Xreality Group Limited · ASX:XRG
Xreality — Investor Presentation (October 2023)
24 slides from Xreality's investor presentation, Oct 18, 2023
Slide 1: Investor Presentation: Capital Raising
For personal use only xReality Group Ltd ASX:XRG Investor Presentation: Capital Raising 18 October 2023
Slide 2: Disclaimer
For personal use only Disclaimer Operator’s OP-1
Slide 3: Agenda
For personal use only 1. Capital Raise Overview 2. Company Overview & FY23 Highlights 3. Strategy Update 4. Appendices
Slide 4: Capital Raise Overview
Capital Raise Overview Rights Offer Exclusive Offer to Shareholders to raise up to $3.15 million via the issue of approximately 90 million New Shares on a 1:5 basis priced at $0.035 each. For personal use only Top Up Facility Shareholders can subscribe for extra shares in addition to their entitleme
Slide 5: Capital Raise Overview: Use of Funds
Capital Raise Overview For personal use only This initiative is to accelerate and boost sales and marketing efforts of our Operator XR Military and Law Enforcement technology in the US. • Increased Sales team in the US • Capitalise on momentum and conversion of leads into sales • Establish a logisti
Slide 6: Expected Offer timetable
Expected Offer timetable Event Date For personal use only Issue of New Shares under the Institutional Placement and commencement of trading Wednesday, 25 October 2023 Record Date for Offer 5.00pm (Sydney time) Monday, 30 October 2023 Offer Opening Date Tuesday, 31 October 2023 Prospectus lodged and
Slide 7: Company Overview
Company Overview xReality Group Limited are leaders in enterprise software development for mission critical simulations for military and law enforcement. The company develops and operates physical and digital simulations. Portfolio companies include Indoor Skydiving facilities, Virtual Reality (VR)
Slide 8: Company Overview
Company Overview Red Cartel are one of Australia’s leading experts in VR, AR, XR, and premium animated content for Enterprise software products. The company has over 20 years of experience servicing a For personal use only large number of industries including Entertainment, Oil and Gas, Mining, Heal
Slide 9: FY23 Highlights
FY23 Highlights 47% increase in Revenue $10.54m For personal use only 54% increase in underlying EBITDA $2.1m Stabilisation of existing businesses post COVID $25m Enterprise XR sales pipeline First XR Military and Law Enforcement Sales to the Australian Defence Force and WA Police Force USA subsidia
Slide 10: Company Strategy: Sustain > Invest > Expand
Company Strategy: Sustain > Invest > Expand Sustain Existing Operations For personal use only • Continued Operations of existing world class Entertainment business portfolio, to sustain future revenue and operational cashflow, supporting future growth • Maintaining financial health and stability thr
Slide 11: Operator XR: What's the problem we are solving?
Operator XR: What's the problem we are solving? Ability to keep up with an ever-changing Operator XR provides a software platform that is easily updated and configured, that allows teams to train and rehearse at a lower risk and environment: The ability to conduct affordable training for For persona
Slide 12: Operator XR: What makes us unique?
Operator XR: What makes us unique? • Operator XR is lead and operated by Special Forces and Law Deep Subject Knowledge and Enforcement veterans with extensive experience in field operations, For personal use only Experience software and technology • All software development is created in-house by so
Slide 13: Operator XR: Total Addressable Market
Operator XR: Total Addressable Market $3.37BN total addressable market for dismounted soldier and police officer immersive training For personal use only Total Addressable Market ARR > Market Share Sensitivity (USD$m) 1% 3% 5% 10% 20% Total Market Law Enforcement United States 2.73 8.19 13.65 27.30
Slide 14: Operator XR: US Law Enforcement
Operator XR: US Law Enforcement 5,000 - 50,000 sworn officers Number of US Law Annual Software Licence Range = $500k-$5m For personal use only Tier 1 Enforcement 14 TAM = 14 x $500k - $5m = $7m -$70m ARR agencies by size. 500 - 5,000 sworn officers 170 Tier 2 Annual Software Licence Range = $100k-$5
Slide 15: Operator XR: US Military Market
Operator XR: US Military Market US Military Personnel 1,304,400 personnel • US Military budget For personal use only 294% higher than Law US Military Annual Budget $842b Enforcement US Military • US Army Microsoft Augmented Reality Contract Value = $22b US Law Enforcement: over 10 years Total sworn
Slide 16: Operator XR: Sales Pipeline
Operator XR: Sales Pipeline SALES PIPELINE $AUD 35,000,000 For personal use only 30,000,000 25,000,000 In the last 2 months the sales pipeline has grown by $6M with 50% of new deals in the US. 20,000,000 Total sales pipeline $31M AUD with 60 individual 15,000,000 qualified opportunities at various s
Slide 17: Operator XR: Rapid commercial progress
Operator XR: Rapid commercial progress Short Term Milestone Tracker For personal use only FY2023 FY2024 First Sale of Law Enforcement Products - First Sale in the USA Australia Strong US pipeline rapidly developed First Sale of Defence Products - Australia USA Subsidiary and Sales team Established E
Slide 18: Expand into the US Market
Expand into the US Market Major Milestone Achieved; A focused and systematic approach over the next 6 For personal use only months: • Operator XR achieved it’s first Law Enforcement sale Commercial: First US Sales Manager commenced in May 2023 with in the US in August 2023. more sales and operations
Slide 19: Summary
Summary For personal use only • Strong FY23 Financial Performance: Cash Receipts up 32% , Revenue up 47%, underlying EBITDA up 54% • Existing operations to support growth in Enterprise Software rollout • First Operator XR Customers in Australia and the US • Pipeline of Global Sales exceeds $31m* • U
Slide 20: Appendices
For personal use only Appendices
Slide 21: XRG Board of Directors
XRG Board of Directors Highly Experienced and strategic public company director John Diddams • • 40 years of financial management in Australia and overseas Chairman Non-Executive • Experience in driving business performance, mergers & acquisition, due diligence and corporate governance. • Formal qua
Slide 22: Product Overview: OP-1
Product Overview: OP-1 OP-1 FOR MILITARY For personal use only PORTABLE . SECURE . IMMERSIVE Military solution allowing soldiers to conduct virtual missions using their own specific service weapons and equipment. True integration of combat equipment for immersive near-real experience. Users can upsk
Slide 23: Platform Overview: OP1-LE
Platform Overview : OP1-LE OP-1 LE FOR LAW ENFORCEMENT For personal use only PORTABLE . SECURE . IMMERSIVE Operator LE is changing the approach of Law Enforcement training. Through our highly portable and scalable virtual reality training system, officers train operational tactics and procedures mor
Slide 24: For further information contact
For personal use only For further information contact Wayne Jones CEO wjones@xrgroup.com.au Kim Hopwood Executive Director khopwood@xrgroup.com.au
xReality Group — Investor Presentation (October 2023) on 6ix