Slide 1: Third quarter 2023 Earnings presentation
Third quarter 2023 Earnings presentation 1 Third quarter 2023 - Earnings presentation 2 November 2023
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been nor does any of them accept any responsibility for No shares or other securities are being offered produced by poLight ASA (the "Company") the future accuracy of the opinions expressed in pursuant to this Presentation. This Presentation excl
Slide 3: Today's agenda
Today’s agenda Presenting • Key events Dr Øyvind Isaksen • Introduction to poLight Chief Executive Officer Dr Isaksen has been CEO of poLight since August 2014. He has • Operations and markets review previously held several CEO positions, most recently in the publicly listed company Q-Free ASA, whic
Slide 4: Key events in the quarter
Key events in the quarter • Order for Mini2P application from company planning to sell Mini2P solution to research institutes. • Follow-on order for a Machine Vision/code scanner customer from China. • Multiple customer proof of concept (PoC) projects and variety of improvement projects kept the pre
Slide 5: poLight at a glance
poLight® at a glance Background & description Geographical footprint • Global player in tunable optics with applications in Horten Norway Tampere mobile, web cam, industrial, augmented reality, Oxford Finland medical and others UK Beijing San Jose, CA Lyon France China USA • Founded in 2005 and has
Slide 6: TLens Actuator: Enabling Smallest, Lowest Power, Fastest AF Cameras & Laser Projectors
TLens® Actuator: Enabling Smallest, Lowest Power, Fastest AF Cameras & Laser Projectors Principle of operation Implementation Piezo MEMS film Glass membrane Silicon Polymer Glass window From Gel > MEMS Wafer > TLens® > Camera module > OEM OEM´s Camera Bare TLens® Module Partners Driver ASIC Packaged
Slide 7: poLight products & technology well-suited for several applications
poLight products & technology well-suited for several applications Smartphones, wearables, Barcode/Industrial Augmented Reality (AR) Other accessories • Evolving from 1D laser to 2D • AR is expected to to grow • New opportunities are • Smartphone represent a large imaging barcode readers significant
Slide 8: TLens customer-wins
TLens® customer-wins LEION Pro Enterprise AR World-facing Camera MV-ID2016M-16T MEIZU 20 INFINITY Smart Code Reader Selfie Camera Magic Leap 2 Enterprise AR X30M-E World-facing Camera Machine Vision: Direct Park Mark Reader Mi Bunny 4 Pro Smartwatch EX 30 2D Barcode Barcode reader Max Pro UC W20 Sca
Slide 9: Operations and market review
Operations and market review 9 Third quarter 2023 - Earnings presentation
Slide 10: Use case: Consumer
Use case: Consumer 10 Third quarter 2023 - Earnings presentation
Slide 11: Consumer: Still challenging sentiment
Consumer: Still challenging sentiment • During the quarter, the focus was on smartphone and augmented reality applications • Other applications, such as webcams, laptop, smarthome, Education wearable, etc. are also being explored • Consumer market remains challenging and is focused on cost reduction
Slide 12: First smartphone using TLens on the market – roadshow continues
First smartphone using TLens® on the market – roadshow continues • Demonstration of the Meizu 20 Infinity, using TLens® in the selfie camera, continued during the quarter • From a performance perspective, the feedback has From Meizu web-page been positive • The cost difference between a TLens®-based
Slide 13: Key actions to secure TLens adaption in smartphone
Key actions to secure TLens® adaption in smartphone • Focus on maturing and cost optimise TLens® - based camera module solutions; • Addressing both component and system level aspects • Continue to enhance important performance parameters • Actively develop the capability and relationships with exist
Slide 14: Status on consumer
Status on consumer 4 Design-win 1 Design-in 11 PoC 17 Planning PoC 14 Third quarter 2023 - Earnings presentation POC = Proof of Concept, including TWedge®
Slide 15: Use case: AR
Use case: AR 15 Third quarter 2023 - Earnings presentation
Slide 16: AR/MR: Strong position in a mega trend
AR/MR: Strong position in a mega trend Enterprise & Consumer • Why TLens® - Key selling points; use cases Lo gis tic • Enables ultra-compact size camera modules • Ultra-low power consumption Education • Fast focusing speed • Constant field of view (FOV) and high optical stability • No gravity impact
Slide 17: AR/MR market segment continued to develop positively
AR/MR market segment continued to develop positively for poLight during the quarter • TLens® is used/planned for use in both world facing camera applications and LEION Pro display Enterprise AR • The company is currently used in two AR enterprise products already released to World-facing Camera mark
Slide 18: Status on AR/VR
Status on AR/VR 2 Design-win 5 Design-in 11 PoC 14 Planning PoC 18 Third quarter 2023 - Earnings presentation POC = Proof of Concept, including TWedge®
Slide 19: Use case: Industrial
Use case: Industrial 19 Third quarter 2023 - Earnings presentation
Slide 20: Barcode / Industrial
Barcode / Industrial • Superlead placed a follow-on order worth NOK 1.15 million during the quarter and • Superlead is now uses TLens® in four products • Currently five companies use TLens® in commercially available products (design-wins) • All five cases are still shipping to customers and are expe
Slide 21: Status on Barcode/Industrial
Status on Barcode/Industrial 5 Design-win 1 Design-in 7 12 PoC 7 Planning PoC 21 Third quarter 2023 - Earnings presentation
Slide 22: Use case: Healthcare & Automotive
Use case: Healthcare & Automotive 22 Third quarter 2023 - Earnings presentation
Slide 23: Healthcare
Healthcare • The Xenocor (https://xenocor.com) case ; • Initial human trials carried out • Experiencing some unexpected delays in the market launch • Cooperation with Kavli Institute at the Norwegian University of Science and Technology (NTNU), and the contribution the company has made to the develo
Slide 24: Mini2P – a key reference
Mini2P – a key reference “TLens® has been instrumental to achieve the performance of Mini2P system. The speed and temperature stability of TLens® is much better than any other tuneable lens we have tested, implying we can achieve results we never have been able to do before. This is very important f
Slide 25: Automotive – a nontrivial volume opportunity
Automotive – a nontrivial volume opportunity • In-cabin camera requirement demand new solution • Autonomous driving drives step change in camera adoption • The use case calls for non-mechanical focusing solution • This market segment will be challenging to penetrate • There is a need for new technol
Slide 26: Promising pipeline
Promising pipeline Design-win Design-in Completed PoC Ongoing PoC Planning PoC Consumer 4 (4) 0 (0) 37 (34) 3 (5) 9 (10) Augmented/Mixed Reality 2 (2) 5 (5) 13 (12) 11 (11) 14 (12) Industrial 5 (5) 1 (0) 30 (27) 12 (15) 7 (9) Other (medical, automotive) 1 (1) 2 (2) 5 (5) 20 (20) 11 (10) 12 (12) 8 (7
Slide 27: poLight PoC pipeline development
poLight PoC pipeline development 200 180 160 140 120 # Planning PoC, 100 PoC, 80 Completed PoC 60 40 20 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q -Q 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Planni ng PoC Ongoing PoC Com
Slide 28: Financial review
Financial review 28 Third quarter 2023 - Earnings presentation
Slide 29: Key financials
Key financials Income statement Balance sheet summary (in NOK million) Q3 2023 Q3 2022 FY 2022 (in NOK million) Q3 2023 Q3 2022 FY 2022 Revenue 3.1 5.3 13.4 Intangible assets 19.4 26.7 24.9 Cost of sales -0.5 -2.1 -4.8 Inventories 69.6 36.0 45.6 Research and development expenses -8.0 -7.2 -32.9 Cash
Slide 30: Cash Flow
Cash Flow Q3 2023 cash flow development • Q3 cash used in operating activities was NOK 20.3 million, compared with NOK 19.6 million in Q3 2022 (NOK million) • Q3 net decrease in cash was NOK 20.3 million -20,3 153,2 -0,0 0,0 -0,1 132,8 Cash at Operating Investing Financing FX effects Cash at period
Slide 31: Outlook
Outlook 31 Third quarter 2023 - Earnings presentation
Slide 32: Outlook
Outlook • Consumer market remains challenging, - no sign of improvement short term • poLight will continue to address this market by actively capitalising on its first important smartphone reference and by • focusing on maturing, improving and cost optimise TLens®-based camera module solutions • AR
Slide 33: Q&A
Q&A NEXT EVENT; • Q4-23 Report 27 February 2024 33 Third quarter 2023 - Earnings presentation
Slide 34: Appendix
Appendix 34 Third quarter 2023 - Earnings presentation
Slide 35: Management Team
Management Team Dr Øyvind Isaksen Chief Executive Officer Dr Isaksen has been CEO of poLight since August 2014. He has previously held several CEO positions, most recently in the publicly listed company Q-Free ASA, which he left in January 2014, after 7 years as CEO. Øyvind Isaksen holds a PhD in Ap
Slide 36: Board of Directors
Board of Directors Grethe Viksaas – Board Chair, independent Grethe Viksaas has had a long career in the Northern European managed service provider Basefarm AS. First as founder and CEO, and later as executive chair and member of the board of directors. Prior to Basefarm, Ms Viksaas served as CEO fo
Slide 37: Statement of income
Statement of income NOK 000 Note Q3 2023 Q3 2022 YTD 2023 YTD 2022 FY 2022 Sa l e of goods 2 947 3 092 17 059 6 498 10 034 Renderi ng of s ervi ces 103 2 181 305 2 771 3 328 Revenue 3 051 5 272 17 364 9 270 13 363 Cos t of s a l es -469 -2 086 -8 164 -3 517 -4 826 Gross profit 2 581 3 186 9 200 5 75
Slide 38: Balance sheet
Balance sheet NOK 000 ASSETS Note Q3 2023 Q3 2022 FY 2022 Property, pl a nt a nd equi pment 9 848 6 612 10 748 Intangi bl e a s s ets 8 19 399 26 674 24 855 Ri ght-of-us e a s s ets 3 055 3 982 3 871 Total non-current assets 32 302 37 268 39 474 Inventori es 69 632 36 025 45 577 Tra de a nd other re
Slide 39: Cash flow
Cash flow NOK 000 Operating activities Note Q3 2023 Q3 2022 YTD 2023 YTD 2022 FY 2022 Profi t / l os s (-) for the peri od -21 466 -12 890 -57 812 -51 042 -67 644 Adjus tments for: Depreci a ti on of property, pl a nt a nd equi pment a nd ri ght-of-us e a s s ets 797 453 1 709 1 309 1 877 Amorti s a