Tantalus Systems Holding Inc · TSX:GRID
Tantalus Systems — Investor Presentation (December 2023)
24 slides from Tantalus Systems's investor presentation, December 2023
Slide 1: Q3 2023 Overview Investor Presentation
Q3 2023 Overview Investor Presentation 1
Slide 2: Disclaimer
Disclaimer IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING. The information contained in this presentation has been prepared by Tantalus Systems Holding Inc. (the “Company”) for information purposes only. References to “Tantalus” or the Company for periods prior to January 29, 2021 refer to
Slide 3: Why Invest in Tantalus?
Why Invest in Tantalus? Large and Growing Market Opportunity Strong ⚫ $5.8 billion TAM across current market with existing solutions Market ⚫ Additional $10+ billion TAM associated with the TRUSense™ Gateway (new offering) ⚫ Strong secular growth drivers that are not subject to cyclical trends Compe
Slide 4: Tantalus Overview: Modernizing the Electric Grid
Tantalus Overview: Modernizing the Electric Grid Substantive business with strong fundamentals and a defined path to accelerate growth Purpose Commercial Scale Financial (Q3 ‘23) • Helping utilities modernize the grid • 285 utility customers • US$10.1M of revenue in Q3’23 • Improving resiliency & re
Slide 5: The Problem: An Antiquated and Aging Distribution Grid
The Problem: An Antiquated and Aging Distribution Grid Existing grids are not compatible with current and long-term needs of consumers Legacy Power Grid Major Catalysts for Investments One-way power flow Extreme weather events No intelligence at the edge Aging infrastructure + workforce Decarbonizat
Slide 6: The Solution: Interoperable and Compatible Data
The Solution: Interoperable and Compatible Data Managing data across devices and systems is mission critical for grid modernization Integrated Smart Grid Modernizing the Grid Multi-directional power flow Delivering Visibility, Command & Control Digital connections to intelligent endpoints • Utilitie
Slide 7: Modernizing the Grid Leads to a Sizeable Market Opportunity
Modernizing the Grid Leads to a Sizeable Market Opportunity Substantial Investment Being Made to Automate % of Utility Executives in the US Acknowledging Distribution Grid Infrastructure the Need to Continue to Invest in the Grid Electric utilities spent $40 billion in the US on the distribution gri
Slide 8: Solution Overview
Solution Overview Comprehensive platform to enable grid modernization 8
Slide 9: Existing Solutions Continue to Gain Market Share
Existing Solutions Continue to Gain Market Share Differentiated hardware and software solutions leads to multi-decade relationships with utilities SUBSTATION-TO-METER Existing capabilities include edge computing, software and predictive analytics (powered by AI) Power Outage / Power Quality & AMI Ma
Slide 10: Developing Next-Generation Solution to Expand Our TAM
Developing Next-Generation Solution to Expand Our TAM Developing a first-to-market, next-generation capability to address the immediate and long-term challenges of integrating EVs and DERs BEHIND-THE-METER The power of going from EV Chargers and DERs directly to SCADA and mission-critical systems TR
Slide 11: The Historical Approach for Utilities to Manage Grid Data Must Change
The Historical Approach for Utilities to Manage Grid Data Must Change DATA DESTINATIONS: Utility Centralized Systems Challenges associated with this approach: SCADA ADMS DERMS FLISR VVC ANALYTICS • Multiple parallel data connections to each device • The same data is transported multiple times • Redu
Slide 12: A New Path for Utilities to Benefit from Interoperability of Data
A New Path for Utilities to Benefit from Interoperability of Data Benefits of Unifying DATA DESTINATIONS: Utility Centralized Systems Data: • Simplify and streamline SCADA ADMS DERMS FLISR VVC ANALYTICS data acquisition • Serve the acquired data to the appropriate system at the right time and in the
Slide 13: A Unified Platform to Improve Overall System Planning & Performance
A Unified Platform to Improve Overall System Planning & Performance Combining existing and new capabilities to deliver a next-generation platform to support comprehensive distribution grid management G SUBSTATION-TO-METER BEHIND-THE-METER R I D (Traditional Areas of Focus for Utilities) (Extending t
Slide 14: Financial Overview
Financial Overview Strong fundamentals with ability to scale 14
Slide 15: How Tantalus Generates Revenue
How Tantalus Generates Revenue Expanding recurring and repeatable revenue contributions from software and services Recurring Software Maintenance & SaaS Licenses (Data Analytics) Software & Analytics Perpetual Software License Annual Technical Support Agreements Professional Services Deployment / Pr
Slide 16: Key Milestones Delivered Through Q3 '23
Key Milestones Delivered Through Q3 ‘23 Achieved several financial, operational and R&D milestones during the first nine months of 2023 Financial Operational R&D • Revenue growth of 12% over prior • Converted 14 utilities YTD, • Expanded field trials of the year period & 25% on a TTM basis expanding
Slide 17: Q3 Income Statement Summary
Q3 Income Statement Summary Continued annual revenue growth 47% • Revenue growth of 12% over prior year period • Revenue from Software & Services represented 37% of total revenue in the quarter over the prior year period 46% 48% 47% 52% 34% • Recurring revenue 28% 34% 38% represented 25% of total re
Slide 18: Trailing Twelve-Months (TTM) Income Statement Summary
Trailing Twelve-Months (TTM) Income Statement Summary Strong financial performance over the last 4 quarters 47% • Revenue growth of 25% over the prior TTM period • Software & Services revenue of $15.0M with contribution of 34% • Recurring revenue contributed 23% of total revenue 46% with 22% growth
Slide 19: Balance Sheet & Working Capital Management
Balance Sheet & Working Capital Management Maintaining adequate balance sheet flexibility to support our growth trajectory ARR Cash Management Inventory Management • Majority of ARR collected in Q1 to • Majority of accounts receivable insured • Contract manufacturer funds majority support working ca
Slide 20: Capitalization Overview
Capitalization Overview $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 11/22/2022 12/22/2022 1/22/2023 2/22/2023 3/22/2023 4/22/2023 5/22/2023 6/22/2023 7/22/2023 8/22/2023 9/22/2023 10/22/2023 Shareholders TSX-Listed, Symbol: GRID Directors & Executives 7% Share Price* C$0.84 Debt US$10.4M Retail Market
Slide 21: Investment Highlights
Investment Highlights Solid foundation that provides ample flexibility to accelerate growth initiatives while maintaining core operations Substantive business Significant user TRUSense Gateway with differentiated community + sales and Grid Data solutions and favorable channel to gain Management prov
Slide 22: Q&A
Q&A www.tantalus.com [email protected] TSX: GRID 22
Slide 23: Building Momentum Across the Business
Building Momentum Across the Business Long-standing relationships with expanding user community of utilities leads to solid visibility into our annual revenue profile Annual Revenue Trend • 2016 – 2019: Grew revenue organically by scaling our user community and driving additional software & services
Slide 24: Increasing Annual Recurring Revenue Growth
Increasing Annual Recurring Revenue Growth Utility retention rate exceeds 99% across multi-decade deployments Annual Recurring Revenue (ARR) • Comprised of SaaS subscriptions, term- based software licenses, software CAGR of 19% maintenance, technical support and hosting Since 2016 services • ARR is
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