X2m Connect Limited · ASX:X2M
X2m Connect — Investor Presentation (July 2022)
36 slides from X2m Connect's investor presentation, Jul 25, 2022
Slide 1: Changing the utility landscape with IoT
Changing the utility landscape with IoT Equity Raise Presentation July 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: Executive Summary
Executive Summary FY22 revenue $10.4m1, up 82% on FY21 full year result Connected devices at 30 June 2022: 245,265, up 99% on previous corresponding period (pcp) FY22 trading Enterprise/government customers at 30 June 2022: 46, up 35% on pcp update Zero customer churn2 Australian energy ma
Slide 4: Company Update
Company Update
Slide 5: X2M's strong growth continues into H1 2023
X2M’s strong growth continues into H1 2023 12 contracted deployments in South Korea and 1 in China : FY22 Revenue: $10.4m1, up Connected devices at 30 June approx. $9.6 million in 82% on pcp 2022: 245,265, up 99% on pcp Revenue to be recognised in 1HFY23 Australian Energy Enterprise/government Manag
Slide 6: Key metrics deliver strong growth
Key metrics deliver strong growth Revenue ($A millions) Connected devices Connected devices totaled 245,265 at FY22 revenue of $10.4m1, up 82% on pcp 30 June 2022, up 99% on 30 June 2022 10.4 245,265 5.7 77% 99% 123,256 63,713 1.3 FY20* FY21 FY22 Jun FY20 Jun FY21 Jun FY22 Enterprise and government
Slide 7: Connected Devices to underpin future SaaS Revenues
Connected Devices to underpin future SaaS Revenues Momentum in connect devices is starting to accelerate substantially 3 months to connect next ~50k devices South Korea: 6 months to connect next • 40% of total connected devices ~50k devices • H2FY22 per device SaaS revenue up 50% on FY21 6 months to
Slide 8: X2M Business has significant market potential
X2M Business has significant market potential Total addressable market is huge. Importantly, the portion representing the X2M existing customer base represents a substantial opportunity South Korea market Japan Cumulative Estimated TAM of TAM of all TAM of all existing customers: contracted2: househ
Slide 9: Validated business model – secure and convert customers
Validated business model – secure and convert customers This demonstrates that the X2M strategy of securing customers and pursuing conversion of the customer’s available market is working and reflects the stickiness of the X2M businss model FY20 FY22 3% Okcheon 20% TAM ~14,000 households 97% 80% FY1
Slide 10: FY 2023 Outlook
FY 2023 Outlook Well placed for momentum to continue into FY23 with contracted FY23 revenues already at c.92% of FY22 full year result 12 contracted deployments in progress in South Korea and will continue roll out post June 2022. Revenue recognition of c.$8.2 million in H1FY23 Hebei contract secure
Slide 11: Capital Raising Details
Capital Raising Details
Slide 12: Capital raising details
Capital raising details Equity raising consisting of a 1 for 3 pro-rata accelerated, non-renounceable entitlement offer to eligible existing shareholders with registered addresses in Australia and New Zealand of approximately 46.7 million New Shares to Structure raise approximately A$3.97 million
Slide 13: Capital raising details continued
Capital raising details continued The Institutional Entitlement Offer will open on 25 July and close on 26 July The Institutional Entitlement offer will be open to eligible institutional holders in Australia and New Zealand. Eligible institutional shareholders will have the opportunity to subscr
Slide 14: Use of funds
Use of funds Category1 Amount ($ m) Increase Sales and Marketing $1.1 Platform Enhancements for Australian energy $0.9 Hardware and Prototypes $0.45 Korea energy marketing $0.3 Administration $0.6 Working capital $0.325 Capital raising costs $0.325 Total $4.0 1. Indicative only. Numbers may not add
Slide 15: Pro-forma balance sheet
Pro-forma balance sheet X2M GROUP X2M GROUP 31 December 31 MARCH $'000s NOTES 2021 2022 ADJUSTMENT PRO-FORMA Assets Current Assets Notes on Pro-forma adjustments Cash and cash equivalents 1, 2, 3 5,121 2,241 4,699 6,940 Trade and other receivables 484 515 515 Contract assets 258 609 609 Inventories
Slide 16: Timetable
Timetable Key events1 Indicative dates (2022) Trading halt and announcement of equity Capital Raising Before market open, Monday, 25 July 2022 Institutional Entitlement Offer opens Monday, 25 July 2022 Institutional Entitlement Offer closes (12:00pm AEST) Tuesday, 26 July 2022 Trading halt lifted We
Slide 17: Australian Energy Opportunity
Australian Energy Opportunity
Slide 18: Current crisis in Australian energy landscape
Current crisis in Australian energy landscape "The world will need “as much LNG as we can "A forecast spike in wholesale gas prices in get” this decade as the shunning of Russian Victoria of more than 50 times normal levels gas worsens the global energy crunch, warns has prompted the Australian Ener
Slide 19: The energy value chain – traditional vs distributed generation
The energy value chain – traditional vs distributed generation Centralised Generation Distribution Metering Retailer Continuous energy moving in one way to the customer. Relatively easy to manage. All participants know their role. Australian Energy Market Operator (AEMO) can oversee supply and deman
Slide 20: Smart Communities are better - "Powered by X2M"
Smart Communities are better - “Powered by X2M” Normal Community Smart Homes Smart Community Individual homes with some Coordinated homes with in home Individual homes with no energy or energy and resource optimising and community wide energy and resource optimising features features resource optimi
Slide 21: The X2M solution for smart communities
The X2M solution for smart communities Smart community with large number of smart homes plus community Consumer enjoys a resources all working cohesively sustainable, eco-friendly, environment and community Significantly reduced energy consumption Significantly increased use of renewables Significan
Slide 22: Addressable market – Australian Solar
Addressable market – Australian Solar The path to net zero in conjunction with the Australian energy environment provides a huge opportunity for disruptive energy management solutions Australian Solar Penetration1 • Australia has almost 10 million households • The forecast market for solar additions
Slide 23: Smart community benefits
Smart community benefits Property owner Australian economy and Technology providers like the environment X2M 40%-50% reduction in Contributes to drive Provides opportunities for electricity bill towards net zero in innovation and No peak tariffs Australia deployment of technology Visibilit
Slide 24: X2M's Revenue Model – Energy
X2M’s Revenue Model – Energy The revenue mix is increasingly subscription based SaaS model Hardware Sales Connection fees SaaS fees Sale of hardware such Upfront connection fee for Monthly subscription fee as home or commercial X2M hub device connected for every device hubs to the X2M IoT plat
Slide 25: Appendices
Appendices
Slide 26: Water digitisation - South Korea – from analog to digital
Water digitisation - South Korea – from analog to digital Currently servicing 22 municipalities for water monitoring and control in South Korea Use case: • Billing and process automation – cost savings • Identification and reduction in lost billable water • Infrastructure management and leak detecti
Slide 27: 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 Data collection and analytics drives value proposition • Data collection and prediction enables improved bottle gas replacement programme • Route management can reduce deli
Slide 28: X2M's competitive advantage
X2M’s competitive advantage • 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 WiSUN │ NB-IoT │ ZigBee │ LoRa • Many
Slide 29: X2M in Taiwan – we do it now
X2M in Taiwan – we do it now X2M’s energy management solution optimises energy generation, storage and usage. Plays to the strength of our patents and platform AC power Communications X2M platform products DC and AC electric vehicle chargers IoT Platform • Connects devices • Enables remote monitorin
Slide 30: X2M energy related experience
X2M energy related experience X2M has past experience in the energy applications that are the focus of Australia’s move to ‘net zero’ Application Description Existing X2M Benefits activity Microgrids Platforms for managing Supplied base platform for Improving security of supply, creating a gri
Slide 31: Key Risks
Key Risks
Slide 32: Summary of key risks
Summary of key risks Going concern risk The Company’s consolidated financial statements for the FY2021 period were audited by Grant Thornton. The HY2022 period has been reviewed by Grant Thornton. An unqualified audit and review opinion (as the case may be) was issued for each of those periods but e
Slide 33: Summary of key risks
Summary of key risks Supplier and The Company sources certain key components for its devices from third party suppliers and outsources manufacturing manufacturing risks of products to third parties. The delivery of such components may be delayed, or a specific supplier may not be able to deliver at
Slide 34: Summary of key risks
Summary of key risks Legal proceedings Legal proceedings may arise from time to time in the course of the business of the Company including enforcing or defending its intellectual property rights against infringement and unauthorised use by the competitors or in relation to a contract dispute. As at
Slide 35: Summary of key risks
Summary of key risks Legal title to On 26 February 2020, the Company, Freestyle and liquidators of Freestyle entered into an asset sale agreement (Asset intellectual property Sale Agreement) under which Freestyle agreed to sell certain assets to the Company and novate certain contracts to risk the C
Slide 36: Get in touch
Shareholder Enquiries X2M CONNECT Automic Pty Ltd hello@automic.com.au G ET IN +61 (2) 9698 5414 TO U C H Media and Investor Enquiries Julia Maguire julia@thecapitalnetwork.com.au +61 (2) 8999 3699 Chief Executive Officer Mohan Jesudason, CEO investor.relations@x2mconnect.com 1 800 926 926 (1 800 X2