34 slides from Vigo Photonics Spolka Akcyjna's earnings presentation, Sep 20, 2023
Slide 1: Financial Results for Q2 2023
FINANCIAL RESULTS FOR Q2 2023 September 20, 2023
Slide 2: VIGO in a Nutshell
VIGO IN A NUTSHELL VIGO IS A WORLD LEADER IN HIGH-TECH SOLUTIONS – 35 years of experience THE MOST ADVANCED MID-INFRARED PHOTONIC DETECTORS, DETECTION MODULES AND SEMICONDUCTOR MATERIALS and operations Headquarter in Poland and branch office in USA Activity in the global infrared market: infrared An
Slide 3: Agenda
1. EXECUTIVE SUMMARY 2. SUMMARY OF Q2 2023 AGENDA 3. FINANCIAL RESULTS FOR Q2 2023 4. PERSPECTIVES 5. SUMMARY
Slide 4: Executive Summary: Q2 2023 Summary
EXECUTIVE SUMMARY Q2 2023 SUMMARY Infrared detetctors Sales • PLN 18.3 million of consolidated revenues (-4% y/y) - increases in industrial applications (+6% y/y) and science and medicine (+19% y/y); +20% y/y consolidated revenues in H1 2023 • Growing share of revenues in the USA (+83% y/y) and in P
Slide 5: Summary of Q2 2023
SUMMARY OF Q2 2023
Slide 6: Significant New Contracts for the Supply of Infrared Detectors
SIGNIFICANT NEW CONTRACTS FOR THE SUPPLY OF INFRARED DETECTORS AGREEMENT WITH A GERMAN CONTRACTOR FOR THE SUPPLY OF AGREEMENT WITH A COMPANY FROM THE CATERPILLAR CAPITAL DETECTORS WORTH UP TO EUR 3.5 M GROUP FOR THE SUPPLY OF DETECTORS WORTH EUR 3.7 M • Contractor: Customer from Germany • Subject of
Slide 7: Growing Demand in the Military Segment – PGZ Agreement and PCO Letter of Intent
GROWING DEMAND FOR VIGO SOLUTIONS IN THE MILITARY SEGMENT – AGREEMENT WITH PGZ AND LETTER OF INTENT WITH PCO AGREEMENT WITH AN ENTITY OF THE POLISH ARMS GROUP LETTER OF INTENT WITH PCO FOR THE IMPLEMENTATION OF WORTH PLN 15.8 M INFRARED MATTERS AND APPLICATIONS IN THE POLISH ARMY • Contractor: entit
Slide 8: Support for Commercialization Through Marketing Activities in Q2 2023 (1)
SUPPORT FOR COMMERCIALIZATION OF SOLUTIONS THROUGH MARKETING ACTIVITIES IN Q2 2023 (1) ACTIVITY AT INTERNATIONAL SCIENTIFIC CONFERENCES AND INDUSTRY FAIRS: • SPIE Optics+Optoelectronics (Czech Republic) - lecture by a representative of VIGO Photonics and establishing cooperation with the Czech Photo
Slide 9: Support for Commercialization Through Marketing Activities in Q2 2023 (2)
SUPPORT FOR COMMERCIALIZATION OF SOLUTIONS THROUGH MARKETING ACTIVITIES IN Q2 2023 (2) INCREASED SALES ACTIVITY IN THE SECURITY AND DEFENSE INDUSTRY: Participation in the International Defense Industry Exhibition - MSPO: • signing an agreement with PCO S.A. regarding technological cooperation in the
Slide 10: MCT+ Detector Initiative
MCT+ DETECTOR INITIATIVE TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • Exploitation of the market in its gradual fading phase by improving Proto- mer Implemen- Client Product Demon- the customisation process and explorin
Slide 11: III-V InAsSb Detectors and Detection Modules Initiative
III-V InAsSb DETECTORS AND DETECTION MODULES INITIATIVE TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 • Gaining the No. 1 position in the market for manufacturers of TRL 5 TRL 6 TRL 7 Custo- Implemen- III-V detectors in the MidIR range. Implement
Slide 12: III-V InGaAs Detectors and Detection Modules Initiative
III-V InGaAs DETECTORS AND DETECTION MODULES INITIATIVE TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • Entering the III-V InGaAs detectors’ market. Proto- mer Implemen- Client Product Demon- tation into concept strator ty
Slide 13: III-V Epitaxy Initiative – Semiconductor Materials
III-V EPITAXY* INITIATIVE – SEMICONDUCTOR MATERIALS TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 • Gain visibility in the market for epitaxy services, exploring market TRL 5 TRL 6 TRL 7 Custo- Implemen- niches for photonic instruments (new VCSELs
Slide 14: Optoelectronic Systems and Photonic Integrated Circuits Initiative
OPTOELECTRONIC SYSTEMS AND PHOTONIC INTEGRATED CIRCUITS (PIC) INITIATIVE TECHNOLOGY DEVELOPMENT Objective of the initiative Achievements in Q2 2023 • Introduction, as the world's first manufacturer, of mid-infrared • Continuous development and optimization of the integrated circuits. components libr
Slide 15: Infrared Array Initiative
INFRARED ARRAY INITIATIVE TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • Becoming a major supplier of detectors for the Polish Proto- mer Implemen- Client Product Demon- army/armament industry, winning customers outside P
Slide 16: Investments in Innovative Projects - VIGO Ventures ASI Fund
INVESTMENTS IN INNOVATIVE PROJECTS - VIGO VENTURES ASI FUND VIGO VENTURES ASI 2023: KEY EVENTS IN 2023 PORTFOLIO • A new investment was made in a company from • Portfolio of 7 companies from 5 countries Germany, with a unique solution and patented • Over 130 employees in portfolio companies technolo
Slide 17: Financial Results for Q2 2023
FINANCIAL RESULTS FOR Q2 2023
Slide 18: Constantly Growing Order Portfolio
CONSTANTLY GROWING ORDER PORTFOLIO VISIBLE CONTINUOUS DEVELOPMENT OF PHOTONICS AND MIDDLE-IR SOURCES MARKETS AND INCREASING DEMAND FOR VIGO PRODUCTS, CONSTANTLY INCREASE THE ORDER PORTFOLIO DESPITE VARIABLE MARKET ENVIRONMENT ORDER BOOK 2022 2023 PLN 82.5 mn* 82,5* value of VIGO's order portfolio at
Slide 19: Sales Revenues
SALES REVENUES SALES REVENUES IN Q2 2023 SALES REVENUES PER YEAR (PLN THOUSAND) • PLN 18.3 million of consolidated sales revenues (-4% y/y) • Sales of detectors and detection modules amounted to PLN 17.1 18 750 18 955 18 256 million (-3% y/y), and semiconductor materials amounted to PLN 1.2 1 564 1
Slide 20: Operating Costs
OPERATING COSTS OPEX IN Q2 2023 OPERATING COSTS IN Q2 2023 (PLN THOUSAND) • The costs of basic operating activities amounted to PLN 18.3 million (+5.8% y/y). • The greatest impact on the decrease in costs had: 7 644 • salaries • depreciation 6 767 • The pressure on salaries costs is strong and the c
Slide 21: Financial Performance
FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE IN Q2 2023 ADJUSTED EBITDA (PLN THOUSAND) AND EBITDA MARGIN • Adjusted EBITDA: PLN 4.9 million (+48% y/y). 24% 24% 18% 18% 30% 30% 27% 27% • Operating profit (EBIT): PLN 3.0 million (+70% y/y). • Net profit adjusted for deferred tax: PLN 4.6 million (nearl
Slide 22: Cash Flow
CASH FLOW CASH FLOW IN H1 2023 01.01.2023 - 01.01.2022 - CASH FLOW STATEMENT [PLN THOUSAND] • Cash flows from operating activities: reduced level of inventories and 31.06.2023 31.06.2022 receivables and increased level of liabilities Total adjustments: 2 787 4 606 Amortisation and/or depreciation 5
Slide 23: Capital Expenditure
CAPITAL EXPENDITURE CAPEX IN H1 2023 CAPITAL EXPENDITURES INCURRED IN H1 2023 (PLN THOUSAND) • CAPEX in H1 2023 amounted to PLN 18.8 million (accrual basis), of which the most important expenses concerned: • R&D expenses: PLN 12.3 million, • new MOCVD Aixtron reactor: PLN 2.8 million, 12 328 • produ
Slide 24: New Cofinancing for R&D Works on a Water Quality Sensor
NEW COFINANCING FOR R&D WORKS ON A WATER QUALITY SENSOR VIGO ON THE LIST OF PROJECTS FOR CO-FINANCING PLN 9.4 MILLION UNDER THE FIRST COMPETITION OF THE HYDROSTRATEG GOVERNMENT STRATEGIC PROGRAM "INNOVATIONS FOR WATER MANAGEMENT AND INLAND SHIPPING" • Project name: Development of an innovative photo
Slide 25: Outlook
OUTLOOK
Slide 26: Further Development on a Wave of Long-Term Megatrends
FURTHER DEVELOPMENT ON A WAVE OF LONG-TERM MEGATRENDS CREATING A STRONG DRIVE FOR VIGO OPERATING DEVELOPMENT TECHNOLOGY TRENDS GEOPOLITICAL TRENDS ECOLOGICAL TRENDS SYSTEM MINIATURISATION SECURITY AND DEFENCE ROHS AND ECOLOGY Miniaturization and integration are Significant investments as a result of
Slide 27: Infrared Array Covering the Need to Increase Security and Defense
INFRARED ARRAY COVERING THE NEED TO INCREASE SECURITY AND DEFENSE OF COUNTRIES INFRARED ARRAY - GENERAL INFORMATION • Infrared detector arrays containing hundreds of thousands or millions of active pixels used in the construction of thermal imaging cameras for space and military applications and hav
Slide 28: Photonic Integrated Circuits (PIC) Addressing the Need for Miniaturization
PHOTONIC INTEGRATED CIRCUITS (PIC) ADDRESSING THE NEED FOR SYSTEM MINIATURIZATION IN COMMON DEVICES PHOTONIC INTEGRATED CIRCUITS (PIC) - GENERAL DEVELOPMENT OF THE FIRST MID-INFRARED PHOTONIC INTEGRATED CIRCUIT ON INFORMATION THE MARKET - MIRPIC PROJECT • A miniaturised circuit consisting of multipl
Slide 29: HyperPIC: Financing Over EUR 100 Mn
VIGO IS AMONG THE EUROPEAN COMPANIES FROM THE ELECTRONICS INDUSTRY TO BE GRANTED FINANCING >EUR 100 MN FOR THE HyperPIC THE EUROPEAN COMMISSION HAS ACCEPTED AN AMOUNT OF GRANT FOR VIOG PHOTONICS OF UP TO EUR 102.9 MN TO CARRY OUT THE HYPERPIC PROJECT. THE FINAL DECISION ON RELEASING FINANCING AND IT
Slide 30: Summary
SUMMARY
Slide 31: Outlook
OUTLOOK CONTINUE TO EXECUTE THE 2023 AND 2026 STRATEGY WITH A FOCUS ON STRATEGIC INITIATIVES AND PRODUCTION EFFICIENCY BASED ON VIGO'S UNIQUE TECHNOLOGIES AND ACCELERATE COMMERCIALISATION OF NEW SOLUTIONS IN A FAST-GROWING AND FORWARD-LOOKING PHOTONIC MARKET, SUPPORTED BY NUMEROUS MEGATRENDS MARKET
Slide 32: NICO
NICO
Slide 33: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Contact for investors: Małgorzata Młynarska Investor Relations Manager, cc group e: malgorzata.mlynarska@ccgroup.pl m: +48 697 613 709
Slide 34: Legal Disclaimer
LEGAL DISCLAIMER This study has been prepared for information purposes only, contains only summary information and is not exhaustive in nature, nor is it intended to be the sole basis for any analysis or evaluation. VIGO System S.A. makes no representations (express or implied) about the information