Tantalus Systems Holding Inc · TSX:GRID
Tantalus Systems — Investor Presentation (June 2024)
33 slides from Tantalus Systems's investor presentation, June 2024
Slide 1: Investor Presentation
June, 2024 INVESTOR PRESENTATION TSX : GRID
Slide 2: Important Notice and Forward-Looking Information
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 29, 2021 refer to the Compan
Slide 3: Helping Utilities Harness the Power of Data
Helping Utilities Harness the Power of Data utilities within a dedicated channel partners connected growing user employees across to support sales devices community Canada & US growth deployed revenue revenue from annual gross as of software & recurring profit 12/31/23 services revenue margin TSX: G
Slide 4: North American electrical grid is past its life expectancy
of the North will be spent by utilities already allocated American electrical between now and 2030 through stimulus grid is past its life to address the programs that cover expectancy challenge Tantalus solutions TSX: GRID Confidential and Proprietary |
Slide 5: TSX: GRID Confidential and Proprietary |
TSX: GRID Confidential and Proprietary |
Slide 6: TSX: GRID Confidential and Proprietary |
TSX: GRID Confidential and Proprietary |
Slide 7: TRUGrid, TRUSync and TRUConnect solutions
TRUGrid Automation family of analytics solutions (including TRUGrid Transformer and TRUGrid Reliability) Applications that target specific outcomes, including restoration, voltage reduction, wildfire mitigation, and more TRUSync , which automates grid data integration across device, system or vendor
Slide 8: TRUGrid Automation Suite and TRUConnect
TRUGrid TRUConnect TRUSense TRUFlex Load & DER Automation Suite Solutions Gateway Management System Automates the integration of grid data across any device, any system or any vendor TSX: GRID Confidential and Proprietary |
Slide 9: At the intersection of electrification and grid modernization
At the intersection of the electrification of everything & grid modernization • Combines four high-value use cases • Fiber – UL Certification received • Market-leading sensing capabilities • Ethernet – ETL Certification and AFS expected end of Q2 ’24 • Leverages existing infrastructure • Cellular –
Slide 10: TSX: GRID Confidential and Proprietary |
TSX: GRID Confidential and Proprietary |
Slide 11: Protecting transformers and delivering demand-side flexibility
Protecting transformers and delivering unparalleled demand-side flexibility Rooftop Solar EV Charging Storage Smart Appliances & Devices TSX: GRID Confidential and Proprietary |
Slide 12: Potential revenue opportunity from Advisory Committee
potential revenue approximate revenue opportunity from our opportunity in our Advisory Committee qualified pipeline total addressable growth rate of market existing Tantalus business TSX: GRID Confidential and Proprietary |
Slide 13: Financial Summary
Tantalus FINANCIAL SUMMARY Through March 31, 2024
Slide 14: Deploying connected devices leads to recurring revenue over 12-15 years
Deploying connected devices leads to recurring revenue over 12 - 15 years TSX: GRID Confidential and Proprietary |
Slide 15: Higher contribution for Software & Services led to improved results
Higher contribution for Software & Services led to improved results Revenue declined by 10% over prior year due to timing of order conversions and capacity allocations with metering partners Software & Services revenue increased 7% year-over-year ARR increased 16% year-over-year 53% 47% Gross Profit
Slide 16: Driving Software & Services revenue as more devices are deployed
Driving Software & Services revenue as more Connected Devices are deployed 62% 68% 38% 53% 47% 42% 34% 72% 74% 32% 28% 23% TSX: GRID Confidential and Proprietary |
Slide 17: Improved Adjusted EBITDA while investing in TRUSense Gateway
Improved Adjusted EBITDA while investing in TRUSense Gateway Revenue increased over respective TTM periods Increased Gross Profit Margin during the TTM period to 54% 54% 47% Operating expenses include approx. $5.5M of 52% 48% investment in the TRUSense Gateway (approx. $1.8M of which are external co
Slide 18: Software & Services contributing to higher gross profit margin
Software & Services contributing to higher Gross Profit Margin percentage 63% 68% 37% 54% 47% 42% 35% 73% 74% 32% 25% 22% TSX: GRID Confidential and Proprietary |
Slide 19: Cash bolstered by collection of ARR in Q1 '24
Cash bolstered by collection of ARR in Q1 ’24 offset by working capital movement Release of restricted cash resulting from completion of a deployment requiring surety performance bond $5.4 Debt servicing costs in alignment with our plan Working Capital Items: 52% 48% • AR increased due to timing of
Slide 20: Managing working capital to support growth initiatives in 2024
Managing Working Capital to support growth initiatives in 2024 Managing Adjusted Working Capital to support ongoing operations and the anticipated launch of the TRUSense Gateway Received significant customer payments, inclusive of 2024 ARR invoice renewals, after Q1 2024 Entering Q2 ‘24 with access
Slide 21: Key initiatives for 2024
Key initiatives for 2024 • Record Q1 sales orders provide increased • Converted US$21.6M of orders from our sales • Remain on track to commercialize all three revenue visibility for 2024 pipeline representing a new corporate versions of the TRUSense Gateway through milestone the first half of the ye
Slide 22: TSX-Listed, Symbol: GRID
$2.50 $2.00 $1.50 $1.00 $0.50 $0.00 6/12/2023 7/12/2023 8/12/2023 9/12/2023 10/12/2023 11/12/2023 12/12/2023 1/12/2024 2/12/2024 3/12/2024 4/12/2024 5/12/2024 TSX-Listed, Symbol: GRID Debt (as of 03/31/24) US$11.5M Institutional Share Price (as of 6/7/24) C$1.63 Market Cap C$82.8M Beacon Securities
Slide 23: TSX: GRID Confidential and Proprietary |
TSX: GRID Confidential and Proprietary |
Slide 24: Market and Business Growth Catalysts
Market Catalysts Substantive Business Growth Catalyst Electrification of Differentiated Solutions TRUSense Gateway Everything & Grid With Growing User Provides a Compelling Modernization Community Growth Opportunity TSX: GRID Confidential and Proprietary |
Slide 25: Contact
tantalus.com deborah@adcap.ca TSX: GRID
Slide 26: Appendix
CiTantalus APPENDIX
Slide 27: TSX: GRID Confidential and Proprietary |
$45.0 $42.1 $39.6 $40.0 $35.0 $33.0 $32.2 $30.0 $25.0 $21.9 $20.0 $18.9 $16.1 $14.4 $15.0 $10.0 $5.0 $2.6 $- $0.0 2020 2021 2022 2023 $(1.7) $(2.4) -$5.0 TSX: GRID Confidential and Proprietary |
Slide 28: Recurring revenue and ARR
$30 Recurring revenue comprised of SaaS subscriptions, term-based software licenses, $25 software maintenance, technical support and hosting services $20 Growth stems from expanding our user community, commercializing data analytics tools, maintaining $15 annual service agreements and deploying addi
Slide 29: Working capital and debt overview
• Majority of ARR • Majority of accounts • Suppliers and vendors • Revolver in place since • Secured six-year term collected in Q1 to receivable insured by fund the products / 2012 (renewed in loan in June 2023, support working capital EDC components working February 2024) interest only for first 18
Slide 30: IES Program Key Themes
Key Themes for IES Program Driver for UI Use Cases Opportunity IES Program • Established by PURA as • Primary themes: • Relying on a legacy AMI • Primary use case ties to • Estimating demand-side part of the Equitable Automation, flexible system demand-side flexibility / flexibility would scale to M
Slide 31: Solutions eligible for over $400 billion stimulus funding
GRID’s solutions are eligible for stimulus funding amounting to over $400 billion GRID Program Energy Improvements ReConnect Program BEAD Program in Remote Areas $3.9B for 2022 and 2023, in what will b $3.9B for 2022 and 2023, in what will b $2B in loans and grants for broadband Broadband Equity, Ac
Slide 32: Growth of User Community
Growth of User Community • We added 5 new utility customers during Q1 ‘24 • 3.5M endpoints shipped with approximately 1.5M endpoints available with existing customers • Accessing over 30+ billion data points for power quality and customer consumption to drive data analytics tools TSX: GRID Confident
Slide 33: Continuing to increase revenue contribution from recurring revenue
Continuing to increase the revenue contribution from Recurring Revenue each year Recurring Revenue (US$M) Recurring Revenue comprised of SaaS $12.0 30% subscriptions, term-based software licenses, CAGR of 19% software maintenance, technical support and 24% Since 2016 $10.0 22% 25% hosting services 2
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