Vigo Photonics Spolka Akcyjna · GPW:VGO
Vigo Photonics Spolka Akcyjna — VIGO Photonics — Q2 2022 Earnings Presentation
30 slides from Vigo Photonics Spolka Akcyjna's earnings presentation, Sep 19, 2022
Slide 1: Financial Results for Q2 2022
FINANCIAL RESULTS FOR Q2 2022 19 September 2022
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 Headquarters in Poland and branch offices in USA Operating in a fast-growing Ambitious development
Slide 3: Agenda
1. EXECUTIVE SUMMARY 2. SUMMARY OF Q2 2022 ACHIEVEMENTS AGENDA 3. FINANCIAL RESULTS FOR Q2 2022 4. PERSPECTIVES
Slide 4: Executive Summary
EXECUTIVE SUMMARY Q2 2022 SUMMARY • The second best quarter in terms of generated revenues of PLN 20.3 million (+13% y/y) • Record inflow of new sales orders +30% y/y increase in Q2 • Lower operating results related to the intensive development of the Company's sales network and the preparation of f
Slide 5: Summary of Q2 2022 Achievements
SUMMARY OF Q2 2022 ACHIEVEMENTS
Slide 6: VIGO's Response to a Changing Market Environment and Business Opportunities
VIGO'S RESPONSE TO A CHANGING MARKET ENVIRONMENT AND BUSINESS OPPORTUNITIES INCREASED VOLATILITY OF THE ENVIRONMENT VIGO’S RESPONSE ✓ Working more closely with customers to speed up deliveries ▪ Disrupted supply chains and component unavailability and contracting new suppliers ▪ Increase in material
Slide 7: 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 8: 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 III-V TRL 5 TRL 6 TRL 7 Custo- Implemen- detectors in the MidIR range. Implement
Slide 9: 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 10: III-V Epitaxy Initiative - Semiconductor Materials and Near-Infrared Sources (VCSEL)
III-V EPITAXY INITIATIVE - SEMICONDUCTOR MATERIALS AND NEAR-INFRARED SOURCES (VCSEL) 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
Slide 11: Optoelectronic Systems and Photonic Integrated Circuits (PIC) Initiatives
OPTOELECTRONIC SYSTEMS AND PHOTONIC INTEGRATED CIRCUITS (PIC) INITIATIVES TECHNOLOGY DEVELOPMENT Objective of the initiative Achievements in Q2 2022 • Introduction, as the world's first manufacturer, of mid-infrared • Test structures for integration of the detector into waveguides modelled, designed
Slide 12: 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 13: VIGO Detectors on Board Orion to Support NASA Mission
VIGO DETECTORS ON BOARD ORION TO SUPPORT NASA MISSION ARTEMIS PROGRAMME MISSION WITH VIGO DETECTORS • VIGO infrared detectors selected by NASA for use on board its Orion space vehicle • Orion's upcoming Artemis mission is expected to orbit the Moon and return to Earth after travelling nearly 2 milli
Slide 14: Launch of Detector Chip Production - Support for 2.0 Processing
LAUNCH OF DETECTOR CHIP PRODUCTION - SUPPORT FOR 2.0 PROCESSING 2015 SIGNIFICANT INCREASE OF VIGO'S PRODUCTION CAPACITY - ENABLING THE MANUFACTURE OF UP TO 100,000 DETECTORS PER YEAR April 2022 - completion of the construction and equipping of the cleanroom dedicated to detection chips and start of
Slide 15: Support for the Commercialisation of Solutions Through Marketing Activities
SUPPORT FOR THE COMMERCIALISATION OF SOLUTIONS THROUGH MARKETING ACTIVITIES 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 (Online) • SPIE Defence and Commercial Sensing
Slide 16: New Brand VIGO Photonics
NEW BRAND VIGO PHOTONICS THE DYNAMIC DEVELOPMENT OF THE COMPANY, NEW OPENING UP TO NEW TECHNOLOGIES AND THE BRAND ESTABLISHMENT OF THE FIRST VIGO BRANCHES IN ASIA AND NORTH AMERICA HAVE LED TO THE CREATION OF ONE GLOBAL BRAND - VIGO PHOTONICS Steps taken: • Creation of a new brand combining VIGO Sys
Slide 17: The New Reactor Will Enable Doubling of Production Capacity
THE NEW REACTOR WILL ENABLE DOUBLING OF PRODUCTION CAPACITY VIGO HAS 3 INSTALLED REACTORS FOR THE PRODUCTION OF SEMICONDUCTOR NEW EPITAXIAL REACTOR NOW IN VIGO MATERIALS, THE LARGEST OF WHICH IS A REACTOR MANUFACTURED BY AIXTRON AND ITS COMMISSIONING TOOK PLACE IN 2019 • Another epitaxial reactor fo
Slide 18: Investments in Innovative Projects - VIGO Ventures ASI Fund
INVESTMENTS IN INNOVATIVE PROJECTS - VIGO VENTURES ASI FUND VIGO VENTURES ASI - formerly VIGO WE INNOVATION INVESTMENT ASSUMPTIONS PORTFOLIO (VWI), VIGO VENTURES • investments and development of technological Investment incubator created by VIGO Photonics and Warsaw Equity Group (50:50 joint venture
Slide 19: Financial Results for Q2 2022
FINANCIAL RESULTS FOR Q2 2022
Slide 20: Sales Revenues
SALES REVENUES SALES REVENUES IN Q2 2022 SALES REVENUES PER YEAR (PLN THOUSAND) • Increase in revenues in Q2 by 13% y/y (20.3m PLN) 20 308 • Sales of detectors and modules increased to 19m PLN 18 011 1 314 (+12% y/y) and semiconductor epiwafers to 1.3m PLN 14 582 1 084 (+21% y/y) 632 11 728 • The gr
Slide 21: Operating Costs
OPERATING COSTS OPERATING COSTS IN Q2 2022 OPERATING COSTS IN Q2 2022 (PLN THOUSAND) • Core operating expenses in Q2 amounted to 17.8m PLN and increased by 42% y/y. 6 767 • The following had the greatest impact on the increase in costs: • Higher costs of external services, caused by the intensive de
Slide 22: Financial Performance
FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE IN Q2 2022 ADJUSTED EBITDA (PLN THOUSAND) AND EBITDA MARGIN • Adjusted EBITDA: 5.3m PLN (-30% y/y). 9 000 8 000 43,2% 42,4% 50,0% 45,0% 40,0% • Operating profit (EBIT): 3.8m PLN (-43% y/y) – 7 000 6 000 26,4% 35,0% higher sales and general expenses 23,9% 3
Slide 23: Cash Flow
CASH FLOW CASH FLOWS IN H1 2022 01.01.2022 - 01.01.2021 - CASH FLOW STATEMENT [PLN THOUSAND] 30.06.2022 30.06.2021 • Cash flow from operating activities: increased level of inventories and Total adjustments: 4 419 -978 reduced level of receivables Amortisation and/or depreciation 5 027 3 338 Change
Slide 24: Capital Expenditure
CAPITAL EXPENDITURE CAPEX IN H1 2022 CAPITAL EXPENDITURES INCURRED IN H1 2022 (PLN THOUSAND) • CAPEX in H1 2022 amounted to 24.8m PLN (accrual), of which the most 12 712 significant expenditure related to: • R&D expenditure (12.7m PLN), • Cleanroom construction (3.9m PLN), • Implementation of a new
Slide 25: Perspectives
PERSPECTIVES
Slide 26: Outlook
OUTLOOK SHORT-TERM OUTLOOK 2022 plan Realization of revenues at a level similar to 2021 Positive trends High dynamics of increase in orders (especially in the industrial, transport and scientific segments). Only in the military segment a decrease in the value of orders. Negative trends ▪ Increasing
Slide 27: VIGO Maintains the Strategic Directions
VIGO MAINTAINS THE STRATEGIC DIRECTIONS THE CURRENT WORLD ECONOMIC SITUATION DOES NOT AFFECT THE IMPLEMENTATION OF PRO-GROWTH INITIATIVES VIGO 2026 STRATEGY ANNOUNCED ON 16 JUNE 2021 ADOPTED IN THE COMPANY'S DEVELOPMENT STRATEGY 400 UNTIL 2023 AND 2026 (MLN PLN) VIGO OBJECTIVES BY THE END OF 2023 PO
Slide 28: Q&A Session
Q&A SESSION
Slide 29: 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 30: 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