Xreality Group Limited · ASX:XRG
Xreality — Investor Presentation (August 2023)
27 slides from Xreality's investor presentation, Aug 31, 2023
Slide 1: xReality Group Ltd Investor Presentation: FY23 Results & Strategy Update
xReality Group Ltd ASX:XRG Investor Presentation: FY23 Results & Strategy Update 31 August 2023
Slide 2: Disclaimer
} Disclaimer This presentation has been prepared by xReality Group. Limited(XRG) and | general background information about the Company’s activitiés. Thatenfori oa | i current at the date of this presentation. The informations Fsummap purport to be complete. This presentation is not (and should be c
Slide 3: Agenda
1. Company Overview 2. FY23 Results 3. Strategy Update 4. Appendices
Slide 4: Company Overview
Company Overview XREALITY GROUP LIMITED
Slide 5: Company Overview
Company Overview xReality Group Limited are leaders in enterprise software development for mission critical simulations for military and law enforcement. The company develops and operates physical and digital simulations. Portfolio companies include Indoor Skydiving facilities, Virtual Reality (VR)
Slide 6: Company Overview
Company Overview Red Cartel are one of Australia’s leading experts in VR, AR, XR, and premium animated content for Enterprise software products. The company has over 20 years of experience servicing a large number of industries including Entertainment, Oil and Gas, Mining, Healthcare and Government.
Slide 7: FY23 Results
FY23 Results XREALITY GROUP LIMITED
Slide 8: FY23 Highlights
FY23 Highlights 47% increase in Revenue $10.54m 54% increase in underlying EBITDA $2.1m Stabilisation of existing businesses post COVID $25m Enterprise XR sales pipeline First XR Military and Law Enforcement Sales to the Australian Defence Force and WA Police Force USA subsidiary and sales team esta
Slide 9: FY23 Financial Results
FY23 Financial Results $’000 FY2023 FY2022 Change • Strong performance in Revenues 10,545 7,193 47% entertainment sector Gross Profit 8,595 5,690 51% providing material increase year on year EBITDA 2,157 (3,300) 165% Underlying EBITDA 2,100 1,363 54% • Software Licence Annual Recurring revenue has N
Slide 10: FY23 Results Overview
FY23 Results Overview Total Revenue Increase EBITDA and Underlying EBITDA The Group achieved a total income for the period of Reported EBITDA for the period was $2,157,934, $10,544,618 representing a 47% increase on the PCP. Underlying EBITDA* was $2,100,455, an increase of 54% vs PCP. Total Revenue
Slide 11: FY23 Results Overview
FY23 Results Overview Cash Receipts Deferred Revenue Cash Receipts of $10,045,224 represents an increase Deferred revenue increased from $975,048 to of 32% from FY22. The increase was attributed to a $1,886,871. Attributable mainly to Operator XR material improvement in the Entertainment Sector soft
Slide 12: Company Strategy
Company Strategy XREALITY GROUP LIMITED
Slide 13: Company Strategy: Sustain > Invest > Expand
Company Strategy: Sustain > Invest > Expand Sustain Existing Operations • Continued Operations of existing world class Entertainment business portfolio, to sustain future revenue and operational cashflow, supporting future growth • Maintaining financial health and stability through ongoing engagemen
Slide 14: Operator XR: What's the problem we are solving?
Operator XR: What's the problem we are solving? Ability to keep up with an ever-changing Operator XR provides a software platform that is easily updated and configured, that allows teams to train and rehearse at a lower risk and environment: The ability to conduct affordable training for significant
Slide 15: Operator XR: What makes us unique?
Operator XR: What makes us unique? • Operator XR is lead and operated by Special Forces and Law Deep Subject Knowledge and Enforcement veterans with extensive experience in field operations, software and technology Experience • All software development is created in-house by some of the worlds most
Slide 16: Operator XR: Total Addressable Market
Operator XR: Total Addressable Market $3.37BN total addressable market for dismounted soldier and police officer immersive training Total Addressable Market ARR > Market Share Sensitivity (USD$m) 1% 3% 5% 10% 20% Total Market Law Enforcement United States 2.73 8.19 13.65 27.30 54.61 273.04 Rest of W
Slide 17: Operator XR: US Law Enforcement
Operator XR: US Law Enforcement 5,000 - 50,000 sworn officers Number of US Law Annual Software Licence Range = $500k-$5m Tier 1 Enforcement 14 TAM = 14 x $500k - $5m = $7m -$70m ARR agencies by size. 500 - 5,000 sworn officers 170 Tier 2 Annual Software Licence Range = $100k-$500k TAM = 170 x $100k
Slide 18: Operator XR: US Military Market
Operator XR: US Military Market US Military Personnel 1,304,400 personnel • US Military budget 294% higher than Law US Military $842b Enforcement US Annual Budget Military • US Army Microsoft Augmented Reality Contract Value = $22b US Law Enforcement: over 10 years Total sworn Officers 800,000 perso
Slide 19: Operator XR: Rapid commercial progress
Operator XR: Rapid commercial progress Short Term Milestone Tracker Current GlobalSales Current Global Sales Pipeline Pipeline $25 MILLIONS First Sale of Law Enforcement Products - $21 Australia $18 First Sale of Defence Products - Australia $14 USA Subsidiary and Sales team Established $11 USA Mili
Slide 20: Investing in Product Development
Investing in Product Development Investing in further product development of the Operator XR training solution for Military and Law Enforcement. Scenario design tools: continued development low code / no code software that allows non-technical end users to create personalized training and mission re
Slide 21: Expand into the US Market
Expand into the US Market Major Milestone Achieved; A focused and systematic approach over the next 6 months: • Operator XR achieved it’s first Law Enforcement sale in the US in August 2023. Commercial: First US Sales Manager commenced in May 2023 with more sales and operations team members being hi
Slide 22: Summary
Summary • Strong FY23 Financial Performance: Cash Receipts up 32% , Revenue up 47%, underlying EBITDA up 54% • Existing operations to support growth in Enterprise Software rollout • First Operator XR Customers in Australia and the US • Pipeline of Global Sales exceeds $25m • US footprint established
Slide 23: Appendices
Appendices XREALITY GROUP LIMITED
Slide 24: XRG Board of Directors
XRG Board of Directors John Diddams • • Highly Experienced and strategic public company director 40 years of financial management in Australia and overseas Chairman Non-Executive • Experience in driving business performance, mergers & acquisition, due diligence and corporate governance. • Formal qua
Slide 25: Product Overview: OP-1
Product Overview: OP-1 OP-1 FOR MILITARY PORTABLE . SECURE . IMMERSIVE Military solution allowing soldiers to conduct virtual missions using their own specific service weapons and equipment. True integration of combat equipment for immersive near-real experience. Users can upskill tactics, technique
Slide 26: Platform Overview: OP1-LE
Platform Overview : OP1-LE OP-1 LE FOR LAW ENFORCEMENT PORTABLE . SECURE . IMMERSIVE Operator LE is changing the approach of Law Enforcement training. Through our highly portable and scalable virtual reality training system, officers train operational tactics and procedures more often, leading to in
Slide 27: For further information contact
For further information contact Wayne Jones CEO wjones@xrgroup.com.au Kim Hopwood Executive Director khopwood@xrgroup.com.au