X2m Connect Limited · ASX:X2M
X2m Connect — Investor Presentation (December 2023)
33 slides from X2m Connect's investor presentation, Dec 6, 2023
Slide 1: X2M digitising utilities in APAC – Entitlement offer
For personal use only X2M digitising utilities in APAC Entitlement offer December 2023
Slide 2: Disclaimer
Disclaimer This Presentation (“Presentation”) has been prepared by X2M Connect Limited (Company). You must read and accept the conditions in this notice before considering the information set out in or referred to in this Presentation. If you do not agree, accept or understand the terms on which thi
Slide 3: Entitlement Offer Details
Entitlement Offer Details • 1 for 6 non renounceable entitlement issue to Shareholders to raise up to $1.5m through the issue of approx. 38.1m Shares at $0.04 per Share For personal use only • Offer Price of A$0.04 per New Share under the Offer, which represents: 15% discount to the close on 1 Dec 2
Slide 4: Entitlement Offer Timetable
Entitlement Offer Timetable Activity Date Announcement of Offer Before market open Lodgement of Appendix 3B with ASX 6 December 2023 For personal use only Lodgement of Offer Letter with ASX Ex date 8 December 2023 Record Date for the Offer 11 December 2023 (7:00pm AEDT) Offer Document despatched to
Slide 5: GreenRock MOU signed
GreenRock MOU signed Non-binding memorandum of understanding (MOU) with GreenRock Energy Co., Ltd For personal use only Taiwan company with 900MW of renewables under management A collaboration to develop an energy management system (EMS) solution business “ The parties are actively discussing final
Slide 6: X2M's Energy Management System platform for GreenRock
X2M’s Energy Management System (EMS) platform for GreenRock Leveraging X2M’s communication and data aggregation capability For personal use only About GreenRock GreenRock is a Taiwan Energy sector – Renewable generation and storage company focused on large scale renewable energy infrastructure Smart
Slide 7: Key take outs from FY23
Key take outs from FY23 Another year of solid performance For personal use only Cash burn reducing and a clear path to positive operating cashflows A technology solution that is resonating “ Stage is now set to transition to a significant global player in utility automation, data Customer base repre
Slide 8: What we do
For personal use only WHAT WE DO “Data aggregation and device control”
Slide 9: The X2M – a data gatherer and controllers of devices & sensors
The X2M – a data gatherer and controllers of devices & sensors “One platform, any device, multiple applications and fully commercialised” For personal use only Machine Health Checks Billing AI & Big data Learning CRM Engines & Social Platforms Analytics & Asset Applications Management X2M Software p
Slide 10: X2M's patents set it apart
X2M’s patents set it apart >50 granted across 14 countries. Plays to the heart of the AI world For personal use only One Platform Networks Control Dumb & Smart Flexibility Any device on Communication Two-way Ability to retro fit Cloud and edge- one platform. over many communications legacy devices.
Slide 11: Fully commercialised business - delivering proven use cases
Fully commercialised business - delivering proven use cases Next wave of productivity improvement for enterprises and government For personal use only Water Bottled gas Smart Water quality Energy & Water digitisation & logistics communities in management in management in automation in management in
Slide 12: X2M's revenue model
X2M’s revenue model One off Charges Initial platform installation charge plus platform customisation fees For personal use only Per new device connection fee or Per new device fee for X2M hardware Recurring charges Monthly SaaS fee for data delivered Monthly maintenance fee for support ENTITLEMENT O
Slide 13: X2M and the energy market
For personal use only X2M AND THE ENERGY MARKET
Slide 14: Current deployments – smart communities Australia
Current deployments – smart communities Australia Two mandates: Echuca up to 1,000 homes. Yarrawonga up to 800 homes Consumer enjoys a sustainable, eco-friendly, environment and community For personal use only Significantly reduced energy consumption Significantly increased use of renewables Signifi
Slide 15: GreenRock partnership
GreenRock partnership o GreenRock and X2M have signed a non-binding MOU and are actively working to finalise the final agreements For personal use only o GreenRock is a player in renewable energy generation, storage and energy trading with 900MW under management o Adds scale for X2M’s Taiwan operati
Slide 16: Battery Energy Storage Systems market in Taiwan reflects global trends
Battery Energy Storage Systems (BESS) market in Taiwan reflects global trends Taiwan has set a target of 20% (vs 8.3% now) renewable energy (Wind+Solar) generation by 2025. For personal use only Taiwan BESS Total Addressable Market1 2023: NT$10b (A$500m) 2026: NT$20b (A$1b) 2030: NT$ 200b (A$10b) EM
Slide 17: BESS typical use case
BESS typical use case The charging period For personal use only During this period, the batteries of the energy storage unit store electricity from the grid or embedded renewables. The EMS intelligent software integrated within the energy storage system ensures that the batteries are charged during
Slide 18: X2M 1Q24 Performance
For personal use only X2M 1Q24 PERFORMANCE
Slide 19: 1Q24 Trading update – key financial metrics on target
1Q24 Trading update – key financial metrics on target Solid revenue growth, improved margins, reduced costs and declining cash burn are highlights of the 1Q results For personal use only Operating Gross Opex Adjusted Revenues cash margin $2.2m EBITDA loss $4m up burn$1.1m $1.3m up down 8% $0.6m down
Slide 20: 1Q24 trading update – business KPI's
1Q24 trading update – business KPI’s Drivers of future value For personal use only SaaS and Enterprise and maintenance government revenues customers $0.4m up 60% 70 up 35% Annualised Connected devices recurring revenues 472,882 up 62% $1.5m up 67% 1. All FY24 financial results in this presentation a
Slide 21: 1Q24 P&L at a glance
1Q24 P&L at a glance2 – revenues & margins up, costs down ($’m) 1Q24 1Q23 Change For personal use only Revenue 4.0 3.8 7% Cost of Sales (2.7) (2.9) -6% “ Gross Profit 1.3 0.9 47% The company Other income 0.1 0.4 -70% strategy is to secure Overheads1 (2.2) (2.3) -3% enterprise customers and extend in
Slide 22: Financial trends
Financial trends Revenue ($M) Gross profit ($M) 1Q24 revenue of $4.0m, 1Q24 gross profit of $1.3m, For personal use only up 7% on the pcp up 47% on the pcp 4.00 3.8 +7% 1.3 0.9 +47% 1.6 0.3 1Q22 1Q23 1Q24 1Q22 1Q23 1Q24 Net cash burn from operating activities Adjusted EBITDA 1Q24 net cash burn from
Slide 23: Business metric trends
Business metric trends Enterprise and government customers SaaS and maintenance revenues 1Q24 Enterprise and government customers 1Q24 SaaS and maintenance revenues For personal use only of 70, up 35% on pcp of $0.4m, up 60% on pcp 70 0.4 52 +35% +60% 37 0.2 0.1 1Q22 1Q23 1Q24 1Q22 1Q23 1Q24 Connect
Slide 24: Operating cash burn a key financial metric
Operating cash burn a key financial metric 1Q24 delivered cash burn from operating activities of $1.1 million compared with $1.3 million in 1Q23. The improved performance was driven by a better gross margin and well For personal use only controlled operating expenses. Chart below shows the improveme
Slide 25: Historical momentum is good
Historical momentum is good Repeat orders from customers and pipeline conversion drive future SaaS revenues Connected devices exceeds 6 months 500,000 in November 2023 to connect next ~100k For personal use only devices “ 472,882 6 months Annualised Recurring to connect 428,801 next ~100k Revenue in
Slide 26: The market opportunity
For personal use only THE MARKET OPPORTUNITY
Slide 27: X2M's addressable market is large
X2M’s addressable market is large Australia Addressable market in current For personal use only 26m people geographies: 250 million people. 104m 9m households households Beijing, China 22m people Addressable market across existing 9m households customers: >10m households1 . Revenue potential >$500m
Slide 28: X2M is diligently penetrating its customer base – South Korea example
X2M is diligently penetrating its customer base – South Korea example Total addressable market and share of TAM increasing as X2M gets embedded into customer eco systems generating follow-on orders SOUTH KOREA MARKET – SEP 2021 SOUTH KOREA MARKET – JUN 2023 For personal use only TAM of all Cumulativ
Slide 29: FY24 targets
FY24 targets > 20% Revenue growth For personal use only > 60% growth in annualised recurring revenues > 50% growth in gross profit Operating costs flat and cash burn halved >50% growth in connected devices ENTITLEMENT OFFER I X2M CONNECT 29
Slide 30: New markets being progressed/considered
New markets being progressed/considered Energy management system solutions For personal use only Australia - Smart communities and smart agriculture Middle East - Gas distribution and management India – gas and energy management ENTITLEMENT OFFER I X2M CONNECT 30
Slide 31: Board and senior management team
Board and senior management team Hon. Alan Stockdale AO Keith Jelley Non-Executive Chair COO • 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 For personal use only (KN
Slide 32: Summary - X2M a compelling investment proposition
Summary - X2M a compelling investment proposition Significant and growing addressable market For personal use only Existing customer base provides an immediate addressable market to harvest within utility digitisation and energy management in APAC. Attractive business model Comprising upfront fees a
Slide 33: Thank you
For personal use only Thank you