X2M CONNECT LIMITED — AGM Information 2022

Nov 28, 2022

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ASX:X2M AGM presentation

29 November 2022

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CEO’s address

X2M reports a strong FY22

Strong metrics for FY22 and foundations for continued growth in FY23

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FY22 Revenue: $10.4m, up
82% on pcp
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SaaS/maintenance
subscription fees have grown
by 30% on pcp
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Connected devices at 30 June
2022: 245,265, up 99% on pcp
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Increased addressable market
and entered Australian
energy management
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Enterprise/government
customers at 30 June 2022:
46, up 35% on pcp
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ASX
Listed on ASX in September
2021
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AGM Presentation November 2022

3

X2M’s story – consistency of performance

Revenue ($A millions)

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10.4
82%
5.7
1.3
FY20 FY21 FY22
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Connected devices

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245,265
99%
123,256
63,713
30-Jun-20 30-Jun-21 30-Jun-22
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Enterprise and government customers

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46
34 35%
25
30-Jun-20 30-Jun-21 30-Jun-22
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Retained all customers
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*The company was originally incorporated on 9 December 2019. As such, FY20 reporting period is from the date of incorporation to 30 June 2020.

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AGM Presentation November 2022

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Why connected devices matter

The number of connected devices is a driver of future Software as a Service (SaaS) and maintenance revenues

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•
One of the Company’s strategic pillars is to “land and expand”.
Securing customers and then penetrating their addressable market.
•
Each device connected to the X2M IoT platform has a subscription
associated with it, either under a bundled contract or under a
separate subscription or maintenance contract.
•
Whilst subscription fees per device may vary from country to
country or from device type to device type, as the number of
connected devices increases, the ongoing recurring revenue is
expected to increase.
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AGM Presentation November 2022

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Growth in connected devices accelerating

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3 months to
Driver of future SaaS revenues connect next
~50k devices
6 months to
connect next
~50k devices
6 months to
245,265
connect next
~50k devices
15 months to
196,037
connect next
~50k devices 181,102
152,304
6 years to
123,256
connect first
~50k devices
104,804
89,952
75,540
63,713
53,889
50,426
Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22
Cumulative connected devices
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Driver of future SaaS revenues

1. Q2 FY20 data is from periods when X2M subsidiaries were operated by a prior owner

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AGM Presentation November 2022

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South Korea performance

South Korean customers increased from 16 last year to 24 at June 2022 and 31 at September 2022

South Korea market – Sep 2021

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South Korea market – Sep 2022
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Cumulative
TAM of all
contracted [2] :
households [2] : $8.6m
$950m
TAM of existing
customers [2] :
$316m
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Cumulative
TAM of all
contracted [2] :
households [2] : $20.2m
$950m
TAM of existing
customers [2] :
$447m
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The available market and the percentage penetration of that market are increasing. Over the last twelve months, in South Korea, the TAM of X2M’s existing customers has increased from $A316 million to $A447 million. This represents an increase from 33% to 47% of the total South Korean country market. Penetration of the customers’ TAM, on average, has increased from 2.7% to 4.5 %.

1. Data as at 30 September 2022.

2. South Korea total addressable market (TAM) and contracted values are based on Year 1 revenues of A$120 per device.

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AGM Presentation November 2022

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Other country performance

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Japan
Robust market
with high device
growth
61,000 ->
142,000 devices
High margin
licence model
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Taiwan
Advanced
product designs
Gas, energy
management
and water
deployments
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China and
Australia
$3.3m revenue
delivered in
China despite
Covid
Enters
Australia’s
energy
management
market
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AGM Presentation November 2022

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Smart communities Australia

Smart community with large number of smart homes plus community resources all working cohesively

Consumer enjoys a sustainable, eco-friendly, environment and community

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Significantly reduced energy consumption

Significantly increased use of renewables

Significantly reduced emissions

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Community Community
Device Device Device
Home IoT Electricity
Device Aggregator/VPP/retailer
Hub Platform Market
Device
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Monitor and control distributed energy resources (DER) devices from Hub. Homeowner has a mobile and desktop user interface

Control multiple home Hubs and community resources from the central platform and interface to aggregator and Virtual Power Plant (VPP) partners

Partners operate the whole community network, VPP and trade energy in the electricity market

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AGM Presentation November 2022

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Q1 at a glance

FY22 momentum rolls into FY23

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FY23, Q1 Revenue: $3.8m [1] ,
up 137% on pcp
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23 contracts in place worth
approximately $12.5m in
revenues to be recognised in
FY23
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Connected devices: 292,806
up 92% on pcp
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South Korean customer base
now represents approx. 47%
of Country TAM and
penetration is growing
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Enterprise/government
customers: 52, up 41% on pcp
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ASX
Australian energy
management market entry
timely
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1. All $ amounts in this slide are in Australian dollars and are unaudited

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AGM Presentation November 2022

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Summary

FY23 outlook – momentum expected to continue

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Revenue, customer numbers and connected
devices to deliver strong growth in 2023
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SaaS and other recurring revenues feature as
connected devices grow
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Strategy is delivering – revenue momentum
to continue with $12.5m already contracted
for deployment in FY23 which is ahead of
FY22 full year revenues of $10.4m
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First energy management sales expected to
be completed in Australia
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AGM Presentation November 2022

11

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X 2 M C O N N E C T

GET IN TOUCH

Shareholder Enquiries Automic Pty Ltd

hello@automic.com.au +61 (2) 9698 5414

Media and Investor Enquiries Mohan Jesudason, CEO

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investor.relations@x2mconnect.com 1 800 926 926 (1 800 X2M X2M)

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