IKEGPS GROUP LIMITED — AGM Information 2019

Sep 5, 2019

IKE Update & 1H FY20 Performance Outlook Significant Growth Opportunity in the U.S. Communications & Electric Utility market

CEO Presentation; Glenn Milnes Annual General Meeting, 6 September 2019.

==> picture [60 x 22] intentionally omitted <==

Important Notice

Information in this Presentation:

• ➕ is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in ikeGPS Limited;

• ➕ should be read in conjunction with, and is subject to, ike’s FY19 financial statements, market releases, and information published on ike’s website (www.ikegps.com);

• ➕ includes forward-looking statements about ike and the environment in which ike operates, which are subject to uncertainties and contingencies outside of ike’s control – ike’s actual results or performance may differ materially from these statements;

• ➕ includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; and

• ➕ may contain information from third parties believed to be reliable – however, no representations or warranties are made as to the accuracy or completeness of such information.

• ➕ All information in this presentation is current at the date of this presentation, unless otherwise stated.

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

Receipt of this Document and/or attendance at this presentation constitutes acceptance of the terms set out above in this Important Notice.

==> picture [585 x 12] intentionally omitted <==

2

Executive Summary

• ﹢ Financial performance momentum.

• ﹢ Transition over past 12 months to >70% of revenue from ongoing transaction or subscription sources.

• ﹢ Forecast approximately EBITDA breakeven Q2 FY20, now achieved for prior 5 months.

• ﹢ Forecast Total Cash & Receivables breakeven 1H FY20.

• ﹢ Record revenue 1H FY20 of approximately $5.0m.

• ﹢ Record gross margin 1H FY20.

• ﹢ Three large markets being addressed specific to Communications and Electric Utilities in North America. Optimal market timing in two of these. ﹢ Multiple customer proof points.

• ﹢ Eight of largest 15 Comms & Cable companies in the U.S. All West Coast investor-owned utilities.

• ﹢ Account acceleration opportunities.

• ﹢ Exponential growth in platform utilisation.

• ﹢ Operating momentum.

• ﹢ Sales Pipeline. Brand. Customer Experience. Process efficiency.

• ﹢ The right people.

• ﹢ Leadership and pole expertise to lead the marketplace.

3

Positive shift in revenue composition.

Takeaways:

• ➕ IKE’s total revenue mix has shifted materially the past 12 months. Greater than 70% of revenue is expected from transaction & recurring sources in FY20 (shown by the blue bar in the chart).

• ➕ This is an important transition in terms of increasing revenue quality and predictability to underpin growth.

• ➕ Noting that 2H FY19 represented the launch of IKE Analyze, which delivers a lower upfront revenue component but a higher long term revenue profile per customer.

• ➕ Record total revenue of approximately $5.0m achieved 1H FY20.

Comms and Utilities Segment.

Revenue mixTransition by ½ year

==> picture [585 x 12] intentionally omitted <==

4

Growth in the core Communications & Utilities segment.

Takeaways:

• ➕ The expansion of the IKE Analyze product is driving revenue and gross margin growth.

• ➕ Forecast for record revenue from the Communications & Utility segment of approximately $4.5m in 1H FY20, continuing the positive performance trend of the past 24+ months.

• ➕ High customer retention rates exceeding 90% have supported subscription revenue growth.

• ➕ The above factors have translated to gross margin percentage growth from 51% in FY18 to forecast for greater than 70% 1H FY20F.

==> picture [262 x 223] intentionally omitted <==

==> picture [585 x 12] intentionally omitted <==

5

Accessing larger account opportunities via IKE Analyze.

Takeaways:

• ➕ IKE is accessing increasingly large and long-term account opportunities via IKE Analyze.

• ➕ A typical IKE Analyze account delivers transaction & subscription revenue on an ongoing basis.

• ➕ IKE’s sales run rate has been adding approximately five Engineering Service Providers and approximately one Communications Infrastructure Owner per quarter.

==> picture [262 x 224] intentionally omitted <==

==> picture [585 x 12] intentionally omitted <==

6

Takeaways:

• ➕ The positive momentum of the past 24 months has continued through 1H FY20 with respect to revenue, gross profit, and EBITDA growth.

• ➕ Forecast for approximately EBITDA breakeven Q2 FY20 (for the period ending September 2019), noting that both May and June 2019 were also EBITDA positive. ➕ Forecast for Total Cash & Receivables to be approximately equal to the level 31 March 2019.

• ➕ Forecast for record total revenue of approximately $5m in 1H FY20.

==> picture [262 x 224] intentionally omitted <==

==> picture [585 x 12] intentionally omitted <==

7

IKE addresses three large markets.

Timing is optimal…

Communication Infrastructure Providers (CIPs)

Engineering Service Electric Providers Utilities

• Pain point IKE solves;

• ＋ Sharply increasing pole attachment permit requests. ＋ Require a Standardized way to assess if poles are compromised.

Pain point IKE solves;

Pain point IKE solves;

＋Bring networks and services online faster. ＋Standardize costs & data Standard across multiple geographic markets. Applications;	＋Bring networks and services online faster. ＋Standardize costs & data Standard across multiple geographic markets. Applications;	＋Bring networks and services online faster. ＋Standardize costs & data Standard across multiple geographic markets. Applications;	＋Bring networks and services online faster. ＋Standardize costs & data Standard across multiple geographic markets. Applications;	＋Need to maximize efciency and profts. Typically doing >50% of the network development work required by the CIPs and Electric Utilities. Applications;	＋Need to maximize efciency and profts. Typically doing >50% of the network development work required by the CIPs and Electric Utilities. Applications;	＋Need to maximize efciency and profts. Typically doing >50% of the network development work required by the CIPs and Electric Utilities. Applications;	＋Need to maximize efciency and profts. Typically doing >50% of the network development work required by the CIPs and Electric Utilities. Applications;	＋Need to maximize efciency and profts. Typically doing >50% of the network development work required by the CIPs and Electric Utilities. Applications;		＋Sharply increasing pole attachment permit requests. ＋Require a Standardized way to assess if poles are compromised. Applications;	＋Sharply increasing pole attachment permit requests. ＋Require a Standardized way to assess if poles are compromised. Applications;	＋Sharply increasing pole attachment permit requests. ＋Require a Standardized way to assess if poles are compromised. Applications;
＋ Fiber network deployments				＋ Fiber network deployments						＋Joint-use requests from CIPs
＋ 5G network deployments				＋ 5G network deployments						＋Network hardening to protect against storm and fre risk.
										＋In some cases, building their own fber network.
Market opportunity for IKE;				Market opportunity for IKE;						Market opportunity for IKE;
＋ Bottom up;				＋ >1,000 groups in the U.S.						＋The largest potential market for IKE in the longer term;
	- >$225m revenue opportunity over 5 years from the			＋An IKE Analyze force multiplier; using IKE tools						- >3,200 electric utilities	in North America
	largest 15 players in the U.S.				for feld engineering, driving asset data back to					- >$750M per annum Total Addressable Market
	- >200 CIPs in the North American market.				the IKE Analyze platform.					＋IKE expects that this segment will develop more slowly than
＋ Top down;										the CIP and Engineering Service Provider market
	- >$300B forecast investment into fber networks in
	the U.S over next 5+ years.
	- 5G network investment >$50B

8

9

Working with the Biggest Names in the Business

Including eight of the largest 15 Communications & Cable companies operating in the U.S. market. All West Coast, investor-owned utilities.

The IKE Analyze solution delivers high value to customers

And substantially extends IKE’s revenue model.

==> picture [82 x 14] intentionally omitted <==

----- Start of picture text -----

Field Tools & Software
----- End of picture text -----

==> picture [67 x 67] intentionally omitted <==

==> picture [85 x 12] intentionally omitted <==

----- Start of picture text -----

Annual Subscription
----- End of picture text -----

• ＋ IKE Device

• ＋ IKE Field s/w

• ＋ IKE Integration Suite

• ＋ Software updates & maintenance

• ＋ Technical Support

• ＋ Hot Swap*

• ＋ Training*

• ＋ Joint Use Coordinator Support

==> picture [14 x 14] intentionally omitted <==

==> picture [224 x 123] intentionally omitted <==

==> picture [224 x 49] intentionally omitted <==

----- Start of picture text -----

Basic pole Pole Load Analysis Make Ready
assessment (Digital Twin) Adjustments
Cloud Pole Analysis Platform
----- End of picture text -----

Per Pole Transaction Pricing

==> picture [14 x 14] intentionally omitted <==

==> picture [82 x 14] intentionally omitted <==

----- Start of picture text -----

Deliverables
----- End of picture text -----

==> picture [66 x 67] intentionally omitted <==

IKE Analyze Deliverables

• ＋ IKE Report (pdf)

• ＋ PLA Report

• ＋ MRA Improvements

• ＋ Pass/Fail Maps

• ＋

• ＋ IKE Photo Records

• ＋ Permitting

10

==> picture [46 x 41] intentionally omitted <==

Exponential growth in usage of the platform

A high efficacy solution. >9M aerial asset records on the system. Run rate of >15k asset records added per day.

==> picture [43 x 78] intentionally omitted <==

11

==> picture [46 x 41] intentionally omitted <==

Evidence of assets as they exist in the field.

==> picture [43 x 78] intentionally omitted <==

12

PLA

Pole Loading Pole integrity Clearance Analysis NESC compliance

==> picture [148 x 126] intentionally omitted <==

==> picture [150 x 126] intentionally omitted <==

==> picture [148 x 126] intentionally omitted <==

13

==> picture [46 x 41] intentionally omitted <==

Risk Mitigation

Visual Representation of a network; to ID where assets are at risk.

==> picture [43 x 78] intentionally omitted <==

14

==> picture [46 x 283] intentionally omitted <==

----- Start of picture text -----

Example IKE Solutions Outputs
----- End of picture text -----

Starting with a customer deliverable and finding the most efficient way to define workflows.

15

==> picture [46 x 41] intentionally omitted <==

Data Management to Ensure Quality

Schedule & route planning to ensure ‘One-Trip to the Field’ efficiency.

==> picture [43 x 78] intentionally omitted <==

==> picture [146 x 158] intentionally omitted <==

16

==> picture [46 x 41] intentionally omitted <==

Faster Permitting

Automated Permit Applications; eliminating manual input errors & dramatically speeding up permitting.

==> picture [43 x 78] intentionally omitted <==

17

18

==> picture [46 x 41] intentionally omitted <==

Key Drivers

Achieving dramatic productivity gains and improvements in quality & safety for our customers.

==> picture [43 x 78] intentionally omitted <==

IKE Value

Fiber Deployment Application for IKE Analyze; CableOne Inc.

19

==> picture [46 x 41] intentionally omitted <==

5G Application for IKE Analyze

National shared-communications infrastructure group.

==> picture [43 x 78] intentionally omitted <==

20

IKE Value - Electric Utility Application

The IKE Analyze Fast Lane for Joint-Use Permitting

San Diego Gas & Electric Joint-Use

		After, with
Metric	Before	IKE Analyze
Approval Time	+ 45 Days	30 Days
Rejection Time	> 40%	< 5%

21

IKE Value

Fiber Deployment Application for the IKE Solution; AT&T Inc.

22

Team; Leadership & Pole Experts

Supporting a direct go-to-market model; selling & delivering into the largest infrastructure companies in North America.

Glenn Milnes Chief Executive Officer & Managing Director

Leon Toorenburg Chief Technology Officer

Chris Birkett Chief Financial & Operating Officer

Dan McGrady Director of Customer Success

Mike McGill Senior VP, Utility & Communication Business Unit

Liz Etzel Support Lead

Matthew Worster VP, IKE Analyze

Blake Collins Solutions Engineering Manager

==> picture [585 x 12] intentionally omitted <==

23

Team; Governance

Board of Directors

Rick Christie / (MSc (Hons) Chemistry) Chairman and Independent Director

==> picture [165 x 66] intentionally omitted <==

Dr. Bruce Harker / (PhD Electrical Engineering, BE (Hons)) Independent Director

==> picture [169 x 47] intentionally omitted <==

Glenn Milnes (MBA (Dist.), BSc (Hons), BHPhed) CEO & Managing Director

==> picture [180 x 55] intentionally omitted <==

Alex Knowles

==> picture [179 x 60] intentionally omitted <==

Bill Morrow

Non-Executive Director

==> picture [189 x 76] intentionally omitted <==

Fred Lax / (MSEE AND BSEE)

Independent Director

==> picture [182 x 56] intentionally omitted <==

24

==> picture [39 x 275] intentionally omitted <==

----- Start of picture text -----

IKE is...
----- End of picture text -----

Thanks...

Dedicated to Serving Communications Companies & Electric Utilities. Who are focused on:

• Faster network deployments.

• Improving network and data quality.

• Keeping crews out of harm’s way.

• Meeting the demands of regulators.

==> picture [585 x 12] intentionally omitted <==