Computer Modelling Group Ltd. · TSX:CMG
Computer Modelling — Investor Presentation (May 2024)
29 slides from Computer Modelling's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
Investor Presentation May 2024 CMG: TSX CMG is a global software and solutions company that combines science and technology with deep industry expertise to solve complex subsurface and surface challenges for the new energy industry around the world. Simulation Technology to Advance Decisions 1
Slide 2: Forward-Looking Information and Non-IFRS Financial Measures
Forward-Looking Information This presentation contains "forward-looking statements". Forward-looking statements can be identified by words such as: "anticipate", "intend", "plan", "goal", "seek", "believe", "project", "estimate", "expect", "strategy", "future", "likely", "may", "should", "will", and
Slide 3: CMG at a glance
CMG at a glance Computer Modelling Group (CMG) is a leading provider of reservoir simulation software to energy companies $108.7M globally. Our software supports our customers in the optimization and de-risking of hydrocarbon development and production. With its roots as a research institute, CMG ha
Slide 4: Investment highlights
Investment highlights Global Customers • CMG brand recognition and industry reputation; 40+ years of reservoir simulation software development and best-in-class training and support 100% of the Super Majors • Driving sustained organic growth with CMG 4.0 Strategy • Complex science and deep technical
Slide 5: CMG Group – two operating segments
CMG Group – two operating segments CMG – 40+ years of innovation and profitability BHV (Bluware) – Acquired September 2023 • Strong brand recognition and industry reputation; 40+ years of reservoir simulation software development and best-in-class training and support AI/machine learning technology
Slide 6: CMG Group – quarterly financial summary
CMG Group – quarterly financial summary Total Revenue ($ Million) Software License Revenue ($ Million) +59% +32% 33.0 32.3 BHV 22.9 BHV 23.2 +17% +44% 17.5 18.8 17.4 CAD$ ‘000 Q424 Q423 % Var. 22.6 20.3 20.7 Software license revenue 22,933 17,359 32% CMG CMG +15% +15% Professional services revenue 9
Slide 7: CMG Operating Segment
CMG Operating Segment Simulation Technology to Advance Decisions 7
Slide 8: CMG operating segment summary
CMG operating segment summary Simulation technology is increasingly important as FY 2024 double digit annual growth across all metrics energy companies seek to maximize the value of $ Millions existing assets. Simulation also plays a critical role in the growing area of energy transition. +19% $87.9
Slide 9: Why simulate?
Why simulate? Consider an unconventional Montney gas asset... using IPSM to optimize facilities for reservoir performance and remove bottlenecks Increase Revenue in the pipeline network, a $150,000 investment in a simulation study generated incremental production resulting in additional profit of $3
Slide 10: Simulation – end-to-end process flow
Simulation – end-to-end process flow SENSITIVITY ANALYSIS SIMULATION MODEL Understand and quantify the potential Dynamically model how operational impacts that variable and uncertain changes may impact recovery and the inputs may have on your operations value of the asset HISTORY MATCH GEOLOGICAL DA
Slide 11: CMG – Net Promoter Score (NPS) 68
CMG – Net Promoter Score (NPS) 68 (B2B Software Average 41%) We have observed a significant improvement over the time we have used CMG technology. Our model, IRS ONGC has been using CMG software for reservoir simulation since 1992. We are highly satisfied with being a giant model, initially took a c
Slide 12: CMG operating segment addressable market
CMG operating segment addressable market Global Reservoir Simulation Market $1B Market Opportunity Estimated $1B Global Reservoir Simulation Market Through 2030 Unconventional, CMG FY 2024 Revenue $87.9M $767M HO, EOR Reservoir Simulation expected to grow 2% - 3% annually Unconventional, Heavy Oil a
Slide 13: CMG operating segment – Energy Transition
CMG operating segment – Energy Transition Potential Market Size CMG has a 20+ year history in Carbon Capture & Storage (CCS) Strong Growth Anticipated in CO2 Capture Projects Energy Transition is Driving Revenue Strategic Partnerships with Global Leaders in Energy Transition Innovation Capacity of l
Slide 14: CMG operating segment platform – scalable and extendable
CMG operating segment platform – scalable and extendable Features and Benefits Flexible and reusable capabilities for a variety of industry applications Physics-based simulation, integrated reservoir & production modeling, data analytics and optimization Fit-for-purpose workflows to create powerful,
Slide 15: CMG operating segment – quarterly financial summary
CMG operating segment – quarterly financial summary Total Revenue ($ Million) Software License Revenue ($ Million) CAD$ ‘000 Q424 Q423 % Var. +15% +15% Annuity/maintenance licenses 17,864 15,803 13% 23.3 22.0 21.8 Perpetual licenses 2,130 1,556 37% 20.3 20.7 20.0 18.6 18.2 Software license revenue 1
Slide 16: BHV Operating Segment
BHV Operating Segment Simulation Technology to Advance Decisions 16
Slide 17: BHV operating segment
BHV operating segment 3 key software transforming seismic interpretation workflows in the cloud VDSTM (Volume Data Storage) • Compress seismic data making it adaptable and scalable TRANSFORMED • Fast access; cost-effective cloud storage; supports compute-intensive workflows LEGACY COMPRESSED CLOUD E
Slide 18: BHV operating segment YTD financial summary
BHV operating segment YTD financial summary Revenue and Operating Profit ($ Millions) Total Revenue by Geography 20.7 7% 11.2 35% 9.0 8.1 58% 5.0 2.3 2.9 2.8 0.4 Q3 2024 Q4 2024 FY 2024* Software Revenue Total Revenue Operating Profit US Eastern Hemisphere South America *FY 2024 includes $0.6 millio
Slide 19: CMG 4.0 Strategy
CMG 4.0 Strategy Simulation Technology to Advance Decisions 19
Slide 20: CMG 4.0 Strategy – announced late 2022
CMG 4.0 Strategy – announced late 2022 Preserve long-term, per share profitability while driving growth and Free Cash Flow1 both organically and through acquisitions Growth Profitability Acquisitions CMG 4.0 Strategy, announced in With a durable recurring revenue Prudently invest excess capital, at
Slide 21: CMG 4.0 Strategy – growth levers and progress
CMG 4.0 Strategy – growth levers and progress Inorganic growth opportunities Accelerate software revenue with leading sales organization Multiple levers for organic growth - Shift to customer segmentation and value-based pricing - Solution strategy and market-driven roadmap - Broaden geographical re
Slide 22: CMG 4.0 acquisition strategy
CMG 4.0 acquisition strategy Prudently invest excess capital, at attractive rates of return, to build durable, long-term software revenue growth and per share profitability. Acquire businesses that enhance and diversify our product offerings within the energy and adjacent markets. Strategic opportun
Slide 23: CMG 4.0 acquisition strategy
CMG 4.0 acquisition strategy The upstream workflow provides strategic opportunities within the energy market Processing Log/Core Drilling Fluid Analysis Wellbore Economic Analysis Planning Modelling Modelling Inversion Geomodels & Drilling Geomechanics Facilities Financial & Realizations Operations
Slide 24: CMG – Strong, experienced and diversified leadership
CMG – Strong, experienced and diversified leadership Senior Management Pramod Jain, Chief Executive Officer Sandra Balic, Chief Financial Officer Long Nghiem, VP Innovation Lab Joined 2022 Joined 2009 Joined 1978 15+ years international leadership experience focused 15+ years experience in accountin
Slide 25: Appendix
Appendix Simulation Technology to Advance Decisions 25
Slide 26: Summary of Financial Performance FY 2024
Summary of Financial Performance FY 2024 1 See Non-IFRS Measures Simulation Technology to Advance Decisions 26
Slide 27: Summary of Financial Performance Q4 FY 2024
Summary of Financial Performance Q4 FY 2024 1 See Non-IFRS Measures Simulation Technology to Advance Decisions 27
Slide 28: Reconciliations
Reconciliations 1 See Non-IFRS Measures Simulation Technology to Advance Decisions 28
Slide 29: Offices
OFFICES Global Head Office Calgary, Canada Regional Offices Houston, United States Bogota, Colombia Rio de Janeiro, Brazil Bengaluru, India Dubai, UAE Oxford, UK Kuala Lumpur, Malaysia Oslo, Norway
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