• X2M partners with Azbil Kimmon to provide smart water meter services in Japan
• Initial contract valued at $200,000 for 5,000 connections, with potential to expand to 50,000 meters
• Japan has around 60 million water meters, representing a potential SaaS revenue pool exceeding $100 million per annum

X2M Connect Limited (ASX:X2M), an Australian Internet of Things (IoT) technology company, has announced that it has executed a software development agreement with Azbil Kimmon to support the water digitisation market in Japan. X2M has an existing partnership arrangement with Azbil Kimmon for gas meter monitoring services in Japan, and this new agreement extends the partnership into the water sector. The initial phase of the partnership is a software development contract valued at $200,000 covering 5,000 connections, with the potential to increase to 50,000 meters, which is expected to generate additional service fee revenue of $225,000. Japan has approximately 60 million water meters, most of which are ageing mechanical analogue units, creating strong demand for digital transformation, automated meter reading, and remote leak detection. X2M will leverage its extensive experience in water digitisation in South Korea, which represents around 80% of its Group revenue, to deliver an enhanced platform service to Azbil Kimmon. The partnership aims to address the challenges faced by Japan's aging water infrastructure, labour shortages, and rising operational costs, and represents a significant market opportunity for X2M.

The initial agreement is valued at $200,000 for platform deployment and services for up to 5,000 meters over a two-year term, with the ability to extend to 50,000 meters at $25,000 per 5,000 meters within the period. This initial agreement is expected to lead to an ongoing SaaS agreement based on the existing gas monitoring and control agreement in place since 2020.

The Japanese water market comprises around 60 million water meter connections, representing a potential SaaS revenue pool exceeding $100 million per annum. This partnership allows Azbil Kimmon to deliver solutions tailored to Japan, focusing on leveraging innovative technologies to address societal challenges and foster high-value-added services in the Japanese water industry.