Slide 1: Investor's Presentation for Q3 2020
INVESTOR’S PRESENTATION FOR Q3 2020 XTPL S.A. November 26, 2020 xtpl.com
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Slide 3: Agenda
AGENDA 1. 2. 3. 4. EQUITY STORY APPLICATIONS TECHNOLOGY COMMERCIALIZATION 5. 6. 7. 8. EVENTS FINANCE TEAM VISION xtpl.com 3
Slide 4: Equity Story
EQUITY STORY XTPL develops the most precise printing technology in the world applicable in the rapidly growing printed electronics market. Value of printed electronics market in 2019 $ 37,1 mld Global value of printed, flexible and $ 74 mld organic electronics market in 2030 Number of application fi
Slide 5: Applications Platform Character
APPLICATIONS PLATFORM CHARACTER • The global value of printed, flexible and organic electronics market amounted to $ 37.1 billion in 2019 ADVANCED ELECTRONICS • Its estimated value in 2030 is $74 billion • CAGR 2019–2030 – 6.5% Production of technologically advanced devices using STRONG MEGATREND co
Slide 6: Technology Breakthrough
TECHNOLOGY BREAKTHROUGH XTPL’s nanoprinting method is ground-breaking. This is because of a unique combination of several features: it offers the level of precision it allows for the traditional additive method it does not require electric field, that cannot be achieved by any advantages of print –
Slide 7: Additive vs Subtractive Method
TECHNOLOGY ADDITIVE VS SUBTRACTIVE METHOD APPLICATION TIME AND COSTS ENVIRONMENT SUBSTRATE ADDITIVE Precise application/ simple process Effective and flexible Safe for the environment Most substrates/ even curved ones SUBTRACTIVE Removal of unnecessary material to Time and material consuming Require
Slide 8: Ultra Precise Deposition (UPD) Method
TECHNOLOGY ULTRA PRECISE DEPOSITION (UPD)® METHOD • Pressure based direct writing In-house parallel development of • Dedicated high-viscosity inks • Nano-ink synthesis • Flexible glass nozzle • Nozzle preparation • Process optimisation • Purely additive • No electric field required xtpl.com 8
Slide 9: Problem
TECHNOLOGY PROBLEM Subtractive methods suffer from: • limited flexibility HIGH- FINE • high complexity VISCOSITY FEATURES INKS • time consuming and costly Existing additive methods suffer from: • low resolution (tens of um) HIGH-DENSITY CONDUCTIVE STRUCTURES • fine features require application of el
Slide 10: Others
TECHNOLOGY OTHERS xtpl.com 10
Slide 11: XTPL Ultra-Precise Deposition (UPD) – capabilities
TECHNOLOGY XTPL ULTRA-PRECISE DEPOSITION (UPD) – capabilities Microlines Microdots Microtrails Meshes xtpl.com 11
Slide 12: UPD Technology - Microdots
TECHNOLOGY UPD® TECHNOLOGY - MICRODOTS ~ 13 μm 25 μm Silver microdots with diameter of around 13 μm and height of 3 μm were deposited on the glass using XTPL Ag paste (CL85) and XTPL Ultra-Precise Deposition. 2.8μm Height xtpl.com 12
Slide 13: XTPL Ultra-Precise Deposition (UPD) – capabilities
TECHNOLOGY XTPL ULTRA-PRECISE DEPOSITION (UPD) – capabilities Step coverage Repeatable and continuous silver lines with a width of 4 μm printed on the series of steps with the height of 15 μm. xtpl.com 13 Confidential
Slide 14: XTPL Ultra-Precise Deposition (UPD) – capabilities
TECHNOLOGY XTPL ULTRA-PRECISE DEPOSITION (UPD) – capabilities Step coverage Repeatable and continuous silver lines with a width of 15 μm printed on the step with the height of 150 μm. xtpl.com 14 Confidential
Slide 15: XTPL Ultra-Precise Deposition (UPD) – capabilities
TECHNOLOGY XTPL ULTRA-PRECISE DEPOSITION (UPD) – capabilities Print time on the step Repeatable and continuous 8 μm width silver lines printed on 12 μm high step, for which the print time has been optimized and now is less than 1s xtpl.com 15
Slide 16: Technology XTPL Ultra-Precise Deposition (UPD)
TECHNOLOGIA TECHNOLOGY XTPL ULTRA-PRECISE DEPOSITION (UPD) Open Defect Repair on OLED devices Repeatable and continuous 1.5 μm width and 20 μm length silver lines printed on OLED substrates xtpl.com
Slide 17: S/D Metal Layer for Printed Displays
TECHNOLOGY S/D MATEAL LAYER FOR PRINTED DISPLAYS Array of S/D metal layer for printed FPD 1 cm 1 cm 7 500 segments for trasistors 150 electrodes 100 um xtpl.com 17
Slide 18: S/D Metal Layer for Printed Displays
TECHNOLOGY S/D MATEAL LAYER FOR PRINTED DISPLAYS Array of 7 500 TFT on glass for printed FPD Lines width: 4 μm xtpl.com 18
Slide 19: Positive Photoresist Printing
TECHNOLOGY POSITIVE PHOTORESIST PRINTING POSITIVE PHOTORESIST AR-P 3110 PARAMETERS Solid 28 % content Viscosity 12 cP 50 μm 2 μm 100 μm 200 μm xtpl.com 19
Slide 20: Entry Barriers
TECHNOLOGY ENTRY BARRIERS 1. 2. 3. Technology protected by The results expected by the The cost of the technology international patent market can only be achieved being copied and the risk of applications by the unique interaction failure are very high due to its between the device, the unique natur
Slide 21: Protected Intellectual Property
TECHNOLOGY PROTECTED INTELLECTUAL PROPERTY XTPL global solution is systematically secured by expanding the patent cloud. The company has already submitted 18 patent applications. Unique and well-protected intellectual property • is a product • determines the company's market position • significantly
Slide 22: Commercialization Business Model
COMMERCIALIZATION BUSINESS MODEL LICENSING • the company develops technological solution dedicated to a particular application field and license it to a partner • on its basis, the partner builds devices that allow the technology to be used in the industry • the company generates revenues from one-o
Slide 23: Commercialization Business Model – Phases
COMMERCIALIZATION BUSINESS MODEL– PHASES LONG-TERM MID-TERM Licensing NOW and ink selling Research & Development Rapid Prototyping Development of the underlying technology Technology evaluation by industrial clients and academic R&D centers xtpl.com 23
Slide 24: Commercialization Delta Printer
COMMERCIALIZATION DELTA PRINTER User groups The added value of cooperation R&D departments in industry • Validation of XTPL technology at the customer's site • Increasing awareness of the XTPL technology • Discovery of new application fields Scientific Institutions • Discovery of new application fie
Slide 25: Commercialization Pipeline
COMMERCIALIZATION PIPELINE LICENCE / STRATEGIC PARTNERSHIP DELTA PRINTING SYSTEM • ACTIVE PROJECT WITH 9 INDUSTRIAL ENTITIES FROM AROUND THE WORLD • INDUSTRIES: DISPLAY, LIGHTING, SEMICONDUCTORS, BIOSENSORS, SMART GLASS • TECHNOLOGY EVALUATION ON DIFFERENT LEVELS • MORE THEN 150 PROSPECTS • TALKS AN
Slide 26: Commercialization Nanoinks Pipeline
COMMERCIALIZATION NANOINKS PIPELINE RANGE OF INKS COMPATIBLE WITH THE TECHNOLOGY: • XTPL inks are currently being tested in many R&D units IN ADDITION: in Europe • SEPARATE SALES TEAM • XTPL develops ink formulations dedicated to established and • SUBPAGE ON THE WEBSITE industrially emerging markets
Slide 27: Events: Successfully Completed Financial Round
EVENTS SUCCESSFULLY COMPLETED FINANCIAL ROUND JULY 2020 • XTPL acquired PLN 9.25 million as a result of shares issue. • the Company acquired also the bonds in the maximum possible pool of PLN 3.6 million • overall, the Company’s proceeds from the issue of shares and bonds are PLN 12.85 million • the
Slide 28: Events: Significant Shareholders of XTPL
EVENTS SIGNIFICANT SHAREHOLDERS OF XTPL AUGUST 2020 • Rockbridge Towarzystwo Funduszy Inwestycyjnych S.A. exceeded the 5% threshold in the total number of votes at the Company's General Meeting • the increase in the total number of votes in the Company is a result of the acquisition by the Funds of
Slide 29: Events: MainFirst Report
EVENTS MAINFIRST REPORT SEPTEMBER 2020 • German MainFirst Bank AG from the Stifel Group recommends “BUY” with regards to XTPL and valued the company share at a PLN 210 price target • XTPL is the first Polish company covered by MainFirst • MainFirst recognizes that the first tangible results in the c
Slide 30: Events: Expansion of the Patent Portfolio
EVENTS EXPANSION OF THE PATENT PORTFOLIO 1 new patent applications submitted in Q3 2020 Q3 • Patent application submitted in Q3 2020 allows using XTPL method for 2020 high-resolution printing on complex topographies, typical for novel microelectronic devices, such as next-generation microLEDs s and
Slide 31: Update: COVID-19 – Impact on XTPL
UPDATE COVID-19 – IMPACT ON XTPL MARKET IMPACT IMPACT ON INTERNAL ACTIVITIES • the Company is well prepared internally for remote work. Technological • XTPL activities and target markets are not among the activities are executed continuously in our labs under appropriate safety ones which are heavil
Slide 32: Events After Q3: New Member of the Supervisory Board
EVENTS AFTER Q3 NEW MEMBER OF THE SUPERVISORY BOARD NOVEMBER 2020 • on November 5 Andrzej Domański, economist, financial market analyst with extensive experience in managing stock exchange funds, joined the Supervisory Board of XTPL S.A. • Andrzej Domański is the Deputy Chairman of the Supervisory B
Slide 33: XTPL Will Deliver Its Delta Printing System to University of Stuttgart
XTPL WILL DELIVER ITS DELTA PRINTING SYSTEM TO EVENTS AFTER Q3 UNIVERSITY OF STUTTGART NOVEMBER 2020 • XTPL signed its first commercial contract for deliver XTPL® Delta printer with the globally recognized Institute for Large Area Microelectronics at the University of Stuttgart (Institut für Großflä
Slide 34: Selected Cash Flow
FINANSE DANE FINASOWE WYBRANE CASH FLOW * figures in EUR thousand Net cash flows from financial activities Net cash flows from operating activities Net cash flows from investing activities xtpl.com 34
Slide 35: Selected Balance Sheet Structure
FINANSE DANE FINASOWE WYBRANE BALANCE SHEET STRUCTURE * figures in EUR thousand xtpl.com 35
Slide 36: Selected Result
FINANSE DANE FINASOWE WYBRANE RESULT Q3 2020 without ESOP including ESOP Revenue from sales 473 473 Research and development expenses 479 568 Gross profit (loss) -6 -95 General and administrative expenses 1 040 1 396 Other operating income and expenses 40 40 Operating profit (loss) -1 007 -1 451 Fin
Slide 37: Selected Shareholding Structure
FINANCE WYBRANE SHAREHOLDING STRUCTURE Number of shares = Number of votes LP SHAREHOLDER NUMBER OF SHARES HELD % SHARE % of shares = % of votes 1. Filip Granek 315,998 15.57 2. Sebastian Młodziński 285,696 14.08 Leonarto VC spółka z ograniczoną odpowiedzialnością sp.k. 3. 202,894 9.99 (formerly Leon
Slide 38: Supervisory Board in Poland and Board in USA
TEAM XTPL SUPERVISORY BOARD IN POLAND AND MANAGEMENT MILESTONES / KPI BOARD IN USA WIESŁAW ROZŁUCKI HERBERT WIRTH CHAIRMAN OF THE SUPERVISORY BOARD SUPERVISORY BOARD MEMBER Co-founder and former president of the Former President of the Management Board of Warsaw Stock Exchange KGHM S.A. He has vast
Slide 39: Team: XTPL Milestones / KPI
TEAM XTPL MILESTONES / KPI Filip Granek Jacek Olszański MANAGEMENT BOARD, MANAGEMENT BOARD Currently 30 people in Poland and the United States CEO MEMBER TECHNOLOGY BUSINESS an interdisciplinary, well-balanced business leaders & highly skilled team with advanced knowledge & professionals who possess
Slide 40: Vision
VISION VISION In the near future, we will print displays, solar cells, biosensors and other advanced elements just as cheaply and quickly as we print newspapers or books today. This is not just a vision any more. With XTPL nanoprinting technology, this is a fast approaching reality! xtpl.com 40
Slide 41: Thank You
XTPL S.A. Stabłowicka 147 54-066 Wrocław, Poland xtpl.com THANK YOU
Slide 42: Disclaimer
DISCLAIMER This presentation has been prepared by XTPL S.A. (“Company”) for the sole purpose of giving an introduction on the business of the Company. The presentation: • has selected information; it does not give a comprehensive description of business or financial analysis of the Company; • is not