Quixant : Annual Report 2022 – 21 March 2023

QUIXANT PLC

A PLATFORM FOR SUCCESS

Annual Report and Accounts

For the year ended 31 December 2022

QUIXANT

Annual Report and Accounts

For the year ended 31 December 2022

A PLATFORM FOR SUCCESS

QUIXANT PLC

The Group is a technology and supply chain partner for major global industrial electronic equipment manufacturers with a focus on specific vertical markets. We provide the technology which is often invisible to the end-user but nonetheless forms a critical part of our customers' products. By utilisation of our technology, customers can focus their development efforts on realising new products and accelerate the introduction of these to market.

Our Quixant Gaming business designs, develops and manufactures Gaming platforms and display solutions for the casino Gaming and slot machine industry. Through Quixant, major Gaming machine manufacturers are able to outsource aspects of their machine which offer limited commercial differentiation, including the computer platform, low-level software and in some value sensitive markets, cabinets. This enables them to focus their research and development (R&D) resource on game design, which is the most critical component to improve player enjoyment and therefore their commercial success.

Our Densitron business is a global specialist in Human Machine Interface (HMI), bringing innovative displays, control surfaces and control systems to a wide range of global industrial markets, with the Broadcast sector being a particular market of focus. Densitron enables manufacturers of industrial equipment to revolutionise the control of their devices with tactile touchscreen displays and user-friendly graphical interfaces driven by flexible embedded computer options.

Strategic Report
Quixant at a glance	2
Our investment proposition	3
Group growth strategy	4
Highlights	5
Chair's Statement	6
Chief Executive's Report	8
Financial Review	18
Key Performance Indicators	22
Risk Management and Principal Risks	25
Section 172 statement	28
Sustainability	29
Governance
Chair's Introduction to Governance	32
Board of Directors	33
Corporate Governance Report	35
Directors' Remuneration Report	37
Audit and Risk Committee Report	41
Directors' Report	47
Directors' Responsibilities	50
Financial Statements
Independent Auditor's Report	51
Consolidated Statement of Profit and Loss and Other Comprehensive Income	58
Consolidated and Company Balance Sheets	59
Consolidated and Company Statements of Changes in Equity	60
Consolidated and Company Cash Flow Statements	61
Notes to the Financial Statements	62
Company Information	101

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QUIXANT AT A GLANCE

OUR TECHNOLOGIES

Gaming Technology	Broadcast Control	Industrial Display
	Technology	Components
Our gaming computer platforms are	Our Broadcast Control Technology is	The heritage of our Densitron
trusted by the manufacturers of	revolutionising the interface between	business is in the supply of a variety
casino slot machines globally to drive	professional broadcast equipment	of electronic display components
their game software. Designed for	and the users. The manufacturers of	which are incorporated into
compliance with the regulations of all	Broadcast equipment can now	equipment across a broad range of
major global gaming jurisdictions and	replace mechanical controls with	industrial sectors.
incorporating all the essential	touchscreen enabled interfaces which
hardware and low-level software	still provide tactility for the most	We help customers to identify the
required to drive modern electronic	mission critical functions.	technical, environmental and
gaming machines, Quixant empowers		mechanical specifications they require
customers to focus exclusively on	We blend our tactile touch	for their application and supply these
creating vibrant, captivating games	technologies with purpose-built	products through our global sales
and outsource the computer platform	integrated computer solutions so	locations which span North America
to us.	manufacturers can fully outsource	to Japan.
	control hardware to Densitron and
We have recently extended our	focus on the quality of the signal path
offering to include turnkey cabinet	and processing features.
solutions for gaming and sports
betting retail markets. This allows	Our Broadcast control technology is
customers to completely outsource	gradually propagating throughout
design and supply chain management	production control rooms in broadcast
of all their hardware requirements to	studios and venues globally.
Quixant.
OUR REVENUE BY GEOGRAPHY	OUR REVENUE BY SECTOR

Other

26%

Medical

6%	Gaming
62%
Broadca
st
6%

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Our investment proposition

WHY INVEST IN QUIXANT?

We consider that we are exposed to attractive growing markets and have compelling technologies which are valued by our chosen customers. We also have a resilient business model, net cash with good operational liquidity from which to execute appropriate bolt-on acquisitions to support our strategy.

1.Exposure	2.Attractive	3.Resilient	4.Strong
	to attractive and		technology and		business model		balance sheet
	growing end		capabilities
	markets
• We are a leading	• We are leaders in	•	We have an agile	•	We have a strong
	supplier to the gaming		design, development		supply chain structure		balance sheet with good
	market which has		and manufacture of		where we control and		liquidity and a net cash
	structural long-term		industrial computer		manage quality and		position.
	growth prospects. The		technology including		procurement but	•	Our balance sheet
	unique and stringent	•	hardware and software.		outsource		would allow us to
	regulatory requirements	We have a deep		manufacturing. The		execute appropriate bolt
	in regulated global		understanding of the		benefits of this structure		on acquisitions to
	gaming jurisdictions		detailed regulatory and		were evident in		support our strategy and
	provide a barrier to		technical requirements		navigating the business		growth.
•	entry.		within our target		through major
The gaming sector		markets.		macroeconomic
	historically holds up well	•	Our Densitron Display		challenges such as the
	in times of generally		Components business		COVID-19 pandemic
	weak macro-economic		is experienced in		and subsequent supply
	conditions, reducing		developing and	•	chain shortages.
•	cyclicality.		sourcing electronic	Our products are
Our technology is		displays for a wide		designed into our key
	designed into our		range of applications.		customers' products, so
	customers' end software	•	We have demonstrable		we have a high degree
	providing a stickiness in		ability to create and		of repeatability in our
	revenue once designs		launch innovative		revenues.
	are won.		products to market with	• The diversity of our
• We have established a		20 active patents across		Densitron Display
	presence and a		the business.		Components customer
	respected HMI product				base provides resilience
	line in the Broadcast				in times of economic
	sector which we believe				weakness.
	has encouraging growth
	prospects.

• We have strong relationships with our key customers going back many years.

3

GROUP GROWTH STRATEGY

The Group serves as an outsource technology and supply chain partner for major global industrial electronic equipment manufacturers, with a focus on specific vertical markets. The Group combines hardware, software, display and mechanical engineering expertise, a global sales network with in-depth industry knowledge and a Far Eastern manufacturing base making it the ideal global strategic technology provider.

The Group's origins are in its highly respected Quixant brand of specialised computer platforms, which are designed to power machines in the global casino gaming and slot machine market. These computer platforms, which are supplied to electronic gaming machine manufacturers installed in casinos and other gaming venues globally, combine optimised hardware and software elements to address the specialist needs of this highly regulated market. By outsourcing their computer platform to Quixant, manufacturers can focus their R&D on the game design, which has the greatest impact on their commercial success. They are also able to bring new products to market quicker.

A key objective is for the Group to diversify its revenue across more customers, product offerings and vertical markets. The Group seeks to achieve this objective through its Densitron business.

Densitron has a 52-year pedigree in supplying display components to a wide range of industrial sectors, from which the Board has selected sectors in which there is the opportunity to develop tailor-made products, which are different to those readily available from broad-based technology corporations. We believe the Broadcast market represents such an opportunity, in which we have developed unique solutions which revolutionise the human machine interaction and control of Broadcast equipment. We delivered our third consecutive year of double-digit revenue growth in 2022.

The Group's growth strategy is defined as follows:

• Identification and analysis of market sectors, focusing on those that do not currently benefit from dominant deep specialist solution outsource providers and are undergoing a technology evolution;
• Building new customer partnerships in its chosen target market segments, further diversifying the Group's revenue base;
• Focused R&D to move up the value chain, including within the software stack;
• Increase share of customer wallet by providing additional outsource solutions to become a fully integrated technology partner; and
• From time to time, the Board may complement its organic growth strategy with strategic acquisitions that enhance the Group's technical capabilities and market reach.

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