Tantalus Systems Holding Inc · TSX:GRID
Tantalus Systems — Investor Presentation (March 2025)
34 slides from Tantalus Systems's investor presentation, March 2025
Slide 1: Modernize the Grid by Harnessing the Power of Data
TANTALUS.COM MARCH 2025 MODERNIZE THE GRID BY HARNESSING THE POWER OF DATA CORPORATE PRESENTATION TSX:GRID, OTCQX:TNTLF
Slide 2: Legal Notice and Disclaimer
Legal Notice and Disclaimer IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING. The information contained in this presentation has been prepared by Tantalus Systems Holding Inc. (the “Company”) for information purposes only. References to “Tantalus” or the Company for periods prior to January
Slide 3: Well-Positioned to Modernize the Distribution Grid
Well-Positioned to Modernize the Distribution Grid Helping Utilities Harness the Power of Data 310+ 130+ 20+ 3.5M PURPOSE Dedicated Channel Utilities within a Connected employees partners to growing user devices across Canada support sales community deployed & US growth SCALABILITY US$42M+ ~35% US$1
Slide 4: Drivers Creating Urgency For Utilities
Drivers Creating Urgency For Utilities Any one of these mega-trends poses immediate and massive problems that have to be dealt with now Extreme Weather Electrification of Everything • 133% Increase in weather + • Demand for electricity in US climate disasters from 2010-20 could double by 2050 • 28 d
Slide 5: Emerging Problems
Emerging Problems Utilities facing issues resulting from the mega-trends Addressing Supply/ Reducing Risk of Managing Demand Imbalance Power Outages Grid Data Increased EV adoption, the greater electrification of society Power outages cost the Utilities struggling to harness and the decarbonization
Slide 6: Additional Growth of Electric Demand
Additional Growth of Electric Demand Distribution grid under further stress as utilities are expected to deliver more power Power Consumption Nationwide power consumption is projected to rise by at least 38 gigawatts between now and 2028. Electrification EV adoption and home and industrial electrifi
Slide 7: The Grid Modernization Mandate is Massive
The Grid Modernization Mandate is Massive 60% $2T $500B of the North will be spent by already allocated American electrical utilities between now through stimulus grid is past its life and 2030 to address programs that cover expectancy the challenge Tantalus solutions TSX:GRID, OTCQX:TNTLF Confident
Slide 8: A Technology Platform that Delivers Grid Modernization
A Technology Platform that Delivers Grid Modernization The Tantalus Grid Modernization Platform Analytics TRUGrid Automation family of analytics solutions (including TRUGrid Transformer and TRUGrid Reliability) Applications Applications that target specific outcomes, including restoration, voltage r
Slide 9: A Unified Set of Solutions to Accelerate Modernization
A Unified Set of Solutions to Accelerate Modernization Substation-to-Meter Grid Edge Behind-the-Meter (Traditional Areas of Focus for Utilities) (Extending the "Grid Edge") Substation Distribution Meter Smart Home In-Home Distributed Feeder Appliances Energy Resources & EV Chargers TRUGrid Automatio
Slide 10: Customer's Journey to Grid Modernization
Customer’s Journey to Grid Modernization One platform. Multiple entry points. Substation to Meter: Grid Edge: Access to data + Behind the Meter: Leveraging every Balance and managing supply/demand command and control available device of electricity In-Home Distributed Distribution Smart Home Energy
Slide 11: Future Vision: TRUSync Grid Data Management
Future Vision: TRUSync Grid Data Management Tantalus has an early lead in this massive long-term market opportunity You can’t fully modernize the grid without truly interoperable data. The demand for grid data management is in its early stages. Some utilities—primarily IOUs—have already started on t
Slide 12: Tantalus Grid Modernization Provides the Solutions
Tantalus Grid Modernization Provides the Solutions The Tantalus Grid Modernization Platform addresses multiple issues facing utilities Addressing Supply/ Reducing Risk of Managing Demand Imbalance Power Outages Grid Data TRUFlex Load & DER TRUGrid TRUSync Grid Data Management System Automation Suite
Slide 13: Summary of the TRUSense Gateway
Summary of the TRUSense Gateway
Slide 14: Building Momentum Through the TRUSense Gateway
Building Momentum Through the TRUSense Gateway At the intersection of the electrification of everything & grid modernization First-Mover Advantage Major Milestones/Timelines • Combines four high-value use cases • Fiber – UL Certification received • Market-leading sensing capabilities • Ethernet – UL
Slide 15: TRUSense Gateway: Extending the Edge of the Grid
TRUSense Gateway : Extending the Edge of the Grid Summary TRUSense Gateway is referred to as a meter socket device Retrofits into any existing residential electric meter socket (ANSI-based) Supports any existing ANSI meter Versatile to help utilities accelerate grid modernization with existing infra
Slide 16: Extending the Edge of the Grid
Extending the Edge of the Grid Protecting transformers and delivering unparalleled demand-side flexibility Rooftop Solar EV Charging Storage Smart Appliances & Devices TSX:GRID, OTCQX:TNTLF Confidential and Proprietary | Page 16
Slide 17: TRUSense Gateway Provides a Compelling Growth Catalyst
TRUSense Gateway Provides a Compelling Growth Catalyst $150M $350M potential revenue approximate revenue opportunity from our opportunity in our Advisory Committee qualified pipeline $10B 10-15% total addressable growth rate of existing market Tantalus business TSX:GRID, OTCQX:TNTLF Confidential and
Slide 18: Financial Summary
FINANCIAL SUMMARY Through September 30, 2024
Slide 19: How Tantalus Generates Revenue
How Tantalus Generates Revenue Deploying connected devices leads to recurring revenue over 12 – 15 years Recurring Software Maintenance & SaaS Subscriptions (Data Analytics) Software & Perpetual Software Analytics License Annual Technical Support Agreements Professional Deployment / Project Manageme
Slide 20: Increasing Annual Recurring Revenue Growth
Increasing Annual Recurring Revenue Growth Continuing to increase the revenue contribution from Recurring Revenue each year Recurring Revenue (US$M) Recurring Revenue is comprised of SaaS and other $12.0 30% subscriptions, term-based software licenses, software CAGR of 19% Since 2016 24% maintenance
Slide 21: Q3'24 Income Statement Summary
Q3’24 Income Statement Summary Continuing to invest in the commercialization of the TRUSense Gateway Revenue grew 14% over the prior year A favorable product mix and strong contributions from Software & Services led to strong Gross Profit Margin Operating expenses included approx. $1.1M of investmen
Slide 22: Q3'24 Revenue Contribution & Gross Profit Margin Summary
Q3’24 Revenue Contribution & Gross Profit Margin Summary Favorable trajectory tied to product mix and prudent supply chain management 62% 68% 38% 32% 28% 23% 53% 47% 42% 34% 72% 74% 65% 69% 35% 31% 24% 18% 51% 45% 41% 33% 70% 73% 62% 63% 38% 37% 29% 25% 56% 53% 41% 44% 81% 70% 35% 24% 55% 23% 44% 74
Slide 23: Q3'24 TTM Income Statement Summary
Q3’24 TTM Income Statement Summary Continuing to trend towards positive Adjusted EBITDA and Net Income Q3 ‘23 TTM revenue heavily influenced by a record result in Q4 ‘22 which was due to pent-up demand following pandemic and electronic component shortages Increased Gross Profit Margin tied to favora
Slide 24: Q3'24 Balance Sheet Summary
Q3’24 Balance Sheet Summary Balance Sheet provides ample flexibility to scale Adjusted Working Capital remained consistent with the prior quarter Q3 ‘24 cash balance is historically impacted by the timing of customer payments for ARR and deferred revenue Currently have $4.8M of availability under ou
Slide 25: Capitalization Overview
Capitalization Overview $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 2/20/2024 3/11/2024 4/1/2024 4/19/2024 5/9/2024 5/30/2024 6/19/2024 7/10/2024 7/30/2024 8/20/2024 9/10/2024 9/30/2024 10/21/2024 11/8/2024 11/28/2024 12/18/2024 1/10/2025 1/30/2025 2/20/2025 TSX-Listed, Symbol: GRID Debt (as of 09/30/24) US
Slide 26: Management
Executive Leadership Team Management Peter Londa Azim Lalani Christopher Allen Michael Grandis Michael Julian Doug Campbell Tom Allen CEO & Board Member CFO COO & EVP Chief Legal & CRO CSO EVP, Product Solution Strategy Administrative Officer Development Board of Directors Laura Formusa Dr. Francis
Slide 27: Why Invest in Tantalus?
Why Invest in Tantalus? Market Catalysts Substantive Business Growth Catalyst Electrification of Everything Differentiated Solutions With TRUSense Gateway Provides & Grid Modernization Growing User Community a Compelling Growth Opportunity TSX:GRID, OTCQX:TNTLF Confidential and Proprietary | Page 27
Slide 28: Questions?
QUESTIONS? tantalus.com deborah@adcap.ca TSX:GRID, OTCQX:TNTLF
Slide 29: Appendix
©)Tantalus APPENDIX
Slide 30: Building Momentum for GRID
Building Momentum for GRID Annual Financial Performance (US$M) $45.0 $42.1 Revenue $39.6 $40.0 Gross Profit $35.0 $33.0 $32.2 Adjusted EBITDA $30.0 $25.0 Note: Gross Profit Margin $21.9 percentage is reflected as a % $20.0 $18.9 of total revenue. $16.1 $14.4 $15.0 $10.0 $5.0 $2.6 $- $0.0 2020 2021 2
Slide 31: Balance Sheet & Working Capital Management
Balance Sheet & Working Capital Management Annual Cash Inventory Comerica EDC Term Loan Recurring Management Management Debt Facility Revenue • Majority of ARR • Majority of accounts • Suppliers and vendors • Revolver in place since • Secured six-year term collected in Q1 to receivable insured by fu
Slide 32: Elements of the Grid Modernization Initiative (GMI)
Elements of the Grid Modernization Initiative (GMI) The MODERN GRID must have: Enhanced SECURITY from Greater RESILIENCY to Improved RELIABILITY for an increasing and evolving hazards of all types everyday operations number of threats Additional AFFORDABILITY Superior FLEXIBILITY to Increased SUSTAI
Slide 33: TRUSense Gateway Use Case: United Illuminating (UI)
TRUSense Gateway Use Case: United Illuminating (UI) Key Themes for IES Program Driver for UI Use Cases Opportunity IES Program • Established by PURA as part • Primary themes: • Relying on a legacy AMI • Primary use case ties to • Estimating demand-side of the Equitable Modern Grid Automation, flexib
Slide 34: Stimulus Funding Delivers a Unique Growth Opportunity
Stimulus Funding Delivers a Unique Growth Opportunity GRID’s solutions are eligible for stimulus funding amounting to over $400 billion GRID Program Energy Improvements in Reconnect Program BEAD Program Remote Areas $3.9B for 2022 and 2023, in what will $3.9B for 2022 and 2023, in what will Broadban
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