XReality : XRG Operator Investor Presentation

onlyxReality Group Ltd

ASX:XRG

useInvestor Presentation: Defence & Law Enforcement Global Growth Strategy

ersonal25 May 2022

only
Disclaimer
use
ersonal
Operator's OP-1 Virtual Reality Tactical Trainer

Changing the game of tactical training

only• Operator builds XR training and simulation products for global defence and law enforcement "operators" (tactical soldiers, infantry, armed police).

• Developed ground up and wholly owned by XRG use• Unique weapons integration technology

• Commercial model comprises upfront hardware sale and ongoing software subscription

• Builds on XRG's 7-year relationship training Australian Special Operations and the Board's

ersonalleadership history in Defence.

• Products launched in February 2022

• Our vision is to see one in every operator's locker

ersonal use only

The Global Market

Primary target markets include Special Forces, Army, State and Federal Police across "Five Eyes" Nations (US, UK, AU, NZ, CA). Secondary markets include UAE & EU.

Australian Defence spending strong: $1BN committed for Special Forces upgrades in April 2022 as part of Project Greyfin US DoD Training and Simulation budget growing 12% in FY23 to $16.5BN

Total Addressable Market

	Military	Special	Law	Tactical
	Enforcement Police (ie
	Forces
		Officers	SWAT)
US	1,374,699	70,000	697,195	17,430
UK	150,250	2,500	124,784	3,120
AUS	57,800	1,350	65,000	1,625
CAN	101,500	2,500	69,000	1,725
NZ	15,500	600	10,000	250
EU	1,910,000	95,000	1,600,000	40,000
UAE	155,000	12,000	30,000	1,500
Total	3,764,749	183,950	2,595,979	65,650
Revenue	23,000	23,000	17,000	23,000
per user
/ yr

LOW UPTAKE SCENARIO

	Military	Special Forces		Law		Tactical
	Enforcement Police (ie
							Officers		SWAT)
Example	0.005%			0.100%	0.005%	0.100%
Uptake
Example	188			184	130	66
Users
Example	$4,329,461		$4,230,850	$2,206,582	$1,509,950
Revenue /
Yr
HIGH UPTAKE SCENARIO
	Military		Special				Law	Tactical
			Enforcement Police (ie
		Forces
					Officers	SWAT)
Example	0.05%		2.00%		0.05%		2.00%
Uptake
Example	1,882		3,679		1,298		1,313
Users
Example	$43,294,614	$84,617,000		$22,065,822	$30,199,000
Revenue /
Yr

Sources: Canadian Gov, UK Gov, NZ Gov, FBI, Aus Gov, Interpol, WorldBank, US Gov

Operator's Products

Tactical Trainer

onlyDesigned for military and tactical police (SWAT) training

Free Roam VR training system for tactical teams of 2-8 users

useFully mobile system can be setup in minutes Extensive After-Action Review

V-BOLT™ allows operators to train on their own weapons

ersonal2 Modes include;

• Tactical Training System

• Mission Rehearsal System (Prototype in development)