X2M CONNECT LIMITED — AGM Information 2023

Nov 27, 2023

AGM presentation

28 November 2023

CEO’s address

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FY23 was a good year for X2M

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o Strong revenue growth

o Stronger gross profit growth o Connected devices, recurring revenues growing strongly

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o Enterprise and government customers up

o Modest cost growth

o Cash burn down

o Overall an improving P&L o Clear path to positive operating cashflows

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AGM November 2023 I X2M CONNECT

FY23 – the specifics

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-$2.3m
62%
improvement -$4.6m
on pcp 25% improvement
$16.2m $3.8m on pcp
up 56% on pcp up 64% on pcp
$9.1m
up 2% on pcp
Gross Operating Adjusted
Revenues Opex
margin up cash burn EBITDA loss
up 56% growth 2%
64% down 62% down 25%
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AGM November 2023 I X2M CONNECT

FY23 Operating cash burn comes down significantly

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FY23 operating activity cash burn of $2.3m is an improvement from $6.2m in FY22. X2M reported a positive cash flow from operating activities for 2Q23 and 4Q23 (Appendix 4C).

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QUARTERLY OPERATING CASHFLOW COMPARISON
388
105
-962
-1,130
-1,349
-1,475
-1,987
-2,131
Q1 Q2 Q3 Q4
FY22 FY23
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AGM November 2023 I X2M CONNECT

FY23 is not a one-off

Revenue ($M)

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FY23 revenue of $16.2m,
up 56% on the pcp 16.2
+56%
10.4
5.7
FY21 FY22 FY23
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Annualised recurring revenue (ARR, $ millions)
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June 2023 ARR $1.4 million,
1.4
up 40% on pcp
1.0 +40%
0.6
FY21 FY22 FY23
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ARR is annualised SaaS and maintenance revenues and
excludes Gochang hardware subscriptions in FY21 and FY22
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Gross profit ($M)

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FY23 gross profit of $3.8m, 3.8
up 64% on the pcp
+64%
2.3
1.6
FY21 FY22 FY23
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Adjusted EBITDA

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Adjusted EBITDA loss of $4.6m, a 25%
improvement on pcp
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FY21 FY22 FY23
-4.4 -25%
-4.6
-6.1
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AGM November 2023 I X2M CONNECT

Connections to the X2M platform are accelerating

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6 months to connect next ~100k devices

6 months to connect 428,801 next ~100k devices 390,626

“ to connect Annualised Recurring next ~100k Revenue increased devices 390,626 361,345 6 months to from $0.7m in Dec 2021 connect next ~50k to $1.4m 6 months devices to connect 292,806 in June 2023 next ~50k 15 months to devices connect next ~50k devices 245,265 6 years to 196,037 connect first 181,102 ~50k devices 152,304 123,256 104,804 89,952 50,426[53,889 63,713 75,540 ] 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23

6 years to connect first ~50k devices

Cumulative connected devices

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

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AGM November 2023 I X2M CONNECT

X2M Platform continues to be well positioned Demand for data and AI driving growth

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Machine Learning Health Checks
AI & Big data
Billing Platforms CRM Engines & Asset & Social
Analytics
Management Applications
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X2M Management Platform - “ Vision”
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End Devices
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Any Device
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Any Meter
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Any Sensor
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OR X2M NIC
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AGM November 2023 I X2M CONNECT

X2M’s Addressable market is large

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Australia 26m people 9m households

Addressable market in current geographies: 250 million people. 104m households

Beijing, China 22m people 9m households

Japan 126m people 55m households

South Korea 52m people 22m households

Addressable market across existing customers: >10m households[1] . Revenue potential >$500m

Annual recurring revenue potential across existing customers[2] : Approximately $40m per annum

Taiwan 24m people 9m households

50% of customers placing repeat orders

1. Assumes customer installs X2M current bundled services to all its households 2. Assumes customer installs X2M SaaS services to all its households

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AGM November 2023 I X2M CONNECT

…and penetration growing - South Korea a good example Total addressable market and share of TAM increasing as X2M gets embedded into customer eco systems generating follow-on orders

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SOUTH KOREA MARKET – SEP 2021

SOUTH KOREA MARKET – JUN 2023

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Cumulative
Cumulative TAM of all
TAM of all contracted [2] :
contracted [2] : households [2] :
households [2] : $26.1m
$8.6m $950m
$950m
TAM of existing
TAM of existing
customers [2] :
customers [2] :
$481m
$316m
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Over the last twenty one months, in South Korea, the TAM of X2M’s existing customers has increased from $A316 million to $A481 million. This represents an increase from 33% to 51% of the total South Korean country market. Contracting of the customers’ TAM, on average, has increased from 2.7% to 5.4%. Despite strong growth, overall penetration of customers TAM is low and augers well for future growth

1. Data as at 30 June 2023.

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

AGM November 2023 I X2M CONNECT

Next market - Australia: Profits plus social contribution

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

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

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 November 2023 I X2M CONNECT

Key take outs from FY23

Another year of solid performance Cash burn reducing and a clear path to positive operating cashflows A technology solution that is resonating

Customer base represents a large addressable market with penetration growing X2M platform is being adopted across the APAC region A management team delivering

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“ Stage is now set to transition to a significant global player in utility automation, data collection, artificial intelligence and machine learning

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AGM November 2023 I X2M CONNECT

1Q24 trading update – Key financial metrics on target

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Solid revenue growth, improved margins, reduced costs and declining cash burn are highlights of the 1Q results

Gross Operating Adjusted Revenues Opex $2.2m ~~margin cash burn EBITDA loss~~ $4m up 7% ~~down 2%~~ $1.3m up $1.1m down $0.6m down 47% 17% 37%

Revenue growth is on the back of a very strong 1H23

1. All FY24 financial results in this presentation are unaudited

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AGM November 2023 I X2M CONNECT

Drivers of future value performing equally well

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Enterprise and
SaaS and maintenance
government customers
revenues
70 up 35%
$0.4m up 60%
Connected devices Annualised
472,882 recurring revenues
up 62% $1.5m up 67%
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1. All FY24 financial results in this presentation are unaudited

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AGM November 2023 I X2M CONNECT

FY24 KPI’s Targets

> 20% Revenue growth > 60% growth in annualised recurring revenues > 50% growth in gross profit Operating costs flat and cash burn halved >50% growth in connected devices

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AGM November 2023 I X2M CONNECT

X2M a compelling investment proposition

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Significant and growing addressable market

Existing customer base provides an immediate addressable market to harvest within utility digitisation and energy management in APAC.

Attractive business model

Comprising upfront fees and recurring subscription revenues. Highly scalable with modest cost growth. New markets to drive SaaS and recurring revenues. Customer mandates are long and sticky

Leading edge technology

A proprietary platform secured with a strong patent portfolio across 14 countries. Limited competition

Proven performance

X2M’s management team is delivering consistent performance and are shareholders in the Company. Board is well experienced and independent

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AGM November 2023 I X2M CONNECT

Shareholder Enquiries

Media and Investor Enquiries

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