2019 Annual Meeting Address & Presentation

ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com



FOR IMMEDIATE RELEASE
6 September 2019

IKE Annual General Meeting
Chairman’s address

Introduction

＋ Welcome everyone to the fifth AGM since we became a listed company in 2014. It is
timely to reflect on what is different since then, as in one sense nothing has changed,
but in others, the changes have been profound.
＋ In 2014 our key products were essentially laser-based measurement devices with
associated software and geospatial capability. Our revenue model was driven by sales
of these specialised devices to the utility sector in the USA, and to a lesser extent by
sales of Spike devices to attach to mobile phones aimed at lower-cost consumer and
commercial devices targeting the AEC and small business sector. We had 21 staff in
total, with 16 in NZ and 5 in the USA which was seen as the largest and potentially
most lucrative marketplace.
＋ So, what’s changed?...
＋ In 2019 devices are still an element in driving IKE solution deployments, but device or
one-time sales are no longer key.
＋ Today, we are squarely focused on the poles and the distribution asset market. And
with IKE Analyze, we focus on ongoing transaction revenue via data analytics that
occurs over the IKE technology platform. This translates to higher quality and a
sustainable revenue mix.
＋ The USA remains the focus for IKE, but our customer sets have grown beyond
electrical utilities to the fast-growing communications sector.
＋ The center of gravity of our operational activities is now the USA with a total
headcount of about 45 with two thirds of these positions now in the USA - reflecting
the need to be close to our customers.
＋ So, where are we today?...

2019 Report
＋ 2019 was a positive year for our business with growth and improvement across key
metrics.
＋ Our core target market has continued to develop positively, being tier-1 U.S.
communications companies, electric utilities and their engineering service providers.
Success within this market is the long-term value driver for our business.
＋ Glenn, our CEO, will shortly talk in detail about the positive financial performance and
momentum across the business, both in terms of revenue, gross margin and EBITDA

ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com


growth in the FY19 period and also our expectations for 1H FY20 out turn, which we
believe shows important progress.
＋ I would like to focus my address on two important issues that should be well
understood by shareholders and the market more generally:
1. The transition of our market offering and business model to IKE Analyze - at
the headline level, meaning high levels of ongoing transaction and subscription
revenue - and a higher quality & predictability of revenue as we grow.
2. Market tailwinds; IKE is now in the right place at the right time - a critical factor
with the major changes sweeping across USA telecoms and electrical utility markets.

＋ The transition of our market offering and business model to IKE Analyze -
＋ The transition to the IKE Analyze platform and business model was completed in
FY19. Adding to our historical model of selling field tools and software subscriptions,
IKE Analyze leverages our cloud-based pole software platform so that IKE can deliver
significantly more value to customers via asset analysis & make ready engineering.
＋ The depth and specificity of the IKE Analyze offering for distribution asset projects is
important and provides an opportunity to access materially larger customer contracts.
＋ As a result of this product transition, we expect that >70% of FY20 revenue will be
derived from either recurring subscription or ongoing transaction sources.
＋ The ultimate revenue opportunity per IKE Analyze customer is significant, representing
the potential for hundreds of thousands, and eventually, millions of dollars of revenue
per Annum.
＋ We believe this shift in market offering and model translates to a higher quality of
revenue with greater predictability of growth potential.
＋ Broader sales proof points support this approach. In FY19 we closed record IKE
solution sales with $7.3m revenue representing 27% growth against PCP. Most
important however was the in-market progress with the sales & delivery of IKE Analyze
to target accounts.
＋ Today, eight of the largest 15 Communications & Cable companies operating in the
U.S. market are engaged in deployments or pilots of IKE Analyze. Entities within this
category include Charter Communications Inc. - the largest cable company in the U.S.,
Crown Castle Inc. - the largest provider of shared communications infrastructure in the
U.S., and Cox Communications Inc.- the 6th largest cable company in the U.S.
Additional customer progress included at AT&T Inc., the largest communications
company operating across North America, which has written the ‘IKE Standard’ into its
Articles for aerial make-ready-engineering. We are confident that additional tier-1
customers will be added through FY20.

＋ Expanding Markets and Optimal Timing
＋ As we have consistently communicated the key value driver for IKE is the development
and delivery of IKE Analyze across target accounts, typically the largest
communications companies and electric utilities operating in the North American
market.

ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com


＋ From a market timing perspective, the pace of investment into fiber networks and 5G
continues to increase. The U.S. fiber market is estimated to be at year-two of a seven-
to-ten year investment super-cycle exceeding $300B, and with more than 200 entities
competing to deploy networks as fast as they can
＋ IKE helps them do that.
＋ An additional large market tailwind has emerged relating to 5G, the next-generation
mobile technology. IKE has recently been involved in deploying IKE Analyze for aerial
make-ready engineering projects specific to 5G network deployments. The usage of
IKE Analyze materially improves productivity for fiber network development and 5G
site assessment workflow processes, and we have a line of sight to several major
projects as we speak.
＋ IKE and IKE Analyze are well-positioned in front of these very large macro-market
opportunities.

＋ Team Development
＋ As we signaled at last years’ AGM we have been actively seeking to develop the Board,
and we were pleased to welcome Bill Morrow as a Director at the beginning of Q4
FY19. Bill brings leadership experience from positions across our targeted industries
and geographical markets. He has consequently ‘hit the ground running’ with respect
to contribution to the business. Bill’s past roles include being CEO of Pacific Gas &
Electric Co, one of the largest US electric utilities, CEO of Vodafone Europe, President
of Vodafone KK Japan, CEO of Clearwire Corporation Inc., and most recently CEO of
Australia’s national fiber network, nbn co - Australia’s $40B fiber network. His
considerable governance experience includes as a non-executive director at Broadcom
Inc, one of the world’s largest semiconductor companies, and as a non-executive
director at Openwave Inc, a pioneer of the Mobile Internet. It is great to have Bill here
today in Wellington for his first IKE AGM.
＋ We continue to add key experienced management resources to our team in the USA,
and out-source basic analytical processes.

＋ Outlook
＋ Our vision remains consistent. We are seeking to put IKE Analyze at the centre of
every pole transaction. Looking to FY20 our focus remains squarely on the North
American Communications & Electric Utility sector. As detailed above we believe that
market timing is optimal. The pace of investment into fiber networks and 5G mobile
networks is continuing to increase and usage of the IKE solution shows that against
existing work practices IKE increases efficiency for field engineering by approximately
two times and increases efficiency for back-office engineering by approximately five
times.
＋ We are also in the early phases of serving numerous national infrastructure groups.
Our focus on these very large businesses will continue to bring some timing
uncertainty but we are optimistic about the potential to deliver a strong FY20
performance, including new tier-1 customer wins.

ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com


＋ We feel IKE is as well-positioned as it has ever been, noting that the first half of FY20
has been positive in terms of customer development and our steps towards delivering
important financial performance milestones in terms of revenue, gross margin growth
and the positive trend in EBITDA and cash performance ... which Glenn will talk to
shortly in detail.......


ENDS

IKE seeks to be the standard for collecting, analysing and managing pole and overhead asset
information for electric utilities, communications companies, and their engineering service
providers.

Contact: Glenn Milnes, CEO, +1 720-418-1936, glenn.milnes@ikegps.com

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

Confidential
CEO Presentation; Glenn Milnes

Annual General Meeting, 6 September 2019.

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

Notice

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Confidential

Executive Summary
1H FY20 Update. 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.
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Confidential

Financial performance & momentum

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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.
Confidential
Comms and Utilities
Segment.

Revenue mixTransition by ½ year

Financial performance & momentum

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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.
Confidential

Financial performance & momentum

6
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.

Confidential

Financial performance & momentum

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Resulting momentum across all key financial metrics.
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.

Confidential

Communication
Infrastructure
Providers (CIPs)
Pain point IKE solves;
＋Bring networks and services online faster.
＋Standardize costs & data Standard across multiple
geographic markets.
Applications;
＋Fiber network deployments
＋5G network deployments
Market opportunity for IKE;
＋Bottom up;
->$225m revenue opportunity over 5 years from the
largest 15 players in the U.S.
->200 CIPs in the North American market.
＋Top down;
->$300B forecast investment into fiber networks in
the U.S over next 5+ years.
-5G network investment >$50B
Engineering Service
Providers
Electric
Utilities
Pain point IKE solves;
＋Need to maximize efficiency and profits.
Typically doing >50% of the network
development work required by the CIPs and
Electric Utilities.
Applications;
＋Fiber network deployments
＋5G network deployments
Market opportunity for IKE;
＋>1,000 groups in the U.S.
＋An IKE Analyze force multiplier; using IKE tools
for field engineering, driving asset data back to
the IKE Analyze platform.

Pain point IKE solves;
＋Sharply increasing pole attachment permit requests.
＋Require a Standardized way to assess if poles are
compromised.

Applications;
＋Joint-use requests from CIPs
＋Network hardening to protect against storm and fire risk.
＋In some cases, building their own fiber network.
Market opportunity for IKE;
＋The largest potential market for IKE in the longer term;
->3,200 electric utilities in North America
->$750M per annum Total Addressable Market
＋IKE expects that this segment will develop more slowly than
the CIP and Engineering Service Provider market
IKE addresses three large markets.

Meeting Customer Demand

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Timing is optimal...

Confidential

Proof Points

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

The IKE Analyze solution delivers high value to customers

Basic pole
assessment
Make Ready
Adjustments
Annual Subscription
＋IKE Device
＋IKE Field s/w
＋IKE Integration Suite
＋Software updates & maintenance
＋Technical Support
＋Hot Swap*
＋Training*
＋Joint Use Coordinator Support

Per Pole Transaction Pricing
Pole Load Analysis
(Digital Twin)
Deliverables
Field Tools & Software
Cloud Pole Analysis Platform

＋IKE Report (pdf)
＋PLA Report
＋MRA Improvements
＋Pass/Fail Maps
＋IKE Office Cloud Database
＋IKE Photo Records
＋Permitting
IKE Analyze Deliverables
IKE Analyze solution offering

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And substantially extends IKE’s revenue model.
Confidential

Exponential growth in usage of the platform
IKE Analyze drivers

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

Evidence of assets as they exist in the field.
Example IKE Solutions Outputs

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Photo-Verifiable Accuracy
Confidential

PLA
Pole Loading
Pole integrity
Clearance Analysis
NESC compliance

Example IKE Solutions Outputs

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Confidential

Visual Representation of a network; to ID where assets are at risk.
Example IKE Solutions Outputs

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Risk Mitigation
Confidential

Workflow management

Starting with a customer deliverable and
finding the most efficient way to define
workflows.
Example IKE Solutions Outputs

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Confidential

Schedule & route planning to ensure ‘One-Trip to the Field’ efficiency.
Example IKE Solutions Outputs

Data Management to Ensure Quality
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Confidential

Automated Permit Applications; eliminating manual input errors & dramatically speeding up permitting.
Example IKE Solutions Outputs

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Faster Permitting
Confidential

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

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Key Drivers
Confidential

Fiber Deployment Application for IKE Analyze; CableOne Inc.
Success Stories

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IKE Value
Confidential

National shared-communications infrastructure group.

Success Stories

5G Application for IKE Analyze
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San Diego Gas & Electric Joint-Use

The IKE Analyze Fast Lane for Joint-Use Permitting

MetricBefore
After, with
IKE Analyze
Approval Time
Rejection Time
+ 45 Days
> 40%
30 Days
< 5%
Success Stories

IKE Value - Electric Utility Application
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Confidential

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

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IKE Value
Confidential

Pole People

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

Mike McGill
Senior VP, Utility & Communication Business Unit

Liz Etzel
Support Lead

Matthew Worster
VP, IKE Analyze

Blake Collins
Solutions Engineering Manager

Glenn Milnes
Chief Executive Officer & Managing Director

Leon Toorenburg
Chief Technology Officer

Chris Birkett
Chief Financial & Operating Officer

Dan McGrady
Director of Customer Success

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Confidential

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

Governance Team

Team; Governance
Board of Directors
Glenn Milnes (MBA (Dist.), BSc (Hons), BHPhed)
CEO & Managing Director

Bill Morrow
Non-Executive Director

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

Alex Knowles

Fred Lax / (MSEE AND BSEE)
Independent Director

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Confidential

Who are focused on:

-Faster network deployments.
-Improving network and data quality.
-Keeping crews out of harm’s way.
-Meeting the demands of regulators.

Thanks...

Dedicated to Serving
Communications Companies &
Electric Utilities.
IKE is...

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Confidential