NEXT Biometrics Group ASA · OSL:NEXT
NEXT Biometrics Group ASA — H1 2014 Earnings Presentation
25 slides from NEXT Biometrics Group ASA's earnings presentation, Aug 26, 2014
Slide 1: Highlights 2014 – “Year of Ramp-Up”
Highlights 2014 – “Year of Ramp-Up” Sales August NEXT Biometrics Sensors certified by Microsoft Sales August Signing of Distributor Agreement in Brazil – DuoDigit Sales.. Organisation August Hire of VP Sales EMEA Sales July First Notebook Design Win – TIER 2 Sales July 17 300 sensors shipped in June
Slide 2: NEXT Biometrics Group ASA H1-2014
NEXT BIOMETRICS GROUP ASA H1-2014 August 26th-2014 <<<<<
Slide 3: H1-2014 – NEXT Biometrics Group ASA
H1-2014 – NEXT Biometrics Group ASA 1. Update technology & positioning 2. Market Trends & Sales status 3. Status ramp-up mass production 4. Financials 5. Outlook 6. <<<<< 3
Slide 4: Attractive technology enabling cost advantages..
Attractive technology enabling cost advantages.. NEXT modules meet the pricing requirements of all major present and targeted applications 1 • The Active Thermal Principle is The sensing based on transfer of heat from principle sensor into finger ridges and valleys 2 • The unique simplicity of the T
Slide 5: About fingerprinting ..and size..
About fingerprinting ..and size.. No substitute for sensor size... FINGERPRINTING IS ABOUT THE ACTIVE AREA OF THE UNIFORM CAPTURE AND COMPARISON NEXT SENSOR IS 201 mm2 * OF A STATISTICALLY ROBUST NUMBER OF UNIQUE FEATURES IN THE HUMAN FINGER THIS SIZE OFFERS A HIGH LEVEL OF SECURITY AND CONVENIENCE
Slide 6: ..uncompromised security and convenience..
..uncompromised security and convenience.. Competitive landscape Convenience focused small formats Formats offering both convenience & security 30 mm2 93-100 mm2 148 mm2 201 mm2 230 mm2 Format offering New low cost Smallest sensor Size defined in No.1 in silicon medium level formats area ever sold i
Slide 7: … at lower prices in all segments..
… at lower prices in all segments.. Competitive landscape Convenience focused small formats Formats offering both convenience & security Traditional markets USD 15-18 USD 5-8 USD 28-35 Smartphones, USD 5-7 Tablets, USD 4-5 (expected) Notebooks <<<<< 7 Source: Company market view and intelligence
Slide 8: …and with stronger IP
…and with stronger IP Approved patents, trade secrets, structure of mass production industry Active thermal conductivity Capacitive sensing A unique principle Not close to or overlapping with owned and controlled by NEXT competition <<<<< 8 Source: Company market view and intelligence
Slide 9: … a 4th Significant competitive advantage..
… a 4th Significant competitive advantage.. Significantly • 70%-80 cheaper than same size silicon sensors lower pricing • 20-35% cheaper than new tiny area (poorer performance sensors) Uncompromised • Polysilicon technology allows robust sizes at low cost security & • NEXT not forced to reduce size
Slide 10: Size of addressable markets
Size of addressable markets Total size of relevant part of key market segments – in million units.. New Traditional markets Smartphones & Tablets Notebooks & Accessories NEXT-enabled markets n.a. n.a. n.a. n.a. n.a. n.a. Total potential addressable market 2 billion units + Higher n.a. n.a. annually
Slide 11: Relative competitiveness and NEXT positioning
Relative competitiveness and NEXT positioning Low-end segments New Traditional markets Smartphones & Tablets Notebooks & Accessories NEXT-enabled markets ID centric Price sensitive Lower n.a. level security segments n.a. n.a. n.a. n.a. n.a. Higher level security segments 11 <<<<< Source: Company mar
Slide 12: Relative competitiveness and NEXT positioning
Relative competitiveness and NEXT positioning High-end segments New Traditional markets Smartphones & Tablets Notebooks & Accessories NEXT-enabled markets ID centric Price sensitive Lower n.a. level security segments n.a. n.a. n.a. n.a. n.a. Higher n.a. n.a. level security segments n.a. n.a. n.a. n.
Slide 13: Time to market
Time to market High level of security & convenience NEXT started volume delivery in June 2014 Medium level of security & convenience Competitors targeting launch of new sensors later 2014 and in 2015 No significant Existing sensors changes already available influencing NEXT Low level of security & c
Slide 14: Sales processes – Traditional sensor markets
Sales processes – Traditional sensor markets Lead time and dynamics of sales processes per segment X leads Start Samples System integration Start Samples System integration Volume shipments = x leads * hit-rate * 1-10 k per month STATUS PR JUNE 9th 2014 STATUS PR AUGUST 21st- 2014 35+ customer engag
Slide 15: Sales processes – “NEXT-enabled” sensor markets
Sales processes – “NEXT-enabled” sensor markets Lead time and dynamics of sales processes per segment STATUS PR AUGUST 21st- 2014 STATUS PR JUNE 9th 2014 - 7 on-going customer engagements 3 in customer engagements - 3 have received “final” samples 3 have received first samples - 3 requests “speciali
Slide 16: Sales process smartphones, tablets and notebooks
Sales process smartphones, tablets and notebooks Lead time and dynamics of sales processes per segment STATUS PR AUGUST 21st - 2014 STATUS PR JUNE 9th 2014 - 20+ on-going customer engagements 15+ customer engagements - 10 have received samples 8 have received first samples - 4 have received system i
Slide 17: Notebooks, Tablets & Smartphones…
Notebooks , Tablets & Smartphones… 1 st Design Win Notebooks Publishes with - Asian TIER 2 – Flagship model product launch in 2015 - To ship in Q1-15 Microsoft Certification - Windows 7 & Windows 8.1 - No 3 among area sensors that can be integrated in the device - Among these - first player to meet
Slide 18: VP Sales EMEA
VP Sales EMEA Starts working September 28th 2014 • A highly respected fingerprint sensor industry resource • 10 years + experience within these markets • Will target Europe, Middle East Americas and Africa Asia EMEA 18 <<<<<
Slide 19: Status ramp-up mass production
Status ramp-up mass production 1 2 3 4 Sensor Sensor coating ASIC Module & Assembly Component…. • PO of 1 mill units placed • 3’rd party coating meets • 2 million ASICs in production • Capacity of 600 k + Pipeline 2014.. meets targets from Sept to Dec. • Delivery in Sept/Oct • 2 mill to be delivered
Slide 20: Status ramp-up mass production
Status ramp-up mass production 1 2 3 4 Sensor Sensor coating ASIC Module & Assembly 1.8 mill per month < 10 cents per sensor 20 <<<<<
Slide 21: Continuously working towards reduced module cost
Continuously working towards reduced module cost 0% 1 Q4-2013 COST DOWN Q2-2014: production cost -10% - Reduced number of components - ASIC volume discount - Coating volume discounts -20% -30% 2 COST DOWN Q3-2014: -40% - ASIC volume discounts - Coating line expansion 5 -50% COST DOWN Q3-2015: - ASIC
Slide 22: P&L statement
P&L statement Condensed consolidated interim P&L statement Comments Amounts in NOK 1 000 Q2-2014 Q2-2013 1H-2014 1H-2013 YEAR 2013 Operating revenue NOK 682K in Q2 from delivering 17 300 sensors. Operating revenue 682 0 682 0 38 Other operating revenue 0 0 0 0 0 Total revenue 682 0 682 0 0 Operating
Slide 23: Balance sheet
Balance sheet Consolidated balance sheet Comments Amounts in NOK 1 000 30.06.2014 30.06.2013 31.12.2013 Accounts receivables of NOK 682K in Q2 Patents 7 498 7 618 7 538 from delivering 17 300 sensors. Machinery and office equipment 620 270 100 Financial assets 0 12 0 Cash and cash equivalents of NOK
Slide 24: Cash Flow Statement
Cash Flow Statement Condensed interim Cash Flow Comments Amounts in NOK 1 000 Q2-2014 Q2-2013 1H-2014 1H-2013 YEAR 2013 NEXT consumed NOK 50.4 million in the first half of 2014 compared to NOK 2.1 Profit (loss) before taxes -16 955 -4 742 -31 867 -12 542 -38 795 million in the first half of 2013. Sh
Slide 25: Outlook and ambitions – Unchanged
Outlook and ambitions – Unchanged • Expects to produce and ship more than 500,000 complete modules in 2014 Targets 2014 • Expects a normalized monthly OPEX to be around USD 0.5 million (not including volume ramp-up and option costs) • Expects to deliver more than 10 million units during 2015 Targets
NEXT Biometrics Group — H1 2014 Earnings Presentation on 6ix