X2m Connect Limited · ASX:X2M
X2m Connect — Investor Presentation (July 2024)
27 slides from X2m Connect's investor presentation, Jul 23, 2024
Slide 1: Investor Presentation July 2024
Investor Presentation For personal use only July 2024
Slide 2: About us
About us X2M is an Australian technology company that has developed and commercialised a patented world- For personal use only leading Internet of Things (IoT) solution We enable smart cities by digitising and integrating seamless communication between property, industry and government organisations
Slide 3: The landscape and opportunity
The landscape and opportunity The landscape The opportunity Asia generally and APAC in particular has X2M is uniquely positioned to be a data aggregator and enabler on a For personal use only seen a seismic shift in social and economic new ‘powered-on’ Asia structures • APAC the largest and fastest
Slide 4: Why X2M?
Why X2M? • A fully commercialised technology deployed in multiple markets and geographies For personal use only • We have one of the world's most sophisticated IoT solutions capable of powering smart cities through one centralised system • Our IoT platform and solutions are device and platform agnos
Slide 5: Performance since listing is driving towards positive cashflow
Performance since listing is driving towards positive cashflow Growth in gross profit, ARR and flat Opex has the company on path to positive cashflow and earnings. Drop in FY24 revenue driven by discontinuation of low margin hardware sales and focus on margin generation For personal use only Revenue
Slide 6: Our solution: One platform, many applications
Our solution: One platform, many applications Sensors Cloud Computing Multiple Interfaces For personal use only APIs Local short range Zigbee WiSun Modbus RTU Long range Web, mobile User FME Interface NBIoT, LoRa, LTE-M, SigFox The Flexible MicroEngine (FME) provides interoperable two−way communicat
Slide 7: X2M and AI
X2M and AI We are enabling the global explosion in data to empower the use of AI For personal use only Sensors and devices FME MicroEngine Vision IoT platform Data collection and Localised AI/ML Data collection and control points algorithms drive local device management decisions AI Applications Cen
Slide 8: Our solution − the results
Our solution − the results Platform integrates devices and sensors, automating meter readings, maintenance, and fault For personal use only Increased operational detection. This streamlines utility management, reduces manual interventions, and enhances efficiency overall operational efficiency Cost
Slide 9: The Market Opportunity
For personal use only The Market Opportunity Investor Presentation - X2M Connect | July 2024 9
Slide 10: Addressable market − existing markets
Addressable market − Beijing, China South Korea existing markets 22m 52m 9m 22m For personal use only • Addressable market in current Japan geographies: 250 million people, 126m 104m households 55m • Addressable market across existing customers: >10m households1 Taiwan Revenue potential >$500m 24m P
Slide 11: Current deployments − smart communities Australia
Current deployments − smart communities Australia Two mandates: Echuca up to 1000 homes. Yarrawonga up to 800 homes Community Device Community Device For personal use only Device Devise Home Hub IoT Platform Aggregator/VPP/Retailer Electricity Market Device Monitor and control distributed energy Con
Slide 12: Current deployments – water in South Korea
Current deployments – water in South Korea Currently servicing 33 municipalities for water monitoring and control in South Korea Capturing new government municipalities and For personal use only repeat orders from existing customers through provision of improved: • Billing and process automation • D
Slide 13: GreenRock strategic partnership
GreenRock strategic partnership • Taiwanese renewable energy generation, For personal use only battery management and energy trading company • Partnership to develop renewable energy generation and Battery Energy Storage Systems (BESS) in APAC • GreenRock is X2M’s priority battery partner for Austra
Slide 14: Middle East market
Middle East market There is an immediate opportunity in gas and likely upcoming opportunities in electricity and water monitoring For personal use only The gas market in the UAE is fragmented with many small independent gas companies UAE Government has mandated piped gas be fitted to all new buildin
Slide 15: UAE gas market
UAE gas market The UAE model is based on a low capital, low expense, software based SaaS business model For personal use only Upfront platform establishment license fee Annual license fee per instance Saudi Arabia UAE Oman Per connected device monthly license fee X2M is entering the Middle East thro
Slide 16: Middle East market − follow on opportunities
Middle East market − follow on opportunities Following success in the UAE, there is a logical extension into other Middle East countries where substantial potential exists For personal use only Saudi Arabia has more than 37 million people and 8 million dwellings Saudi Arabia has largely bottle gas s
Slide 17: India market
India market There is an immediate opportunity in electricity and likely upcoming opportunities in gas as the India government drives digitisation For personal use only The India government has embarked on a program to rollout 250 million monitored smart electricity meters 01 over the next few years
Slide 18: Revenue Model and Financials
For personal use only Revenue Model and Financials Investor Presentation - X2M Connect | July 2024 18
Slide 19: Revenue model
Revenue model Upfront revenue Recurring revenue For personal use only Platform installation fee Monthly maintenance Monthly SaaS fee for per instance plus platform fee for support data delivered customisation fees Per new device connection fee or per new device fee for X2M hardware Annual licensing
Slide 20: Pathway to cash flow positive
Pathway to cash flow positive Cash flow from operating activities indicates a move toward positive cash flow. The chart below shows the improvement For personal use only over the last three years with a clear trend. 2H24 increase in cash burn due to delays in cash receipts in South Korea and China C
Slide 21: Growing recurring revenue stream
Growing recurring revenue stream Annualised Recurring Revenue increased from $1.2m in March 2023 to $1.7m in March 2024 6 months to connect next Cumulative connected devices ~100k devices For personal use only 6 months to connect next 537,652 520,417 ~100k devices 6 months to 472,882 connect next 42
Slide 22: Growth strategy
Growth strategy For personal use only • Execute on pathway to materially scale up the existing businesses Scale up • Focus on building scale in Asia-Pacific with existing operations in South Korea, Taiwan, Japan, China • Execute on Middle East market entry Market • Enter India and target emerging di
Slide 23: FY25 strategic priorities
FY25 strategic priorities For personal use only Capitalise on Move toward Scale up Enter and deliver Enter Indian incumbency and positive cash flow renewable energy scale in the Middle market and drive deeper into and profitability business beyond East market explore other existing customer Taiwan s
Slide 24: Board and Senior Management
Board and Senior Management Hon. Alan Stockdale AO | Non-Executive Chair Keith Jelley | COO For personal use only • Currently Emeritus Counsel of Medical Research • 9 years in the X2M business Commercialisation Fund and Chairman Knosys Limited • 40 years of development and operations experience acro
Slide 25: Investment summary
Investment summary For personal use only Unique, world- Early mover Addressable Clear path to Strong Board leading, future- advantage with market is large profitability; and Management proofed IoT significant and growing, with recurring revenues team solution enabling barriers to entry significant g
Slide 26: Disclaimer
Disclaimer This Presentation (“Presentation”) has been prepared by X2M Connect Limited (Company). You must read and accept Investment risk the conditions in this notice before considering the information set out in or referred to in this Presentation. If you do An investment in Shares is subject to
Slide 27: Contact
For personal use only 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