X2m Connect Limited · ASX:X2M
X2m Connect — Investor Presentation (February 2022)
23 slides from X2m Connect's investor presentation, Feb 23, 2022
Slide 1: Investor Presentation
For personal use only Investor Presentation Mohan Jesudason Chief Executive Officer 23 February 2022 ASX Code: X2M
Slide 2: Disclaimer
Disclaimer This Presentation (“Presentation”) has been prepared by X2M Connect Limited (Company). You Investment risk For personal use only 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, accep
Slide 3: X2M posts strong H1 FY22 results
X2M posts strong H1 FY22 results For personal use only Enterprise/government Revenue: $4.6m, up 44% on customers: 42, up 35% on 31 Customer churn: Zero pcp December 2020 Contracted revenue for Connected devices: 181,102, Energy management solution recognition post 30 June 2021 up 101% on 31 December
Slide 4: X2M commercial strategy
X2M commercial strategy For personal use only X2M Strategy starts with investment for growth: Secure initial sales of hardware and services to gain a toehold in each customer’s total addressable market (TAM) – margins tend to improve with future orders Investment in sales and marketing resourc
Slide 5: Strategy delivering growth across key metrics
Strategy delivering growth across key metrics2 X2M has delivered strong H1 FY22 growth in revenues, connected devices, For personal use only enterprise and government customers and annualised subscription revenues Enterprise and government customers rose Connected devices totalled 108,102 by 31 H1 F
Slide 6: Licensing business in Japan growing fast
Licensing business in Japan growing fast Licensed SaaS device connections are expected to be a major source of growth For personal use only Licensed Devices Growth by Quarter1 97,233 Growth Rates Q2 FY22-on-Q2 FY21: +153% Q2 FY22-on-Q1 FY22: +28% 76,034 60,894 47,444 38,389 26,127 16,753 6,144 8,322
Slide 7: X2M Business model being validated
X2M Business model being validated Pipeline being converted. Customer base presenting a large and growing addressable market. Existing customers giving For personal use only repeat orders with zero churn validates the X2M strategic programme and sets the basis for future growth Good mix of new custo
Slide 8: Each market performing - country commentary
Each market performing - country commentary For personal use only South Japan Taiwan China and Korea Australia 19 municipality Includes Azbil Most diversified China market customers Kimmon, major entity and X2M entered with meter innovation hub known partners – Total addressable manufacturer initial
Slide 9: Strategy flywheel
For personal use only Negotiating very competitive hardware prices Incumbency drives repeat purchases Increased market penetration Strategy Future annual recurring SaaS revenue
Slide 10: X2M investing now for rapid growth
X2M investing now for rapid growth For personal use only Core strategy based on rapid growth at early stage of the business Negotiating very 1. Competitive pricing for initial hardware sales : competitive hardware prices o incumbency strongly tends to drive repeat orders increasing penetration into
Slide 11: X2M well into stage – on cusp of software scale
X2M well into stage 2 – on cusp of software scale Conversion of customers to SaaS contracts commenced For personal use only Stage 1 Stage 2 Stage 3 Objective Invest in customer Transition to managed Transition to SaaS relationships services revenue revenue Customer Drive customer acquisition Build c
Slide 12: Financial Results
For personal use only Financial Results
Slide 13: P&L summary
P&L summary The H1 FY22 P&L reflects the Company's strategy to invest in growth, move into new For personal use only markets and one off costs associated with the September 2021 IPO H1 FY22 H1 FY21 % Mvt Comment ($’000) ($’000) Revenue 4,585 3,192 44% Strong growth on topline Cost of sales (3,652) (
Slide 14: Balance sheet summary
Balance sheet summary Balance sheet strengthened following a successful IPO and repayment of the For personal use only majority of borrowings – cash and cash equivalents $5.1 million at 31 Dec 2021 31 December 30 June % Mvt Comment 2021 2021 ($’000) ($’000) Assets Cash and cash equivalents 5,121 1,9
Slide 15: X2M in the field – what we do
For personal use only X2M in the field – what we do
Slide 16: Water digitisation - South Korea building penetration
Water digitisation - South Korea building penetration For personal use only Supporting government ambitions to revolutionize water management Now servicing 19 municipalities for water monitoring and control in South Korea Driving new customers and repeat orders from existing customers through provid
Slide 17: Gas monitoring - Japan driven by the value of data generated
Gas monitoring - Japan driven by the value of data generated For personal use only Licensed deployments in Japan continue to increase at pace with compelling use cases Growth in the Japanese market driven by licensing to customers monitoring gas bottles • centralised platform acting as point of coor
Slide 18: Energy management and net zero emissions – our next opportunity
Energy management and net zero emissions – our next opportunity For personal use only X2M’s energy management solution optimises energy generation, storage and usage. Plays to the strength of our AC power patents and platform Communications X2M platform products DC and AC electric vehicle chargers I
Slide 19: Core pillars of the X2M strategy
5 core pillars of the X2M strategy For personal use only Consolidate Expand into Continue Expand into new Manage margin strong position compatible development of geographies and cash burn in existing verticals in SaaS business markets existing markets • South Korea – • Remote battery • Replicate mod
Slide 20: Capitalise on key market differentiators
Capitalise on key market differentiators For personal use only • Leading edge patented platform • making dumb devices smart • distributed intelligence autonomously monitors and controls devices • IoT platform provides visibility, control, aggregation, predictive and pre-emptive device management WiS
Slide 21: X2M's growth outlook is bright
X2M’s growth outlook is bright For personal use only Revenue: Enterprise/government customers: Connected devices: $4.6m, up 44% on pcp 42, up 35% on pcp 181,102, up 101% on pcp Strong 1st half lays solid foundation for further growth Consolidate strong Expand into compatible Continue development pos
Slide 22: Why X2M is an attractive investment proposition
Why X2M is an attractive investment proposition For personal use only The pipeline and customer base together A good half year delivering consistent with their available market suggests a performance sustainable growth trajectory going forwards The strong growth in connected devices sets Exploring A
Slide 23: Shareholder Enquiries
Shareholder Enquiries For personal use only X2M CONNECT Automic Pty Ltd hello@automic.com.au GET IN +61 (2) 9698 5414 TOUCH Media and Investor Enquiries Julia Maguire julia@thecapitalnetwork.com.au +61 (2) 8999 3699 Chief Executive Officer Mohan Jesudason, CEO investor.relations@x2mconnect.com 1 800