X2m Connect Limited · ASX:X2M
X2m Connect — Investor Presentation (August 2024)
23 slides from X2m Connect's investor presentation, Aug 19, 2024
Slide 1: Shareholder Presentation – Entitlement offer August 2024
Shareholder Presentation For personal use only Entitlement offer - August 2024
Slide 2: 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
Slide 3: Executive summary
Executive summary • X2M is a technology company that uses the internet to deliver productivity improvements, cost savings and Company improved public safety to enterprise and government customers For personal use only overview • X2M’s current focus is servicing the utility sector in the Asia-Pacific
Slide 4: X2M Connect Limited
X2M Connect Limited X2M has commercialised a unique patented software platform for machine connectivity For personal use only We are digitising utilities in Asia. Our target countries represent > 20% of the world's population Our platform is a core enabler of data collection, for automation, Artific
Slide 5: Purpose of this raise – support transformation strategy: Horizon 3
Purpose of this raise – support transformation strategy: Horizon 3 Expand in Australia For personal use only Develop scale in renewable energy, battery storage and smart communities Commercialise Middle East Enter India market Enhance platform and customer support Investor Presentation - X2M Connect
Slide 6: 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 7: Harvesting current markets – water in South Korea
Harvesting current markets – water in South Korea Currently servicing 33 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
Slide 8: Australia and renewable energy
Australia and renewable energy Leveraging the GreenRock partnership for energy management • X2M and GreenRock Energy Co., Ltd, a major For personal use only renewables company based in Taiwan, signed a strategic partnership for energy management • We are expanding Echuca and Yarrawonga smart New com
Slide 9: 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 10: Middle East market
Middle East market There is an immediate opportunity in gas and likely upcoming opportunities in electricity and water monitoring For personal use only The gas market in the UAE is fragmented with many small independent gas companies UAE Government has mandated piped gas be fitted to all new buildin
Slide 11: Middle East market − follow on opportunities
Middle East market − follow on opportunities Following success in the UAE, there is a logical extension into other Middle East countries where substantial potential exists For personal use only Saudi Arabia has more than 37 million people and 8 million dwellings Saudi Arabia has largely bottle gas s
Slide 12: UAE pricing model
UAE pricing model The UAE model is based on a low capital, low expense, software based SaaS business model with each 100k devices added expected to generate future annual EBITDA of approx. A$0.4 million For personal use only Upfront platform establishment license fee for each installation Annual lic
Slide 13: India market – new revenue potential
India market – new revenue potential There is an immediate opportunity in electricity and likely upcoming opportunities in gas as the India government drives digitisation For personal use only The India government has embarked on a program to rollout 250 million monitored smart electricity meters 01
Slide 14: Addressable markets to potentially expand materially in Horizon 3
Addressable markets to Beijing, China South Korea potentially expand 22m 52m materially in Horizon 3 9m 22m For personal use only • Addressable market in current Japan geographies: 250 million people, 126m 104m households 55m • Addressable market across existing customers: >10m households1 India Tai
Slide 15: Our solution − the results we deliver to our customers
Our solution − the results we deliver to our customers For personal use only Increased operational Platform streamlines utility management and reduces manual interventions. efficiency Cost Automated monitoring and accurate, real-time data eliminates the need for manual meter reductions readings, red
Slide 16: The company has momentum
The company has momentum Annualised Recurring Revenue growing strongly 6 months to connect next Cumulative connected devices ~100k devices For personal use only 6 months to connect next 537,652 520,417 ~100k devices 6 months to 472,882 connect next 428,801 ~100k devices 390,626 6 months to 361,345 c
Slide 17: We are driving towards positive cashflow
We are driving towards positive cashflow Growth in gross profit, ARR and flat Opex has the company on path to positive cashflow and earnings. Drop in FY24 revenue driven by discontinuation of low margin hardware sales and focus on margin generation For personal use only Revenue ($M) Gross profit ($M
Slide 18: Revenue model
Revenue model Upfront revenue Recurring revenue For personal use only Platform installation fee Monthly maintenance Monthly SaaS fee for per instance plus platform fee for support data delivered customisation fees Per new device connection fee or per new device fee for X2M hardware Annual licensing
Slide 19: X2M Team and Corporate Snapshot
X2M Team and Corporate Snapshot Hon. Alan Stockdale AO | Non-Executive Chair INFLUENTIAL SHAREHOLDERS • Currently Emeritus Counsel of Medical Research Commercialisation Fund and Chairman Knosys Limited TOP 20 HOLD 67% • Previously Treasurer of Victoria, as well as Investment banking at GreenRock For
Slide 20: Investment summary
Investment summary For personal use only Unique, world- Early mover Addressable Clear path to Strong team leading, future- advantage with market is large profitability; leading the proofed IoT significant and growing, with recurring revenues Company to the solution enabling barriers to entry signifi
Slide 21: Equity raising overview
Equity raising overview • Offer will raise up to $2.0 million through the issue of approximately 50 million New Shares Entitlement For personal use only • Offer is for New Shares under a non-renounceable Entitlement Offer Offer • Eligible Shareholders are entitled to subscribe for 1 New Share for ev
Slide 22: Offer timetable
Offer timetable Activity Date For personal use only Announcement of Offer Lodgement of Appendix 3B with ASX 19 August 2024 Lodgement of Offer Letter with ASX Record Date for the Offer 22 August 2024 Offer Document despatched to Shareholders Company announces the despatch has completed 27 August 2024
Slide 23: Contact
For personal use only Contact Mohan Jesudason Chief Executive Officer investor.relations@x2mconnect.com T: 1 800 926 926 (1 800 X2M X2M) Howard Marks Automic Markets howard.marks@automicgroup.com.au T: +61 402 438 019