Vigo Photonics Spolka Akcyjna · GPW:VGO
Vigo Photonics Spolka Akcyjna — VIGO Photonics — Q1 2022 Earnings Presentation
35 slides from Vigo Photonics Spolka Akcyjna's earnings presentation, May 9, 2022
Slide 1: Financial Results for Q1 2022
FINANCIAL RESULTS FOR Q1 2022 9 May 2022
Slide 2: Agenda
1. EXECUTIVE SUMMARY 2. ABOUT VIGO AGENDA 3. SUMMARY OF Q1 2022 ACHIEVEMENTS 4. FINANCIAL RESULTS FOR Q1 2022 5. PERSPECTIVES
Slide 3: Executive Summary
EXECUTIVE SUMMARY SUMMARY OF ACHIEVEMENTS IN 2021 • Completion of technology and production facilities expansion, including a cleanroom to enable production of up to 100,000 detectors per year • Impact of the previously-scheduled commissioning of the new above- mentioned investment on Q1 2022 result
Slide 4: About VIGO
ABOUT VIGO
Slide 5: VIGO in a Nutshell
VIGO IN A NUTSHELL 35 years of experience VIGO is a world leader in high-tech solutions - the most advanced mid-infrared photonic detectors, detection modules and semiconductor materials and operations Headquarters in Poland and branch offices in USA and Taiwan Operating in a fast-growing Ambitious
Slide 6: Technology and Production of Photonic Infrared Products
TECHNOLOGY AND PRODUCTION OF PHOTONIC INFRARED PRODUCTS PHOTONIC PRODUCTS AND INFRARED (IR) MATERIALS Semiconductor materials Infrared detector Infrared module Materials of crystalline structure whose An electronic component made An integrated system electrical conductivity is between up of semicond
Slide 7: VIGO Products Tailored to the Needs of International Clients
VIGO PRODUCTS TAILORED TO THE NEEDS OF INTERNATIONAL CLIENTS SIGNIFICANT DIVERSIFICATION OF VIGO'S OFFER THANKS TO INVESTMENTS IN INFRASTRUCTURE BETWEEN 2014 AND 2020 (MBE LAB, EFFICIENT MOCVD IN THE III-V EPITAXY DEPARTMENT) • Manufacture of MCT, InAs, InAsSb and InGaAs detectors, dedicated electro
Slide 8: Widespread Application of Medium Infrared in a Multi-Special Industry
WIDESPREAD APPLICATION OF MEDIUM INFRARED IN A MULTI-SPECIAL INDUSTRY EVERY OBJECT WITH A TEMPERATURE ABOVE ABSOLUTE ZERO EMITS INFRARED RADIATION. THE WAVES THAT ARE PRODUCED CAN BE READ AND PROCESSED BY SPECIAL DEVICES DESIGNED FOR THIS PURPOSE - INFRARED RADIATION DETECTORS ARE THEIR MOST IMPORTA
Slide 9: VIGO Development Strategy up to 2023 and 2026
VIGO DEVELOPMENT STRATEGY UP TO 2023 AND 2026 VIGO 2026 STRATEGY - A RANGE OF BUSINESS OPPORTUNITIES TO MEET GROWTH AMBITIONS BY 2026 • New VIGO Strategy for 2021-2026 announced on 16 June 2021 400 • New business directions based on new technologies (infrared sources, optoelectronic systems and inte
Slide 10: Summary of Q1 2022 Achievements
SUMMARY OF Q1 2022 ACHIEVEMENTS
Slide 11: Clean Room Completed - Support for 2.0 Processing
CLEAN ROOM COMPLETED - SUPPORT FOR 2.0 PROCESSING INVESTMENT OBJECTIVES 2015 1. Increase in production repeatability 2. Detector chip manufacturing technology 3. Reduction of production costs 4. Meeting the highest quality requirements (military, space, semiconductor industries) SCOPE: modernisation
Slide 12: MCT Detectors and Detection Modules (MCT+) Initiative
MCT DETECTORS AND DETECTION MODULES (MCT+) 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 decline by improving the Proto- mer Implemen- Client Product Demon- customisat
Slide 13: 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 • Becoming No. 1 in the market of III-V detector manufacturers TRL 5 TRL 6 TRL 7 Custo- Implemen- in the MidIR range. Implementation of T2SL supe
Slide 14: 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 market for III-V InGaAs detectors Proto- mer Implemen- Client Product Demon- tation into concept strator
Slide 15: Epitaxy III-V Initiative - Semiconductor Materials and VCSEL
EPITAXY III-V INITIATIVE - SEMICONDUCTOR MATERIALS AND NEAR-INFRARED SOURCES (VCSEL) TECHNOLOGY DEVELOPMENT COMMERCIALISATION - SAMPLE PROJECTS Objective of the initiative TRL 8 TRL 9 TRL 5 TRL 6 TRL 7 Custo- • Gain visibility in the epitaxy services market, explore market niches Proto- mer Implemen
Slide 16: Optoelectronic Systems and Photonic Integrated Circuits (PIC) Initiative
OPTOELECTRONIC SYSTEMS AND PHOTONIC INTEGRATED CIRCUITS (PIC) INITIATIVE SIMPLIFIED GENERAL OPERATING DIAGRAM OF THE INFRARED (IR) R&D MIRPIC PROJECT SENSOR • Goal: Development of the first mid-infrared photonic integrated circuit infrared (MIRPIC) on the market obtaining a radiation measurement • C
Slide 17: Optoelectronic Systems and Photonic Integrated Circuits (PIC) Initiative
OPTOELECTRONIC SYSTEMS AND PHOTONIC INTEGRATED CIRCUITS (PIC) INITIATIVE TECHNOLOGY DEVELOPMENT Objective of the initiative Achievements in Q1 2022 • To be the world's first manufacturer of mid-infrared integrated circuits. • The first successful experiments have been carried out confirming the succ
Slide 18: 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 19: Start of Direct Sales from the USA Branch
START OF DIRECT SALES FROM THE USA BRANCH EXPANSION IN THE USA MARKET - INCREASE OF VIGO'S SHARE BUSINESS ASSUMPTIONS FOR THE EXPANSION INTO THE US AND ASIAN MARKETS • Q3 2021 – establishment of VIGO Photonics US: hiring a CEO, team building, recruitment • Q4 2021 – implementation of sales, distribu
Slide 20: Implementation of a New Brand: VIGO Photonics
IMPLEMENTATION OF A NEW BRAND: VIGO PHOTONICS THE DYNAMIC DEVELOPMENT OF THE COMPANY, NEW OPENING UP TO NEW TECHNOLOGIES AND THE BRAND ESTABLISHMENT OF THE FIRST VIGO SYSTEM BRANCHES IN ASIA AND NORTH AMERICA HAVE LED TO THE CREATION OF ONE GLOBAL BRAND - VIGO PHOTONICS Steps taken: • Creation of a
Slide 21: Marketing: Participation at Trade Fairs and Sales Support
MARKETING: PARTICIPATION AT TRADE FAIRS AND SALES SUPPORT ACTIVE PARTICIPATION IN CONFERENCES AND TRADE FAIRS • SPIE Photonics West (US) • CEM Emission Monitoring (Online) • SPIE Defense and Commercial Sensing (US) • EPIC OTM on MID-IR – present and future (Online) ESTABLISHMENT OF A BRANCH IN THE U
Slide 22: VIGO Ventures Investment Incubator with Yet Another Start-up
VIGO VENTURES INVESTMENT INCUBATOR WITH YET ANOTHER START-UP VIGO VENTURES - VIGO WE INNOVATION (VWI) INVESTMENT ASSUMPTIONS PORTFOLIO Investment incubator created by VIGO System and Warsaw • investments and development of technological Equity Group (50:50 joint venture) in 2017 projects (start-ups,
Slide 23: Major Market Events
MA JOR MARKET EVENTS WAR IN UKRAINE COVID-19 PANDEMIC Potential opportunities: Operating environment: • Increasing awareness and importance of security of countries, ▪ No problems on the customer side Europe in particular, as an opportunity for growth potential with regard to solutions for defence p
Slide 24: Financial Results for Q1 2022
FINANCIAL RESULTS FOR Q1 2022
Slide 25: Sales Revenues
SALES REVENUES SALES REVENUES IN Q1 2022 SALES REVENUES PER YEAR (PLN THOUSAND) • Lower revenues in Q1 2022 by 19.6% (PLN 11.7m) mainly 71 497 due to the one-off impact of the previously scheduled 4 285 commissioning of the new technological facilities and 53 451 cleanroom investment. 42 889 1 909 •
Slide 26: Operating Costs
OPERATING COSTS OPERATING COSTS IN Q1 2022 OPERATING COSTS IN Q1 2021 AND Q1 2022 (PLN THOUSAND) • Core operating expenses in Q1 2022 increased by 31% YOY. • The following had the greatest impact on the increase in costs: • costs of external services increased by 102% YOY, including IT services, fin
Slide 27: Financial Performance
FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE IN Q1 2022 ADJUSTED EBITDA (PLN THOUSAND) AND EBITDA MARGIN • Adjusted EBITDA: PLN 2.8 million (-51% YOY). 40 000 45,8% 43,2% 50,0% 39,9% 40,8% 40,0% • Operating profit (EBIT): PLN 1.6 million (-70% YOY). 30 000 23,9% 30,0% • Net profit adjusted for deferr
Slide 28: Cash Flow
CASH FLOW CASH FLOW IN Q1 2022 01.01.2022 - 01.01.2021 - Cash Flow Statement [PLN thousand] 31.03.2022 31.12.2021 • Cash flows from operating activities: increased inventory levels and decreased receivables Total adjustments: 6 343 -282 Amortisation and/or depreciation 1 776 6 753 • Cash flows from
Slide 29: Capital Expenditure
CAPITAL EXPENDITURE CAPITAL EXPENDITURE / CAPEX IN Q1 2022 CAPITAL EXPENDITURES INCURRED IN Q1 2022 (PLN THOUSAND) • Expenditure in Q1 2022 amounted to PLN 15.4 million 6 813 (accrual), of which the most significant expenditure related to: • R&D expenses (PLN 6.7 million) 3 918 • Cleanroom reconstru
Slide 30: Perspectives
PERSPECTIVES
Slide 31: Perspectives
PERSPECTIVES SHORT-TERM OUTLOOK Plan for 2022 PLN 80 million revenue, including: • Industry - growth by 20-30%, especially on the US market, in environmental applications, semiconductor industry, possible higher growth in case of positive validation of new products by customers • Transportation - gr
Slide 32: Perspectives - Summary
PERSPECTIVES - SUMMARY CONTINUE TO EXECUTE THE 2023 AND 2026 STRATEGY WITH A FOCUS ON PRODUCTION EFFICIENCY AND STRATEGIC INITIATIVES BASED ON VIGO'S UNIQUE TECHNOLOGIES AND ACCELERATE COMMERCIALISATION OF NEW SOLUTIONS IN A FAST-GROWING AND FORWARD-LOOKING MARKET • Operating in the fast-growing mid
Slide 33: Q&A Session
Q&A SESSION
Slide 34: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Contact: Małgorzata Młynarska Investor Relations Manager, cc group e: malgorzata.mlynarska@ccgroup.pl m: +48 697 613 709
Slide 35: 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