X2m Connect Limited · ASX:X2M
X2m Connect — Investor Presentation (March 2025)
25 slides from X2m Connect's investor presentation, Mar 3, 2025
Slide 1: X2M launches 'Hive.AI by X2M'
Investor Presentation X2M launches ‘Hive.AI by X2M’ March 2025
Slide 2: About X2M
About X2M X2M is positioned to be a major player in the fast-growing sectors of Artificial Intelligence and Enterprise Automation. The Company has built proven, proprietary technology that is already commercialised. X2M has a large addressable market that is being monetised with substantial upside.
Slide 3: What makes the X2M platform different
What makes the X2M platform different DATA FLEXIBIILITY UNMET MARKET NEEDS More efficient collection Unparalleled flexibility, fast Compelling use cases of data, better data, speed to market, low capital across growing markets cheaper and faster requirements, point-of-sale differentiation COMMUNICAT
Slide 4: X2M is in the third horizon of its strategy
X2M is in the third horizon of its strategy Horizon 1 Horizon 2 Horizon 3 Build & commercialise Land & Expand Capitalise on AI & data explosion Platform built & proven Large customer base & Turn profitable addressable market Extensive patent portfolio Harvest current markets Repeat order
Slide 5: X2M launches 'Hive.AI by X2M'
X2M launches ‘Hive.AI by X2M’ Entry into the renewable energy market in APAC region valued at US$491 billion1 Latest product ‘Hive.AI by X2M’ to launch a world leading AI solution for renewable energy companies leveraging partner AI/ML capabilities World leading AI solution Strategic partnership sec
Slide 6: 'Hive.AI by X2M'
‘Hive.AI by X2M’ Our unique IoT platform creates data in a deep data lake and our AI/ML partners will leverage this to derive forecasts and insights critical to enhance performance and reduce risk and uncertainty associated with renewable energy assets Applications for Customer Outcomes X2M and KPI
Slide 7: First commercial contract in Middle East
First commercial contract in Middle East High-margin contract will generate first revenues in the region Ten-year contract executed with Dicode Smart Connect Electronics (DSCE) Strategic partnership Contract will rollout of X2M’s data aggregation platform, ‘Vision by X2M’ for gas operations in the U
Slide 8: Addressable markets to expand materially with new market entries
Addressable markets to expand materially with new market entries Current geographies Existing customers New geographies • 250m people • >10m households • 1.5B people • 104m households • >$500m revenue • 311m households • $625m/annum potential1 annual recurring • $40m/annum annual revenue potential3
Slide 9: New markets X2M is targeting: Renewable energy
New markets X2M is targeting: Renewable energy APAC - RENEWABLE ENERGY • ‘Hive.AI by X2M’ renewables management and energy management platform • US$491 billion market across APAC renewables • Large scale solar market (estimated current) Taiwan 14 GW, South Korea 23 GW, Australia 11GW • Large scale b
Slide 10: New markets X2M is targeting: Gas & Electricity
New markets X2M is targeting: Gas & Electricity UNITED ARAB EMIRATES - GAS INDIA - GAS & ELECTRICITY • X2M connected digital gas meters • X2M connected digital gas and electricity • 2m households meters • $8m pa recurring revenue1 • 250m households in Government program • New revenue in FY25 • $500m
Slide 11: New markets X2M is targeting: Smart cities & USA
New markets X2M is targeting: Smart cities & USA AUSTRALIA – SMART CITIES USA – WATER METERS • X2M connected digital gas meters • X2M connected digital water meters • 2.5m households • 7.5m households (NY State only) • $25m pa recurring revenue1 • 900m hardware upfront2 • New revenue in FY25 • $30m
Slide 12: X2M's solutions monetise each state of a customer's digitisation
X2M’s solutions monetise each state of a customer’s digitisation HARDWARE SOFTWARE PLATFORMS Replacing dumb devices with Reading device data and enabling Seamlessly manages flow of data and smart devices. communication and control within provides AI/ML based insights the network. One-off fee
Slide 13: Markets and targeted revenue mix
Markets and targeted revenue mix* Hardware 85% Hardware 40% Hardware 0% KOREA Software 15% TAIWAN Software 10% JAPAN Software 100% Platforms 0% Platforms 50% Platforms 0% Hardware 0% Hardware 0% Hardware 80% UAE Software 65% INDIA Software 65% AUSTRALIA Software 20% Platforms 35% Platforms 35% Platf
Slide 14: 1H FY25 highlights
1H FY25 highlights Revenue of $3.4m down 55% on previous corresponding period (pcp), reflecting a targeted strategy to exit low- $3.4m 47% margin hardware only sales and slower Korea market Revenue Gross margin Recurring SaaS and maintenance revenue of $0.81m ($1.5m) $0.81m Gross margin 47%, up 10 p
Slide 15: 1H FY25 continues strategy to positive cashflow
1H FY25 continues strategy to positive cashflow Lower operating costs and improved margins have X2M on path to positive cashflow and earnings Revenue ($m) Gross profit (%) 7.5 47 37 3.4 1H FY24 1H FY25 1H FY24 1H FY25 Operating costs ($m) Adjusted EBITDA1 ($m) 4.7 1H FY24 1H FY25 3.4 -1.5 1H FY24 1H
Slide 16: Customer acquisition continues growth
Customer acquisition continues growth Enterprise and government customers drive connected households which drive recurring revenues Connected Households Enterprise and Government 544,910 customers 520,417 80 73 1H FY23 1H FY24 1H FY23 1H FY24 As X2M adds renewables and AI-based platform elements to
Slide 17: Priorities over next 12 months
Priorities over next 12 months A return to revenue growth as we cycle corresponding periods Revenue Growth without low-margin hardware sales Progress towards positive cashflow and a strengthening of our Balance Sheet balance sheet New markets Consolidating revenues from new markets in UAE and beyond
Slide 18: Why invest in X2M
Why invest in X2M Positioned to be a major player in the fast-growing sectors of AI and Enterprise Automation Proven, proprietary technology that is already commercialised Large addressable market that is being monetised with substantial upside Potential transformation into globally scaled software
Slide 19: Appendix
Appendix
Slide 20: X2M in the field. Our initial market – water in South Korea
X2M in the field. Our initial market – water in South Korea Currently servicing 40 municipalities for water monitoring and control in South Korea Capturing new government municipalities and repeat orders from existing customers through provision of improved: Water meters in • Billing and process aut
Slide 21: X2M is harvesting existing customer base
X2M is harvesting existing customer base South Korea example SOUTH KOREA MARKET – SEP 2021 SOUTH KOREA MARKET – JUN 2024 TAM of all Cumulative Cumulative TAM of all households2: contracted2: contracted2: households2: $950m $31m $8.6m $950m TAM of existing TAM of existing customers2: customers2: $522
Slide 22: Battery storage forecasts – underpin expansion of renewable energy strategy
Battery storage forecasts – underpin expansion of renewable energy strategy Australia All forecasts show significant growth in the near future Taiwan BESS Total Addressable “We expect a 28% Market2 increase in the country’s 2023: NT$10b (A$500m) battery storage capacity 2026: NT$20b (A$1b) from now
Slide 23: X2M Team and Corporate Snapshot
X2M Team and Corporate Snapshot INFLUENTIAL SHAREHOLDERS Andy Greig, 9.7% Hon. Alan Stockdale AO | Non-Executive Chair • Currently Emeritus Counsel of Medical Research Balance of GreenRock Energy, Commercialisation Fund and Chairman Knosys Limited Shareholders, 9.5% • Previously Treasurer of Victori
Slide 24: Disclaimer
Disclaimer This Presentation (“Presentation”) has been prepared by X2M Connect Limited (Company). You must read Investment risk and accept the conditions in this notice before considering the information set out in or referred to in this An investment in Shares is subject to known and unknown risks,
Slide 25: Contact
Contact Mohan Jesudason Chief Executive Officer investor.relations@x2mconnect.com T: 1 800 926 926 (1 800 X2M X2M) Gabriella Hold Automic Markets gabriella.hold@automicgroup.com.au T: +61 411 364 382