WORLD LEADER IN NARROWBAND MESH NETWORKS. General Meeting Presentation. 2 October 2017

Transcription

1 WORLD LEADER IN NARROWBAND MESH NETWORKS General Meeting Presentation 2 October

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3 Introduction 30 million of R&D spend has given CyanConnode a world leading position in narrowband mesh networks Board investment of 1.6 million confirms commitment $100 million order book (includes $33 million expected software license/support revenue from UK smart meter contract) giving a high level of comfort over 2018 revenues $326 million pipeline of opportunities being pursued with several near term Full rollout of existing contracts in India, Iran, Bangladesh and UK alone would create a significant revenue stream and drive profitability 3

4 Narrowband Technology CyanConnode provides last mile wireless mesh communications to utilities Electricity, gas and water metering Street lighting Licence free radio bands Wi-Fi, broadband and mobile spectrums have limitations Coverage Penetration (through buildings etc.) Cost and availability of spectrum Narrowband is unoccupied, low cost, low power and penetrates walls Always on, secure, interoperability between different meters Ideal for machine to machine communication Extends network coverage, self forming/healing network The world s leading narrowband platform for smart meter, smart city and IoT applications 4

5 Typical Metering Installation 5

6 Live Meters in Mysore, India Reading history for each individual meter DCU and meters in mesh network = DCU Location Meter list for DCU in Network Manager Software Last reading data for each meter 6

7 Global Partners Established eco-system of local partners in focus markets: Supports the transfer of skills and experience Local wealth generation feeds sales pipeline Enables full end-to-end solution delivery Partners not resellers CyanConnode solutions enable larger partner sale 7

8 Market Scale - India 250M CyanConnode has won the highest number of AMI contracts awarded to date in India 35M 9.2M 25k Tata Power - Mumbai 1M 0.9M 0.5M 13k 21k 23k 82k PVVNL CESCOM Contracts awarded/deployed All 0.7M Tata Power - Mumbai 3.5M 2M PVVNL CESCOM 3M UGVCL Roll out opportunity All Smart meters to be installed by 2019 Note bars are not to scale Total Indian Market 8

9 Market Scale - Bangladesh Initial order for 150KU in Feb 2017, extended to 250KU in June 2017 and further extended to 550KU in Aug M 7.2M 550KU ~58M Note bars are not all to scale 4.2M 250KU 150KU Electricity metering contract Feb 17 Contract extension awarded Jun 17 Contract extension awarded Aug 17 Total Electricity metering market 9

10 Market Scale - Iran CyanConnode was one of the first UK companies to win a contract in Iran following the lifting of economic sanctions 33M Note bars are not to scale 1M 10M 0.1M 360k 2k Street Camera Contract Electricity metering contract Active Electricity metering opportunity Total Electricity metering market 10

11 Customer Orders (last 10 months) Ukraine (Sept 2017) $29M order for 1,000,000 unit smart metering deployment $13M is hardware to be delivered over 36 months $19M is recurring revenue software licenses with 10 year contract term UGVCL, India (Jul 2017) $1.1M order for 23,000 unit smart metering deployment Order received from new Tier 1 meter manufacturer partner Genus Bangladesh (Feb, Jun & Aug 2017) $19.3M order for 550,000 unit smart metering deployment Half the order is hardware/services to be delivered over months Half the order is recurring revenue software licenses with 10 year contract term Tata Power Mumbai (Dec 2016 & Jun 2017) Orders from Larsen & Toubro for 15,000 smart meters HM Power Sweden (Jan 2017) Orders for 100,000 software licenses 11

12 Sales Pipeline Rest of World outside India Region Solution Units 000 Value $ M Ukraine Order now closed Electricity Meters 1, South East Asia Electricity Meters South East Asia Lighting 20 5 Middle East Gas Meters 1, Middle East Electricity Meters 2, Ghana, Canada, UK, Indonesia, Philippines, Australia, Iran Total current pipeline with 6-12 month window to close Electricity, Gas, Lighting, IoT ,212 4,212 $274M $242M 12

13 Sales Pipeline India Customer Solution Units 000 Value $ M Public utility Electricity Meters Public utility Electricity Meters Public utility Electricity Meters Public utility (follow on order) Electricity Meters Private utility Smart City 33 2 Public & private utilities Electricity & Smart City 1, Total current pipeline with 6-12 month window to close 2,810 $84M 13

14 UK Smart Meter Implementation Programme CyanConnode s solution connecting meters in not-spots UK SMIP Ecosystem Contract and delivery model Hosting Payments for CommsHub & Bespoke Work Telefonica M2M Platform Connode Server Revenue Contracted licence fees until 2020 Support fees (over 15 years) Expected 10% mesh Medium Case 20% mesh Source: Smart DCC Best Case 30% mesh 6m 13m 20m 18m 36m 54m Total 24m 49m 74m Payments for C4 SW Licenses & Bespoke Work Connode Agent + Bespoke services for integration& product adaptations Sources of revenue 14

15 Expansion from Smart Metering to IoT Platform IoT Solutions Platform CyanConnode s hardware and software can be used in any IoT device/application Omnimesh IoT platform supports third party communication technologies enabling smart city multi-application networks Smart Metering 15

16 Current Shareholders CyanConnode has a stable register offering a strong growth platform Shareholder Shares % Holding Nightingale Investment Co Ltd 1,676,470, Biggles Enterprises Ltd 1,666,666, W.D. Johns-Powell 1,049,412, Herald Investment Management 956,821, Legal & General Investment Management 952,824, Swedestart Tech KB 558,754, John Cronin 429,590, Source: Company Announcements and RDIR Share Register analysis June