Xplora Technologies As · OSL:XPLRA

Xplora Technologies As — Investor Day (June 2024)

75 slides from Xplora Technologies As's investor day presentation, Jun 13, 2024

Slide 1: Disclaimer
Disclaimer The presentation (the “Presentation”) has been produced by Xplora Technologies AS (the “Company”) for information purposes only and does not in itself constitute, and should not be construed as, an offer to sell or a solicitation of an offer to buy any securities of the Company in any jur
Slide 2: The Road to One Million
The Road to One Million Xplora Technologies AS Capital Markets Day June 13, 2024
Slide 3: Team presenting today
Team presenting today Sten Kirkbak Jennifer Powers Kjetil Fennefoss Jason Pyne Kristinna Kristensen CEO External speaker COO EVP Kids division CM Germany Svenn JArle Simonsen Jonas Ringstad Sanghyo Kim Knut Stålen EVP Senior division EVP SaaS CTO CFO 3
Slide 4: CMD Agenda
CMD Agenda Objective with today: • Share our road to 1 million & where we see We are inviting you to join our our self in next 4-5 years. 2024 • Family IOT trends & how to monetize • Better insight to understand our business • IR strategies and way forward Capital Agenda MARKETS DAY 1. Intro & Famil
Slide 5: CMD Agenda
CMD Agenda Objective with today: • Share our road to 1 million & where we see our self in next 3-5 years. • Family IOT trends & how to monetize • Better insight to understand our business • IR strategies and way forward Agenda 1. Intro & Family IoT trends (Sten Kirkbak, CEO) 2. Smartphone free Child
Slide 6: Historical Highlights
Historical Highlights 2016 2017 2018 2019 2020 2021 2022 2023 2024 Xplora founded Exclusive distribution agreement in the nordics with PepCall. Completion of our Exclusive supplier Gamification innovation First patent application Acquisition of Xplora Multiple IP/CAPEX Financial turn-around to Famil
Slide 7: How to accelerate growth forward
How to accelerate growth forward Now, we can accelerating growth: Hardware agnostic/B2B/B2C Step 3 • Endless growth Kids Youth Senior Sold more (2024 forward) opportunities. than 1,5 Family IoT Growth • Product verticals million foundation within B2B Parents Home Assets only to kids • B2C strategies
Slide 8: Introducing The Road to One Million
Introducing The Road to One Million What does it mean: What Why When Company key target is to High margin and scalable Not estimating annual ‘ ‘ ‘ reach one million model. Financial target to timeline, but optimize all Subscriptions reach ARR of 650m strategies next 4-5 year! How we can get there: •
Slide 10: Youth Parents Senior
Youth Addressing churn & societal problem Parents Home and parental tech Senior Safe and active senior years 10 CONFIDENTIAL AND COPYRIGHT © 2024 XPLORA TECHNOLOGIES AS. ALL RIGHTS RESERVED.
Slide 13: Young kids/Youth
Young kids/Youth Trend Opportunity • Research data We see an immediate opportunity to develop partner strategy and • Parental awareness install our Xplora App/sim to • Sales data from Asia address Youth market. 13
Slide 14: Senior IoT
Senior IoT Trend Opportunity Very often our same distributor, retailer • We live longer and even buyer (parents). We already • Focus on safety have HW platform (X6Pro) This vertical • Buyer vs user might include multiple products and have higher price point. User Buyer User Kids/youth Parents Senior
Slide 15: Parental IoT
Parental IoT Trend Opportunity Primarily a B2B business Movement in the Family IoT space. model • Safety & Health New sensors being launched and in • Price sensitive demand. We can provide • Sales data from Asia connectivity to increase profit and launch more products our selves. * reference point f
Slide 17: Sales development for Smartwatches (2019-2024)
Sales development for Smartwatches (2019-2024) Device sale and ASP Device sales: 500 000 1 200 From 73k in 2019 to 467k in 2023 • Focus on 9+ markets 450 000 • Build a broad network of distribution channels; Retail, 1021 1037 1 000 Amazon, Web, Telco 400 000 • Take the category leader position 888 A
Slide 18: Revenue development for Services (2021-2024)
Revenue development for Services (2021-2024) Mobile subscriptions: 1 • From 4 to 9 markets • Grow the customer base • Optimize the tariff plans Premium - Activity platform: • Value Added Service 2 • Commerical launch in 2023 • Bundled with mobile subscriptions • Stand-alone sales in the Xplora app.
Slide 19: Service Revenue development per market
Service Revenue development per market Q1 2024 Germany US 5% 4% Denmark 8% Norway Finland 47% 10% 63 mNOK 45 mNOK Changes in share of service revenue: Sweden • Outside of Nordics: From 2% to 12% 23% • Germany: From 1% to 5% • USA: From 1% to 4% Norway Sweden Finland Denmark Germany US UK Spain Franc
Slide 20: Very stable growth in 4q rolling ARPU (2019-2024)
Very stable growth in 4q rolling ARPU (2019-2024) 4q rolling ARPU 4Q rolling ARPU by region (Group) 110 100 100 90 90 80 70 60 80 50 40 70 30 20 60 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23
Slide 21: Strong growth in mobile subscription base
Strong growth in mobile subscription base QuearterlySubscription Quarterly Subscription Base Base (k) (k) 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 Mobile subscripttions, VAS and ser
Slide 22: Mobile subscription churn - stable on 3%
Mobile subscription churn - stable on 3% Sales Churn Churn: • 3 mths. rolling churn varies from 2.6% to 3.4% Sales vs. Churn: • Between 4.3k and 7.6k per month • Sales is seasonable from 5k to 20k/mth. • Relates to the entire subscription base • February and March: Churn is higher than Sales • Corre
Slide 23: The importance of ARR in our business model
The importance of ARR in our business model Previous business model Business model now: (at time of IPO): • Including services • Smartwatch only Revenue 4x GM 9x 23
Slide 24: The Road to One Million (4-5 years)
The Road to One Million (4-5 years) The scalability of Mobile subscriptions • 25-30% conversion of smartwatch our business model 1 sales • ARPU: NOK 97 - NOK 80 • Monthly churn: 3% Business Case assumptions: • 15% annual growth in device sales Activity platform • Basis for the conversion of services
Slide 25: The road to 1 mill. subscriptions - Mobile subscriptions
The road to 1 mill. subscriptions (4-5 years) - Mobile subscriptions 1 Mobile subscriptions: • 25-30% conversion of smartwatch sales • ARPU: NOK 97 - NOK 80 • Monthly churn: 3%
Slide 26: The road to 1 mill. subscriptions - Activity platform
The road to 1 mill. subscriptions (4-5 years) Activity platform, B2C and B2B 2 Activty platform • 7-13% conversion of smartwatch sales • Additional volume from Freenet, telcos • ARPU: NOK 24 • Monthly churn: 3%
Slide 27: The road to 1 mill. subscriptions - Telco service revenue
The road to 1 mill. subscriptions (4-5 years) - Telco service revenue 3 Telco Service revenue • Revenue from telcos when they sell Xplora smartwatches with their SIM cards • 3% conversion of smartwatch sales • ARPU: NOK 35 • Monthly churn: 3%
Slide 28: The road to 1 mill. subscriptions - Service-fee revenue
The road to 1 mill. subscriptions (4-5 years) - Service-fee revenue 4 Service-fee revenue • Revenue from customers that use other than Xplora´s SIM cards • 3% conversion of smartwatch sales • ARPU: NOK 79 • Monthly churn: 3%
Slide 29: The road to 1 mill. subscriptions - Services combined
The road to 1 mill. subscriptions (4 to 5 years) - Services and service revenue combined Services in summary: • Sales per year: From 200k to 490k • Services base: From 370k to 1 mill. • Service revenue: From 300 mNOK to 650 mNOK
Slide 31: Our Business Model
Our Business Model B2C/B2B B2C B2B Unit sales Service Revenues Service Revenues ✓ Prices from € 149 ✓ Prices from € 6,99/m ✓ Prices from € 2/m ✓ Multiple products ✓ Basic and Premium options ✓ Telco + IoT industry ✓ Target 30% margin ✓ Target 80% margin ✓ Target 90% margin ✓ 30+ months life cycle ✓
Slide 32: Product Strategy Kids division
Product Strategy Kids division Go Play Pro Value for Money & Our Premium product. The Flagship product. All controlled from our Xplora family App! the Xplora Experience Playful, powerful and personal Taking category to next level
Slide 33: Product Releases / upgrades
Product Releases / upgrades XGO3 Gen2 X6Play SE • Hardware and experience upgrade with Oct 24 Chip upgrade for Q1 25 release Feb 25 playful theme and multi colour options X6Pro Flag-ship model launched 10. June. June 24 Planned Releases all platforms 33
Slide 34: 2024 Big Volume Initiatives
2024 Big Volume Initiatives Own Channels Retail/MVNO Channels New Channels Online Retail Telco New 34
Slide 35: Kids division in 4-5 years
Kids division in 4-5 years Continue to build on our current products and services: • 3 Products (with annual upgrades) • 2 Service Revenues (Basic and Premium) • 9 Markets (where we have MVNOs) Potential new revenue-based strategies Smartphone (both kids & youth) Smart Tablet Smart Tag 35
Slide 36: 2024 Market strategies
2024 Market strategies Summary strategy Established markets: • Distribution to next level To support growth, we have • New big volume initiatives 2 strategies across 9 markets: • Less price focus 5 Established Germany, Norway, Sweden, Denmark, Finland 4 Emerging Summary strategy Emerging markets: •
Slide 38: Our team in Germany/DACH
Our team in Germany/DACH Team in Hamburg Marco Seitz Kristinna Kristensen SVP Country Manager • Sales strategy • Lead operations aligned with global strategy • Business development • Strategic sales/marketing plan driving growth • B2B customer collaboration • Relations with external/internal stakeho
Slide 39: Sales partners and channels
Sales partners and channels 39
Slide 40: Market today
Market today Activated watches 677k (from 2017) Parental App User 1m 6% Market Penetration Average growth YoY 28% Device Revenue (2023) NOK 218m Active Subscriptions 30,000 ARR NOK 7,7m (Annual Recurring Service Revenue) MAU (Monthly Active Users) 315k * German market 40
Slide 41: Key area of development - Germany
Key area of development - Germany • New partnership with leading multinational Retail and Telco provider • BIG VOLUME White label branded device with service revenue share model launching in Q3 2024 • Minimum annual order quantity 30,000 Units • Year 1 35,000 device sales + 24-month Subscription Dea
Slide 42: Focus going forward
Focus going forward 3 step strategy to continue our strong growth: ✓ Service Revenue growth: Focus to increase conversion of Service revenues of all unit sales. ✓ New product lines and services: Use our large user base in Germany to introduce new product lines and service revenues. ✓ Large volume in
Slide 44: Important news update from senior division
Important news update from senior division! We are happy to announce that we have passed our target benchmark for fall detection accuracy!
Slide 45: Our X6Pro platform
45 Our X6Pro platform The flexibility and performance on our X6Pro platform, allows us to enter into multiple verticals and only differentiate with SW and outer design changes.
Slide 46: Core Value proposition
46 Core Value proposition The Senior watch that will give you and your relatives ease of mind by keeping you safe, while supporting an active lifestyle. Designed to be discrete and easy to use. To be carried on the wrist without the stigma related to a safety alarm. Key basic features • Mobile conne
Slide 47: Why we will succeed
Why we will succeed Same value chain as our kids vertical: Kids Senior Development Distribution Sales channels Buyer/user Web - Xplora Retail Senior Watch End-user Telco with strategic Warehouse partnership Close Parent/buyer App Other strategic relatives / Often their partnerships children Close re
Slide 48: Our senior target market
Our senior target market I am fine by myself This is our I am doing pretty good on my own market! Level of independence and activity I am in need of some help I need homecare I need more help in periods Government I need help a lot of the time Use other products I need help 24/7 85% of the total Sen
Slide 49: X8 market opportunity
X8 market opportunity Xplora Seniors Market Expected Arpu 200 nok 100M Size Seniors Xplora Kids Market Expected LTV 60 months + Size Arpu 97 nok ‘ 50M Kids LTV of 30 Time Time CONFIDENTIAL AND COPYRIGHT © 2019 XPLORA TECHNOLOGIES AS. ALL RIGHTS RESERVED. 49
Slide 50: Multi product market opportunity
Multi product market opportunity Key basic features • Mobile connectivity • Location with Safe zones • SOS button • Activity tracking • Medication reminder • + Premium services Phones Tablets Sensors Our pilot and researched showed the need for multiple products
Slide 51: Launch timeline
Launch timeline Phase 1 Key elements: • Launch in 4 core December 2024 Launch Key basic features markets during schedule! • Mobile connectivity December this year • Location with Safezones • SOS button • Activity tracking • Medication reminder Phase 2 Key elements: We have passed our target benchmar
Slide 53: Important news update from SaaS division
As announced today, we have entered into an agrement with Telenor to offer our IoT Connect services in Important the global market. news update from SaaS As announced today, division! we have now entered into a commercial agreement to launch our Premium Active Service in Asia with 360!
Slide 54: SaaS division - key services
SaaS division - key services Xplora Kids/Senior proposition Xplora SaaS Market Opportunity Connectivity Own MSP 2023 revenue: NOK 200m 100X European IoT Connectivity provider Smartwatch OEM smartwatch 2023 revenue: NOK 477m 30X Multi-tenant activity platform provider in Asia Activity platform Inhous
Slide 55: The Xplora Activity Platform
The Xplora Activity Platform 60% CAGR * 30% 80k conv. users 300 225 Subscriptions (1000s) 150 75 0 2019 2020 2021 2022 2023 2024 First development in Pilot Project with 360 in The project from the Based on conversion partnership with Sony China. More than 80k Pilot with 360 launched data and perform
Slide 56: Scalable Multi-tenant Platform
Scalable Multi-tenant Platform Xplora now offer its Activity platform to 3rd party smartwatch providers Targeting a 2 million User base Why so powerful • Encouraging kids globally to play together and make friends during their daily activities, promoting positive and healthy connections. • With our
Slide 57: Global IoT connectivity provider
Global IoT connectivity provider Xplora to offer multinational IoT connectivity in Q3 Signed agreement with a major European telco for supply of IoT Connectivity in Europe with option for ROTW Favorable terms to offer low/high data consumption connectivity w/o call or text Xplora partner with IoT ma
Slide 58: SaaS in sum
SaaS in sum Offer IoT connectivity to 100m unit market in Europe by 2025 ✓ Infrastructure done ✓ Supplier agreement ✓ MOU signed HEADINGTarget launch Q4* ✓ TEXT Offer premium services through 3rd party to 15m market ✓ Development done 72m kids ✓ Commercial agreement done ✓ First launch Q4 *Dependent
Slide 60: R&D Strategy - Sustainable Scale-Up
R&D Strategy - Sustainable Scale-Up The R&D strategy will align with the business, focusing on sustainable growth in hardware, platform, and AI-based data analysis for intelligent premium services. Hardware Platform Data Multi-Device Multi-Tenant Data & AI Expanding verticals in Redesigning the curr
Slide 61: Multi-Device Strategy
Multi-Device Strategy In-House 3rd Party Development Smart Device Integration We continue developing our flagship Xplora Solution Pack for 3rd party Years of QA and certification kids’ watch in house by OEM/ODM to smart devices for deep integration to experience to ensure all in-house secure our lea
Slide 62: Multi-Tenant Strategy
Multi-Tenant Strategy XPLORA XPLORA SINGLE TENANT MULTI TENANT Kids Watch Vendors Intellectual Property Kids Watch The platform Vendor Vendors Activity Service platform supports Xplora product & Open service. API Service Family SNS Location Service provider Providers platform Connect Gateway Xplora
Slide 63: Key Software & App release in 2024
Key Software & App release in 2024 Q3 Release Q4/Q1 2025 Release New App Parental Control + HW agnostic Smart Watch Smart Phone Smart Tag Smart Tablet 63
Slide 64: Data & AI
Data & AI Location Activities Enhancing overall wellbeing through Health advanced Predictive Pre-Alert monitoring Environment Movement Xplora uses AI technology to enhance daily operations and user experiences, optimizing operational costs.
Slide 66: Status Quo
Status Quo KIDS devices enables Services revenues are the services revenues predicable with a high ‘ gross margin (+80%) Almost 500K units sold 2023 25-30% Sim conversion ARR - NOK 250K (Q1-2024) Cash position and cash management Continued cost enables operational ‘ control and focus on flexibility
Slide 67: The road to 1 million subscriptions
The road to 1 million subscriptions SIM revenue 15% annual device growth 1 500K Service revenue 1 250K 1 000K 750K 500K 250K Today 4-5 years 67
Slide 68: The road to 1 million subscriptions
The road to 1 million subscriptions SIM revenue 15% annual device growth 1 500K Service revenue 1 250K 1 000K 750K 500K 250K Today 4-5 years 68
Slide 69: Proven Growth Model Going Forward
Proven Growth Model Going Forward ✓ Current business model supports 1 million • Pursue and prioritize opportunities subscriptions in 4-5 years that increase number of subscriptions and services ✓ Services revenues are predicable with high revenues gross margin. • M&A and partner opportunities ✓ Very
Slide 70: Investor relations
Investor relations • Operational focus: Creating growth, profitability and cash management • Communication strategy IR: Visibility linked to operational performance and transparency of the road to 1 million Initiatives: • Continue monthly updates of subscriptions • Increase investor targeting activi
Slide 72: The Opportunity
The Opportunity Youth 10-13+ Parents (buyer, care giver and user) Parents already love Xplora «peace We have already a strong relationship Seniors 70+ of mind». Can now bring forward with key user/buyer, the parents. Either purchased themself or their the App with parental controls on Objective to e
Slide 74: Xploras future family IoT Vision
Xploras future family IoT Vision • Leading Brand for Family tech • Connected, safe & active - Everywhere • Eco-system for families. Share a lot with a few vs sharing a little with a lot. 74 CONFIDENTIAL AND COPYRIGHT © 2024 XPLORA TECHNOLOGIES AS. ALL RIGHTS RESERVED.
Slide 75: Todays takeaways
Todays takeaways We are inviting you to join our • Insight in our business model • Clarity in our 4-5 year goals • How well we are positioned to 2024 Capital MARKETS DAY grown in multiple family IoT verticals ”The Road to One Million” • Key milestone for Senior Division • 2 milestones for SaaS Divis

Xplora Technologies AS — Investor Day (June 2024) on 6ix

Xplora Technologies As — Investor Day (June 2024)

Slide 1: Disclaimer

Slide 2: The Road to One Million

Slide 3: Team presenting today

Slide 4: CMD Agenda

Slide 5: CMD Agenda

Slide 6: Historical Highlights

Slide 7: How to accelerate growth forward

Slide 8: Introducing The Road to One Million

Slide 9: Some Key Social Trends

Slide 10: Youth Parents Senior

Slide 11: Interview - play film

Slide 12: CONFIDENTIAL AND COPYRIGHT © 2024 XPLORA TECHNOLOGIES AS. ALL RIGHTS RESERVED.

Slide 13: Young kids/Youth

Slide 14: Senior IoT

Slide 15: Parental IoT

Slide 16: Operation

Slide 17: Sales development for Smartwatches (2019-2024)

Slide 18: Revenue development for Services (2021-2024)

Slide 19: Service Revenue development per market

Slide 20: Very stable growth in 4q rolling ARPU (2019-2024)

Slide 21: Strong growth in mobile subscription base

Slide 22: Mobile subscription churn - stable on 3%

Slide 23: The importance of ARR in our business model

Slide 24: The Road to One Million (4-5 years)

Slide 25: The road to 1 mill. subscriptions - Mobile subscriptions

Slide 26: The road to 1 mill. subscriptions - Activity platform

Slide 27: The road to 1 mill. subscriptions - Telco service revenue

Slide 28: The road to 1 mill. subscriptions - Service-fee revenue

Slide 29: The road to 1 mill. subscriptions - Services combined

Slide 30: Kids Division

Slide 31: Our Business Model

Slide 32: Product Strategy Kids division

Slide 33: Product Releases / upgrades

Slide 34: 2024 Big Volume Initiatives

Slide 35: Kids division in 4-5 years

Slide 36: 2024 Market strategies

Slide 37: Developing our largest market

Slide 38: Our team in Germany/DACH

Slide 39: Sales partners and channels

Slide 40: Market today

Slide 41: Key area of development - Germany

Slide 42: Focus going forward

Slide 43: Senior Division

Slide 44: Important news update from senior division

Slide 45: Our X6Pro platform

Slide 46: Core Value proposition

Slide 47: Why we will succeed

Slide 48: Our senior target market

Slide 49: X8 market opportunity

Slide 50: Multi product market opportunity

Slide 51: Launch timeline

Slide 52: SaaS Division

Slide 53: Important news update from SaaS division

Slide 54: SaaS division - key services

Slide 55: The Xplora Activity Platform

Slide 56: Scalable Multi-tenant Platform

Slide 57: Global IoT connectivity provider

Slide 58: SaaS in sum

Slide 59: Tech Strategy

Slide 60: R&D Strategy - Sustainable Scale-Up

Slide 61: Multi-Device Strategy

Slide 62: Multi-Tenant Strategy

Slide 63: Key Software & App release in 2024

Slide 64: Data & AI

Slide 65: Financial

Slide 66: Status Quo

Slide 67: The road to 1 million subscriptions

Slide 68: The road to 1 million subscriptions

Slide 69: Proven Growth Model Going Forward

Slide 70: Investor relations

Slide 71: Summary

Slide 72: The Opportunity

Slide 73: film

Slide 74: Xploras future family IoT Vision

Slide 75: Todays takeaways