IKEGPS GROUP LIMITED — AGM Information 2018

Sep 3, 2018

IKE Annual General Meeting.

CEO presentation, Glenn Milnes.

4 September 2018.

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Table of contents

1. FY18 performance

2. IKE update

3. The growth opportunity for IKE Analyze.

Appendix

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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 for IKE’s Annual General Meeting on September 4 2018.

Information

• This presentation contains summary information about the Company and its activities which is current as at the date of this presentation. The information in this presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in the Company or that would be required in a product disclosure statement under the Financial Markets Conduct Act 2013. The historical information in this presentation is, or is based upon, information that has been released to NZX Limited (“NZX”). This presentation should be read in conjunction with the Company’s Annual Report, market releases and other periodic and continuous disclosure announcements, which are available at www.nzx.com and www.asx.com.au or https://ikegps.com/investors/.

Quotation

• Shares are quoted on the NZX Main Board and on the Australian Securities Exchange. The NZX Main Board is a licensed market under the FMCA. The Australian Securities Exchange is a licensed market under the Corporations Act 2001 (Cth). Neither NZX nor ASX accepts any responsibility for any statement in this presentation.

Not financial product advice

• This presentation is for information purposes only and is not financial or investment advice or a recommendation to acquire the Company’s securities, and has been prepared without taking into account the objectives, financial situation or needs of prospective investors. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and consult an NZX Participant, or solicitor, accountant or other professional adviser if necessary.

Past performance

• Any past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. No representations or warranties are made as to the accuracy or completeness of such information.

Future performance

• This presentation includes certain “forward-looking statements” about the Company and the environment in which the Company operates, such as indications of, and guidance on, future earnings and financial position and performance. Forward-looking information is inherently uncertain and subject to contingencies outside of the Company’s control, and no assurance can be given that actual outcomes or performance will not materially differ from the forward-looking statements.

Currency

• All currency amounts in this presentation are in NZ dollars unless stated otherwise.

• Disclaimer: To the maximum extent permitted by law, we will not be liable (whether in tort (including negligence) or otherwise) to you or any other person in relation to this presentation.

1.

FY18 financial performance

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FY18 delivered positive revenue & gross margin momentum. And a significantly improved operating cash profile.

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Positive operating results in FY18

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37% growth against PCP Gross Profit improvement 51% verses PCP 40%; increased IKE-branded products and services $2.4m improvement against PCP 37% improvement against PCP

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Focused Opex and Working Capital management

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Increased volume of IKE-branded products and services OPEX reduction combined with Supply Chain efficiencies Continuing to invest in development

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2.

IKE update

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IKE is a pole solutions company. Analyzing assets & managing distribution pole projects so that its customers can deploy networks faster.

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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.

Serving some of the biggest communications and utility businesses in the U.S. market, saving them money and improving network engineering and deployment times at each and every distribution asset.

Addressable Market in North America:

3,200 electric utility and communications companies >1,000 engineering service providers >200 million distribution assets managed across networks

Minutes/pole: Minutes/pole: Minutes/pole: Minutes/pole: field engineering field engineering Digital design and Digital design and (incumbent work (IKE) MRE engineering MRE engineering practice) (incumbent work (IKE) practice)

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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.

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Field Engineering Back Office Engineering
Minutes/pole: Minutes/pole: Minutes/pole: Minutes/pole:
field engineering field engineering Digital design and Digital design and
(incumbent work (IKE) MRE engineering MRE engineering
practice) (incumbent work (IKE)
practice)
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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.

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Impacting:

• ➢ Internal AT&T engineering resources performing aerial MRE.

• ➢ Future external aerial MRE contracts that are awarded to external engineering businesses.

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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 (48% growth against PCP).

• IKE can now lead with an end-to-end Solution offering for targeted key accounts.

• FY19 operating cash flow breakeven.

• EBITDA breakeven by Q4 FY19.

• ✓ AT&T specifies the use of IKE4 for aerial Make-Ready-Engineering.

• ✓ Operating costs continue to be tightly managed.

• Called IKE Analyze; simplistically this means the IKE solution extends to delivering data collection, pole analysis and project management.

• IKE Analyze pilot contracts have been won, including with a tier-1 electric utility.

• ✓ Cash position 30 June 2018: $1.2m.

• ✓ 86% subscription renewal rate for IKE4 customers.

• The revenue from pilot contracts is approximately $600k, being delivered over approximately 6 weeks, with the potential to grow significantly.

• ✓ Spike sales efforts focused on the development of enterprise geospatial accounts alongside Esri Inc.

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3.

The growth opportunity for IKE Analyze.

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Several macro-market factors driving sales approach. And providing a tailwind for demand for the end-to-end IKE Analyze offering.

Communications Utilities A US$200b fibre investment super-cycle in the U.S., expected to run for 10+ years. Network hardening requirements , for Regulatory Urgency to deploy networks and capture storm readiness on the east coast and fire customers. mitigation on the west coast. Joint-use mandate at federal level, meaning pole owners are required to Network deployment requires aerial makeA requirement to improve asset records via provide access. ready-engineering. digitization. FCC mandate One-Touch-Make-Ready , IKE dramatically speeds the assessment Improved asset management to underpin supporting faster deployment of fibre by and design process. continuity of power supply. communications companies and a field workflow that aligns to the IKE system. IKE dramatically speeds the assessment and design process. Specific regulations in certain States, such as GO-95 in California , placing stringent pole record requirements on asset owners.

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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 poles and aerial assets. and project data. of assets.

Analysis of assets, networks and project delivery .

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Old way

Physical measurement of poles by Hasting’s stick Written records of data manually inputted

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External engineering company
IKE Cloud resources analyze data
IKE Cloud IKE Analyze Cloud
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IKE4
(system
sale)
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IKE
Analyze
end-to
end
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Broader network management systems.

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Make Ready Engineering or Pole Loading Analysis report

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= customer resource
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An IKE Analyze example. Assuming a hypothetical customer needs to perform pole loading analysis on 50k poles over 12 months.

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IKE4 sale
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10x
10x IKE4 systems sold 10x IKE4 Cloud subscriptions sold
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• 10x IKE4 systems are sold, for ~$150k with cash received upfront.

• ▪ Ongoing subscription revenue, or ~$30k per annum.

• Purchaser of IKE undertakes the analysis of the data.

• Total revenue of 50k poles analyzed

• 50,000x generating ~$2m,

• IKE ▪ Receipt of revenue over ~12 months.

• Analyze contract ▪ Initial cost of building and supplying the IKE4 systems, and incremental working capital requirement over the initial 2-3 months. Then self funding.

• 10x IKE4 systems are provided to the asset owners 4x IKE analysts analyze the field data or external contractors to measure the poles. collected. IKE manages field planning & execution. IKE manages project delivery & success.

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IKE Analyze, in pictures.

Route planning, project management and field data collection.

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IKE Analyze, in pictures. Back office analysis and reporting.

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IKE4 & IKE Analyze;

Thanks

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Appendix.

A US$200B market tailwind for IKE in the U.S Communications industry.

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A US$200B market tailwind, being invested into fiber networks. The majority of this deployment to be on overhead infrastructure.

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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.

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• ❏ A central location for multiple parties to store and access information about an asset.

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A pole management system that’s growing fast. Close to 5m pole captures have been processed to date in the IKE Cloud…..

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And with up to 18,000 additional captures added into the system each day.

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Positioned in front of the major players.

With line-of-sight to the growth of existing accounts and the path to winning new ones…..

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IKE4 customer FY18

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