corporate presentation · subscriber and sales growth, global expansion, the impact of the...

24

Upload: others

Post on 09-Oct-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Corporate PresentationJanuary 2018

Page 2: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Forward-looking Statements

This presentation contains certain forward-looking information and statements. Suchforward-looking information and statements are identified by the use of words andexpressions such as "projected", "intended", "leads to", "provide" and "estimated" andsimilar words and expressions. Such forward-looking information includes but is notlimited to, statements with respect to key future milestones, the development of products,subscriber and sales growth, global expansion, the impact of the Company's productsand services on customers and marketplaces, future financial or operating performanceof the Company, the ability to capitalize on future opportunities and estimates regardingthe size and scope of our target markets and their potential for growth.

These forward-looking statements, and any assumptions upon which they are based,reflect our current judgment regarding the direction of our business and include, but arenot limited to, efficiently and successfully realizing operational efficiencies, successfullyidentifying and capturing new customer opportunities and capitalizing on currentcustomer opportunities, and continuing to expand our sales channels.

These forward-looking statements are not guarantees of future performance and aresubject to a number of known and unknown risks and uncertainties, including, but notlimited to, the failure to: execute our business plan efficiently and successfully to realizeoperational efficiencies, identify and capture new customer opportunities and capitalizeon current customer opportunities, and to continue to expand our sales channels; marketconditions beyond our control that might impact our customers and/or our business; theability to raise future capital to fund operations; changes in the regulatory environmentapplicable to our business or our customers; and such other risks as are identified in thecompany’s public disclosure available at www.sedar.com.

The forward-looking information and statements in this presentation are expresslyqualified by the above statements. The forward-looking information and statements in thispresentation are based on estimates and opinions of the Company at the date thestatements are made. Except as required by applicable law, the Company does notundertake any obligation to update forward-looking information or statements. Readersshould not place undue reliance on forward-looking information or statements containedherein. Readers are cautioned that no director, officer, employee, agent, affiliate orrepresentative of the Company is authorized or permitted to make any written or verbalrepresentation or statement concerning the business or activities of the Company, exceptas set out in this presentation. The Company expressly disclaims any written or verbalstatement in addition to or contrary to anything contained in this presentation, andcautions readers that they are not entitled to rely on any written or verbal statement madeby any person to the contrary.

2

Page 3: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Corporate Snapshot

3

MISSION: To make Industry safer and more productive by connecting everyone and everything.

2010 | First Revenue

2013

2012 | 3000 Subscribers

2014 | First Mobile Applications

2015 | Landed Forestry Enterprise Customer

2015 | Exclusive Honeywell Partnership

2016 | MRR hits $300K

2017 | Mullen Strategic Investment

2017 | Channel Mobilization

2013 | Successful move to Azure Cloud

2014 | Bell National Partnership Agreement

2012

2016 | Go Public & Complete ELD Acquisition

2011 | 1000 Subscribers

2017 | Major Enterprise Sale

2011

2010

2017

2014

2016 | Launched ConneXt LoneWorkerTM

2017 | Launch ELD Product

2017 | ELD Enterprise Sale

2018 | 20,000 Subscribers2018

LegendMRR – Monthly Recurring Revenue

ARPU – Average Revenue Per UnitELD – Electronic Logging Device

2017 | Q3 Rev $4.6M & MRR $345KTrakopolis is a proven IoT platform that visualizes the location and performance of vehicles, equipment and people in real time, enhancing safety, reducing overheads and achieving operational excellence for industrial organizations with complex environments.

2015

2016

Page 4: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Enterprise Grade – Product Advantage

Enterprise Future

Built for Big Data

30,000 Geo fences uploaded

3,000 Alerts configured

49,000 GIS data points uploaded

1,400+ Workers trained

Over 550,000 data points received daily

Recent Enterprise Customer Data

GIS Over lays(Geograph ic In fo Systems)

API(App l ica t ion Program In ter face)

Azure

Microsof t Power BI

Mul t i OS Mobi le

Custom IoTBYOND(Br ing your own network and dev ice)

In f rast ructure & Compl iance

Machine Learning IoT MeshDrones Block Chain

Problem – Businesses require more than just visibility into remote and mobile assets, they require a software solution that enables business intelligence to make effective business decisions, addressing the needs of multiple stakeholders.

The Problem We Solve: Enterprises have expansive and intricate requirements. Trakopolis is a flexible, configurable, connectable and extendable platform - crucial attributes for complex organizations.

Key Features

4

Page 5: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

The Trakopolis platform continues to expand its relevance and differentiation to many verticals, a result of an expanded and collaborative technology strategy.

Management has endeavoured to capture the overall market opportunities and dissect that into realistic subsets of legitimate addressable market opportunity for the Company at this stage.

Management expects to be able to capture 10% of the “green core” of any vertical there-by demonstrating the current product mix combined with operational scale is achievable now and based on tangible metrics.

Market Opportunity

5

Serviceable Available Market

Market Opportunity

Total Available Market

Serviceable Obtainable Market

$25B

$10B

$1B

$250M

Management Estimate

The Industrial IoT market is estimated to be worth US$195.47 Billion by 2022**October 10, 2017 http://www.marketsandmarkets.com/PressReleases/industrial-internet-of-things.asp

Page 6: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Market Validation

6

400+ CUSTOMERS 15 COUNTRIES 15,000+ SUBSCRIBERS

WORKING FOR PARTNERED WITH

HEAVY INDUSTRY PARTNER

Page 7: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Key Performance Indicators

7

U.S. Sub Revenue

Target 35%

Churn Rate

Target 5%

3 Year CAGRARPU

Target $30

(Average Revenue Per Unit) (Compounded Annual Growth Rate)

Telematics Industry 16%*Industry IoT 8%

Revenue Growth

- 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

10.0

Tota

l Rev

enue

(Milli

ons)

MRR

250

270

290

310

330

350

370

390

MR

R (T

hous

ands

)

’10A

’11A

’12A

’13A

’14A

’15A

’16A

’17E

*October 10, 2017http://www.marketsandmarkets.com/PressReleases/industrial-internet-of-things.asp

(Monthly Recurring Revenue)

Page 8: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Sales Metrics

8

12%

Down from 8% in 2016

2% 2%27% 0%Today

Future

20% 10% 10%30% 5%

SMB

62%35%

Today

Future

Enterprise

38%65%

Today

Future

Oil & Gas

68%40%

Today

Future

Logistics

6%20%

Today

Future

Forestry

5%10%

Today

Future

Rentals

5%10%

Today

Future

Urban

7%10%

Today

Future

HEAVY INDUSTRY PARTNER

Customer Size Target Verticals - % Revenue

Selected Channel Partners - Lead Source

Page 9: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Key Future Milestones

9

Page 10: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Partnership Momentum

Connect EveryoneConnect Everything

Completed enterprise implementation - satisfied customer

Global reseller interest, Including Middle East and Australia

Increased investment in lead generation

Increased referral activity

Expanding product integration with Honeywell’s wireless portfolio

Global tradeshow and symposium presence

Multiple keynote deliveries from Trakopolis and Honeywell combined

Recent Activity

Honeywell Global has declared they will pivot to become an industrial software company, led by the re-branding of Honeywell, to Honeywell “The Power of Connected”. Trakopolis provides one of the first market ready products with proven sales traction.

NEW PRODUCT

10

Page 11: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Case Study

11

Canyon needed mobile Wi-Fi, reliable fleet tracking for dispatch and a way to pull engine diagnostics into their maintenance system.

$4B

$25M

O&G Services

Customer Challenge

Trakopolis offered in-cab Wi-Fi and a mobile application to support their field workers’ mobile needs. Trakopolis, through the same device, offered engine diagnostics and an advanced open API that easily integrated with their maintenance software.

The Trakopolis Solution

Reliable GPS solution and secure Wi-Fi access Open, well documented API Engine diagnostic capabilities and exceptional field support Mobile app that supported Windows 10

Success Factors

Page 12: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Case Study

12

Canfor needed to determine average cycle times for its logging trucks without relying on driver input.

The Trakopolis SolutionWi-Fi enabled vehicles with the Trakopolis app focused on direct fuel and odometer readings coupled with overlaid custom GIS files that could be automatically uploaded. The advanced geofencing capabilities allowed an increase in operational efficiencies around the entire cycle time process.

Success Factors Custom mapping feature including custom GIS files

and advanced geofencing capabilities Custom development

$2B

$10M

Forestry

Customer Challenge

Page 13: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Case Study

13

Tarpon needed a reliable solution that could provide easy-to-use advanced analytics reporting without reinvesting in a new capital expenditure on hardware.

The Trakopolis SolutionWe integrated a competitor’s hardware device allowing Tarpon access to the Trakopolis platform and Microsoft's Power BI reporting tool.

Success Factors Being hardware agnostic Agile development schedule Advanced analytics though Microsoft Power BI

$4B

$25M

O&G Services

PORT OVER

Customer Challenge

Page 14: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Case Study

Forbes Bros. needed increased reliability on the web-based login and the flexibility around utilization reporting as their operation expanded.

Success Factors Custom driven development and completion

of a per location asset utilization report Fast and scalable processing power on the

Trakopolis landing page

$2B

$10M

Construction

14

Customer Challenge

The Trakopolis SolutionEasy to use interface with a focus on user speed and easy to access reporting combined with the ability to tailor reports quickly.

Page 15: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Case Study

15

Needed to address a lone worker incident and improve reporting within both their fleet and gas detector divisions.

The Trakopolis SolutionThe ConneXt LoneWorkerTM solution integrated the gas detector with advanced user-based reporting which addresses driver behavior, maintenance, status of the lone worker, personal gas detection and fleet tracking.

Success Factors Consolidated solution for fleet, lone worker, and connected gas Fully managed enterprise roll out and continued integration

support into legacy systems Dual mode connectivity

Large U.S. Enterprise Client

$5B

$100M

O&G Production

Customer Challenge

Page 16: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

TRAKOPOLIS ELD

16

Enters market with the purchase of an ELD application Q4 2016

Large development lift to integrate ELD application into a realized product offering Q1 2017

Successful initial launch Q2 2017Positive customer feedback

Implemented over 300 ELD unitsQ3 2017

Trakopolis electronic logging device (ELD) automates one of the most time-consuming aspects of modern transport regulatory compliance: maintaining driver log books. Automating this task enhances its speed and accuracy, making life easier for drivers and administrators alike. Trakopolis ELD builds safety into a software solution for drivers across many industries. In addition to government mandates, companies face increasing costs associated with poor driving habits that lead to excessive fatigue, and pressure to take risks on the road. Trakopolis makes it easier to comply with multiple US FMCSA and DOT regulatory requirements, including HOS (hours of service) using ELD.

$4B

$50M

ELD Market

NEW PRODUCT

Market Size: 3.1 million trucks, 3.4 million drivers

ELD Mandate in Canada is anticipated by December 2019

ELD Mandate in the U.S. is required December 2017a

a

Page 17: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

TRAKOPOLIS ELDUnpacked

Currently one out of three new sales opportunities has an ELD requirement which has surpassed initial expectations. Urgency in the market combined with established channel and product offering positions Trakopolis well for continued growth.

Expanding average revenue per unit (ARPU) is a key objective of Management. Our ELD application extends the functionality of the Trakopolis solution resulting in additional ARPU.

ELD Pilots

10+ Active ELD Pilots 1000+ Potential Units

$25,000+ MRR

ELD Customers

300+ Deployed Units 400+ Potential Units

$18,000+ MRRELD opportunities in the sales funnel currently sit at 50+prospects with a potential

2,500+ units resulting in an estimated $100,000+ additional

monthly recurring revenue.

17

Page 18: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Execution Strategy

18

Direct + Channel MobilizationDirect efforts in conjunction with channel efforts to fully support 5

major channel partners

Channel DevelopmentSelling to multiple divisions and global geographies within our

existing channels

RetentionIncreased ratio of

account managers to direct sales reps

Increased StickinessEnterprise wins, GIS, API,

analytics and other software features

Account GrowthFocus on selling expanded product

line and tracking more types of assets within existing customers

Balanced FocusMarket ready products vs.

custom IoT solutions

Increased ARPUSelling advanced analytics, and

value added bolt-ons that increase subscription revenue

ScaleImplementing a product

configurator for channel use

Page 19: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

International Channel Expansion

19

The Trakopolis solution is relevant to many verticals and geographies. As we continue to focus on channel mobilization, progress our offering with Honeywell and a large industrial equipment reseller our channel is pushing us organically further into the global market.

CanadaChannel leads are diversified and represent 46% of our inbound leads. New partnerships include Telus and a large industrial equipment re-seller.

ChileLarge industrial equipment reseller opportunity.

AustraliaReseller in discussions for ConneXt LoneWorkerTM.

Middle EastStrong interest from Honeywell's team about expansion into the area and new product integration.

United KingdomLarge industrial equipment reseller opportunity.

United StatesHoneywell channel continuing to accelerate post enterprise sale, increased interest particularly in the gulf zone from both Honeywell and their network of distributors.

Page 20: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Management

20

Brent MooreFounder, Chief Executive Officer

Brent is a successful entrepreneur who has assembled an innovative team of professionals to capitalize on the Internet-of-Things revolution. Brent focuses on corporate finance, sales and marketing, business development and strategy.

Richard ClarkeChief Financial Officer

Richard focuses on Trakopolis’ corporate strategy, financial performance and capital management. Richard implements and manages a well-rounded and evolving financial strategy that encompasses operational, investment and financing activities for the Company.

Ted DuffieldChief Revenue Officer

Ted is a results-oriented sales executive directly responsible for overseeing, sales, marketing and revenue management. Ted creates and delivers a revenue generation strategy that focuses on creating a world class Trakopolis buying experience.

Laine HotteChief Technology Officer

Laine is a respected technology expert leading the Trakopolis R&D team. Laine helps reach objectives through cross-company engineering initiatives and collaboration. Laine delivers effective technical guidance to our web application and enterprise infrastructure teams.

Page 21: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Board of Directors

21

Tracy GrafChairman

Business executive with significant experience with public companies, capital markets and the telematics industry. CEO of Carfinco Financial Group and is a current director of another TSX-V company and previous director at two TSX-V and one TSX company.

Brent MoorePresident, CEO and Director

Successful entrepreneur who has assembled an innovative team of professionals to capitalize on the Internet-of-Things revolution. Brent focuses on corporate finance, sales and marketing, business development and strategy. Consistently held leadership roles with employers and has been exclusively self-employed for 15 years.

Frank TurnerDirector

Partner at the law firm of Osler, Hoskin & Harcourt LLP where he is co-head of Osler’s Asia Pacific initiative and formerly served as the National Co-Chair of the firm’s Corporate Group. Extensive work in the technology sector, including representing Microsoft on substantially all of its Canadian M&A activity since 1999. Frank also leads Osler’s Emerging Company Practice in Alberta.

Cameron OlsonDirector

CFO of Calgary Sports and Entertainment Corporation, which owns and operates six professional sports teams, including the Calgary Flames and the Calgary Stampeders. CFO of Hemisphere GPS Inc. (now AgJunction Inc.), a TSX listed technology company, from 2003 to 2013.

Gilbert SonnenbergDirector

Decades of experience in the Financial Services Industry, including with RBC and ATB Financial. Co-founder and CFO of I Want Wireless.ca Ltd., a private company which provided rural and remote internet services to residential and corporate clients.

Chris BurchellDirector

Significant capital markets expertise and finance relationships developed through 15 years of investment banking with Scotia Capital and Cormark Securities, where he was a Managing Director from 2012 to 2015. Currently CFO of a private company developing products in the biotechnology/pharmaceuticals space.

Anthony DuttonDirector

Currently a principal at a private strategic and financial advisory company where he focuses on corporate finance, business development and strategic management. Seasoned CEO and board member with a focus on early stage and high growth companies and deep experience in public venture capital.

Page 22: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Share Structure

(¹)750,000 Shares will be issued if Trakopolis achieves a minimum of $20 million in cumulative revenue after going public; 750,000 Shares will be issued if Trakopolis achieves a minimum of $50 million in cumulative revenue after November 1, 2016;and 300,000 Shares will be issued if Trakopolis achieves a minimum of $25 millionin revenue in any one fiscal year for fiscal years beginning on or after July 1, 2017.

22

26,069,379Total Common Shares Outstanding

Insiders 2,490,236

Warrants and Options 5,007,671

Performance-based Shares(1) 1,800,000

Full Diluted Share Capital 32,877,050

Page 23: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

Summary

Seasoned board and management team Manage rapid sales growth situations Developing strategic partnerships Focused on shareholder value &

operational KPIs

Team TSXV listed TRAK Quarterly organic growth New products (ELD, ConneXt LoneWorkerTM) Enterprise sales including U.S. revenue Incorporated U.S. subsidiary -

Trakopolis USA Corp.

Growth

Significant historical revenues Recurring/SaaS revenue streams Vertical market and product diversity IoT proliferation partnerships

Trakopolis

MISSION: To make Industry safer and more productive by connecting everyone and everything

“We Are Enterprise Grade”

Page 24: Corporate Presentation · subscriber and sales growth, global expansion, the impact of the Company's products ... market conditions beyond our control that might impact our customersand/or

24

Trakopolis IoT Corp.Brent Moore, CEO403 450 [email protected]

Oak Hill AdvisorsRon Shuttleworth, Partner416 487 [email protected]