Slide 1: IKE Investor Presentation
IKE Investor Presentation. The growth opportunity for IKE via its IKE Analyze offering. Glenn Milnes, CEO & Chris Birkett, CFO. August, 2018 1
Slide 2: Table of contents
Table of contents 1. IKE update 2. IKE Analyze explained 3. The capital raise Appendix 2
Slide 3: Important Notice – Disclaimer
IMPORTANT NOTICE Disclaimer • This presentation has been prepared by ikeGPS Group Limited (Company number NZ 1292732, NZX & ASX: IKE) (the “Company”). • This presentation has been prepared in relation to the proposed placement and share purchase plan offer of fully paid ordinary shares (the “New Sha
Slide 4: IKE update
1. IKE update 4
Slide 5: IKE is a pole solutions company
IKE is a pole solutions company. Analyzing assets & managing distribution pole projects so that its customers can deploy networks faster. 5
Slide 6: Speeding up Customers Engineering Processes
Speeding up Customers Engineering Processes. 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. Today, IKE is serving some of the biggest communications and utility
Slide 7: Productivity gains by customers validate solution efficacy
Productivity gains by customers validate solution efficacy. 2x faster field engineering and 5x faster back office make-ready-engineering processes. Actual customer productivity data from IKE4 program at one of the world’s largest communications companies. Field Engineering Back Office Engineering Mi
Slide 8: FY18 delivered positive revenue & gross margin momentum
FY18 delivered positive revenue & gross margin momentum. And a significantly improved operating cash profile. 8
Slide 9: Continued progress towards the goal to be the pole record standard
Continued progress towards the goal to be the pole record standard. With AT&T now specifying the IKE standard for aerial Make-Ready-Engineering (MRE) work. Impacting: ➢ Internal AT&T engineering resources performing aerial MRE. ➢ Future external aerial MRE contracts that are awarded to external engi
Slide 10: On track with FY19 targets
On track with FY19 targets. With significant potential upside now from the new IKE Analyze offering. FY19 Guidance Progress YTD New development via IKE Analyze opportunity ▪ >30% revenue growth on FY18. ✓ Q1 revenue of approximately $1.9m ▪ IKE can now lead with an end-to-end Solution (48% growth ag
Slide 11: IKE Analyze explained
2. IKE Analyze explained 11
Slide 12: Several macro-market factors
Several macro-market factors. Providing a tailwind for demand for an end-to-end IKE Analyze offering. Communications A US$200b fibre investment super-cycle in Utilities the U.S., expected to run for 10+ years. Network hardening requirements, for storm Regulatory Urgency to deploy networks and captur
Slide 13: Participation in the value chain
Participation in the value chain. And how the IKE Analyze solution enables IKE to capture a far larger share of the value it creates. Field assessment of Compilation of network Measurement Analysis of assets, networks poles and aerial assets. and project data. of assets. and project delivery . Broad
Slide 14: An IKE Analyze example
An IKE Analyze example. Assuming a hypothetical customer needs to perform pole loading analysis on 50k poles over 12 months. ▪ 10x IKE4 systems are sold, 10x for ~$150k with cash received upfront. IKE4 sale ▪ Ongoing subscription revenue, or ~$30k per annum. Purchaser of IKE undertakes the analysis
Slide 15: The capital raise
3. The capital raise 15
Slide 16: Overview of the capital raise
Overview of the capital raise. Via an underwritten placement and a share purchase plan. ▪ IKE is undertaking a NZ$5 million placement (the “Placement”). It is intended that this will be underwritten by Forsyth Barr Group Limited. ▪ The Placement price has been set at NZ$0.52 per share equating to a
Slide 17: Use of proceeds
Use of proceeds. Capital raised is expected to enable IKE to pursue growth opportunities, adding value to shareholders. ▪ Proceeds from the capital raise will bolster IKE’s working capital position for a number of potentially significant contracts that the business is targeting or in the initial sta
Slide 18: Timetable
Timetable. Trading halt on NZX and ASX 24 August Capital raising announced 24 August Undertake placement 24 August Announce completion and resume trading 24 August Settlement on the NZX [and ASX] 29 August Allotment and trading of shares on NZX and ASX 29 August Share purchase plan begins Indicative
Slide 19: Thanks
IKE4 & IKE Analyze; For communications companies, electric utilities and engineering service providers. Whose operating concerns are: - Increasing velocity of deployment. - Improving network and data quality. - Keeping crews out of harm's way. - Meeting the demands of regulators. p29
Slide 20: Appendix
Appendix. A US$200B market tailwind for IKE in the U.S Communications industry. 20
Slide 21: 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. 21
Slide 22: 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. 22
Slide 23: A pole management system that's growing fast
A pole management system that’s growing fast. Close to 5m pole captures have been processed to date in the IKE Cloud….. And with up to 18,000 additional captures added into the system each day. 23
Slide 24: 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 24