IKEGPS GROUP LIMITED – ANNOUNCES EQUITY CAPITAL RAISING

ikeGPS Group Limited (ikeGPS) intends to undertake a placement offer of $5 million of
new fully paid ordinary shares of the same class as already quoted on the NZX Main
Board of NZX Limited and the Australian Securities Exchange operated by ASX Limited
(the Placement).
Pursuant to clause 20(1)(a) of Schedule 8 to the Financial Markets Conduct Regulations
2014 (FMC Regulations) and the Financial Markets Conduct Act 2013 (FMCA) and ASIC
Instrument 16-1121, ikeGPS states that:
(a) ikeGPS is making the Placement in reliance upon the exclusion in clause 19 of
Schedule 1 to the FMCA and is giving this notice under clause 20(1)(a) of
Schedule 8 to the FMC Regulations.
(b) As at the date of this notice, ikeGPS is in compliance with the continuous
disclosure obligations that apply to it in relation to its ordinary shares and there
is no “excluded information” (as defined in clause 20(5) of Schedule 8 to the FMC
Regulations).
(c) As at the date of this notice, ikeGPS is in compliance with its financial reporting
obligations.
(d) The Placement is not expected to have any material effect or consequence on the
control of ikeGPS.
(e) ikeGPS will issue the relevant securities under the Placement without disclosure
to investors under Part 6D of the Corporations Act 2001 (Cth).
(f) This notice is being given under paragraph 708A(12G) as notionally inserted by
ASIC Instrument 16-1121.

24 August 2018

Client Market Services
NZX Limited
Level 1, NZX Centre
11 Cable Street
Wellington

ASX Limited
Level 4, North Tower, Rialto
525 Collins Street
Melbourne VIC 3000



IKEGPS GROUP LIMITED (NZX:IKE) (ASX:IKE) – NOTICE OF OFFER OF SAME CLASS
FINANCIAL PRODUCTS FOR ISSUE

(g) As at the date of this notice, ikeGPS is in compliance with its obligations under
rule 1.15.2 of the listing rules of ASX Limited

Yours sincerely
Chris Birkett
Chief Financial Officer
ikeGPS Group Limited

---

1
IKE Investor Presentation.
The growth opportunity for IKE via its IKE Analyze offering.
Glenn Milnes, CEO & Chris Birkett, CFO.
August, 2018

2
Table of contents
1.IKE update
2.IKE Analyzeexplained
3.The capital raise
Appendix

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 in relation to the proposed placement and share purchase plan offer of fully paid ordinary shares (the “New Shares”) in the Company under
clause 19 of Schedule 1 of the Financial Markets Conduct Act 2013 and ASIC Instrument 16-1121.
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 mayrequire 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
•The New Shares will be quoted on the NZX Main Board and on the Australian Securities Exchange upon completion of allotment procedures. 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.
3

4
1.IKE update

5
IKE is a pole solutions company.
Analyzing assets & managing distribution pole projects so that its customers can deploy networks faster.

6
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.
Minutes/pole:
field engineering
(incumbent work
practice)
Minutes/pole:
field engineering
(IKE)
Minutes/pole:
Digital design and
MRE engineering
(incumbent work
practice)
Minutes/pole:
Digital design and
MRE engineering
(IKE)
Today, IKE is 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

7
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.
Minutes/pole:
field engineering
(incumbent work
practice)
Minutes/pole:
field engineering
(IKE)
Minutes/pole:
Digital design and
MRE engineering
(incumbent work
practice)
Minutes/pole:
Digital design and
MRE engineering
(IKE)
Back Office Engineering
Field Engineering

FY18 delivered positive revenue & gross margin momentum.
And a significantly improved operating cash profile.
8

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.
9
Impacting:
➢Internal AT&T engineering
resources performing aerial MRE.
➢Future external aerial MRE
contracts that are awarded to
external engineering businesses.

10
FY19 Guidance
▪>30% revenue growth on FY18.
▪FY19 operating cash flow breakeven.
▪EBITDA breakeven by Q4 FY19.
Progress YTD
✓Q1 revenue of approximately $1.9m
(48% growth against PCP).
✓AT&T specifies the use of IKE4 for
aerial Make-Ready-Engineering.
✓Operating costs continue to be tightly
managed.
✓Cash position 30 June 2018: $1.2m.
✓86% subscription renewal rate for IKE4
customers.
✓Spike sales efforts focused on the
development of enterprise geospatial
accounts alongside EsriInc.
New development via IKE Analyze opportunity
▪IKE can now lead with an end-to-end Solution
offering for targeted key accounts.
▪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.
▪The revenue from pilot contracts is approximately
$600k, being delivered over approximately 6
weeks, with the potential to grow significantly.
On track with FY19 targets.
With significant potential upside now from the new IKE Analyze offering.

11
2. IKE Analyzeexplained

12
Communications
A US$200b fibre investment super-cycle in
the U.S., expected to run for 10+ years.
Urgency to deploy networks and capture
customers.
Network deployment requires aerial make-
ready-engineering.
IKE dramatically speeds the assessment
and design process.
Utilities
Network hardening requirements, for storm
readiness on the east coast and fire
mitigation on the west coast.
A requirement to improve asset records via
digitization.
Improved asset management to underpin
continuity of power supply.
IKE dramatically speeds the assessment
and design process.
Regulatory
Joint-use mandate at federal level,
meaning pole owners are required to
provide access.
FCC mandate One-Touch-Make-Ready,
supporting faster deployment of fibre by
communications companies and a field
workflow that aligns to the IKE system.
Specific regulations in certain States, such
as GO-95 in California, placing stringent
pole record requirements on asset owners.
Several macro-market factors.
Providing a tailwind for demand for an end-to-end IKE Analyzeoffering.

Participation in the value chain.
And how the IKE Analyzesolution enables IKE to capture a far larger share of the value it creates.
13
Field assessment of
poles and aerial assets.
Compilation of network
and project data.
Analysis of assets, networks
and project delivery .
Measurement
of assets.
Broader network
management
systems.
Old way
= customer resource
Make Ready
Engineering or Pole
Loading Analysis
report
Physical measurement of poles by Hasting’s stick
Written records of data manually inputted
External engineering company
resources analyze data
IKE4
(system
sale)
IKE Cloud
IKE Analyze Cloud
IKE Cloud
IKE
Analyze
end-to
end

IKE4 sale
IKE
Analyze
contract
14
50,000x
10x
▪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.
10x IKE4 systems are provided to the asset owners
or external contractors to measure the poles.
IKE manages field planning & execution.
4x IKE analysts analyze the field data
collected.
IKE manages project delivery & success.
10x IKE4 systems sold
10x IKE4 Cloud subscriptions sold
▪Total revenue of 50k poles analyzed
generating ~$2m,
▪Receipt of revenue over ~12 months.
▪Initial cost of building and supplying
the IKE4 systems, and incremental
working capital requirement over the
initial 2-3 months. Then self funding.
An IKE Analyze example.
Assuming a hypothetical customer needs to perform pole loading analysis on 50k poles over 12 months.

15
3.The capital raise

16
Overview of the capital raise.
Via an underwritten placement and a share purchase plan.
▪IKE is undertaking a NZ$5 million placement (the “Placement”). It is intended that this will be underwritten by Forsyth BarrGroup
Limited.
▪The Placement price has been set at NZ$0.52 per share equating to a 4% premium to the last traded price on Thursday 23
August 2018.
▪Approximately 9.615 million shares to be issued, approximately 12.3% of current issued capital (“New Shares”).
▪New Shares will rank equally in all aspects with IKE’s existing ordinary shares from allotment.
▪IKE intends to undertake an offer of ordinary shares to existing shareholders via a share purchase plan (“SPP”) capped at $1.25
million.

17
Use of proceeds.
Capital raised is expected to enable IKE to pursue growth opportunities, adding value to shareholders.
▪Proceeds from the capital raise will bolster IKE’s working capital position for a number of potentially significant contractsthat
the business is targeting or in the initial stages of delivering, support the lumpy sales cycles associated with IKE’s core
business selling IKE4 systems, and enable investment into additional Sales and Support expenses to execute on IKE Analyze
opportunities.
▪There are several large contracts for the IKE solution that could be concluded requiring additional levels of working
capital.
▪The new IKE Analyze product has a higher initial working capital requirement than the historical business model, but
provides substantially higher potential revenue amounts (and absolute margin) per customer or project.
▪A stronger balance sheet is important for some of the large infrastructure business that IKE is selling to or is targeting, given
that IKE hosts their critical infrastructure data and asset records.
▪The equity raising is expected to deliver other ancillary benefits such as increasing IKE’s free float, providing greater liquidity
for investors and broadening the share register.

18
Timetable.
Trading halt on NZX and ASX24 August
Capital raising announced24 August
Undertakeplacement 24 August
Announcecompletion and resume trading24 August
Settlement on the NZX[and ASX]29 August
Allotmentand trading of shares on NZX and ASX29 August
Share purchaseplan beginsIndicatively early September

19
IKE4 & IKE Analyze;
Thanks

20
Appendix.
A US$200B market tailwind for
IKE in the U.S Communications
industry.

21
A US$200B market tailwind, being invested into fiber networks.
The majority of this deployment to be on overhead infrastructure.

22
❏A common standard for how pole data is
captured and analyzed.
❏A central location for multiple parties to
store and access information about an
asset.
High value from standardisingpole data in the IKE4 cloud.
The ‘pole depot’ for an asset owner or any pole project .

And with up to 18,000 additional captures added into the system each day.
23
A pole management system that’s growing fast.
Close to 5m pole captures have been processed to date in the IKE Cloud.....

24
Positioned in front of the major players.
With line-of-sight to the growth of existing accounts and the path to winning new ones.....
IKE4 customer FY18

---

ikeGPS Group Limited (ikeGPS) intends to undertake a placement offer of $5 million of
new fully paid ordinary shares of the same class as already quoted on the NZX Main
Board of NZX Limited and the Australian Securities Exchange operated by ASX Limited
(the Placement).
Pursuant to clause 20(1)(a) of Schedule 8 to the Financial Markets Conduct Regulations
2014 (FMC Regulations) and the Financial Markets Conduct Act 2013 (FMCA) and ASIC
Instrument 16-1121, ikeGPS states that:
(a) ikeGPS is making the Placement in reliance upon the exclusion in clause 19 of
Schedule 1 to the FMCA and is giving this notice under clause 20(1)(a) of
Schedule 8 to the FMC Regulations.
(b) As at the date of this notice, ikeGPS is in compliance with the continuous
disclosure obligations that apply to it in relation to its ordinary shares and there
is no “excluded information” (as defined in clause 20(5) of Schedule 8 to the FMC
Regulations).
(c) As at the date of this notice, ikeGPS is in compliance with its financial reporting
obligations.
(d) The Placement is not expected to have any material effect or consequence on the
control of ikeGPS.
(e) ikeGPS will issue the relevant securities under the Placement without disclosure
to investors under Part 6D of the Corporations Act 2001 (Cth).
(f) This notice is being given under paragraph 708A(12G) as notionally inserted by
ASIC Instrument 16-1121.

24 August 2018

Client Market Services
NZX Limited
Level 1, NZX Centre
11 Cable Street
Wellington

ASX Limited
Level 4, North Tower, Rialto
525 Collins Street
Melbourne VIC 3000



IKEGPS GROUP LIMITED (NZX:IKE) (ASX:IKE) – NOTICE OF OFFER OF SAME CLASS
FINANCIAL PRODUCTS FOR ISSUE

(g) As at the date of this notice, ikeGPS is in compliance with its obligations under
rule 1.15.2 of the listing rules of ASX Limited

Yours sincerely
Chris Birkett
Chief Financial Officer
ikeGPS Group Limited