Xeros Technology Group Plc · LSE:XSG
Xeros Technology — H1 2019 Earnings Presentation
18 slides from Xeros Technology's earnings presentation, September 2019
Slide 1: Xeros Technology Group plc 2019 Interim Results
XEROS TECHNOLOGY GROUP plc Without limits. For a world with them. 2019 INTERIM RESULTS SEPTEMBER 2019 XEROS TECHNOLOGY GROUP plc - COPYRIGHT 2019
Slide 2: Highlights – Executing License Model
2 HIGHLIGHTS – EXECUTING LICENSE MODEL Xeros technology radically improves the Xeros Technology Group plc sustainability, performance and 6 September 2019 economics of water intensive processes Licensing agreement with leading Asian OEM for denim finishing equipment Ramsons are the largest garment f
Slide 3: Water Pricing Increases as Supply Diminishes
33 WATER PRICING INCREASES AS SUPPLY DIMINISHES Lake Puzhal, Chennai’s largest reservoir1 “Today, 40 per cent of the world’s people are affected by water scarcity … we cannot continue to take water for granted … solutions exist and new technologies are in the pipeline to improve how we manage water
Slide 4: Technologies Deliver Major Sustainability, Cost and Product Benefits
4 TECHNOLOGIES DELIVER MAJOR SUSTAINABILITY, COST AND PRODUCT BENEFITS Xeros’ proprietary technologies radically improve the effectiveness of water in affixing and/or Application example – Denim Finishing removing molecules in the dyeing and finishing of garments and fabrics and their subsequent Xer
Slide 5: Xeros Products Recap
55 XEROS PRODUCTS RECAP Engineered and patented polymer XOrbsTM are applied through rotating drum processes across the life cycle of garments, saving costs and improving manufacturing and product performance: XOrbs XDrum Nylon XOrbs - removes molecules (BASF supply) Polypropylene XOrbs - affixes mol
Slide 6: Progress Since Commercial Update of 14th August 2019
66 PROGRESS SINCE COMMERCIAL UPDATE OF 14TH AUGUST 2019 14 August 2019 Progress since 14th August: XOrbs XDrum First agreement with garment equipment Commercial update and fundraising plans OEM for denim finishing. Xeros Technology Group plc (AIM: XSG, 'Xeros', 'the Group'), the developer and provid
Slide 7: First Agreement with Garment Finishing Equipment OEM
77 FIRST AGREEMENT WITH GARMENT FINISHING EQUIPMENT OEM Binding Heads of Terms agreement signed on 5th September with Ramsons Garment Finishing Equipments Ltd Ramsons are market leader in the supply of garment finishing equipment in South Asia which accounts for 12% of global apparel exports1 They w
Slide 8: First Commercial XDrum Installation Under License Agreement
88 FIRST COMMERCIAL XDRUM INSTALLATION UNDER LICENSE AGREEMENT XDrum machine SX450 The Holiday Inn Shanghai Downtown, is the first property in the world to have a commercial XDrum 32kg capacity XDrum washing machine operating in its onsite laundry. machine 300-bedroom hotel part of IHG’s sustainable
Slide 9: First Garment Manufacturer Endorsement
99 FIRST GARMENT MANUFACTURER ENDORSEMENT DuraChem® 500 Kappler Inc. endorse and recommend Xeros manufactured by technologies for the cleaning of high Kappler Inc. performance garments Protection for Hazmat “Kappler recommends Marken PPE Restoration as and CBRN (Chemical, a commercial launderer of D
Slide 10: Exit from Direct Servicing of Installed Base in the UK
1010 EXIT FROM DIRECT SERVICING OF INSTALLED BASE IN THE UK 5 November 2018 Xeros signs agreement with Eastern Laundry Systems in US Xeros Technology Group plc (AIM: XSG, 'Xeros', 'the Group'), the developer and provider of water saving technologies with multiple commercial applications, has signed
Slide 11: Financials
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Slide 12: Financials – Reflect Implementation of License Model
1212 FINANCIALS – REFLECT IMPLEMENTATION OF LICENSE MODEL From 2020 Xeros’ main source of revenue will be in the form of high margin license royalties. Adjusted EBITDA * Revenue analysis £m 6 Months £m 6 Months 0 2.5 Revenue of £1.9m (2018: £1.5m) following disposals -1 of low margin Hydrofinity con
Slide 13: Cost Base That of Licensing Model
1313 COST BASE THAT OF LICENSING MODEL Product development materially complete. Monthly Cash Spend Monthly average per quarter Exit of operational businesses by end of year 3.5 Hospitality (branded Hydrofinity) – exited US, Europe 3.0 in progress. License model in its place. 2.5 US firefighter busin
Slide 14: Financials – Profit and Loss
1414 FINANCIALS – PROFIT AND LOSS Unaudited 6 Unaudited 6 months ended months ended 30 June 2019 30 June 2018 £’000 £’000 REVENUE 1,594 1,865 Cost of sales (1,679) (1,960) GROSS (LOSS) (85) (95) Administrative expenses (8,971) (12,947) Adjusted EBITDA* (8,090) (11,573) Share based payment expense (4
Slide 15: Financials – Cashflow and Financing
1515 FINANCIALS – CASHFLOW AND FINANCING Unaudited 6 Unaudited 6 months months ended 30 ended June 30 June 2019 2018 £’000 £’000 Operating activities Loss before tax (9,032) (12,972) Adjustment for non-cash items: Amortisation of intangible assets 106 89 Depreciation of property, plant and equipment
Slide 16: Summary
1616 SUMMARY Major cost and performance improvement for each market without requiring disruptive supply chain change. Increasing end customer demand pull to address key sustainability and cost criteria. Development now materially complete and IP portfolio in place and supported by BASF. Market proof
Slide 17: Appendix
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Slide 18: Financials – Balance Sheet
1818 FINANCIALS – BALANCE SHEET Unaudited Unaudited 30 June 30 June 2019 2018 £’000 £’000 ASSETS Non-current assets Intangible assets 1,186 1,359 Property, plant and equipment 2,500 4,569 Trade and other receivables - 1,438 TOTAL NON-CURRENT ASSETS 3,686 7,366 Current assets Inventories 890 6,285 Tr
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