Xeros Technology Group Plc · LSE:XSG
Xeros Technology — FY2023 Earnings Presentation
31 slides from Xeros Technology's earnings presentation, May 2024
Slide 1: Xeros Technology Group 2023 Annual Results
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Slide 2: Company Introduction
Slide 3: What We Do
WHAT WE DO Xeros licenses sustainable proprietary technology solutions for the laundry and apparel industries. These drive significant cost, energy and water efficiencies, reducing pollution, in both the manufacture and laundering of clothing. XEROS TECHNOLOGY GROUP PLC—— 2023 ANNUAL RESULTS
Slide 4: Xeros Solutions for Areas of Industry Distress
XEROS SOLUTIONS FOR AREAS OF INDUSTRY DISTRESS
Slide 5: Current Technology Platforms
CURRENT TECHNOLOGY PLATFORMS
Slide 6: Strategy for Market Penetration
STRATEGY FOR MARKET PENETRATION COMMERCIAL DIRECT ENGAGEMENT DRIVE PARTNERSHIPS INFLUENCE Commercial deals in place with IFB Xeros engages with and works to As a global leader in sustainable textile Appliances for domestic and influence major fashion and consumer technologies, Xeros works with comme
Slide 7: Xeros Filtration
XF XEROS FILTRATION Washing machines are estimated to contribute 35% of the 171 trillion microplastic particles in the ocean. These tiny fibres have been found everywhere from the top of Mount Everestto inside the human body. They end up in our oceans, in our food chain and in our water supply. Our
Slide 8: Xeros Finish
XFN XEROS FINISH Making one pair of jeans can use up to 10 years’ worth of drinking water for one person. Chemicals used in the process escape with wastewater polluting our planet. Today, jeans are still made using pumice stones, which constantly need replacing and create chemically contaminated slu
Slide 9: Xeros Care
XC XEROS CARE Washing garments uses 20 billion cubic metres of water annually. This process also reduces the life and quality of garments. Our care technology uses XOrbs, reusable polymer spheres, to wash and care for clothes. It’s scalable from domestic washes to heavy industrial use, and it’s desi
Slide 10: 2023 Financial Headlines
2023 FINANCIAL HEADLINES
Slide 11: Financial Summary
FINANCIAL SUMMARY Revenue growth of 81% to £0.3m (2022: £0.2m) Driven by increases in licence fees and sales of goods Adjusted EBITDA* loss reduced by 38% to £4.6m (2022: loss £7.4m) Driven by tight cost controls and revenue from high margin licence fees Administrative expenses decreased by 36% to £
Slide 12: Fundraise and Exercise of Warrants
FUNDRAISE AND EXERCISE OF WARRANTS COST CONTROLS REMAIN IN PLACE AND PRIORITY GIVEN TO COMMERCIALISATION OF EXISTING OPPORTUNITIES Strengthen the balance sheet and provide working capital to support existing partners to launch (IFB, Yilmak Makina and Ecoprod) The progression of the significant globa
Slide 13: 2023 Operational Progression
Slide 14: Filtration
FILTRATION XFILTER LICENSED TO COMPONENT SUPPLIERS Xeros now has licences for its internal filtration solution with three component manufacturers, with two new licences added within 2023, who between them supply component parts into 99% of the 105 million washing machines produced annually. Xeros la
Slide 15: Finish
FINISH DENIM MANUFACTURE In 2023 the Group signed a licence and distribution agreement with KRM Tekstil & Yilmak Makina, one of the world’s largest garment finishing machine manufacturers, to complement the Group’s existing agreement with Ramsons. The technical transfer of integrating Xeros technolo
Slide 16: Care
CARE Technology transfer on the mass market 9kg machine produced by IFB for the Indian domestic market completed in 2023, with successful field trials following this milestone. The project has moved from an R&D projectinto a manufacturing and marketing project, with IFB targeting launch later in 202
Slide 17: Outlook 2024+
OUTLOOK 2024+
Slide 18: Momentum into 2024
MOMENTUM INTO 2024 IMPROVED COMMERCIAL MULTIPLE ROUTES TO GLOBAL INTEREST BRAND & RETAIL ENGAGEMENT MARKET ENGAGEMENT
Slide 19: Thank You
THANK YOU
Slide 20: Xeros 2023 Annual Results
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Slide 21: Financial Statements
# | FIN, L e <> - ENTS 2 XEROS TECHNOLOGY GROUP PLC —— MAY 24 -—— 2023 ANNUAL RESULTS
Slide 22: Profit and Loss
PROFIT AND LOSS Year ended 31 Year ended 31 December 2023 December 2022 £'200 £'200 REVENUE 297 164 Cost of Sales (52) (80) GROSS PROFIT 245 84 Administrative expenses (4,851) (7,618) Adjusted EBITDA* (4,606) (7,368) Share-based payment expense 20 79 Depreciation of tangible fixed assets (161) (145)
Slide 23: Cash Flow & Financing - Operating Activities
CASH FLOW & FINANCING - OPERATING ACT MIVITIES Year ended 31 Year ended 31 December 2023 December 2022 £'000 £'200 OPERATING ACTIVITIES Loss before tax (4,775) (7,448) Adjustment for non-cash items: Depreciation of property, plant and equipment oe 145 Share-based payment (20) (79) (Increase)/decreas
Slide 24: Cash Flow & Financing - Investing Activities
CASH FLOW & FINANCING - INVESTING ACTIVITIES Year ended 31 Year ended 31 December 2023 December 2022 £'000 £'000 INVESTING ACTIVITIES Finance income 4 15 Finance expense (39) (30) Cash placed on deposit 5,349 Purchases of property, plantand equipment (79) (63) Cashflow from discontinued operations N
Slide 25: Investment Case
INVESTMENT CASE PROPRIETARY LICENSING CAPITAL LIGHT BUSINESS GLOBAL MARKET IP MODEL SOLUTIONS
Slide 26: Technology
TECHNOLOGY
Slide 27: Human Impact
1 HUMAN IMPACT in Ly it \O} fa E = Fe E a ig Ss fe < Es cal 4 = SJ 8 oot ° o¢ oe “| | SNe rey o¢ « « tee ° oo? : o % oF oe ye Ingestion leo? % | fe 6 86] ee o e « * 5 O° ° Inhalation) |, ** ¢ .° o.e e 4° be Microplastic exposure for a single person every year. XEROS TECHNOLOGIES — 01.02.24 — PROJECT
Slide 28: Human Impact, Planet Impact, Business Impact
HUMAN IMPACT PLANET IMPACT BUSINESS IMPACT pparel companies are taking serious steps to reduce their impact. There are nearly 400 companies that have commitments or approved science-based targets (SBTs) through the Science-Based Targets initiative - amongst the highest of any sector.16
Slide 29: Human Impact, Planet Impact, Business Impact
HUMAN IMPACT BUSINESS IMPACT PLANET IMPACT
Slide 30: 2023 Operational Progression
Slide 31: Progress Within 2023
PROGRESS WITHIN 2023 XFILTER GLOBAL LEADER LICENCE UK SALES PARTNERSHIP IFB READINESS FOR PROGRESS COMMERCIAL ROLL OUT
Xeros Technology Group — FY2023 Earnings Presentation on 6ix