Slide 1: Elliptic Labs Investor Presentation
Elliptic Labs Investor Presentation October 12, 2020 AI software empowering the next billion of devices CONFIDENTIAL AND PROPRIETARY
Slide 2: Disclaimer – Important Information
DISCLAIMER – IMPORTANT INFORMATION NOT FOR DISTRIBUTION IN THE UNITED STATES, EXCEPT PURSUANT TO APPLICABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT OF 1933. This presentation and its appendices (hereinafter collectively referred to as the “Presentation”) has been pre
Slide 3: Disclaimer – Important Information
DISCLAIMER – IMPORTANT INFORMATION No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or
Slide 4: Summary of Risk Factors
Summary of Risk Factors SUMMARY OF RISK FACTORS Investing in the Company involves inherent risks. Prospective investors should carefully consider, among other things, the risk factors set out below before making an investment decision. The below risk factors are only a summary of certain risks appli
Slide 5: Agenda
Agenda Introduction and transaction summary Company overview Financials Appendix / Risk Factors CONFIDENTIAL AND PROPRIETARY
Slide 6: Brief transaction highlights (term sheet)
Brief transaction highlights (term sheet) Key highlights from term sheet Use of proceeds Elliptic Laboratories AS, a Norwegian private limited liability • Strengthening of balance sheet Issuer: company with business registration number 989 750 186 (“Elliptic • When doing business with global compani
Slide 7: Elliptic Labs develops super smart software-sensors that use AI and ultrasound
Elliptic Labs develops super smart software-sensors that use AI and ultrasound to sense you and your surroundings 7 CONFIDENTIAL AND PROPRIETARY
Slide 8: Sensors touch every aspect of life and drive the digital transformation
Sensors touch every aspect of life and drive the digital transformation Our mission is to make sensors smarter, safer, and more environmentally- friendly at scale 8 CONFIDENTIAL AND PROPRIETARY
Slide 9: Ultrasound technology deployed in over 100 million devices
Elliptic Labs has taken ultrasound technology into new markets and deployed it in over 100 million devices We are now the world leader in ultrasound technology for the consumer mass market 9 CONFIDENTIAL AND PROPRIETARY
Slide 10: 100M+ Elliptic Labs-powered devices in the market today
100M+ Elliptic Labs-powered devices in the market today Global AI software company founded in 2006, delivering Virtual Smart Sensors Who with presence in Norway, China, South Korea, Japan and USA A Virtual Smart Sensor Platform delivers touchless 3D, proximity, presence, What heartbeat, and breathin
Slide 11: Virtual Smart Sensor Platform
We create a software-based Virtual Smart Sensor Platform that outperforms hardware sensors more cost-efficiently Virtual Smart Sensor™ Accelerometer Virtual Smart Sensor Virtual Proximity Sensor Platform Geomagnetic Virtual Gesture Sensor Gyroscope Aggregate data output Radio Freq from single functi
Slide 12: Most devices have what is needed to run our Virtual Smart Sensors
Most devices have what is needed to run our Virtual Smart Sensors Virtual Smart Sensors requires only a standard off-the-shelf speaker and microphone The speaker transmits an ultrasound wave The microphone receives the ultrasound wave Our virtual smart sensor platform translates the ultrasound waves
Slide 13: Critical user experiences for smartphone, laptop, IoT & automotive markets
We enable critical user experiences for the smartphone, laptop, IoT & automotive markets Virtual Smart Sensor Platform Making Sensors More Intelligent Proximity Presence Gesture Positioning Connection Breathing Heartbeat 13 CONFIDENTIAL AND PROPRIETARY
Slide 14: Videos of our features requested by the market
Videos of our features requested by the market Virtual Gesture Sensor on a Laptop: Virtual Gesture Sensor on a Laptop: Swipe Double Tap Virtual Smart Sensors for 3D Gestures, Virtual Presence Sensor on a Laptop Dynamic Positioning, and Device Connection 14 CONFIDENTIAL AND PROPRIETARY
Slide 15: We enable ESG in several ways
We enable ESG in several ways Replacing hardware sensors with software and turning off devices when not in use The IoT market is projected to reach 50 billion units 1 in 2030, consuming 150 TWh of energy annually Elliptic Labs’ virtual sensors turn off devices or 2 switch to low-power mode when no o
Slide 16: Agenda
Agenda Introduction and transaction summary Company overview Financials Appendix / Risk Factors
Slide 17: Internationally oriented management team
Internationally oriented management team Laila Danielsen – CEO Brian Daly – Sr. VP Sales & Business Development • CEO since 2013 • Responsible for sales, partnership development and • Serial entrepreneur and business strategy experienced tech executive with experience from both Silicon • 25+ years o
Slide 18: Platform established for rapid expansion in current and new verticals
Platform established for rapid expansion in current and new verticals EXPANSION Platform as a Service Support for all time-series sensors through sensor fusion Generic virtual sensors marketed to new verticals Virtual Smart Sensor Hub AUTOMATED/MACHINE comes pre-loaded on chipsets LEARNING DEPLOYMEN
Slide 19: First-mover position protected by a strong patent portfolio
Elliptic Labs’ first-mover position as the world leader in Ultrasound and Virtual Smart Sensors is protected by a strong portfolio Patent Strengths Patent Portfolio • Elliptic Labs’ technology is well covered in target markets 50 patents granted, 26 IoT families (touchless 3D gestures, proximity det
Slide 20: Strong partner ecosystem developed through years of networking
Strong partner ecosystem developed through years of networking and collaboration Platform Components Software Years of dedication and networking enables Elliptic Labs to access new markets, new verticals and leverage countless opportunities 20 CONFIDENTIAL AND PROPRIETARY
Slide 21: Laptop market is next large vertical
Laptop market is next large vertical 2019 PC/Laptop CPU Market Share 2019 PC/Laptop Volumes (Revenue) (Millions of units - Mu) ~$250M Qualcomm ~$100M Other $4.7B AMD 63.9 Mu 63 Mu Other Lenovo 3 Mu Huawei 14.5 Mu $37B Intel Asus 58 Mu 44 Mu HP 14.8 Mu Acer Dell *Note that AMD does not separate reven
Slide 22: We have broad market opportunities
We have broad market opportunities Elliptic Labs replaces hardware sensors with software and/or add capabilities Markets SMARTPHONE LAPTOP SMART TV IOT AUTOMOTIVE Total market size units 1.6B 300M 400M 1B++ 100M Time of Competing hardware Infrared Sensor Time of flight Sensor Time of flight Sensor R
Slide 23: Elliptic Labs' solution as a standard for laptop/PC market
Elliptic Labs’ solution as a standard for laptop/PC market Positioned to be world’s standard provider in the laptop/PC market for presence Unique and other detection opportunity Ø On-going 3-way collaborations between the largest Platform partners, laptop customers and and Elliptic Labs to deploy ou
Slide 24: Strong news flow and growing OEM collaboration expected for rest of 2020
Strong news flow and growing interaction and collaboration with OEMs expected for the rest of 2020 September 2020 Proof-of-Concept agreement with World-Leading Laptop/PC Manufacturer USD3m Software License Agreement Future news flow 3–4 updates on laptop POC with top producers, top OEM partnership,
Slide 25: Agenda
Agenda Introduction and transaction summary Company Introduction Financials Appendix / Risk Factors CONFIDENTIAL AND PROPRIETARY
Slide 26: Key Elliptic Labs KPIs
Key Elliptic Labs KPIs # Number of granted and filed patents Cumulative number of partner-agreements 93 86 77 # Patents 70 62 43 # Of partner- (granted and 40 36 agreements filed) 38 14 34 general markets 50 9 41 46 7 28 32 4 2 2016 2017 2018 2019 YTD 2020 2016 2017 2018 2019 YTD 2020 Granted Filed
Slide 27: EBITDA expected to be positive/neutral for 2020
EBITDA expected to be positive/neutral for 2020 Financials overview Sales and EBITDA (NOKm) ~601) • Elliptic Labs has managed to increase top line steady up 44 53 to NOK 53m in 2019 despite limited no. of customers so far, 14 and EBITDA is expected to be positive/neutral in 2020 4 4 despite Covid-19
Slide 28: Significant historical funding with heavy investments in R&D
Significant historical funding with heavy investments in R&D pushed Elliptic Labs to where it is today Margin expansion expected going forward OPEX excl. depreciation (NOKm) 74 • Historical equity- and governmental funding amounts to NOK 345m, with NOK 253m from equity and NOK 92m from 61 55 57 gove
Slide 29: Clear path towards significant revenue uplift
Clear path towards significant revenue uplift • Revenue from smartphone to increase from new customers and new features to existing and new customers • Larger fixed volume contracts on units/devices – increases revenue certainty • Laptops are the largest revenue driver the coming years as: Increased
Slide 30: Elliptic Labs is set to capitalize on multiple segments
Elliptic Labs is set to capitalize on multiple segments ü Proven business model with software sold and Artificial Machine learning deployed to over 100 million devices intelligence Megatrends Digitization Automation ü Scalable AI software platform enabling easier support and integration for new and
Slide 31: Agenda
Agenda Introduction and transaction summary Company Introduction Financials Appendix / Risk Factors CONFIDENTIAL AND PROPRIETARY
Slide 32: Risk factors
Risk factors RISK FACTORS Investing in the Company involves inherent risks. Prospective investors should carefully consider, among other things, the risk factors set out in this Presentation before making an investment decision. The below risk factors are only a summary of certain risks applicable t
Slide 33: Risk factors
Risk factors Introduction of products based on new technology could gain wide market adoption and displace the Group’s products Introduction of products including new technologies could cause the Group’s existing products to be less attractive to the customers. The Group may not be able to successfu
Slide 34: Risk factors
Risk factors The Group relies upon intellectual property rights The Group's ability to compete effectively depends in part on its ability to obtain, maintain, and protect proprietary information and other intellectual property rights. The Group generally relies on a combination of patents, trademark
Slide 35: Risk factors
Risk factors Future debt levels could limit the Group’s flexibility to obtain additional financing and pursue other business opportunities Although the Group does not currently plan to incur any significant additional debt, there can be no assurance that the Group will not incur significant addition
Slide 36: Risk factors
Risk factors Risks related to the Shares The Company will incur increased costs as a result of being a publicly traded company If the company is admitted to trading on Merkur Market, the Company will be required to comply with Merkur Market’s reporting and disclosure requirements. The Company will i
Slide 37: Risk factors
Risk factors Investors may have difficulty enforcing any judgment obtained in the United States against the Company or its directors or officers in Norway The Company is incorporated under the laws of Norway and most of its directors and executive officers reside outside the United States. Furthermo