X2m Connect Limited · ASX:X2M
X2m Connect — Shareholder Meeting (November 2024)
19 slides from X2m Connect's shareholder meeting presentation, Nov 26, 2024
Slide 1: CEO's Address
CEO’s Address For personal use only AGM November 2024
Slide 2: 5 key messages I want to convey today
5 key messages I want to convey today X2M is being set up to be a major player in the fields of Artificial Intelligence and Enterprise For personal use only Automation. X2M’s core capability is data collection and human free control of machines. An essential requirement for AI and automation We have
Slide 3: FY24 highlights
FY24 highlights Revenue of $13.4 million, down 17% (FY23: $16.2 million), reflecting the Company’s targeted and For personal use only previously announced strategy to exit low margin hardware-only sales Recurring SaaS and maintenance revenue of $1.7 million, up 50% (FY23: $1.15 million) Gross profit
Slide 4: Financial Performance and Revenue Model
Financial Performance and Revenue Model Recurring revenue is growing with number of devices and as a percentage of total revenue For personal use only Recurring Revenue ($M) vs Connected Devices Recurring Revenue ($M) as % of Total Revenue $2.00 537,706 550,000 $2.00 19.0% $1.80 $1.72 $1.80 $1.72 17
Slide 5: We are driving towards positive cashflow
We are driving towards positive cashflow Growth in gross profit, recurring SaaS and maintenance revenue and flat Opex has the company on path to positive cashflow and earnings. Drop in FY24 revenue driven by discontinuation of low-margin hardware sales and focus on margin generation For personal use
Slide 6: 1Q FY25 reflects strategy to exit low margin hardware sales
1Q FY251 reflects previously announced strategy to exit low margin hardware sales Lower operating costs and improvement in margins For personal use only Revenue – reflects softer market in Korea Gross margin – doubles and hardware exit ($M) over 2 years(%) 4 50% 3.8 33% 24% 1.7 1Q FY23 1Q FY24 1Q FY
Slide 7: Customer acquisition showing strong momentum
Customer acquisition showing strong momentum Connected device growth the driver of future recurring revenues 24 months to connect next ~300k devices Cumulative connected devices For personal use only 537,706 FY24 SaaS and Maintenance 520,417 Revenue is $1.7 million, up 50% on FY23 30 months to 428,8
Slide 8: X2M is now in the third horizon of its strategy
X2M is now in the third horizon of its strategy For personal use only Horizon 1 Horizon 2 Horizon 3 Build and Land and expand Transform – position commercialise for data explosion & AI - Now Entering Platform built & proven Large customer base & Harvest current addressable market markets Extensive p
Slide 9: Addressable markets to expand materially with new market entry
Addressable markets to South Korea Beijing, China expand materially with new 52m 22m market entry 22m 9m For personal use only • Addressable market in current Japan geographies: 250 million people, 126m 104m households 55m • Addressable market across existing customers: >10m households1 India Taiwan
Slide 10: Current Deployments – water in South Korea
Current Deployments – water in South Korea Currently servicing 47 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: Water meters in • Billing and proces
Slide 11: X2M is harvesting existing customer base – South Korea example
X2M is harvesting existing customer base – South Korea example SOUTH KOREA MARKET – SEP 2021 SOUTH KOREA MARKET – JUN 2024 For personal use only TAM of all Cumulative Cumulative TAM of all households2: contracted2: contracted2: households2: $950m $31m $8.6m $950m TAM of existing TAM of existing cust
Slide 12: New Vertical: Renewable Energy with GreenRock strategic partnership
New Vertical: Renewable Energy with GreenRock strategic partnership For personal use only • Taiwanese renewable energy generation, battery management and energy trading company • Partnership to develop renewable energy generation and Battery Energy Storage Systems (BESS) in APAC • GreenRock is X2M’s
Slide 13: Battery storage forecasts – underpin expansion of renewable energy strategy
Battery storage forecasts – underpin expansion of renewable energy strategy Australia For personal use only Taiwan BESS Total Addressable “We expect a 28% Market2 increase in the country’s 2023: NT$10b (A$500m) battery storage capacity 2026: NT$20b (A$1b) from now until 2032,” 2030: NT$ 200b (A$10b)
Slide 14: New Vertical – Smart Communities in Australia
New Vertical – Smart Communities in Australia Two mandates: Echuca up to 1,000 homes Yarrawonga up to 800 homes End to end solution for land developers and For personal use only single title operators to offer to home owners to increase sustainability: • Monitor and control distributed energy New re
Slide 15: New Geography – gas in United Arab Emirates
New Geography – gas in United Arab Emirates Recently launched in UAE with Dicode Technologies LLC Expansion opportunities to Saudi Arabia and Oman Licensed ‘Meter as a Service’ customer who will For personal use only be delivering to multiple gas customers and where X2M provides: • Meter digitisatio
Slide 16: Near Term Expansion – electricity and gas in India
Near Term Expansion – electricity and gas in India 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 electri
Slide 17: Priorities over the next months
Priorities over the next 12 months A return to revenue growth as we cycle comparative periods without low margin hardware sales For personal use only A move towards positive cashflow and a strengthening of our balance sheet Revenues from new markets Investment in Investor Relations and creation of d
Slide 18: Summary
Summary X2M has established a solid business in our existing markets with a growing customer base, increasing For personal use only margins, reduced cost base, growing recurring revenues and a path to profitability. Activities in the Middle East, India and the USA are sufficiently advanced for X2M t
Slide 19: 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