Ikegps Group Ltd · NZX:IKE
Ikegps — H1 FY17 Earnings Presentation
23 slides from Ikegps's earnings presentation, Nov 16, 2016
Slide 1: ikeGPS Group Limited (NZX:IKE) Results for the six months to 30 September 2016
ikeGPS Group Limited (NZX:IKE) Results for the six months to 30 September 2016 Glenn Milnes, Managing Director & CEO Dennis Bencala, CFO 16 November 2016
Slide 2: Important Notice
Important Notice This presentation is given on behalf of ikeGPS Group Limited (Company Number NZ 1292732, NZX:IKE) Information in this Presentation: is for general information purposes only, and is not an may contain information from third parties offer or invitation for subscription, purchase, or b
Slide 3: Results
Results
Slide 4: Highlights for six months ended September 2016
Highlights for six months ended 30 September 2016 Group revenue and other income of $2.1m ($4.5m prior calendar period). Supply chain event, as previously announced to the market, has been resolved but this pushed approximately $2.8m of Stanley Smart Measure Pro revenue into 2H FY17. Operating costs
Slide 5: Operating review
Operating review Efficiency & cost reduction initiatives were implemented through 1H FY17 with the Company’s engineering cost base reduced materially following the completion and launch of several new products. Headcount at September 2016 reduced more than 25% against headcount at March 2016. Projec
Slide 6: Consolidated interim statement of profit or loss and other comprehensive income
Consolidated interim statement of profit or loss and other comprehensive income Unaudited 6 months to September 2016 Continuing operations $'000's Operating revenue 1,970 Cost of sales (902) Gross profit 1,068 Other income 114 Operations cost (466) Sales and marketing expenses (1,762) Research and e
Slide 7: Consolidated interim balance sheet
Consolidated interim balance sheet Unaudited September 2016 ASSETS $'000's Current assets Cash and cash equivalents 7,484 Trade and other receivables 1,127 Prepayments 970 Inventory 1,088 Total current assets 10,669 Non-current assets Property, plant and equipment 1,425 Intangible assets 3 4,263 Def
Slide 8: Outlook
Outlook
Slide 9: FY17 KPI's: progress update
FY17 KPI’s: progress update Metric Projected Performance Update Customer and IKE4 / Electric Utilities vertical Soft sales in 1H FY17. market growth * 50% customer growth against FY16 - Sales opportunity pipeline for 2H FY17 supports full year guidance, but some risk. Spike / Signage vertical On tra
Slide 10: Historical Year-on-Year Growth: Results after Tax
Historical Year-on-Year Growth: Results after Tax FY14 FY15 FY16 Audited Audited Audited Y-O-Y Y-O-Y FY14A Change FY15A Change FY16A $'000's $'000's $'000's 2.1x 2.3x Revenue and other income 1,884 114% 4,026 129% 9,214 Expenditure (3,600) (9,215) (17,392) EBITDA / (loss) (1,716) (5,189) (8,178) Dep
Slide 11: Mobile solutions momentum: Signage & Construction markets
Mobile solutions momentum: Signage & Construction markets • Stanley Smart Measure Pro and Construction industry • Two upgrades in 1H FY17 to 39,500 units based on orders for several European markets. • Upgraded volume guidance maintained. Manufacturing and shipping fully resumed from October. • Sign
Slide 12: IKE4 & electric utility & communications market momentum
IKE4 & electric utility & communications market momentum • Sales were soft in the 1H FY17 period, as previously advised to the market. • The IKE4 opportunity pipeline for 2H FY17 has the potential to deliver full year target of 50% growth against FY16 • These larger deals remain lumpy, the timing to
Slide 13: New vertical markets being developed
New vertical markets being developed NZ$9.2m NZ$4.03m NZ$1.9m FY14A FY15A FY16A 13
Slide 14: Product update
Product update Market & business model diversification
Slide 15: Market, product and business model expansion
Market, product and business model expansion Market / solution Business model Go-To-Market approach FY16 momentum Total Addressable Market Electric utilities Year 1 (per solution) - Direct sales & service in US. - >300 US electric utilities and $700m p a in US market / IKE4 - US$8,795 for mobile - D
Slide 16: The global requirement for electric utilities to measure & manage distribution structures is vast
The global requirement for electric utilities to measure & manage distribution structures is vast The market IKE solves a global problem (utility poles) Potential US market of c.US$700m p.a.* Global 1.24b Initial target: U.S. pole owners, those attaching to poles, and their service providers. Expand
Slide 17: The IKE4 Poles solution is end-to-end
The IKE4 Poles solution is end-to-end Unique Mobile Tool Mobile Software Cloud software • Designed from the ground-up to sense and measure poles and wires • Workflow management software • Integrates laser, camera, IMU, cellular • Measurement and modelling communications and positioning tech software
Slide 18: Spike turns your Smartphone & PC into a powerful measurement & workflow solution
Spike turns your Smartphone & PC into a powerful measurement & workflow solution Business Model BYOD – Smartphone or Tablet Free iOS or Android App Spike Device + Spike Cloud $499 (USD), Year 1 Spike Subscription up to $249 (USD), Smartphone Spike tool Spike Cloud Year 2 Mobile App Year 1 : $499 (US
Slide 19: An opportunity to dominate the $300-500m Signage market
An opportunity to dominate the $300-500m Signage market 3,500+ 150,000 3,500 signage businesses relying on Spike while we’ve won 3,500 customers in the initial every day to improve their business 18 months since launching into this market, processes and save time & money there are another 147,000 to
Slide 20: Spike has broad market opportunities in FY17 and beyond
Spike has broad market opportunities in FY17 and beyond Architecture Construction Defence Facilities Management Government Insurance Law Enforcement Real Estate Retail Sign & Graphics Utilities Strategy is to develop these new verticals based on: 1) Parallel niches to the Sign and Digital Graphics I
Slide 21: Stanley Smart Measure Pro is a retail solution with Cloud upsell
Stanley Smart Measure Pro is a retail solution with Cloud upsell Business Model ikeGPS is OEM Supplier Stanley provides strong brand with global retail distribution • Successful US launch at Lowe’s Stanley Device sold at retail during Holiday promo 2015 POS & online, $149 (USD) • Successful UK produ
Slide 22: Success in the US brings Europe market entry 2H FY17
Success in the US brings Europe market entry 2H FY17 New markets being launched in FY 17 Successful Lowes Launch in U.S. FY16 UK Germany France 22
Slide 23: Thanks
Thanks Glenn Milnes, Managing Director & CEO m: +1 720-418-1936 glenn.milnes@ikegps.com glenn.milnes@ikegps.com Dennis Bencala, CFO m: +1 408-309-4985 dennis.bencala@ikegps.com