Creating a more efficient future with AI and analytics. Investor Presentation July 2019 - Universal ...
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Creating a more efficient
future with AI and analytics.
Investor Presentation │July 2019
1
Forward Looking Statements
This presentation contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking
statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not
representative of historical facts or information or current condition, but instead represent only Universal mCloud Corp.'s (the "Company") beliefs regarding future events, plans or objectives, many of
which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-
looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved."
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to several risks as discussed under the heading "Risk Factors" on pages 29 to 46 of the Company's filing statement dated October
5, 2017. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking
statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
In connection with the forward-looking information and forward-looking statements contained in this presentation, the Company has made certain assumptions. Although the Company believes that the
assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information
and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this presentation are made as of the date of this presentation,
and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable
securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
General Disclaimer
This presentation does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein. The sole purpose of this presentation, in paper or electronic form, is strictly for
information. Please consult your financial advisor before making any investment decisions.
Third Party Information
This presentation includes market and industry data which was obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it
to be reliable, the Company has not independently verified any of the data from third-party sources in this presentation, or analyzed or verified the underlying reports relied upon or referred to by such
sources, or ascertained the underlying assumptions relied upon by such sources. The Company does not make any representation as to the accuracy of such information.
2
mCloud provides AI solutions to manage assets
Company Description What We Do
• mCloud provides AssetCareTM, a subscription-based, Artificial IIoT Devices The Cloud
Intelligence (“AI”)-powered service to manage the health and • Collection of real- • Data is processed
performance of critical assets. time and historical in the cloud and
data directly from provided in real-
• AssetCareTM works by collecting real-time and historical data directly
the asset. time.
from an asset and providing it to the asset owner via the cloud.
• The AssetCareTM solution provides companies with the ability to
analyze this data in a variety of ways, including visual inspection and
remote assistance.
• AssetCareTM also allows companies to shift from reactive to
preventative maintenance, decreasing energy costs and eliminating
the opportunity cost associated with downtime.
Mission-Critical Asset Owner
Overview of Products Asset • Provided with data
Product Description Key Vertical • Rooftop units and analytics in a
• Wind turbines variety of forms
Agnity • Secure link for mobile & video via AssetCareTM
• Communications • Gas compressors
communications. solution.
CSA • Creates 3D digital replicas. • Multiple Verticals Key Stats
FDSI • Software & analytics for energy
optimization.
• Smart Buildings 80%+ 30K+ 100+
Recurring Connected Blue-Chip
NGRAIN • Combines high-res imagery with AI to
• Defense Revenue Assets Customers
inspect for damage.
Autopro • Solutions for process industries such
• Oil & Gas
as oil and gas.
3
Layered Growth Strategy – Connect Assets
Foundation Phase Become Industry Standard
• Acquisition of Base Technology • Fully-Integrated mCloud Offering
• AI and analytics • Machine-to-Machine Analytics & Big
• 3D Data
• Mobile communication • Next-Generation AI Capabilities
2019
2018 Late 2019+
Growth Phase
• Integration of Base Technology into
mCloud Applications
• Smart Facilities
• Smart Turbines
• Smart Oil & Gas
mCloud is currently in its growth phase, aiming to expand its offering to verticals which require continuous asset monitoring
4
Leadership Team
Management Team
Russ McMeekin Costantino Lanza
Co-Founder, President & Chief Executive Officer Co-Founder & Chief Growth Officer
Experience: Experience:
Chantal Schutz Barry Po
Chief Financial Officer Chief Product Officer
Experience: Experience:
Board of Directors & Strategic Advisors
Michael Sicuro Sunir Kapoor
Co-Founder, Chief Investment Officer & Non- Strategic & Integration Advisor
Executive Chairman Experience:
Experience:
US Oncology
Asyst Technologies
Network
Mike Allman Betsy MacLean
Independent Director Independent Director
Experience: Experience:
5Where We Are Today
Foundation Phase Verticals Growth Phase Verticals
1 Communications 2 Defense 3 Smart Facilities 4 Smart Wind 5 Smart Oil & Gas
• Wireless Security • Aircraft • HVAC • Blades • Compressors
(HIPPA) • Vehicles • Lighting • Gearboxes • Controllers
• Mobile Networks • Installations • Transformers • Bearings • Valves
• Mobile Voice & Data
Curtail building Maximize wind Optimize O&G
energy waste energy production production
AI & Analytics TechnologyStack
Visual Inspection Performance Optimization Condition Monitoring
Work Order Management Remote Assistance Predictive Maintenance
61 Foundation: Communications
mCloud’s Value Proposition Key Partner: RealWear
Secure Enterprise Communications
RealWear
• Secure, carrier-grade link for voice and video communications to
• Supplies head-mounted displays
workers in the field.
used for mCloud mobile applications
• Enables “call an expert” and virtual remote assistance capabilities on supporting asset management in the
mobile devices. field.
• Ability to support mobile asset workers via next-generation 5G wireless
capabilities enabling industrial IoT-based asset management.
Work orders and management from AssetCareTM
1 to RealWear headsets and mobile devices
Key Customers
Key Customers: 2 Dynamic step-by-step instructions
/
3 Remote work assistance
Hands-free documentation using voice input and
4 camera
72 Foundation: Defense
mCloud’s Value Proposition Customer Case Study
• Traditionally, maintenance technicians manually assess and track
damaged areas by placing a transparent film over these areas and
tracing reference points with a marker. They then cross-reference this
information with repair data history. • mCloud has been a supplier of damage assessment solutions used in
the F-35 and F-22 stealth fighter programs since 2007.
• mCloud provides AI-powered damage assessment and asset
management solutions to companies in the defense and aerospace • 100% digital workflow significantly reduces post-flight maintenance time.
industries. The solutions help automate traditional processes, making the
entire process less time consuming and error-prone.
”The fact that mCloud is the only supplier outside of the US that
Increases operational availability, ensuring assets can has ever worked on the F-22 is a testament to their tracking and
1 spend more time in-use. repair solution’s effectiveness.” – Jeff Babione, EVP & GM, F-35
Program, Lockheed Martin
Reduces time required to document, assess and repair
2 damage. Key Partners
Captures damage data more accurately, reducing the United States Department of Defense
3 probability that mistakes are made during maintenance.
• Via NGRAIN and Ascent, mCloud has a track record of clearances and
certification to work on critical assets and infrastructure.
• mCloud has active engagements with the United States Department of
Defense on multiple contracts.
8AssetCare Benefits
Assets connected in days instead of
months.
Pays off on Day 1 with immediate
improvements to asset performance.
SaaS pricing means one single price
for everything, with no upfront CAPEX
requirements.
93 AssetCare for Smart Facilities
Overview of Opportunity Customer Case Studies
30% $57B • Consumes over a quarter billion dollars of electricity annually.
• mCloud’s solution fits perfectly into the bank’s energy efficiency &
of energy is wasted in is wasted on energy annually
conservation strategy, servicing 3,300 branches with a resulting 12%
commercial buildings in the U.S. cost reduction across the portfolio.
mCloud’s Value Proposition
• mCloud’s solution fits perfectly into Cinemark’s priority to advance
Smart Energy Savings environmental sustainability, with 600+ of Cinemark’s rooftop HVAC
units connected to AssetCareTM.
• IoT-connected thermostats with AI combine building occupancy,
HVAC load, and energy rate to minimize peak demand.
Key Partners & Opportunities
Intelligent diagnostics
• AssetCareTM monitors the health of HVAC units 24/7, • In October 2017, mCloud announced a reseller agreement with TELUS,
automatically flagging unit faults and getting ahead of issues whereby TELUS will deliver AssetCareTM to the Canadian market.
before they become unplanned outages. Market Driver
• It is estimated that 80% to 90% of buildings in Canada have older, non-
Optimized performance IoT-connected mechanical thermostats.(1)
• Deep analytics from connected thermostats ensure HVAC units
always run at their best, reducing operating costs without
sacrificing comfort. • In April 2018, mCloud formed a partnership with SCN, a top 20
commercial building contractor in China with a footprint of over 300M
Typical 5,000 square foot retail space in California saves 15% in square feet to bring AssetCareTM to the Chinese Market.
peak period energy costs - US$650 in monthly savings Market Driver
• Electricity rates in China have risen ~17.5% over the past ten years.(2)
1. Maxim Group Report, January 3, 2019, “A Promising Early Stage Industrial IoT SaaS Player Initiating Coverage with a Buy Rating”.
2. Biggins Lacy Shapiro & Company, LLC / Tractus Asia Limited “A Comparison of U.S. & China Electricity Costs”.
104 AssetCare for Smart Wind
mCloud’s Value Proposition Key Partner
Digital Blade Inspection
• Using AI-powered visual inspection techniques, AssetCareTM
enables virtual blade inspections that identify and characterize • Ascent Aerosystems provides United States government-approved,
blade damage impacting energy production. industrial-grade drones designed for harsh environments.
• Ascent Aerosystems’ portable, rugged, coaxial configuration enables
Data-Driven Optimization mCloud to further apply its AI- and IoT-powered cloud asset
• AssetCareTM uses data to curtail unconverted wind availability management solutions to remote and hard-to-access assets, including
and focus on maximizing wind energy production and profitability wind turbines.
per MW by reducing O&M required and asset neglect.
• In April 2019, mCloud announced a minority investment in Ascent
Aerosystems.
Remote Field Assistance
• Mobile devices and hands-free digital eyewear connect mCloud’s Solution
maintainers in the field to analytics and expertise needed to get
every maintenance job right the first time.
World-Class Wind Expertise
• AssetCareTM is backed by a team that includes wind engineers
and asset managers who understand all aspects of wind farm
operation and maintenance.
24/7 Performance Monitoring
• Wind turbines connected to AssetCareTM are continuously
monitored to adapt to changing circumstances that can improve AI Precision Drone-Assisted Field Work
energy production and avoid unplanned downtime.
A 1% improvement in uptime results in ~100,000 kWh improvement in
annual energy produced(1) = ~US$500 per month in new revenue per turbine
1. Management estimate.
115 AssetCare for Smart Oil & Gas
mCloud’s Value Proposition Key Benefits
Digital Facility in the Cloud • Continuous and broader optimization: AI goes beyond the traditional
• At a fraction of the cost of traditional on-premise systems, optimization algorithms used in oil and gas, taking advantage of more
AssetCare™ brings all asset data, from oilfield to midstream to sophisticated neural networks to predict events and maximize outcomes.
downstream, into a single hub, eliminating dependency on
costly onsite visits. • Prescriptive maintenance: Predicting when equipment will fail and their
root causes enables a step change in how assets are maintained,
3D + AI-Powered Digital Twins resulting in greater availability, reduced maintenance costs and extended
• 3D digital models and AI-based performance asset life.
management of reservoirs, field assets, pipelines, and
process assets eliminates site visits and provides • Open platform reduces IT footprint: Using readily-available IoT
common model for daily operations across the business. sensors and cloud computing enables the ability to rapidly scale and
deliver new capabilities on-demand at a fraction of the cost of upgrading
Remote Field Assistance and maintaining traditional IT systems.
• Mobile devices and hands-free digital eyewear connect field
workers with analytics and expertise needed to get every job mCloud’s Solution
right the first time.
World-Class Oil & Gas Expertise
• AssetCareTM is backed by a team that includes oil and gas
asset managers and industrial automation experts who have
delivered thousands of solutions with an unblemished record.
Unified digital 3D models improve productivity and minimize
risk of unplanned outages, translating into ~US$5,000 per
month from existing OPEX per asset for maintenance.
3D Digital Twins for Facility Operations and Maintenance
12mCloud Competitive Differentiation
Schneider
AspenTech Emerson Honeywell OSIsoft Yokogawa GE Siemens JCI/Tyco
Electric
Azure
Secure
Cloud
3D Virtual
AI
Powered
Predictive
Models
Mobile +
Drone
Edge
13Proforma Revenue
(All figures in C$M, assumes all acquisitions closed)
Revenue Normalized Income Highlights:
60.0
50.0 - 55.0 ~20% organic AssetCare
revenue growth QoQ
40.0 >80% organic AssetCare
revenue growth YoY
>10K connected asset
20.0 growth YoY
10.5
3.5 - 6.0
0.0
-4.5
-20.0
FY 2018 FY 2019
Gross Margin 67% 49-58%
Fully Diluted Shares 127M 250M
Est. Net Debt $0 $25M
1. FY 2018 mCloud standalone financials are as reported and available on SEDAR.
2. FY 2019 is proforma with combined financials as assumed to be if all recent and pending acquisitions – CSA, Flow / Agnity, and Fulcrum / Autopro – closed at end of period.
3. The Flow / Agnity transaction closed on January 17, 2019; The Fulcrum / Autopro transactions closed in July 2019. CSA is expected to close by September 2019.
4. Exact figures dependent on final purchase accounting and impacts of transaction timing. 14
5. ~$14M in near term cash from warrants not included in figures; Fully Diluted Share count includes outstanding warrantsYou can also read
