Slide 1: Measuring Up
Measuring Up IKE FY18 results. FY19 growth opportunities and guidance. 1
Slide 2: Important Notice
IMPORTANT NOTICE This presentation is given on behalf of ikeGPS Group Limited (Company Number NZ 1292732; NZX & ASX:IKE) 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 ikeG
Slide 3: Investor Calendar
INVESTOR CALENDAR Audited Financial Annual Report Annual General Statements Meeting 30 May* 30 June* 4 September* * Dates New Zealand Time 3
Slide 4: Results
Results CO ike” 4
Slide 5: Significant improvement across all key metrics
Significant improvement across all key metrics. - Recognised revenue of $7.7m, with additional deferred IKE4 revenue of $1.2m. - Approximately 37% higher recognised revenue against PCP (FY17 $5.7m) - Operating cash flow targets met. - Operating cash used in the 12 month period of $2.8m. - 69%, or $6
Slide 6: Significant improvement across all key metrics cont.
Significant improvement across all key metrics cont. - Record IKE4 sales with $5.0m revenue from a total of 476 systems (including 46 rental contracts) into the U.S. Communications and Electric Utility market, with a $1.2m additional deferred revenue from IKE4 subscriptions. - 110% system volume sal
Slide 7: Positive revenue and gross margin momentum
Positive revenue and gross margin momentum 7
Slide 8: Significantly improved net loss and operating cash profile
Significantly improved net loss and operating cash profile 8
Slide 9: Five drivers of cash generation
Five drivers of cash generation Drivers Improved Transitioned from low margin OEM sales to higher revenue quality margin & value IKE-branded products. Diversified tier-1 customer base developing. Cash accretive Momentum with enterprise-level customers. IKE4 system Accretive IKE4 Subscription Renewal
Slide 10: Positive Operating Results in FY18
Positive Operating Results in FY18 37% growth against PCP Gross Profit improvement 51% verses PCP 40%; increased IKE-branded products and services $2.4m improvement against PCP 37% improvement against PCP 10
Slide 11: Focussed OPEX and Working Capital Management
Focussed OPEX and Working Capital Management Increased volume of IKE-branded products and services OPEX reduction combined with Supply Chain efficiencies Continuing to invest in development 11
Slide 12: Outlook
Outlook CO ike” 12
Slide 13: FY19 guidance, KPI's and commentary
FY19 guidance, KPI’s and commentary Metric/factor Expectation at commencement of FY19 Revenue and gross Greater than 30% revenue growth against FY18: margin growth ❏ IKE4 revenue components to be from the delivery of a fuller solution: ❏ New IKE4 system sales ❏ Recurring subscriptions from existing
Slide 14: FY19 guidance, KPI's and commentary cont.
FY19 guidance, KPI’s and commentary cont. Metric/factor Expectation at commencement of FY19 Maximizing the revenue & A significant opportunity is in front of IKE specific to the U.S. Communications market, addressable over the profit from the opportunity coming c 48 months with respect to IKE4 sales
Slide 15: Momentum & growth opportunities
Momentum & growth opportunities A US$200B tailwind for IKE4 in the U.S Communications market 15
Slide 16: Addressing more of the 'pole' value chain
Addressing more of the ‘pole’ value chain. Short term value drivers in place via the current IKE4 solution offering… Cloud-based Specialist field tools and measurement, analysis mobile app workflow and pole management software, delivering upfront software, delivering revenue. subscription revenue. I
Slide 17: A US$200B market tailwind, being invested into fiber networks
A US$200B market tailwind, being invested into fiber networks. The majority of this deployment to be on overhead infrastructure. 17
Slide 18: Customers can deploy fiber faster with IKE4
Customers can deploy fiber faster with IKE4. 2x faster field engineering and 5x faster make-ready-engineering processes. . Actual customer productivity data from IKE4 program at one of the world’s largest communications companies. Minutes/pole: Minutes/pole: Minutes/pole: Minutes/pole: field enginee
Slide 19: High value from standardising pole data in the IKE4 cloud
High value from standardising pole data in the IKE4 cloud. The ‘pole depot’ for an asset owner or any pole project . ❏ A common standard for how pole data is captured and analyzed. ❏ A central location for multiple parties to store and access information about an asset. 19
Slide 20: A pole management system that's growing fast
A pole management system that’s growing fast. More than 3.25m pole captures have been processed to date in the IKE4 Cloud….. The IKE4 cloud today manages >3.25m pole captures, >0.8m pole records, and has up to 3,000 additional asset records added each day. 20
Slide 21: Positioned in front of the major players
Positioned in front of the major players. With line-of-sight to the growth of existing accounts and the path to winning new ones….. IKE4 customer FY18 21
Slide 22: Opportunities to introduce further solution value
Opportunities to introduce further solution value. Potential long term value drivers..... 22
Slide 23: A summary of the U.S. Communications market opportunity
A summary of the U.S. Communications market opportunity. Directly in front of IKE over the next 48 months. ❏ The US$200b fibre investment super-cycle in the U.S. provides an extraordinary market tailwind for the IKE4 solution. ❏ A bottoms-up view of ten U.S. Communications companies, engaged with IK
Slide 24: A continuing focus on the $300-500m signage market
A continuing focus on the $300-500m signage market. Via the Spike product platform. 6,000+ 150,000 6,000+ signage businesses relying on Spike every day to another 144,000 businesses to serve improve their business processes, saving time & money. 24
Slide 25: Additional option value in the large Geospatial market
Additional option value in the large Geospatial market. Via newly established product partnership with Esri and associated GIS distribution network. 25
Slide 26: Thanks
THANKS 26