Xeros Technology Group Plc · LSE:XSG
Xeros Technology — H1 2022 Earnings Presentation
19 slides from Xeros Technology's earnings presentation, October 2022
Slide 1: Xeros Technology Group PLC Interim Results
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Slide 2: Strong Licensing Progress
e1. XFILTER LICENSED IN 2022 License agreement signed June 2022 with Hanning, a leading domestic washing machine component supplier. Products expected to be in market in late 2023 ahead of legislative deadline of January 2025. XEROS TECHNOLOGY GROUP PLC — SEPT 22 —— INTERIM RESULTS STRONG LICENSING
Slide 3: Momentum Building
04. XFILTER PIPELINE In commercial licensing discussions wih large Asian domestic washing machine OEM. Three component suppliers approached Xeros on Hanning announcement - one large European company signed a development agreement in September 2022 XEROS TECHNOLOGY GROUP PLC — SEPT 22 —— INTERIM RESU
Slide 4: Financial Summary: Cash, Funding, Use of Funds
on. CASH Cash at 31 August 2022 £2.6m. Net monthly cash burn of £0.5m per month. Trading in line with expectations and Board comfortable with current forward guidance XEROS TECHNOLOGY GROUP PLC — SEPT 22 —— INTERIM RESULTS FINANCIAL SUMMARY e2. 23. FUNDING USE OF FUNDS Conditional Placing and Open O
Slide 5: Technologies: Filtration, Care, Finish
TECHNOLOGIES FILTRATION, CARE, FINISH Xeros is revolutionising the way we make and care for our clothes. Our textile technologies have been developed as part of our ongoing mission to innovate new solutions to reduce waste wherever possible. XEROS TECHNOLOGY .@ROUP PLC => SEPT 22°—— PROJE PAGE— 5
Slide 6: Filtration: XFilter Licensed to Hanning
FILTRATION XFILTER LICENSED TO HANNING Partnering with a leading European component supplier XFilter will be available as a licensed product, ready for incorporation by washing machine manufacturers, from our partner, Hanning Elektro-Werke, a leading component manufacturer in the industry. - 8.5m wa
Slide 7: Filtration: XFilter Performance Accreditation
FILTRATION XFILTER PERFORMANCE ACCREDITATION Captures over 99% of microplastics Independent validation from a leading German testing agency shows a more than 99% capture rate for microplastics. Agreement with leading Asian domestic washing machine OEM proceeding to plan. Expect to move to licensing
Slide 8: Care: IFB Domestic Launch
CARE IFB DOMESTIC LAUNCH Domestic washing machine to launch in India in 2022 Xeros is working closely with IFB to continue to prepare the XCl care technology for launch in India later this year. First XOrb order to Xeros to be placed by IFB ahead of launch Machine design and cycle programming comple
Slide 9: Care: Commercial Laundry
CARE COMMERCIAL LAUNDRY Xeros commercial laundry machines in India & China IFB and SeaLion are now both in the market with a range of commercial washing machines IFB machines sold in India and Europe SeaLion continues to be negatively impacted by regional Covid lockdowns in China. Travel restriction
Slide 10: Finish: Denim Manufacture
FINISH DENIM MANUFACTURE Jeans manufactured for leading retail brands using Xeros technology Xeros is working on trials with denim manufacturers in Bangladesh for 3 leading global retailers (2 European & 1 UK brand). Denim produced to a sufficiently high quality that jeans have been sold to consumer
Slide 11: Finish: Denim Case Study
FINISH DENIM CASE STUDY “At Sparrow Apparels Ltd and Crown Wears Ltd, we have a strong focus on sustainability and looking after the environment with every garment we produce. We have looked for a sustainable solution to denim production for a long time now to reduce water usage and effluent as well
Slide 12: Finish: Adoption and Acceleration
FINISH ADOPTION AND ACCELERATION Denim strategy and leather business evidence The key to success for Xeros’ Finishing business is widespread retail brand adoption. - Drive use of technology in the manufacturing supply chain - Provide finance for machine purchase - Market the environmental benefits t
Slide 13: Financial Summary
FINANCIAL SUMMARY Adjusted EBITDA* loss increased by 36.9% to £3.9m (2021: loss £2.8m) Net cash outflow from operations increased by 15.1% to £3.9m (2021: £3.4m) Cash at 31 August: £2.6m with average £0.5m per month burn rate Conditional Placing and Open Offer to raise up to £7.0m announced Septembe
Slide 14: Summary: Strong Market Progress
~. 2. = SUMMARY SLRONG MARKET PROGRESS ay oes ANG a . ‘ - ¢ * ~ : ith the i increasing adoption of our licensing model, Xeros is well placed - to drive growth in future years. »*, We now have the evidence and the voice t rket our technology t brands, manufacturers, consumers and governments around t
Slide 15: Statements
STATEMENTS XEROS TECHNOLOGY GROUP PLC —— SEPT 22 —— INTERIM RESULTS
Slide 16: Profit and Loss
PROFIT AND LOSS Unaudited six months Unaudited six months ended 30 June 2022 ended 30 June 2021 £'000 £°000 REVENUE 40 344 Cost of Sales (43) (147) GROSS PROFIT (3) 224 Administrative expenses (4,160) (3,577) Adjusted EBITDA* (3,899) (2,849) Share-based payment expense (184) (403) Depreciation of ta
Slide 17: Cash Flow & Financing - Operating Activities
CASH FLOW & FINANCING - OPERATING ACTIVITIES Unaudited six months Unaudited six months ended 30 June 2022 ended 30 June 2021 £'000 £000 OPERATING ACTIVITIES Loss before tax (4,164) (3,352) Adjustment for non-cash items Depreciation of property, plant and equipment sa) 104 Share-based payment ae 403
Slide 18: Cash Flow & Financing - Investing Activities
CASH FLOW & FINANCING - INVESTING ACTIVITIES Unaudited six months Unaudited six months ended 30 June 2022 ended 30 June 2021 £000 £7000 INVESTING ACTIVITIES Finance income 9 3 Finance expense (10) (2) Cash withdrawn from/(placed) on deposit 4,353 (8,093) Purchases of property, plant and equipment (1
Slide 19: Thank You
THANK YOU
Xeros Technology Group — H1 2022 Earnings Presentation on 6ix