X2m Connect Limited · ASX:X2M
X2m Connect — Q1 FY2023 Earnings Presentation
25 slides from X2m Connect's earnings presentation, Nov 7, 2022
Slide 1: FY23 Q1 Trading update - summary
Delivering on a promise For personal use only FY23 Q1 Trading update - summary 7 November 2022 ASX Code: X2M
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: Q1 Performance at a glance – FY22 momentum rolls into FY23
Q1 Performance at a glance – FY22 momentum rolls into FY23 For personal use only FY23, Q1 Revenue: $3.8m1, Connected devices: 292,806 Enterprise/government up 137% on pcp up 92% on pcp customers: 52, up 41% on pcp ASX 23 contracts in place worth South Korean customer base Australian energy approxima
Slide 4: Key take outs from Q1 results announcement
Key take outs from Q1 results announcement For personal use only Top line revenue and customer acquisition performance is strong and new contract wins to date expected to deliver a solid FY23 Growing base of connected devices expected to deliver growth in SaaS and other recurring revenues Current cu
Slide 5: The Investment Thesis
For personal use only The Investment Thesis
Slide 6: X2M a compelling investment proposition
X2M a compelling investment proposition For personal use only Significant and growing addressable market Existing customer base provides an immediate addressable market to harvest within utility digitisation and energy management in APAC Attractive business model Comprising upfront fees and recurrin
Slide 7: Contracted customers deliver a large addressable market
Contracted customers deliver a large addressable market Total addressable market is huge. The X2M existing customer base represents a substantial opportunity For personal use only South Korea market Japan Cumulative Estimated TAM of TAM of all TAM of all existing customers: contracted2: households2:
Slide 8: Korea best articulates strategy outcomes
Korea best articulates strategy outcomes Total addressable market and penetration increasing as X2M gets embedded into customer eco systems For personal use only South Korea market – Sep 2022 South Korea market – Sep 2021 Cumulative Cumulative TAM of all TAM of all contracted2: contracted2: househol
Slide 9: Validated strategic business model – increasing share of TAM
Validated strategic business model – increasing share of TAM The X2M strategy of securing customers and pursuing conversion of each customer’s available market is working and reflects the stickiness of the X2M business model For personal use only FY17 FY23 Gochang TAM ~25,000 households 100% 100% FY
Slide 10: High percentage of repeat customers
High percentage of repeat customers The X2M strategy of securing customers and pursuing repeat orders from those customers is working and reflects the stickiness of the X2M business model For personal use only Customer Stickiness 48% 52% Repeat Orders Initial Orders at this time More than half of X2
Slide 11: Connected devices accelerating: feeds into future SaaS revenues
Connected devices accelerating: feeds into future SaaS revenues 3 months to connect next ~50k Driver of future SaaS revenues devices 3 months to For personal use only connect next ~50k devices Annualised Recurring 6 months to connect next 292,806 Revenue increased from ~50k devices $0.6m in Sep 2021
Slide 12: X2M Story – consistency of performance
X2M Story – consistency of performance For personal use only Revenue ($A millions) Connected devices Connected devices totaled 292,806 at Q1FY23 revenue of $3.8m, up 137% on pcp 3.8 30 September 2022, up 92% on pcp 292,806 92% 137% 1.6 152,304 0.9 75,540 Q1FY2021 Q1FY2022 Q1FY2023 Q1FY2021 Q1FY2022
Slide 13: What we do – digitising utilities in APAC
For personal use only What we do – digitising utilities in APAC. A market ready to be tapped
Slide 14: Water digitisation - South Korea – from analog to digital
Water digitisation - South Korea – from analog to digital Currently servicing 32 municipalities for water monitoring and control in South Korea For personal use only Capturing new government municipalities and repeat orders from existing customers through provision of improved: • Billing and process
Slide 15: Gas monitoring - Japan driven by the value of data generated
Gas monitoring - Japan driven by the value of data generated From reactive to proactive, driven by data collection and analysis For personal use only Growth in the Japanese market driven by licensing to customers monitoring gas bottles: • centralised platform acting as point of coordination to remot
Slide 16: Energy management - Smart Communities in Australia
Energy management - Smart Communities in Australia For personal use only Normal Community Smart Homes Smart Community Individual homes with no energy Individual homes with some Coordinated homes with in home or resource optimising features energy and resource optimising and community wide energy and
Slide 17: Smart communities - Australia
Smart communities - Australia Smart community with large number of smart homes plus community Consumer enjoys a For personal use only resources all working cohesively sustainable, eco-friendly, environment and community Significantly reduced energy consumption Significantly increased use of renewabl
Slide 18: X2M's key differentiators = sustainability
X2M’s key differentiators = sustainability 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 W
Slide 19: Announcements reflect momentum
For personal use only Announcements reflect momentum
Slide 20: Summary of contract announcements since September listing
Summary of contract announcements since September listing For personal use only • K Water $1.49 million tender won Q2 FY22 • K Water $2.6 million tender won • China contract $0.7 million • Gochang extension – $1.03 million Q3 FY22 • China contracts $1.0 million • South Korea $0.85 million tender win
Slide 21: FY22 Financials
For personal use only FY22 Financials
Slide 22: Strategy driving revenue growth more than cost growth
Strategy driving revenue growth more than cost growth For personal use only ($’m) FY22 FY21 Change Revenue 10.4 5.7 82% The company strategy is securing customers and Cost of Sales (8.1) (4.1) 98% pursuing a land grab to drive revenue growth now and into Gross Profit 2.3 1.6 44% the future Overheads
Slide 23: Summary
For personal use only Summary
Slide 24: FY23 outlook – momentum expected to continue
FY23 outlook – momentum expected to continue Strategy is delivering - revenue momentum to continue with $12.5m For personal use only already contracted for deployment in FY23 which is ahead of FY22 full year revenues of $10.4m and additional contracts are expected in FY23 Revenue, customer numbers a
Slide 25: X2M Connect – Get in touch
For personal use only X2M CONNECT GET IN Shareholder Enquiries Automic Pty Ltd TOUCH hello@automic.com.au +61 (2) 9698 5414 Media and Investor Enquiries Mohan Jesudason, CEO investor.relations@x2mconnect.com 1 800 926 926 (1 800 X2M X2M)