Creating a more efficient future with AI and analytics. Investor - - PowerPoint PPT Presentation

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Creating a more efficient future with AI and analytics. Investor - - PowerPoint PPT Presentation

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


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Creating a more efficient future with AI and analytics. Investor Presentation │July 2019

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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.

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mCloud provides AI solutions to manage assets

Company Description What We Do Key Stats

Asset Owner

  • Provided with data

and analytics in a variety of forms via AssetCareTM solution. Mission-Critical Asset

  • Rooftop units
  • Wind turbines
  • Gas compressors

IIoT Devices

  • Collection of real-

time and historical data directly from the asset. The Cloud

  • Data is processed

in the cloud and provided in real- time.

  • mCloud provides AssetCareTM, a subscription-based, Artificial

Intelligence (“AI”)-powered service to manage the health and performance of critical assets.

  • AssetCareTM works by collecting real-time and historical data directly

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. Product Description Key Vertical Agnity

  • Secure link for mobile & video

communications.

  • Communications

CSA

  • Creates 3D digital replicas.
  • Multiple Verticals

FDSI

  • Software & analytics for energy
  • ptimization.
  • Smart Buildings

NGRAIN

  • Combines high-res imagery with AI to

inspect for damage.

  • Defense

Autopro

  • Solutions for process industries such

as oil and gas.

  • Oil & Gas

80%+

Recurring Revenue

30K+

Connected Assets

100+

Blue-Chip Customers

Overview of Products

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Layered Growth Strategy – Connect Assets

2018

  • Acquisition of Base Technology
  • AI and analytics
  • 3D
  • Mobile communication

Foundation Phase

2019

  • Integration of Base Technology into

mCloud Applications

  • Smart Facilities
  • Smart Turbines
  • Smart Oil & Gas

Growth Phase

Late 2019+

  • Fully-Integrated mCloud Offering
  • Machine-to-Machine Analytics & Big

Data

  • Next-Generation AI Capabilities

Become Industry Standard

mCloud is currently in its growth phase, aiming to expand its offering to verticals which require continuous asset monitoring

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Leadership Team

Chantal Schutz Chief Financial Officer Experience: Michael Sicuro Co-Founder, Chief Investment Officer & Non- Executive Chairman Experience: Barry Po Chief Product Officer Experience: Sunir Kapoor Strategic & Integration Advisor Experience: Mike Allman Independent Director Experience: Betsy MacLean Independent Director Experience: Management Team Russ McMeekin Co-Founder, President & Chief Executive Officer Experience: Costantino Lanza Co-Founder & Chief Growth Officer Experience: Board of Directors & Strategic Advisors

US Oncology Network Asyst Technologies

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Where We Are Today

Foundation Phase Verticals Growth Phase Verticals

Communications

1

Defense

2

Smart Facilities

3

Smart Wind

4

Smart Oil & Gas

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  • Wireless Security

(HIPPA)

  • Mobile Networks
  • Mobile Voice & Data
  • Aircraft
  • Vehicles
  • Installations
  • HVAC
  • Lighting
  • Transformers

Curtail building energy waste

  • Blades
  • Gearboxes
  • Bearings

Maximize wind energy production

  • Compressors
  • Controllers
  • Valves

Optimize O&G production

AI & Analytics TechnologyStack

Visual Inspection Work Order Management Performance Optimization Remote Assistance Condition Monitoring Predictive Maintenance

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Foundation: Communications

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Key Partner: RealWear Key Customers

  • Secure, carrier-grade link for voice and video communications to

workers in the field.

  • Enables “call an expert” and virtual remote assistance capabilities on

mobile devices.

  • Ability to support mobile asset workers via next-generation 5G wireless

capabilities enabling industrial IoT-based asset management.

RealWear

  • Supplies head-mounted displays

used for mCloud mobile applications supporting asset management in the field.

Secure Enterprise Communications Work orders and management from AssetCareTM to RealWear headsets and mobile devices

1

Dynamic step-by-step instructions

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Remote work assistance

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Hands-free documentation using voice input and camera

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mCloud’s Value Proposition

/

Key Customers:

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Foundation: Defense

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mCloud’s Value Proposition Customer Case Study Key Partners ”The fact that mCloud is the only supplier outside of the US that has ever worked on the F-22 is a testament to their tracking and repair solution’s effectiveness.” – Jeff Babione, EVP & GM, F-35 Program, Lockheed Martin

  • mCloud has been a supplier of damage assessment solutions used in

the F-35 and F-22 stealth fighter programs since 2007.

  • 100% digital workflow significantly reduces post-flight maintenance time.

United States Department of Defense

  • 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.

  • 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 provides AI-powered damage assessment and asset

management solutions to companies in the defense and aerospace

  • industries. The solutions help automate traditional processes, making the

entire process less time consuming and error-prone.

Increases operational availability, ensuring assets can spend more time in-use.

1

Reduces time required to document, assess and repair damage.

2

Captures damage data more accurately, reducing the probability that mistakes are made during maintenance.

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As AssetCare Be Benefits

Asse Assets s connected in in days s in inst stead of mo months. s. Pa Pays s of

  • ff on Da
  • n Day 1

1 wi with immediate imp improveme ments s to asse sset performa mance. Sa SaaS S pri ricing me means s one sin single le pric ice fo for everything, , with no upfr front CA CAPEX re require rements.

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AssetCare for Smart Facilities

  • 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”.

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Overview of Opportunity Customer Case Studies mCloud’s Value Proposition Key Partners & Opportunities

30%

  • f energy is wasted in

commercial buildings in the U.S.

$57B

is wasted on energy annually Typical 5,000 square foot retail space in California saves 15% in peak period energy costs - US$650 in monthly savings Smart Energy Savings

  • IoT-connected thermostats with AI combine building occupancy,

HVAC load, and energy rate to minimize peak demand.

Intelligent diagnostics

  • AssetCareTM monitors the health of HVAC units 24/7,

automatically flagging unit faults and getting ahead of issues before they become unplanned outages.

Optimized performance

  • Deep analytics from connected thermostats ensure HVAC units

always run at their best, reducing operating costs without sacrificing comfort.

  • In October 2017, mCloud announced a reseller agreement with TELUS,

whereby TELUS will deliver AssetCareTM to the Canadian market. Market Driver

  • It is estimated that 80% to 90% of buildings in Canada have older, non-

IoT-connected mechanical thermostats.(1)

  • Consumes over a quarter billion dollars of electricity annually.
  • mCloud’s solution fits perfectly into the bank’s energy efficiency &

conservation strategy, servicing 3,300 branches with a resulting 12% cost reduction across the portfolio.

  • mCloud’s solution fits perfectly into Cinemark’s priority to advance

environmental sustainability, with 600+ of Cinemark’s rooftop HVAC units connected to AssetCareTM.

  • In April 2018, mCloud formed a partnership with SCN, a top 20

commercial building contractor in China with a footprint of over 300M square feet to bring AssetCareTM to the Chinese Market. Market Driver

  • Electricity rates in China have risen ~17.5% over the past ten years.(2)
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AssetCare for Smart Wind

  • 1. Management estimate.

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Key Partner mCloud’s Solution AI Precision mCloud’s Value Proposition Digital Blade Inspection

  • Using AI-powered visual inspection techniques, AssetCareTM

enables virtual blade inspections that identify and characterize blade damage impacting energy production.

Data-Driven Optimization

  • AssetCareTM uses data to curtail unconverted wind availability

and focus on maximizing wind energy production and profitability per MW by reducing O&M required and asset neglect.

Remote Field Assistance

  • Mobile devices and hands-free digital eyewear connect

maintainers in the field to analytics and expertise needed to get every maintenance job right the first time.

Drone-Assisted Field Work 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

  • Ascent Aerosystems provides United States government-approved,

industrial-grade drones designed for harsh environments.

  • Ascent Aerosystems’ portable, rugged, coaxial configuration enables

mCloud to further apply its AI- and IoT-powered cloud asset management solutions to remote and hard-to-access assets, including wind turbines.

  • In April 2019, mCloud announced a minority investment in Ascent

Aerosystems.

24/7 Performance Monitoring

  • Wind turbines connected to AssetCareTM are continuously

monitored to adapt to changing circumstances that can improve energy production and avoid unplanned downtime.

World-Class Wind Expertise

  • AssetCareTM is backed by a team that includes wind engineers

and asset managers who understand all aspects of wind farm

  • peration and maintenance.
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AssetCare for Smart Oil & Gas

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mCloud’s Solution mCloud’s Value Proposition Key Benefits Digital Facility in the Cloud

  • At a fraction of the cost of traditional on-premise systems,

AssetCare™ brings all asset data, from oilfield to midstream to downstream, into a single hub, eliminating dependency on costly onsite visits.

3D + AI-Powered Digital Twins

  • 3D digital models and AI-based performance

management of reservoirs, field assets, pipelines, and process assets eliminates site visits and provides common model for daily operations across the business.

Remote Field Assistance

  • Mobile devices and hands-free digital eyewear connect field

workers with analytics and expertise needed to get every job right the first time.

3D Digital Twins for Facility Operations and Maintenance 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.

  • Continuous and broader optimization: AI goes beyond the traditional
  • ptimization algorithms used in oil and gas, taking advantage of more

sophisticated neural networks to predict events and maximize outcomes.

  • Prescriptive maintenance: Predicting when equipment will fail and their

root causes enables a step change in how assets are maintained, resulting in greater availability, reduced maintenance costs and extended asset life.

  • Open platform reduces IT footprint: Using readily-available IoT

sensors and cloud computing enables the ability to rapidly scale and deliver new capabilities on-demand at a fraction of the cost of upgrading and maintaining traditional IT systems.

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.

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mCloud Competitive Differentiation

AspenTech Emerson Honeywell OSIsoft Schneider Electric Yokogawa GE Siemens JCI/Tyco Azure Secure Cloud 3D Virtual AI Powered Predictive Models Mobile + Drone Edge

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Proforma Revenue

  • 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.
  • 5. ~$14M in near term cash from warrants not included in figures; Fully Diluted Share count includes outstanding warrants

(All figures in C$M, assumes all acquisitions closed)

10.5 50.0 - 55.0

  • 4.5

3.5 - 6.0

  • 20.0

0.0 20.0 40.0 60.0 FY 2018 FY 2019 Revenue Normalized Income

Highlights:

67% 127M $0 49-58% 250M $25M Gross Margin Fully Diluted Shares

  • Est. Net Debt

~20% organic AssetCare revenue growth QoQ >80% organic AssetCare revenue growth YoY >10K connected asset growth YoY