Rockley Photonics Holdings Ltd
Rockley Photonics — SPAC Merger (June 2021)
46 slides from Rockley Photonics's SPAC merger presentation, June 2021
Slide 1: Investor Presentation June 2021
Investor Presentation June 2021 1
Slide 2: Notice to Recipient
Notice to Recipient This investor presentation (“Investor Presentation”) is strictly private and confidential and is intended solely for the information of the Recipients. It is not an invitation for public subscription and should not be reproduced or circulated or used for any purpose other than as
Slide 3: Notice to Recipient (Cont'd)
Notice to Recipient (Cont’d) This Investor Presentation does not contain all material information concerning SC Health, Rockley Photonics or any parent company of either company, or any securities of any such entity, and the information set forth in this document is subject to change without notice.
Slide 4: Presenters
Presenters Dr. Andrew Rickman, OBE(1) Mahesh Karanth Ciaran Rooney AJ Coloma Founder, CEO and Chairman, CFO, Rockley Photonics VP, Corporate Development Chief Executive Officer, SC Health Rockley Photonics Founder & CEO of Bookham, CFO, Enlighted Senior Associate, Cooley Managing Director, S
Slide 5: SIN Capital is a Premier Multi-Asset Investment Firm
SIN Capital is a Premier Multi-Asset Investment Firm with an Extensive Track Record of Value Creation Pan-Asia Multi-asset Investment Firm with a Proven Investor, Business Builder, Owner and Operator Differentiated Investment Approach Across the Healthcare Value Chain Private Real SC Health Corp.
Slide 6: Transaction Overview
Transaction Overview Pro Forma Valuation ($M) Sources & Uses ($M) Pro Forma Equity Value $1,448 Sources of Funds Expected Net Cash at Closing (29) IPO Proceeds Held in Trust, Net of Redemptions(4) $94 Transaction Proceeds (198) PIPE Equity Placement Proceeds(6) 150 Pro Forma Firm Value $1,220 Rockle
Slide 7: Agenda
Agenda Rockley Photonics Overview Investment Highlights Business Details Financial Overview 7
Slide 8: Rockley Photonics at a Glance
Rockley Photonics at a Glance Rockley has developed a unique sensing platform targeting applications in consumer Unique Spectrometer Chip health and wellness driving an exponential increase in application capabilities for non- invasive, multi-modal biomarker monitoring Improved Up to 1,000,000x
Slide 9: Rockley's Unique Technology Solution
Rockley’s Unique Technology Solution Rockley Spectra-Sense Module Optical Sensing Frontside Electrical Interface Backside 1 3 1 Infrared 3 Electronic Pin Contacts Photonic 4 Integrated Circuits 2 Visible Spectrum 2 4 ASIC Controller, MUX, AFE, Drivers Rockley’s proprietary clinic-on-the-wrist module
Slide 10: Actionable Insights from Nutrition to Health
Actionable Insights from Nutrition to Health 8:32pm SAT 2/13 Rockley enables continuous health and wellness monitoring of multiple biomarkers, paving the way for nextgen consumer electronics 10
Slide 11: The Full-Stack Rockley Platform
The Full-Stack Rockley Platform Photonic Integrated Electronic Circuits in Integrated Silicon with Circuits Integrated III-V (ASICs) Biosensing The Full Stack Photonic + Algorithms and Electronic AI Cloud Rockley Co-Packaging Analytics Platform System Firmware / Architecture & Software Hardware Desi
Slide 12: Rockley's Commercialization Roadmap
Rockley’s Commercialization Roadmap Near-Term Commercial Additional Avenues Immediate Focus Opportunity for Growth Health and Wellness MedTech Data Center Connectivity Optical transceivers Machine Vision Robotic and automotive Lidar Current commercial focus of the company and Offers AI / cloud a
Slide 13: Rockley's Objective is to Play a Pivotal Role in The Next Frontier
Rockley’s Objective is to Play a Pivotal Role in The Next Frontier of Consumer Devices and Health and Wellness “I really believe… that if you zoom out to the future and then look back and ask, ‘What “Amazon is building a ‘health & wellness’ has Apple's greatest contribution been?’ it team within Ale
Slide 14: Agenda
Agenda Rockley Photonics Overview Investment Highlights Business Details Financial Overview 14
Slide 15: Investment Highlights
Investment Highlights 1 Massive Consumer Health Market Opportunity: Significantly increased consumer focus on health and wellness – smart wearable technology rapidly proliferating with emerging monitoring capabilities 2 Industry-Revolutionizing Technology Platform: Unique, differentiated and IP prot
Slide 16: Massive Emerging Market Opportunity with Compelling Healthcare Technology Need
1 Massive Emerging Market Opportunity with Compelling Healthcare Technology Need $48B+ TAM in 2025 Near Term Target Markets Large market opportunity as growing universe of healthcare monitoring devices incorporate additional sensing capabilities Devices Wearables Smartphones Blood pressure monitor,
Slide 17: The Emerging Healthcare Need Is Driving a Massive Opportunity
1 The Emerging Healthcare Need Is Driving a Massive Opportunity Strong market demand and societal growth trends… …are unmet by existing technology Health & Wellbeing Awareness Chronic Conditions & Diseases Current Technology Solutions(1) Increasing consumer focus Growing need for costly chronic
Slide 18: The Rockley Solution: Multi-Function Clinic-on-the-Wrist Capability
2 The Rockley Solution: Multi-Function Clinic-on-the- Wrist Capability Current Smartwatch Technology Rockley’s Multi-Function Clinic-on-the-Wrist Capability ✘ Limited sensor capabilities Heart Rate & Single sensor for multi- ECG ✘ Legacy LED technology modal biochemical / Blood biophysical marker
Slide 19: Validated by Leading Blue-Chip Customers
3 Validated by Leading Blue-Chip Customers Illustrative Health and Wellness Pipeline Illustrative MedTech Pipeline 100+ Identified as Potential Target 47 Started Discussions 21 Entered into Due Diligence Proceeded to Contract 12 Negotiations Engaged or Contracted Represents >55% of smartphone and >5
Slide 20: Capex-light and Scalable Manufacturing Model
4 Capex-light and Scalable Manufacturing Model Running proprietary process wholly-owned by Rockley and protected by IP High-Volume IC / Wafer Foundry High-Volume III-V Semiconductor Foundry Silicon Photonic Integrated Circuits and III-V Semiconductor Active Optics Wafer Scale Integration Auto, Con
Slide 21: Multiple Avenues for Further Growth and Upside
5 Multiple Avenues for Further Growth and Upside Health and Wellness Revenue Projections 2020A-2024E ($M) Avenues for Growth Beyond Consumer Health Medical Device and 1,125 Predictive Analytics 426 Data Center Machine Connectivity Vision JV with Hengtong 79 Group 27 Others Computer Advanced Sensing
Slide 22: World Class Management Team
6 World Class Management Team with Track Record of Leading Public Technology Companies Executive Team Dr. Andrew Rickman, OBE(1) Mahesh Karanth Amit Nagra Founder, CEO and Chairman Chief Financial Officer Chief Operating Officer Founder & CEO of Bookham, CFO, Enlightened EVP Operations, Source
Slide 23: Agenda
Agenda Rockley Photonics Overview Investment Highlights Business Details Financial Overview 23
Slide 24: Evolution of Rockley's Cutting-Edge Technology Platform
Evolution of Rockley’s Cutting-Edge Technology Platform Founded by Andrew Rickman – Established TopangaTM World’s First Ahren Innovation Morningside Advanced Sensing based on 30 years of experience deep OptoASIC Demonstrated Capital invests Ventures Platform Completed with a unique, versatile photon
Slide 25: Product Development and Commercial Roadmap
Product Development and Commercial Roadmap RP End-Product 2021 2022 2023 2024 2025 Item Offering Form Factor H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 • High volume Pre-alpha samples Commercial launch & volume ramp Chipset consumer product Gen. 1 Gen. 2 Gen. 3 Gen. 4 • Hearable Basic • Low-end smart Pre-alpha s
Slide 26: Product Applications in Wellness & Healthcare
Product Applications in Wellness & Healthcare Basic Module Applications Advanced Module Applications Rockley Full Feature Devices PPG Extended IR Spectroscopy Sensor Fusion Visible & IR Spectroscopy Advanced Algorithms Cloud-based Big Data / Machine-Learning Continuous Blood Carbon Healt
Slide 27: Rockley's Module Has the Broadest Biomarker Detection Capabilities
Rockley’s Module Has the Broadest Biomarker Detection Capabilities HR / HRV Pulse Oximetry BP Biomarkers Detection Breath rate Body temp Body hydration Blood flow Hemoglobin Constituent Blood alcohol Lactate
Slide 28: Engagement with Blue Chip Mobile OEMs Validate the Commercial Opportunity
Engagement with Blue Chip Mobile OEMs Validate the Commercial Opportunity of Rockley’s Module Projected Revenue ($M) $124 Long standing development and supply agreement Company A Over $70M committed to date $307 $124 Strong smart phone channel, common investor in Rockley Company B $238 MOU a
Slide 29: Consumer Health Commercial Opportunity Underpinned by a Massive Market
The Consumer Health Commercial Opportunity is Underpinned by a Massive Market Total Serviceable Available Market(1)(2) (in $B) Penetration Sensitivities Analysis for 2024E Revenue(2) (in $M) 2,817 32 29 30 28 30 27 1,972 29 25 3 3 3 1,409 2021E 2022E 2023E 2024E 1,125 Wearables Smart Phones ’s Marke
Slide 30: Impacting Disease Prevention and Management by Partnering with MedTech
Impacting Disease Prevention and Management by Partnering with MedTech Companies Diabetes Cardiovascular US Prevalence of Major Diseases(1) Continuous Glucose Monitoring Wearable Biosensing Technology 45 CKD Flu Diabetes Heart 40 Cancer 35 Liver 30 US Prevalence (M) Cancer Covid-19 Kidney Asthma 25
Slide 31: Module Can Detect Numerous Critical Biomarkers
Rockley’s Module Can Detect Numerous Critical Biomarkers to Assist Disease Detection & Management Coronary Chronic Diabetes Covid-19 Arterial Disease Kidney Disease Many Other Albumin Diseases: Urea Creatinine Glucose Lactate Asthma Cirrhosis Core body temp COPD Hep C Hydration
Slide 32: Hard-to-Replicate Strengths Creating a Competitive Moat
Rockley Benefits from Several Hard-to-Replicate Strengths Creating a Competitive Moat Robust Patent Portfolio Covering Technology & Process Complexity Numerous Domains • End-to-end control over design, manufacturing • 134 issued patents and packaging process, algorithms and software • 274 pending ap
Slide 33: Global Development & Manufacturing Ecosystem
Global Development & Manufacturing Ecosystem UNITED KINGDOM FINLAND SAN JOSE, USA Corporate HQ Silicon photonics Commercial III-V and SiPh Process technology product engineering process engineering PASADENA, USA Engineering HQ SiPh/III-V & IC design UK / Europe process, packaging, IRELAND and operat
Slide 34: Agenda
Agenda Rockley Photonics Overview Investment Highlights Business Details Financial Overview 34
Slide 35: Total Revenue Outlook
Total Revenue Outlook (Revenue in $M) NRE-driven revenue Chipset and Module ramp-up $1,125 Prior to 2022, revenue is 285 mostly driven by NRE 115 Significant revenue increase 180 from 2023 onwards, on the back of commercial adoption $426 by consumer technology 37 238 manufacturers 55 86 124 307
Slide 36: P&L Outlook
P&L Outlook (in $M) FY 2020A FY 2021E FY 2022E FY 2023E FY 2024E 1 Revenue growth accelerates in 2023E as commercial sensor delivery ramps up 1 Revenue 20.6 27.5 78.6 426.5 1,125.1 % YoY Growth 0.6% 33.1% 186.5% 442.3% 163.8% Gross and EBITDA margins 2 expand as efficiencies from 2 Gross Profit
Slide 37: Improved Growth and Margins Post-Commercialization
Improved Growth and Margins Post-Commercialization Number of Expected Customers(1) Market Penetration(2) (%) Revenue Growth (%) 9 278% 21% Increased 7 Growth 95% Potential 1% 2022E 2024E 2022E 2024E 20A-22E CAGR 22E-24E CAGR Product Margin(3) (%) Gross Margin (%) EBITDA Margin (%) 55% 57% 53% Higher
Slide 38: Public Peer Operational Benchmarking
Public Peer Operational Benchmarking Revenue CAGR CY2022E-CY2024E CY2020E-CY2022E Median: 95.8% Median: 14.3% Median: 21.6% 278.3% Mean: 115.4% Mean: 13.9% Mean: 35.3% 216.6% 184.6% 145.7% 95.8% 119.1% 74.2% 64.5% 52.7% 48.3% 26.1% 23.4% 22.9% 21.6% 20.3% 17.2% 15.3% 13.2% 14.6% 10.7% 11.3% 7.3% 3.6
Slide 39: Valuation Benchmarking
Valuation Benchmarking EV / Revenue EV / CY2024E Revenue EV / CY2022E Revenue Median: 6.3x Median: 3.0x Median: 10.4x Mean: 7.8x Mean: 3.7x Mean: 11.8x 21.1x 19.3x 16.6x 14.7x 13.1x 10.4x 10.3x 9.2x 8.5x 6.8x 7.1x 6.3x 6.5x 6.0x 5.7x 5.1x 3.2x 2.8x 3.1x 2.9x 2.6x 1.1x 1.2x (1) (1)(2) (1) ___________
Slide 40: Transaction Priced at Highly Conservative Entry Valuation
Transaction Priced at Highly Conservative Entry Valuation Conservative Entry Valuation Implied Downside Protection Based on Target 20% Return Rockley’s $1.2B pro forma enterprise value Key Assumptions: implies a ~1.1x EV / 2024E revenue Entry EV: $1,220m Required IRR: 20% Semiconductor peers
Slide 41: Thank You
Thank ; er ae . Pos ASE You 41
Slide 42: Appendix
Rockley* PHOTONICS Appendix
Slide 43: Historical P&L and 4-Year Outlook
Historical P&L and 4-Year Outlook (in $M) FY 2020A FY 2021E FY 2022E FY 2023E FY 2024E Product Revenue 0.0 0.0 15.8 426.5 1125.1 Sample revenue & NRE Revenue 20.6 27.5 62.9 0.0 0.0 Total Revenue 20.6 27.5 78.6 426.5 1125.1 % YoY Growth 0.6% 33.1% 186.5% 442.3% 163.8% COGS 16.9 24.1 57.9 192.3 529.6
Slide 44: Comparable Companies
Comparable Companies Share % of 52 Enterprise Revenue Growth Gross Profit Margin EBITDA Margin t EV / Revenue EV / EBITDA Market Cap Company Price Wk High Value CY21E CY22E CY21E CY22E CY21E CY22E CY21E CY22E CY21E CY22E Recent de-SPACs ChargePoint $28.11 56.8% $8,574 $7,963 NA 66.2% 25.9% 29.5% (72
Slide 45: Glossary
Glossary ASIC – Application-Specific Integrated Circuit IP – Intellectual Property AFE – Analog front-end IR – Infrared Radiation BP – Blood Pressure LED – Light-Emitting Diode CAD – Coronary Artery Disease MOU – Memorandum of Understanding CGM – Continuous Glucose Monitoring MUX – Multiplexer CHF –
Slide 46: Photonics as pervasive as micro-electronics
Photonics as pervasive as micro-electronics 46