Slide 1: Second quarter 2023 Earnings presentation
Second quarter 2023 Earnings presentation 1 Second quarter 2023 - Earnings presentation 17 August 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 • First smartphone, Meizu 20 Infinity, using TLens® in the selfie camera available in the market from June 2023. • Good feedback on performance of the Meizu selfie camera using TLens®, but sentiment in consumer market is very cost sensitive. • LLVision augmented reality (AR
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 Second quarter 2023 - Earnings presentation
Slide 10: Use case: Consumer
Use case: Consumer 10 Second quarter 2023 - Earnings presentation
Slide 11: Consumer: Difficult sentiment, but 1st smartphone using TLens® creates interest
Consumer: Difficult sentiment, but 1st smartphone using TLens® creates interest • During the quarter, the focus was on smartphone and augmented reality applications Education • Other applications, such as webcams, laptop, smarthome, wearable, etc. are also being explored Healtcare Manufacturing Desi
Slide 12: First smartphone using TLens® on the market
First smartphone using TLens® on the market • Meizu 20 Infinity using TLens® in the Selfie Camera • Achieve the most compact selfie camera, instant and smooth autofocus user experience • TLens® Camera module (CM) specification • 32MP, 1/2.74’, F2.5, DFOV: 87.5deg, XYZ size: 8.14 X 7.99 X 5.67mm • Ba
Slide 13: Feedback so far
Feedback so far • Roadshows ongoing demonstrating the performance of the TLens® selfie camera • Achieve the most compact selfie camera, instant and smooth autofocus user experience • Customer like the small nose and hence small hole in the display • Good feedback on no pumping/breathing, - basically
Slide 14: Example of all-in-focus pictures using Meizu Infinity
Example of all-in-focus pictures using Meizu 20 Infinity having all- in-focus software from Almalence Redfar Yang, GM China Jet Sun, FAE China 14 Second quarter 2023 - Earnings presentation
Slide 15: Status on consumer
Status on consumer 4 Design-win 1 Design-in 12 PoC 19 Planning PoC 15 Second quarter 2023 - Earnings presentation POC = Proof of Concept, including TWedge®
Slide 16: Use case: AR
Use case: AR 16 Second quarter 2023 - Earnings presentation
Slide 17: AR: Strong position in a mega trend
AR: 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 ev
Slide 18: LLVISION confirm releasing enterprise AR glasses using TLens®
4 April-23 : LLVISION confirm releasing enterprise Augmented Reality glasses using TLens® “TLens® has millisecond-level response time, which can provide fast auto focusing and remote video streaming experience for AR devices that need to move quickly, also allowing AI recognition results to be more
Slide 19: AR market segment continued to develop positively for poLight during the quarter
AR market segment continued to develop positively for poLight during the quarter • TLens® is used/planned for use in both world facing camera applications and display • The company is currently used in two AR enterprise products LEION Pro already released to market – Magic Leap 2 and LLVision Enterp
Slide 20: Status on AR/VR
Status on AR/VR 2 Design-win 5 Design-in 11 PoC 12 Planning PoC 20 Second quarter 2023 - Earnings presentation POC = Proof of Concept, including TWedge®
Slide 21: Use case: Industrial
Use case: Industrial 21 Second quarter 2023 - Earnings presentation
Slide 22: Barcode / Industrial
Barcode / Industrial • It will take time to develop this market and will require entry into some broader application areas • Currently five companies use TLens® in commercially available products (design-wins) • All five cases are still shipping to customers and are expected to do so for several mor
Slide 23: Status on Barcode/Industrial
Status on Barcode/Industrial 5 Design-win 0 Design-in 10 15 PoC 9 Planning PoC 23 Second quarter 2023 - Earnings presentation
Slide 24: Use case: Healthcare & Automotive
Use case: Healthcare & Automotive 24 Second quarter 2023 - Earnings presentation
Slide 25: Healthcare
Healthcare • The Xenocor (https://xenocor.com) case ; • Human trials to be carried out • Expected market release after human trials • The Kavli case has generated a lot of activity, and similar research cases account for eleven of the company’s ongoing PoCs and one design-in • Increasing number of c
Slide 26: 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 27: Promising pipeline
Promising pipeline Design-win Project Completed PoC Ongoing PoC Planning PoC Consumer 4 (4) 0 (0) 34 (33) 5 (5) 10 (11) Augmented Reality 2 (2) 5 (4) 12 (12) 11 (6) 12 (15) Industrial 5 (5) 0 (0) 27 (20) 15 (16) 9 (11) Other (medical, automotive) 1 (1) 2 (2) 5 (5) 20 (16) 10 (11) 12 (12) 7 (6) 78 (7
Slide 28: Financial review
Financial review 28 Second quarter 2023 - Earnings presentation
Slide 29: Key financials
Key financials Income statement Balance sheet summary (in NOK million) Q2 2023 Q2 2022 FY 2022 (in NOK million) Q2 2023 Q2 2022 FY 2022 Revenue 7.2 2.5 13.4 Intangible assets 21.2 28.5 24.9 Cost of sales -3.5 -0.7 -4.8 Inventories 66.3 30.5 45.6 Research and development expenses -8.7 -7.9 -32.9 Cash
Slide 30: Cash Flow
Cash Flow Q2 2023 cash flow development • Q2 cash used in operating activities was NOK 25.9 million, compared with NOK 22.8 million in Q2 2022 (NOK million) • The rights issue gave NOK 125.8 million in net 125.6 0.0 153.2 proceeds • Q2 net increase in cash was NOK 99.6 million 53.6 -25.9 -0.0 Cash a
Slide 31: Outlook
Outlook 31 Second quarter 2023 - Earnings presentation
Slide 32: Outlook
Outlook • The company will continue to emphasise on the consumer market. • The consumer market is currently challenging and there are no signs of improvement in the short term. • poLight will continue to address this market by actively capitalising on its first important smartphone reference. • Focu
Slide 33: Outlook, cont.
Outlook, cont. • AR will be a key market for poLight going forward. • Good match between market need and the properties of the TLens®, and potentially also the TWedge® at a later stage. • Volumes for AR/VR cases are still low, since the majority of the applications relate to the enterprise market. •
Slide 34: Q&A
Q&A NEXT EVENT; • Q3-23 Report 2 November 2023 34 Second quarter 2023 - Earnings presentation
Slide 35: Appendix
Appendix 35 Second quarter 2023 - Earnings presentation
Slide 36: 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 37: 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 38: Statement of income
Statement of income NOK 000 Note Q2 2023 Q2 2022 YTD 2023 YTD 2022 FY 2022 Sa l e of goods 7 192 1 935 14 112 3 407 10 034 Renderi ng of s ervi ces 0 591 201 591 3 328 Revenue 7 192 2 526 14 313 3 998 13 363 Cos t of s a l es -3 496 -746 -7 695 -1 431 -4 826 Gross profit 3 696 1 780 6 618 2 566 8 53
Slide 39: Balance sheet
Balance sheet NOK 000 ASSETS Note Q2 2023 Q2 2022 FY 2022 Property, pl a nt a nd equi pment 10 349 6 498 10 748 Intangi bl e a s s ets 8 21 218 28 492 24 855 Ri ght-of-us e a s s ets 3 327 4 247 3 871 Total non-current assets 34 893 39 237 39 474 Inventori es 66 281 30 496 45 577 Tra de a nd other r
Slide 40: Cash flow
Cash flow NOK 000 Operating activities Note Q2 2023 Q2 2022 YTD 2023 YTD 2022 FY 2022 Profit / loss (-) for the period -20 315 -17 259 -36 347 -38 152 -67 644 Adjustments for: Depreciation of property, plant and equipment and right-of-use assets 496 437 911 856 1 877 Amortisation of intangible asset