKE has a Suite of Software Products to Engineer a Network through its Lifecycle <Network Planning> <Assessment & Digitization> <Network Design> <Network Maintenance & Resilience> For personal use only Business model upshot • A recurring Subscription to access any IKE Solution • Additive, reoccurrin
Slide 13: IKE PoleForeman, for Distribution Network Design
IKE PoleForeman, for Distribution Network Design. New SaaS Product to Market Next-gen structural analysis SaaS product released Q3 FY24. >NZ$12m TCV to date from 47 customers – both new & existing. For personal use only >3,700 subscribers added to date. FY25 outlook: - An expectation for further maj
Slide 14: IKE Insight, AI for Whole-of-Network Viability & Planning
IKE Insight, AI for Whole-of-Network Viability & Planning New AI Product to Market For personal use only ikeGPS 14
Slide 15: Spike Sign-Pilot, a SaaS product for the Signage industry
Spike Sign-Pilot, a SaaS product for the Signage industry New Workflow Product to Market For personal use only ikeGPS 15
Slide 16: A strengthened team of North American market experts
A strengthened team of North American market experts Key non-executive director and senior leaders appointed through FY24 Roz Buick For personal use only Non-executive Director Roz brings more than 25 years’ experience from executive leadership positions across global utility, engineering, construct
Slide 17: What IKE does, and the large, long term North American market opportunity
For personal use only What IKE does, and the large, long term North American market opportunity being addressed Customer and Market re-cap
Slide 18: Communications Market Macro
Communications Market Macro For personal use only More than 3,000 electric utilities and 200M distribution assets across the U.S. Investing in decades-long grid resiliency and grid capacity programs Facing common challenges • Grid resiliency requirements • Regulatory and Engineering code compliance
Slide 19: 25-year Macro-Market Tail Wind for Grid Resiliency & Expansion
25-year Macro-Market Tail Wind for Grid Resiliency & Expansion ($B’s) An Electric Utility Industry, Spending 100’s of Billions, in Need for Productivity Solutions, such as IKE $NZD in B U.S. AND CANADIAN ELECTRIC DISTRIBUTION CAPITAL EXPENDITURES For personal use only ACTUAL Canadian Muni Co-ops US
Slide 20: Where IKE sells: U.S. Market-Map of Investor-Owned Utilities
Where IKE sells: U.S. Market-Map of Investor-Owned Utilities (multi-$B companies) A huge expansion opportunity…… For personal use only ikeGPS 20
Slide 21: Plus >2,800 Municipalities and Co-Operatives
Plus >2,800 Municipalities and Co-Operatives All of which represent sales opportunities for IKE products Takeaways For personal use only • 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 prese
Slide 22: Largest Investor-Owned Utilities have standardized on IKE
8 of the 10 largest Investor-Owned Utilities have standardized on IKE IKE Lands-then-Expands Communications For personal use only Takeaways • 8 of the 10 largest Investor-Owned Utilities (“IOUs”) in North America, all multi-billion dollar businesses • >400 customers in North America, Electric Utilit
Slide 23: IKE solutions make fiber and 5G network deployments faster
IKE solutions make fiber and 5G network deployments faster For personal use only • >$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 investm
Slide 24: 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 For personal use only p.a. Avg . Capex owth in 45% Gr $72B $43B $39B 2010 2018 2025 ikeGPS 24 Source: Bell Potter Initiation of Coverage Report, GSMA, Americ
Slide 25: Some of the largest U.S. Communication groups have Standardized on IKE
Some of the largest U.S. Communication groups have Standardized on IKE And a growing footprint of tier-2 fiber businesses Communications For personal use only Takeaways • Several of the largest comms group in North America: AT&T ($107B), Crown Castle ($39B), Bell Canada ($47B) Electric Utilities • A
Slide 26: 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 For personal use only 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 A
Slide 27: Market Tailwinds Over the Coming Decades
Market Tailwinds Over the Coming Decades Requirement for harder and higher >3,200 For personal use only 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 ele
Slide 28: Today, IKE Goes to Market Directly
Today, IKE Goes to Market Directly SVP of Sales With a deepened team of segment experts For personal use only Solutions Sr. Director of VP of Utilities Engineering Sr. Account Communications Sr. GIS Lead Manager Manager Manager Generation Sales Sr. Director of Sales Sales Director, Utility Inside Sa
Slide 29: A Map-View of Usage: Crown Castle in Florida
A Map-View of Usage, and how IKE customers deploy our software Crown Castle in Florida For personal use only ikeGPS 29
Slide 30: A map-view of Usage: AT&T in 7 example States
A map-view of Usage, and how IKE customers deploy our software AT&T in 7 example States For personal use only ikeGPS 30
Slide 31: Multiple Avenues Supporting Future Growth Potential
Multiple Avenues Supporting Future Growth Potential For personal use only Sales Team Platform for International Cross Sell & 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 “Toda
Slide 32: Thanks
For personal use only Thanks ikeGPS Manaakitanga: We Rise By Lifting Others 32
Slide 33: Q&A
Q&A For personal use only 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 its customers to i