Slide 1: Investor Presentation
Investor Presentation August 2024 CMG: TSX Computer Modelling Group Ltd. Market Capitalization (at June 28, 2024) $1.1B 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 subsurface problems
We provide solutions to solve some of the world's most $82.4M FY24 Total Software Revenue complex subsurface problems Computer Modelling Group (“CMG”) is a leading provider of reservoir simulation software to energy companies globally. Our software supports our customers in the optimization and de-r
Slide 4: Over 40 years of science, innovation, and technical expertise
Over 40 years of science, CMG 4.0 Announced • Accelerate software revenue with leading sales innovation, and technical organization CMG introduced Machine Learning Optimization technology CMOST TM • Strengthen leadership in energy transition expertise • Machine learning workflow to optimize simulati
Slide 5: Why CMG
Global brand recognition underpinned by 40+ years of reservoir simulation software development and best-in-class training and support Attractive Annual Recurring Revenue profile that is diversifying with energy transition use cases and acquisitions Why CMG Compelling operating margins; history of st
Slide 6: 40+ Years of Expertise, Trusted Globally
40+ Years of Expertise, Trusted Globally Split of Total Software Revenue Globally – FY24 100% (Percent of total software revenue) of the Super Majors 90% Canada 16% of the top-10 National Oil Companies United States Eastern Hemisphere1 75% 46% of the world’s top-25 largest oil 25% companies South Am
Slide 7: Attractive Recurring Revenue Profile that Continues to Diversify
Attractive Recurring Revenue Profile that Continues to Diversify 71% Recurring Revenue1 (FY24) Revenue Attributable to Energy Transition BHV Recurring Software Revenue (% of Total Revenue) (% of Total CMG Operating Segment Software Revenue) ($Ms Trailing Twelve Months) Software Revenue 28% BHV Opera
Slide 8: A Long History of Profitability Driving Free Cash Flow
A Long History of Profitability Driving Free Cash Flow CMG Operating Segment Free Cash Flow1 Adj Operating Profit1,2 ($M) ($M) (Adj Operating Profit Margin as a % of Revenue) +44% +38% $39.5 $35.3M $33.1 $28.6 $27.7 $24.5M 42% 42% 45% 45% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 1 See Non-IFRS Measur
Slide 9: CMG 4.0 - A New Paradigm of Capital Allocation
CMG 4.0 - A New Paradigm of Capital Allocation FY24 Change in Cash Cash Existing Operations FY 2024 ($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 10: Expanding Portfolio Resulting in Two Operating Segments
Expanding Portfolio Resulting in Two Operating Segments CMG CORE Segmented Financial Performance BHV (BLUWARE) FY24 • Strong brand recognition and industry FY24 Sept 23 – Mar 24 • AI/machine learning technology for seismic reputation; 40+ years of reservoir simulation interpretation software develop
Slide 11: CMG 4.0 Strategy
CMG 4.0 Strategy Simulation Technology to Advance Decisions 11
Slide 12: 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 13: CMG 4.0 Strategy – Growth Levers and Progress
CMG 4.0 Strategy – Growth Levers and Progress Accelerate software revenue with leading sales organization Multiple levers for organic growth Inorganic growth opportunities • Shift to customer segmentation and value-based pricing • Solution strategy and market-driven roadmap • Broaden geographical re
Slide 14: CMG 4.0 Acquisition Strategy
CMG 4.0 Acquisition Strategy The upstream workflow provides strategic opportunities within the energy market Log/Core Wellbore Data Acquisition Drilling Planning Fluid Analysis Economic Modelling Analysis Modelling Geomodels & Drilling Facilities Financial & Regulatory Processing Geomechanics Realiz
Slide 15: Expertise to Deliver
Expertise to Deliver Senior Management Core Leadership and Operating Team Pramod Jain, Chief Executive Officer Sandra Balic, Chief Financial Officer Joined 2022 Joined 2009 15+ years international leadership experience focused 15+ years experience in accounting Mohammad Khalaf, Head of Corporate on
Slide 16: CMG Operating Segment
CMG Operating Segment Simulation Technology to Advance Decisions 16
Slide 17: CMG Segment First Quarter Financial Highlights
CMG Segment First Quarter Financial Highlights Total Revenue Revenue Split Q1’2025 ($Ms CAD) (Percent of Revenue) +12% Revenue Split $23.3 $23.1 Annuity/maintenance licenses 77% $22.0 $21.8 $20.7 Professional services 14% Perpetual licenses 9% Levers for Growth • Accelerate software revenue with Sof
Slide 18: CMG Segment Quarter over Quarter Performance
CMG Segment Quarter over Quarter Performance Total Software Revenue Operating Profit Adjusted EBITDA1 ($Ms CAD) ($Ms CAD) ($Ms CAD) +14% $20.0 $19.9 $10.6 $9.8 $9.9 $9.7 $9.6 $9.4 $7.7 $7.9 $18.6 $18.2 $6.2 $5.9 $17.5 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24 Q4/2
Slide 19: 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 20: 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 21: 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 22: CMG – Net Promoter Score (NPS)
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 23: 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 24: CMG's technology addresses the energy transition needs of our 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 25: 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 26: BHV Operating Segment
BHV Operating Segment Simulation Technology to Advance Decisions 26
Slide 27: BHV Segment First Quarter Financial Highlights
BHV Segment First Quarter Financial Highlights Quarterly Financial Highlights Revenue Split ($Ms CAD) Q3’24 Q4’24 Q1’25 Trailing 9 months ending June 30th, 2024 Percent of Revenue BHV Revenue Mix $11.2M BHV revenue recognition is heavily Annuity/Maintenance 16% $9.0M weighted to Q3/Q4 of Annuity Lic
Slide 28: Bluware InteractivAI Improving Decision Making
Bluware InteractivAITM Improving Decision Making As a structural geologist, my job is to be fussy about the tectonic viability of fault interpretation, and therefore I used to be rather critical about AI supported fault identification. InteractivAI, however, allows me to remain in the driver's seat,
Slide 29: Bluware is Transforming Seismic Interpretation Workflows in Cloud
Bluware is Transforming Seismic Interpretation Workflows in Cloud VDSTM Cloud-Native FASTTM Seismic InteractivAITM Deep Learning Data Format Data Streaming Seismic Interpretation Tool • Compress seismic data that is adaptable and • Stream VDS data from the cloud to existing • Reduce overall interpre
Slide 30: Bluware's VDS Technology Enables Scalability in the Cloud
Bluware’s VDS Technology Enables Scalability in the Cloud VDS compresses raw and interpreted seismic data sets, making them adaptable and scalable, giving the advantages of fast data access, cost-effective cloud storage, and compute-intensive workflows. CLOUD READY Architecture is serverless and sim
Slide 31: Financials
Financials Simulation Technology to Advance Decisions 31
Slide 32: Summary of Financial Performance
Summary of Financial Performance CMG BHV Consolidated Three months ended June 30, 2024 2023 2024 2023 2024 2023 ($ thousands, except per share data) Annuity/maintenance software licenses 17,757 15,607 1,578 - 19,335 15,607 Annuity license fee - - 178 - 178 - Perpetual software licenses 2,110 1,849 -
Slide 33: Reconciliation of Non-IFRS to IFRS Financial Measures
Reconciliation of Non-IFRS to IFRS Financial Measures Reconciliation of Adjusted EBITDA1 to Net Income Three months ended June 30, 2024 CMG BHV Consolidated ($ thousands, except per share data) 2024 2023 2024 2023 2024 2023 Net income 5,365 6,904 (1,401) - 3,964 6,904 Add (deduct): - Depreciation an
Slide 34: Reconciliation of Non-IFRS to IFRS Financial Measures
Reconciliation of Non-IFRS to IFRS Financial Measures Reconciliation of Operating Profit to Adjusted Operating Profit1 CMG Operating Segment ($ thousands, unless otherwise stated) 2021 2022 2023 2024 Operating profit 30,565 26,080 25,860 31,145 Acquisition related expenses - - - 719 Amortization of
Slide 35: 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 35