Computer Modelling Group Ltd. · TSX:CMG
Computer Modelling — Investor Presentation (February 2025)
32 slides from Computer Modelling's investor presentation, Feb 10, 2025
Slide 1: Investor Presentation
Investor Presentation February 2025 CMG: TSX Computer Modelling Group Ltd. Market Capitalization (at Feb 10th, 2025) $897.7M FY 2024 Revenue $108.7M FY 2024 Adjusted EBITDA1 $43.2M FY 2024 FCF/Share1 $0.44/Share 1 See Non-IFRS Measures Simulation Technology to Advance Decisions ‹#› 1
Slide 2: Forward-Looking Information
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: We provide solutions to solve some of the world's most complex surface and subsurface problems
We provide solutions to solve some of the world's most complex $90.6M TTM1 Total Software Revenue surface and subsurface problems Computer Modelling Group (“CMG”) is a leading provider of reservoir simulation software to energy companies globally. Our software supports our customers in the optimizat
Slide 4: Over 40 years of science, innovation, and technical expertise
Over 40 years of science, CMG 4.0 Announced • Accelerate software revenue with leading sales innovation, and technical organization CMG introduced Machine Learning Optimization technology CMOST TM • Strengthen leadership in energy transition expertise • Machine learning workflow to optimize simulati
Slide 5: Why CMG
Global brand recognition underpinned by 40+ years of reservoir simulation software development and best-in-class training and support Attractive Annual Recurring Revenue profile that is diversifying with energy transition use cases and acquisitions Why CMG Compelling operating margins; history of st
Slide 6: 40+ Years of Expertise, Trusted Globally
40+ Years of Expertise, Trusted Globally Split of Total Software Revenue Globally – FY24 100% (Percent of total software revenue) of the Super Majors* 90% Canada 16% of the top-10 National Oil Companies United States Eastern Hemisphere1 75% 46% of the world’s top-25 largest oil 25% companies South A
Slide 7: Attractive Recurring Revenue Profile that Continues to Diversify
Attractive Recurring Revenue Profile that Continues to Diversify 65% Recurring Revenue1 (TTM2) Revenue Attributable to Energy Transition Seismic Solutions Software Revenue (% of Total Revenue) (% of Total Reservoir & Production Segment Software Revenue) ($Ms Trailing Twelve Months) 28% Seismic Solut
Slide 8: CMG 4.0 - A New Paradigm of Capital Allocation
CMG 4.0 - A New Paradigm of Capital Allocation FY24 Change in Cash Cash Existing Operations FY 2024 ($Ms CAD) Generation CMG generates strong free cash flow 94% $35.2M 1 with low capital intensity Replenishment of cash into FY254 Free Cash Flow1 $38.3M ($0.7M) ($2.4M) Capital Organic Growth Allocati
Slide 9: CMG 4.0 Strategy
CMG 4.0 Strategy Simulation Technology to Advance Decisions 9
Slide 10: CMG 4.0 Strategy – Announced late 2022
CMG 4.0 Strategy – Announced late 2022 Preserve long-term, per share profitability while driving growth and Free Cash Flow1 both organically and through acquisitions Growth Profitability Acquisitions CMG 4.0 Strategy, announced in 2022, is With a durable recurring revenue model Prudently invest exce
Slide 11: CMG 4.0 Strategy – Growth Levers
CMG 4.0 Strategy – Growth Levers Inorganic growth opportunities Accelerate software revenue with leading sales organization • Shift to customer segmentation and value-based pricing • Solution strategy and market-driven roadmap • Broaden geographical reach and market penetration • Enhanced marketing
Slide 12: CMG 4.0 Acquisition Strategy
CMG 4.0 Acquisition Strategy The upstream workflow provides strategic acquisition opportunities to expand solution offering within Acquisition the energy market Processing Azimuthal • Bluware (acquired September 2023) Inversion • Sharp (acquired November 2024) Quantitative Interpretation Inversion A
Slide 13: Expertise to Deliver
Expertise to Deliver Senior Management Pramod Jain, Chief Executive Officer Sandra Balic, Chief Financial Officer Long Nghiem, VP Innovation Lab Joined 2022 & VP Finance Joined 1978 Joined 2009 15+ years international leadership experience focused 45+ years experience as a leading developer of on co
Slide 14: Reservoir and Production Solutions
Reservoir and Production Solutions Simulation Technology to Advance Decisions 14
Slide 15: Reservoir and Production Solutions Third Quarter Highlights
Reservoir and Production Solutions Third Quarter Highlights Total Revenue Revenue Split Q3 2025 ($Ms CAD) (Percent of Revenue) Revenue Split $23.3 $23.2 $21.8 $22.3 $21.7 Annuity/maintenance licenses 82% Professional services 15% Perpetual licenses 4% Levers for Growth • Accelerate software revenue
Slide 16: Addressable Market for Reservoir Simulation
Addressable Market for Reservoir Simulation Global Reservoir Simulation Market1 The global simulation market is expanding, leaving a runway to growth in CMG’s Core Business $1B Estimated $1B Global Reservoir Simulation Market Through 2030 ` CMG FY 2024 Revenue $87.9M Unconventional, Reservoir Simula
Slide 17: Scalable and Extensible Workflow Tailored to a Variety of Industrial Applications
Scalable and Extensible Workflow Tailored to a Variety of Industrial Applications Adaptable capabilities for a variety of industry User applications Infrastructure Solutions Experience Conventional IMEX CoFlow Heavy Oil STARS Desktop Unconventional On Premise Private Cloud Applications CMOST Web Hyb
Slide 18: Comprehensive Simulation Workflow for Every Stage of an Assets Lifecycle
Comprehensive Simulation Workflow for Every Stage of an Assets Lifecycle GEOLOGICAL DATA Seamlessly integrate seismic, log, & core data from other geomodelling platforms or proprietary databases SIMULATION MODEL GEOLOGICAL DATA SIMULATION MODELLING SENSITIVITY ANALYSIS Dynamically model how operatio
Slide 19: CMG – Net Promoter Score (NPS) 68
CMG – Net Promoter Score (NPS) 68 (B2B Software Average 41%) Long-running customer base with a focus on customer centricity IRS ONGC We have observed a significant improvement over the time IRS ONGC has been using CMG software for reservoir we have used CMG technology. Our model, being a giant simul
Slide 20: Diversifying through Energy Transition
Diversifying through Energy Transition With a 20+ year history in Carbon Capture & Storage (CCS) CMG leads the market in carbon sequestration simulation • CMG's existing software suite is currently the market leader for carbon sequestration simulation and has strong applications in geothermal and hy
Slide 21: CMG's technology has differentiating capabilities that address energy transition needs
CMG’s technology has differentiating capabilities, built CMG has Forged Strategic Partnerships with Global over decades, that can directly Leaders in Energy Transition Innovation address the energy transition needs of our customers. Energy Transition Carbon Capture & Hydrogen Geothermal Storage C02
Slide 22: Anticipated Growth in CO2 Storage Requires Subsurface Simulation
Anticipated Growth in CO2 Storage Requires Subsurface Simulation Strong Growth Anticipated in CO2 Capture Projects Rate of geological storage resource development must Capacity of large-scale CO2 capture projects, accelerate rapidly to achieve net-zero targets current and planned 2020 - 2030 +79% 30
Slide 23: Seismic Solutions Segment
Seismic Solutions Segment Simulation Technology to Advance Decisions 23
Slide 24: Seismic Solutions Segment Revenue Trends
Seismic Solutions Segment Revenue Trends Quarterly Financial Highlights ($Ms CAD) Q3/25 includes growth from acquisition of Sharp Reflections $7.0 $37.6M TTM Total Revenue $6.2 $6.1 $5.6 $5.6 Revenue Timing $4.3 14% • Revenue contracts include $3.8 combinations of software licenses, TTM Adjusted EBI
Slide 25: Bluware InteractivAI Improving Decision Making
Bluware InteractivAITM Improving Decision Making As a structural geologist, my job is to be fussy about the tectonic viability of fault interpretation, and therefore I used to be rather critical about AI supported fault identification. InteractivAI, however, allows me to remain in the driver's seat,
Slide 26: Bluware is Transforming Seismic Interpretation Workflows in Cloud
Bluware is Transforming Seismic Interpretation Workflows in Cloud VDSTM Cloud-Native FASTTM Seismic InteractivAITM Deep Learning Data Format Data Streaming Seismic Interpretation Tool • Compress seismic data that is adaptable and • Stream VDS data from the cloud to existing • Reduce overall interpre
Slide 27: Sharp Reflections Acquired November 2024
Sharp Reflections Acquired November 2024 The industry’s first HPC platform for seismic visualization, processing, and interpretation €10.0M Low double digit Revenue1 Adjusted EBITDA Margin1,2 LTM to July 2024 LTM to July 2024 Sharp Reflection and Fraunhofer Institute developed new software solution
Slide 28: Financials
Financials Simulation Technology to Advance Decisions 28
Slide 29: Summary of Financial Performance
Summary of Financial Performance Reservoir & Production Seismic Solutions Consolidated Solutions Three months ended December 31, 2024 2023 2024 2023 2024 2023 ($ thousands, except per share data) Annuity/maintenance licenses 17,706 17,625 2,746 1,189 20,452 18,814 Annuity license fee - - 4,303 3,846
Slide 30: Reconciliation of Non-IFRS to IFRS Financial Measures
Reconciliation of Non-IFRS to IFRS Financial Measures Reconciliation of Adjusted EBITDA1 to Net Income Reservoir & Seismic Solutions Consolidated Production Solutions Three months ended December 31, 2024 2023 2024 2023 2024 2023 ($ thousands) Net income (loss) 5,496 3,918 4,110 1,692 9,606 5,610 Add
Slide 31: Reconciliation of Non-IFRS to IFRS Financial Measures
Reconciliation of Non-IFRS to IFRS Financial Measures Reconciliation of Free Cash Flow1 to Funds Flow from Operations Fiscal 2023 Fiscal 2024 Fiscal 2025 ($ thousands, unless otherwise stated) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Funds flow from operations 7,656 7,920 11,491 8,477 10,367 6,515 7,101 9,937 Capita
Slide 32: 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 Stavanger, Norway Kaiserslautern, Germany Simulation Technology to Advance Decisions 32
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