Slide 1: Elliptic Labs Q4 Presentation
Elliptic Labs Q4 Presentation March 10, 2021 AI software empowering the next billion of devices 1
Slide 2: Disclaimer – Important Information
DISCLAIMER – IMPORTANT INFORMATION The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its content
Slide 3: Agenda
Agenda Introduction and Q4 2020 highlights Financials Summary 3
Slide 4: Q4 Highlights
Q4 HIGHLIGHTS Record quarter revenue along with strong EBITDA and cash flow • Highest quarterly revenue in the history of the company with NOK 27m • Proved scalable business model: • Business picked up after severe Covid19 effects in 1H 2020 • EBITDA margin exceeding 65% in Q4 • Secured healthy fina
Slide 5: Elliptic Labs develops smart software-sensors that use AI and ultrasound
Elliptic Labs develops smart software-sensors that use AI and ultrasound to sense you and your surroundings 5
Slide 6: Sensors touch every aspect of life and drive the digital transformation
Sensors touch every aspect of life and drive the digital transformation Our vision is to build the leading software platform for all sensors, making every device smarter and more environmentally-friendly 66
Slide 7: Today we are the ultrasound leader for consumer market
Today we are the ultrasound leader for consumer market Who Global AI software company with presence in Norway, Asia and USA AI Virtual software sensors for presence, 3D gestures and heartbeat What detection for consumer and automotive markets Deployed Our in 100M+ devices Well-invested and -develope
Slide 8: We enable 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 8
Slide 9: Strengthened market opportunities
Strengthened market opportunities In the beginning of 2021 hardware sensor prices increased, improving our competitive advantage PC/LAPTOP/ MARKETS SMARTPHONE SMART TV IOT AUTOMOTIVE TABLET Total market size units 1.6B 460M 400M 1B++ 100M Time of Competing Hardware Infrared Sensor Time of flight/ Ra
Slide 10: Smartphone market
Smartphone market More smartphone launches – added new customer 1.6B smartphones have a proximity sensor turning screen off/on when users are making calls: • Most smartphones are using hardware sensors for proximity, that we are replacing with our smart software sensors • Customers partner with us t
Slide 11: PC market is next large vertical
PC market is next large vertical 2020 PC/Laptop CPU Market Share 2020 PC/Laptop/Tablet Volumes (Revenue) (Millions of units - Mu) ~$300M Qualcomm $6.4B 87 Mu AMD ~$100M Lenovo Other 200,5 Mu Other 67,8 Mu HP $40B Intel 50.5 Mu Dell 20 Mu 16.2 Mu Huawei 16,4 Mu Acer *AMD does not separate revenues fr
Slide 12: PC market opportunity
PC market opportunity Positioned to be standard provider for presence detection Laptop OEMs want presence detection on all their devices: • Our software sensors meet both the price-point and performance needed to broadly deploy presence-sensing capabilities to all tiers of a laptop manufacturer’s pr
Slide 13: Aligning roadmaps with chipset partners to streamline deployment
Aligning roadmaps with chipset partners to streamline deployment of our solutions for joint customers Platform • Established partnership with MediaTek, a leading smartphone chip manufacturer, that integrated Elliptic’s ultrasound API as a standard, making it easier for smartphone customers to use El
Slide 14: Go-to-market partners continue to progress
Go-to-market partners continue to progress Continued joint promotion and marketing to new and current customers and markets: • Smartphone • PC • SmartTV • SmartAppliances 14
Slide 15: Agenda
Agenda Introduction and Q4 2020 highlights Financials Summary 15 15
Slide 16: Key Elliptic Labs KPIs per Q4 2020
Key Elliptic Labs KPIs per Q4 2020 # Number of granted and filed patents Cumulative number of partner-agreements 93 86 77 # Patents 70 62 41 # Of partner- (granted and 40 36 agreements filed) 38 15 general markets 34 52 9 41 46 7 28 32 4 2 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Granted Fi
Slide 17: Q4 2020 P/L
Q4 2020 P/L Q4 2020 Q4 2019 2020 2019 Q4 comments: Revenue 24 070 924 17 003 357 30 215 044 37 957 021 • Highest quarterly revenue in the Other operating income 3 190 234 1 590 701 14 517 048 14 726 017 Total revenue 27 261 158 18 594 058 44 732 092 52 683 038 history of the company • Proving our hi
Slide 18: Q4 2020 Balance Sheet and Cash Flow
Q4 2020 Balance Sheet and Cash Flow Amounts in NOK 31.12.2020 31.12.2019 Non -current assets Balance Sheet substantially strengthened in Q4 2020 Deferred tax assets 62 827 614 56 168 887 Intangible assets 28 240 698 16 551 924 • NOK 125m in gross proceeds in equity Right of use assets 5 022 739 7 25
Slide 19: 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 nearest future as: OEM’s a
Slide 20: Shareholder Structure and Allocated Options as per March 4, 2021
Shareholder Structure and Allocated Options as per March 4, 2021 SHAREHOLDER NAME #Shares % SHAREHOLDER NAME #Shares % Passesta AS (Chairman, Tore Engebretsen) 1,194,416 12.5% Shares owned By Board Of Directors 2,087,849 21,8 % MP Pensjon Pk 898,123 9.4% Shares owned By Mgmt. And Employees 827,180 8
Slide 21: Agenda
Agenda Introduction and Q4 2020 highlights Financials Summary 21
Slide 22: Elliptic Labs is set to capitalize in multiple verticals
Elliptic Labs is set to capitalize in multiple verticals ✓ Proven business model with software sold and deployed to over 150 million devices ✓ Scalable AI software platform and closer partnerships enabling easier support for new and current verticals ✓ Launched on more smartphone models and added cu