Slide 1: Fourth quarter 2018 Earnings presentation
Fourth quarter 2018 Earnings presentation 15 February 2019
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been produced by poLight ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. Further to the aforementioned, this presentation is th
Slide 3: Today's agenda
Today’s agenda Presenting Dr. Øyvind Isaksen • Key events Chief Executive Officer Dr.Isaksen has been CEO in poLight since August 2014. He has • Introduction to poLight previously held several CEO positions, most recently in the publicly listed company Q-Free ASA, which he left January 2014 after 7
Slide 4: Key events
Key events • Smart-phone activity driven by requirements for autofocus (AF) in front-facing camera and interest for high-frame-rate video cameras to support expected 5G driven applications • Current Chinese OEM screen-size focus poses challenges for implementing AF solutions in front camera • Increa
Slide 5: poLight at a glance
poLight at a glance Background and description Geographical footprint • Developer of unique photographic lens for use in Horten the mobile, barcode, augmented reality and other Norway Tampere Finland markets Lyon France Korea • Founded in 2005 and has since build state-of-the-art Shenzhen Taiwan Chi
Slide 6: poLight's technology well suited for several applications
poLight´s technology well suited for several applications Smartphone Barcode Augmented Reality (AR) Other • Large addressable market, billions • Evolving from 1D laser to 2D • Augmented reality expected to be • New opportunities emerging and of cameras produced for the imaging barcode readers “the n
Slide 7: Operations and market review
Operations and market review
Slide 8: Growing TLens interest driven by strong mobile camera trends
Growing TLens® interest driven by strong mobile camera trends • Use of higher mega-pixel and increased light sensitivity sensor driving demand for AF in front • Screen-size focus poses challenges for implementing TLens and other AF solutions in front camera • Compact VCM-solution most likely first o
Slide 9: Increased attention from smartphone segment
Increased attention from smartphone segment • Overall good feedback from ongoing PoCs Market Dialogue # customers Planning Design • One PoC was technically finalised and is awaiting a segment (not PoC yet) bought TLens PoC PoC Win potential real project • One smartphone vendor began planning of a Sm
Slide 10: Additional mass-market and industrial use-cases emerging
Additional mass-market and industrial use-cases emerging • Barcode # customers • Four ongoing POCs at year-end with positive technical Market Dialogue Planning Design bought eval PoC results (2x Tier 1 and 2xTier 2) segment (not PoC yet) PoC Win kit/TLens • One new Tier 1 supplier bought eval. kit a
Slide 11: Financial review
©} polight as Os Cc ov Cc iv
Slide 12: Key financials
Key financials Income statement Balance sheet summary (NOK million) Q4 2018 Q4 2017 FY 2018 FY 2017 (NOK million) FY 2018 FY 2017 Revenue 0.5 0.5 1.0 0.6 Intangible assets 75.8 67.4 EBIT -15.7 -20.0 -77.1 -52.1 Cash and cash equivalents 127.4 93.6 Research and development expenses -6.0 -12.5 -28.9 -
Slide 13: IPO provides cash to drive TLens commercialisation
IPO provides cash to drive TLens commercialisation Q4 2018 cash flow development (NOK million) • Q4 cash used in operations of NOK 42.1 million 167.6 • Includes non-recurring IPO expenses and VAT claim -12.9 IPO expenses -12.3 VAT claim • Cash used in investing activities was NOK 2.4 million -16.9 4
Slide 14: Outlook
© potight = eo) fe) =) =) Oo
Slide 15: Outlook - Smartphone
Outlook - Smartphone • Proof of Concept process • Carried out/is engaged in 5 PoCs, mainly Chinese • Further, one non-Chinese OEM is considering use of TLens • Year-end poLight had delivered 3,765 units of TLens in 2018, compared to 1,700 in 2017 • The earliest potential design-win mid-2019, most li
Slide 16: Outlook – Other segments
Outlook – Other segments • Five eval. kits delivered in Q4 • Current estimate for first potential design-win in the barcode market is H2 2019 • poLight may be positioned for new industrial and high-volume applications based on interest from companies in mass-markets segments such as; • AR • Smart-wa
Slide 17: Q&A
Q&A Next event: Q1-19 10 May 2019
Slide 18: Appendix
Appendix Allin focus Oy Instant focus Re) Smart implementation of dual camera iG No magnetic interference Touch & re-Focus High performance front facing camera Y High optical axis stability Low power consumption va Constant field x of view Small X and Y 18 polight
Slide 19: Management Team
Management Team Dr. Øyvind Isaksen Chief Executive Officer Dr.Isaksen has been CEO in poLight since August 2014. He has previously held several CEO positions, most recently in the publicly listed company Q-Free ASA, which he left January 2014 after 7 years as CEO. Dr. Isaksen holds a Ph.D in Applied
Slide 20: Board of Directors
Board of Directors Eivind Bergsmyr - Chairman Mr. Bergsmyr is Partner in Viking Venture since 2009. Bergsmyr was previously CEO of the Norwegian start-up Nacre AS, sold in 2007 to Sperian Protection and recognized as the Nordic Venture Exit of the Year. Prior to this, Bergsmyr acquired some extensiv
Slide 21: Interim consolidated statement of income (unaudited)
Interim consolidated statement of income (unaudited) NOK 000 Note Q4 2018 Q4 2017 FY 2018 FY 2017 Revenue 533 538 1 038 613 Cost of sales -79 -2 400 -1 488 -7 400 Research and development expenses 7 -5 988 -12 488 -28 918 -21 051 Sales and marketing expenses -2 119 -1 680 -7 586 -7 610 Administrativ
Slide 22: Balance sheet (unaudited)
Balance sheet (unaudited) NOK 000 Note 2018 2017 ASSETS Property, plant and equipment 1 605 1 874 Intangible assets 8 75 829 67 444 Total non-current assets 77 434 69 318 Inventories 7 372 1 781 Trade and other receivables 6 399 5 260 Other current assets 901 1 127 Cash and cash equivalents 127 424
Slide 23: Cash flow (unaudited)
Cash flow (unaudited) NOK 000 Note Q4 2018 Q4 2017 FY 2018 FY 2017 Operating activities Profit before tax -15 409 -19 914 -76 922 -50 566 Non-cash adjustment to reconcile profit before tax to net cash flows: Depreciation and impairment of property, plant and equipment 226 255 989 1 124 Amortisation