Xreality Group Limited · ASX:XRG
Xreality — Investor Presentation (March 2025)
26 slides from Xreality's investor presentation, Mar 5, 2025
Slide 1: Investor Presentation: FY25 H1 Results & Strategy Update
INVESTOR PRESENTATION FY25 H1 Results & Strategy Update 5 March 2025
Slide 2: Executive Summary
Executive Summary Company Overview • XReality Group (XRG) is a market leader in immersive Extended Reality (XR) solutions, offering both VR and AR experiences. • Current portfolio includes advanced XR training and simulation products, and entertainment businesses including VR entertainment and indoo
Slide 3: Operator XR
DRG Operator XR
Slide 4: Operator XR: Overview
Operator XR: Overview New Sales (TCV) by Financial Year – Operator XR (A$m) 8 • After a period of establishment, Operator XR is now the core growth asset for 6 XRG 4 • Operator XR has seen rapid expansion to 51 customers, gaining strong traction across 30 US federal agencies, state and city police,
Slide 5: Operator XR: Market
Operator XR: Market Law Enforcement Customers US Number of US Law Enforcement agencies by size. • XRG has focused on gaining a foothold on the Law Enforcement Market in the US Tier 1 • XRG categorises Operator XR customers into four tiers based on size 14 5,000 – 50,000 sworn officers (sworn officer
Slide 6: Operator XR: Revenue Model
Operator XR: Revenue Model Below is a breakdown of the standard Operator XR sales cycle, along with its revenue treatment, which differs from the legacy entertainment business Customer System Enterprise Sales Cycle Example Projects Licensing Model 3-year system licensing contract example Typically l
Slide 7: Debt Conversion
DRG Debt Conversion
Slide 8: Debt Conversion Summary
Debt Conversion Summary Debt-to-equity Pro-forma Proforma Balance Sheet ($m) 31-Dec-24 following debt • Birkdale Holding (Birkdale) will complete a transaction at $0.05 per conversion share, which is a 39% premium to the closing price of $0.036 Current Assets 4.0 4.0 Non-Current Assets 38.6 38.6 • S
Slide 9: H1 Financials
DRG H1 Financials
Slide 10: Profit & Loss
Profit & Loss • FY25 H1 was a strong half for XRG with material contract wins for Profit and Loss ($m) H1'24 H1'25 Δ pcp Operator XR; highlights include Enterprise (Operator XR) 0.3 2.1 565% • $7.4M in Total Contract Value Entertainment 4.2 3.8 (10%) Revenue 4.5 5.9 30% • ARR of $3.6m as of Dec-24 C
Slide 11: Balance Sheet
Balance Sheet • Cash position improved up to $1.7m driven by the upfront nature of Balance Sheet ($m) Jun-24 Dec-24 Δ pcp Operator XR terms as evident of the contract wins in the half Cash and cash equivalents 1.4 1.7 24% • Deferred Revenue grew to $5.8m, comprising of Trade and other receivables 2.
Slide 12: Cashflow
Cashflow • Company has been operating cash flow positive for three consecutive Cash Flow ($m) H1'24 H1'25 Δ pcp quarters Receipts from customers 6.7 8.9 33% • 2H FY24 net outflows relating to the purchasing of equipment Payments to suppliers and employees (5.1) (7.2) 42% with milestone and contract
Slide 13: Outlook
DRG Outlook
Slide 14: Operator XR Outlook
Operator XR Outlook XRG is streamlining the business, focusing on Operator XR growth. • Operator XR Product Development • Aggressive New Product Development pipeline to build an integrated product portfolio, expanding customer accounts, increasing average deal size and increasing margins • Augmented
Slide 15: Role of AI in product roadmap
Role of AI in product roadmap Embedding AI through the product and organisation • XRG is rolling out AI integration into the Operator XR product, driving market leadership and long-term growth. By integrating AI with XR, the company delivers adaptive, data-driven training that improves performance,
Slide 16: Establishment of AI Advisory Board
Establishment of AI Advisory Board Led by Ash Crick • Ash Crick, a globally recognised AI expert, has joined XRG as Chief AI Advisor to drive innovation across its product suite, including Operator XR’s immersive training simulations • Operator XR is integrating advanced AI to enhance immersive trai
Slide 17: Operator XR Roadmap
Operator XR Roadmap FY23 FY24 H1FY25 Operational Roadmap • Impact of first sale in the US, enhancing • Established entry into the US market • Continued investment in the US operations, reputation and credibility customer service and sales teams • Built Sales and Operations teams in the US • Achieved
Slide 18: Company Outlook
Company Outlook • Following the approval of the Birkdale debt-to-equity transaction completion, the company will be in a stronger financial position with lower debt gearing, and a stronger balance sheet. • This transaction starts a transformational restructure to focus on Operator XR. • Proforma bal
Slide 19: Contact
Contact Wayne Jones Chief Executive Officer wjones@xrgroup.com.au Kim Hopwood Executive Director khopwood@xrgroup.com.au xrgroup.com.au xrgroup.com.au 19
Slide 20: Disclaimer
Disclaimer This presentation has been prepared by xReality Group Limited (XRG) and provides general background information about the Company’s activities. That information is current at the date of this presentation. The information is a summary and does not purport to be complete. This presentation
Slide 21: Appendix: Operator XR
OPERATOR DX Appendix: Operator XR
Slide 22: Key Offerings Summary
Key Offerings Summary Software • Developed in-house, the OP-2 software uses advanced multi-user networking, allowing groups of trainees in the same physical space to train in any virtual location. User Created Scenarios • Teams can quickly design mission-specific scenarios to train for real-time sit
Slide 23: The System
The System Operator XR: OP-2 for Military and Law Enforcement • Enables military to conduct virtual missions using their own specific service weapons and equipment. True integration of combat equipment for immersive near-real experience. • Law enforcement officers can train operational tactics and p
Slide 24: The Software
The Software Operator XR: OP-2 Scenario Creator Suite • Instructors can design fully customised and interactive training environments for their unique requirements. • Library of high-quality pre-built scenes and interactive props, including vehicles, forensic evidence, cover options, and everyday ob
Slide 25: Total Addressable Market
Total Addressable Market Total Addressable Annual Recurring Revenue 1% of Global Market = US$33m ARR Market > Market Share Sensitivity (USD$m) Total 1% 3% 5% 10% 20% Market Law Enforcement United States 2.73 8.19 13.65 27.30 54.61 273.04 Rest of the World 4.10 12.29 20.48 40.96 81.91 409.56 Law Enfo
Slide 26: Legacy Entertainment Business
Legacy Entertainment Business iFLY Indoor Skydiving iFLY Revenue (A$m) XRG owns and operates two Australian indoor flying facilities under a licence 5 agreement with the global “iFLY” Brand. 4 • iFLY Downunder (Sydney West): XRG’s flagship facility in Penrith, one of the largest vertical wind tunnel