Slide 1: Investor Presentation
Investor Presentation November 2024 CMG: TSX Computer Modelling Group Ltd. Market Capitalization (at Nov 8th, 2024) $1.0B FY 2024 Revenue $108.7M FY 2024 Adjusted EBITDA1 $43.2M FY 2024 FCF/Share1 $0.44/Share 1 See Non-IFRS Measures Simulation Technology to Advance Decisions ‹#› 1
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation contains "forward-looking statements". Forward-looking statements can be identified by words such as: "anticipate", "intend", "plan", "goal", "seek", "believe", "project", "estimate", "expect", "strategy", "future", "likely", "may", "should", "will", and
Slide 3: We provide solutions to solve some of the world's most complex problems
We provide solutions to solve some of the world's most complex $88.3M TTM1 Total Software Revenue surface and subsurface problems Computer Modelling Group (“CMG”) is a leading provider of reservoir simulation software to energy companies globally. Our software supports our customers in the optimizat
Slide 4: Over 40 years of science, innovation, and technical expertise
Over 40 years of science, CMG 4.0 Announced • Accelerate software revenue with leading sales innovation, and technical organization CMG introduced Machine Learning Optimization technology CMOST TM • Strengthen leadership in energy transition expertise • Machine learning workflow to optimize simulati
Slide 5: Why CMG
Global brand recognition underpinned by 40+ years of reservoir simulation software development and best-in-class training and support Attractive Annual Recurring Revenue profile that is diversifying with energy transition use cases and acquisitions Why CMG Compelling operating margins; history of st
Slide 6: 40+ Years of Expertise, Trusted Globally
40+ Years of Expertise, Trusted Globally Split of Total Software Revenue Globally – FY24 100% (Percent of total software revenue) of the Super Majors 90% Canada 16% of the top-10 National Oil Companies United States Eastern Hemisphere1 75% 46% of the world’s top-25 largest oil 25% companies South Am
Slide 7: Attractive Recurring Revenue Profile that Continues to Diversify
Attractive Recurring Revenue Profile that Continues to Diversify 65% Recurring Revenue1 (TTM2) Revenue Attributable to Energy Transition BHV Recurring Software Revenue (% of Total Revenue) (% of Total CMG Operating Segment Software Revenue) ($Ms Trailing Twelve Months) BHV Operating Segment 28% Soft
Slide 8: CMG 4.0 - A New Paradigm of Capital Allocation
CMG 4.0 - A New Paradigm of Capital Allocation FY24 Change in Cash Cash Existing Operations FY 2024 ($Ms CAD) Generation CMG generates strong free cash flow 94% $35.2M 1 with low capital intensity Replenishment of cash into FY254 Free Cash Flow1 $38.3M ($0.7M) ($2.4M) Capital Organic Growth Allocati
Slide 9: CMG 4.0 Strategy
CMG 4.0 Strategy Simulation Technology to Advance Decisions 9
Slide 10: CMG 4.0 Strategy – Announced late 2022
CMG 4.0 Strategy – Announced late 2022 Preserve long-term, per share profitability while driving growth and Free Cash Flow1 both organically and through acquisitions Growth Profitability Acquisitions CMG 4.0 Strategy, announced in 2022, is With a durable recurring revenue model Prudently invest exce
Slide 11: CMG 4.0 Strategy – Growth Levers
CMG 4.0 Strategy – Growth Levers Accelerate software revenue with leading sales organization • Shift to customer segmentation and value-based pricing Inorganic growth opportunities • Solution strategy and market-driven roadmap • Broaden geographical reach and market penetration • Enhanced marketing
Slide 12: Sharp Reflections Acquired November 2024
Sharp Reflections Acquired November 2024 The industry’s first HPC platform for seismic visualization, processing, and interpretation €10.0M Low double digit Revenue1 Adjusted EBITDA Margin1,2 LTM to July 2024 LTM to July 2024 Sharp Reflection and Fraunhofer Institute developed new software solution
Slide 13: CMG 4.0 Acquisition Strategy
CMG 4.0 Acquisition Strategy The upstream workflow provides strategic acquisition opportunities to expand solution offering within Acquisition the energy market Processing Azimuthal • Bluware (acquired September 2023) Inversion • Sharp (acquired November 2024) Quantitative Interpretation Inversion A
Slide 14: Expertise to Deliver
Expertise to Deliver Senior Management Core Leadership and Operating Team Pramod Jain, Chief Executive Officer Joined 2022 15+ years international leadership experience focused Mohammad Khalaf, Head of Corporate on corporate growth & innovation. Proven track record Long Nghiem, VP Innovation Lab Dev
Slide 15: CMG Operating Segment
CMG Operating Segment Simulation Technology to Advance Decisions 15
Slide 16: CMG Segment Second Quarter Financial Highlights
CMG Segment Second Quarter Financial Highlights Total Revenue Revenue Split Q2’2025 ($Ms CAD) (Percent of Revenue) $23.3 $23.2 Revenue Split $22.0 $21.8 $22.3 Annuity/maintenance licenses 75% Professional services 15% Perpetual licenses 10% Levers for Growth • Accelerate software revenue with Softwa
Slide 17: CMG Operating Segment Addressable Market
CMG Operating Segment Addressable Market Global Reservoir Simulation Market1 The global simulation market is expanding, leaving a runway to growth in CMG’s Core Business $1B Estimated $1B Global Reservoir Simulation Market Through 2030 ` CMG FY 2024 Revenue $87.9M Unconventional, Reservoir Simulatio
Slide 18: Scalable and Extensible Workflow Tailored to a Variety of Industrial Applications
Scalable and Extensible Workflow Tailored to a Variety of Industrial Applications Adaptable capabilities for a variety of industry User applications Infrastructure Solutions Experience Conventional IMEX CoFlow Heavy Oil STARS Desktop Unconventional On Premise Private Cloud Applications CMOST Web Hyb
Slide 19: Comprehensive Simulation Workflow for Every Stage of an Assets Lifecycle
Comprehensive Simulation Workflow for Every Stage of an Assets Lifecycle GEOLOGICAL DATA Seamlessly integrate seismic, log, & core data from other geomodelling platforms or proprietary databases SIMULATION MODEL GEOLOGICAL DATA SIMULATION MODELLING SENSITIVITY ANALYSIS Dynamically model how operatio
Slide 20: CMG – Net Promoter Score (NPS) 68
CMG – Net Promoter Score (NPS) 68 (B2B Software Average 41%) Long-running customer base with a focus on customer centricity IRS ONGC We have observed a significant improvement over the time IRS ONGC has been using CMG software for reservoir we have used CMG technology. Our model, being a giant simul
Slide 21: CMG Diversifying through Energy Transition
CMG Diversifying through Energy Transition With a 20+ year history in Carbon Capture & Storage (CCS) CMG leads the market in carbon sequestration simulation • CMG's existing software suite is currently the market leader for carbon sequestration simulation and has strong applications in geothermal an
Slide 22: CMG's technology addresses the energy transition needs of customers
CMG’s technology has differentiating capabilities, built CMG has Forged Strategic Partnerships with Global over decades, that can directly Leaders in Energy Transition Innovation address the energy transition needs of our customers. Energy Transition Carbon Capture & Hydrogen Geothermal Storage C02
Slide 23: Anticipated Growth in CO2 Storage Requires Subsurface Simulation
Anticipated Growth in CO2 Storage Requires Subsurface Simulation Strong Growth Anticipated in CO2 Capture Projects Rate of geological storage resource development must Capacity of large-scale CO2 capture projects, accelerate rapidly to achieve net-zero targets current and planned 2020 - 2030 +79% 30
Slide 24: BHV Operating Segment
BHV Operating Segment Simulation Technology to Advance Decisions 24
Slide 25: BHV Segment Quarterly Revenue Trends
BHV Segment Quarterly Revenue Trends Quarterly Financial Highlights Revenue Split ($Ms CAD) Trailing Twelve Months ended September 30, 2024 $6.2 $6.1 $5.6 $5.6 BHV software revenue recognition is weighted to Q3/Q4 of each fiscal year BHV Revenue Mix Annuity/Maintenance 18% $3.8 Annuity License Fee 1
Slide 26: Bluware InteractivAI Improving Decision Making
Bluware InteractivAITM Improving Decision Making As a structural geologist, my job is to be fussy about the tectonic viability of fault interpretation, and therefore I used to be rather critical about AI supported fault identification. InteractivAI, however, allows me to remain in the driver's seat,
Slide 27: Bluware is Transforming Seismic Interpretation Workflows in Cloud
Bluware is Transforming Seismic Interpretation Workflows in Cloud VDSTM Cloud-Native FASTTM Seismic InteractivAITM Deep Learning Data Format Data Streaming Seismic Interpretation Tool • Compress seismic data that is adaptable and • Stream VDS data from the cloud to existing • Reduce overall interpre
Slide 28: Financials
Financials Simulation Technology to Advance Decisions 28
Slide 29: Summary of Financial Performance
Summary of Financial Performance CMG BHV Consolidated Three months ended September 30, 2024 2023 2024 2023 2024 2023 ($ thousands, except per share data) Annuity/maintenance licenses 16,794 17,441 1,508 169 18,302 17,610 Annuity license fee - - 71 - 71 - Perpetual licenses 2,149 1,176 - - 2,149 1,17
Slide 30: Reconciliation of Non-IFRS to IFRS Financial Measures
Reconciliation of Non-IFRS to IFRS Financial Measures Reconciliation of Adjusted EBITDA1 to Net Income CMG BHV Consolidated Three months ended September 30, 2024 2023 2024 2023 2024 2023 ($ thousands) Net income (loss) 4,630 6,423 (867) 93 3,763 6,516 Add (deduct): Depreciation and amortization 1,53
Slide 31: Reconciliation of Non-IFRS to IFRS Financial Measures
Reconciliation of Non-IFRS to IFRS Financial Measures Reconciliation of Free Cash Flow1 to Funds Flow from Operations Fiscal 2023 Fiscal 2024 Fiscal 2025 ($ thousands, unless otherwise stated) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Funds flow from operations 8,169 7,656 7,920 11,491 8,477 10,367 6,515 7,101 Capita
Slide 32: Offices
OFFICES Global Head Office Calgary, Canada Regional Offices Houston, United States Bogota, Colombia Rio de Janeiro, Brazil Bengaluru, India Dubai, UAE Oxford, UK Kuala Lumpur, Malaysia Oslo, Norway Simulation Technology to Advance Decisions 32