Slide 1: Q2 2022 Earnings Call
Q2 2 0 22 Earni n gs Call August 11, 2022 2022 - 08 - 11 1 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON)
Slide 2: Today's Presenters
Today’s Presenters U rb an F o rssell CEO 2022 - 08 - 11 2 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) Fr edrik Nihlén CFO
Slide 3: Legal Disclaimer
Legal Disclaimer 2022 - 08 - 11 3 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) This presentation contains, and related oral and written statements of Neonode Inc. (the “Company”) and its management may contain, forward - looking statements within the meaning of the Private Securities Liti
Slide 4: Agenda
A g enda 2022 - 08 - 11 4 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 1. Q2 2 0 22 Fin a n c i a l R e s u lts 2. Stra tegy a nd Business Update 3. Conc l uding Re marks 4. Q&A N e onod e I n c . Q2 20 2 2 | A u g u st 1 1 , 20 2 2
Slide 5: Q2/'22 Financial Results – Revenues
$1.3 million Revenue Total Q2, 2022 但 26 % Y oY $0.2 million R e v e n u e Pr o d u ct s Q2, 2022 但 39 % Y oY 1,400 1,200 1,000 800 600 400 200 0 A M E R A P A C EM E A A M E R APAC E M E A A M E R APAC EM E A A M E R APAC EM E A A M E R APAC EM E A A M E R APAC EM E A A M E R APAC EM E A A M E R AP
Slide 6: Q2/'22 Financial Results – Gross Profit/Margin
Q2/’22 Financial Results – Gross Profit/Margin 6% GM Products Q2, 2022 似 17pp YoY - 25 0 % - 20 0 % - 10 0 % - 50% 0% 50% 100% - 200 - 100 - 150 - 150% 200 150 100 50 0 - 50 Q 1 - 20 Q 2 - 20 Q 3 - 20 Q 4 - 20 Q 1 - 21 Q 2 - 21 Q 3 - 21 Q 4 - 21 Q 1 - 22 Q 2 - 22 T h o us a nd s Gross Profit/Margin
Slide 7: Q2/'22 Financial Results – Operating Expenses
Q2/’22 Financial Results – Operating Expenses $2.8 million O p e r a t i n g E x p e n s e s Q2, 2022 但 14 % Y oY - 3 ,000 - 3 ,500 2022 - 08 - 11 7 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) - 2 ,500 - 2 ,000 - 1 ,500 - 1 ,000 - 500 0 Q 1 - 20 Q 2 - 20 Q 3 - 20 Q 3 - 21 Q 4 - 21 Q 1 -
Slide 8: Q2/'22 Financial Results – Cash
Q2/’22 Financial Results – Cash $2.9 million Net Cash Burn O p e r a t i n g A ct i v i t i e s Q2, 2022 似 29 % QoQ $13.5 million Cash and Accounts Receivables June 30, 2022 但 5.0 Million Dec. 3 1 ,20 2 1 - 3 ,000 - 3 ,500 2022 - 08 - 11 8 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) - 2
Slide 9: Agenda
A g enda 2022 - 08 - 11 9 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 1. Q2 2 0 22 Finan c ial R e sults 2. Str ateg y a n d B u siness Up d ate 3. Conc l uding Re marks 4. Q&A N e onod e I n c . Q2 20 2 2 | A u g u st 1 1 , 20 2 2
Slide 10: Business Strategy: Technology Licensing and Product Sales
Business Strategy: Technology Licensing and Product Sales INTERACTIVE KIOSKS ELEVATORS PRI N TER AUTOMOTIVE T A R GET S E GM E N TS B US I N E SS M O D ELS PRODUCT SALES TECHNOLOGY LICENSING C U S T O M ER OFFERI NGS TOUCH SENSOR MODULES (ZFORCE) ZFORCE MULTISENSING 2022 - 08 - 11 10 © Neonode 2001
Slide 11: 3-step Approach for Growth
3 - step Approach for Growth 3 In v es tments i n to mar ket ing an d sa l e s Expansion of pa r tn e r network Sca l ing b u sines s i n k e y markets Expanding c u st omer off e r in g s an d inc r e as ing ve rtic a l inte g r a t ion O u ts o u r c ing TSM production Expanding b u sines s sco pe
Slide 12: Growth Potential Per Revenue Stream
Growth Potential Per Revenue Stream Continue to offer engineering services to facilitate new licensing businesses and to support and drive product sales License R e v en u e s Product R e v en u e s NRE Revenues 2021 → 2022 → 2023 → Existing business with more than a dozen customers, mainly printer
Slide 13: Neonode Touch Sensor Modules
Neonode Touch Sensor Modules Standardized COTS products featuring zForce Reflective technology 374mm 1 0 1 m m 2022 - 08 - 11 13 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON)
Slide 14: Contactless Touch Solutions
Contactless Touch Solutions Two ways to go with our Touch Sensor Modules! Parallel plane solution Touch interaction area hovering above or in front of a display or surface Holographic solution Touch in t er acti o n o n an i n - air displ ay 2022 - 08 - 11 14 © Neonode 2001 - 2022 · www.neonode.com
Slide 15: Contactless interface example: parallel plane approach
Example of contactless interface using the parallel plane approach: 2022 - 08 - 11 15 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) Contactless check - in and bagage drop kiosks at Hamad Airport Retrofit solution developed and installed by Happymeter
Slide 16: Example of holographic display interfaces
Example of holographic display interfaces: Contactless medical carts and patient monitors Launched by Holo Industries 2022 - 08 - 11 16 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON)
Slide 17: Other Application Examples
Other Application Examples • Self - Ordering Kiosks • Vending Machines • Coffee Machines • Digital Signage • Point - of - Sale Terminals • Ticketing Machines • Feedback Terminals • Elevators 2022 - 08 - 11 17 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON)
Slide 18: Communication Framework
Communication Framework We Transform the Way Humans Interact with Machines • Pas s e ng e r T e r m i na l E x p o • H a ma d Na med W o r ld ’ s Best A i rpor t 202 2 • New V A R Ag r ee ment w i th M Z announcement • 7 - E l e v e n g o e s H o lo g r a p h i c i n Japan • 7 - E l e v e n Press R
Slide 19: Transportation
Transportation 2022 - 08 - 11 19 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) Strong focus on the Aviation Sector, specifically, people movement in airports.
Slide 20: Passenger Terminal Expo
Passenger Terminal Expo 2022 - 08 - 11 20 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON)
Slide 21: Passenger Terminal Expo, Paris, June
Passenger Terminal Expo, Paris, June 15 - 17 De whu r s t Neonode Merim Happy Meter Image Holders MZ Technologie New Pitches 2022 - 08 - 11 21 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) Ink Aviation The World’s Biggest Airport Conference & Exhibition
Slide 22: Neonode Extends VAR Agreement with MZ Technologie to Access the Middle East
Neonode Extends VAR Agreement with MZ Technologie to Access the Middle East 2022 - 08 - 11 22 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON)
Slide 23: Automotive
Automotive 2022 - 08 - 11 23 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) Product releases for the Automotive Industry: Advanced Driver Distraction Warning Systems and Object Detection for Head - up Displays.
Slide 24: Agenda
A g enda 2022 - 08 - 11 24 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 1. Q2 2 0 22 Finan c ial R e sults 2. Stra tegy a nd Business Update 3. C o n c luding Remarks 4. Q&A N e onod e I n c . Q2 20 2 2 | A u g u st 1 1 , 20 2 2
Slide 25: Concluding Remarks
Concluding Remarks 2022 - 08 - 11 25 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) • Sale s and resu l ts f or Q2 bel o w expect a t i ons o C O V I D - 1 9 re la t ed l o c k - d o wns o Semiconductor shortage affecting our customers o Long sales cycles, long development cycles, protracte
Slide 26: Agenda
A g enda 2022 - 08 - 11 26 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON) 1. Q2 2 0 22 Finan c ial R e sults 2. Stra tegy a nd Business Update 3. Conc l uding Re marks 4. Q&A N e onod e I n c . Q2 20 2 2 | A u g u st 1 1 , 20 2 2
Slide 27: Thank you
info@neonode.com neonode.com Subsc r ibe to N e o node n e w s let t e r Thank you. 2022 - 08 - 11 27 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON) 2022 - 08 - 11 27 © Neonode 2001 - 2022 · www.neonode.com · Nasdaq (NEON)
Slide 28: Appendix
Appe n dix 2022 - 08 - 11 28 © Neonode 2001 - 2021 · www.neonode.com · Nasdaq (NEON)
Slide 29: Non-GAAP Financial Measures
Non - GAAP Financial Measures In addition to presenting our financial results in accordance with accounting principles generally accepted in the United States (“GAAP”), we use adjusted gross margin to measure our financial performance. We define adjusted gross margin as gross margin excluding AirBar