Next Biometrics Group Asa · OSL:NEXT
Next Biometrics Group Asa — Q2 2019 Earnings Presentation
21 slides from Next Biometrics Group Asa's earnings presentation, Aug 20, 2019
Slide 1: Q2-2019 Presentation
NEXT Biometrics Group ASA Q2-2019 Presentation Oslo, August 20, 2019 Dan Cronin, interim Chief Executive Officer Knut Stalen, Chief Financial Officer Alain Faburel, Chief Sales & Marketing Officer Oslo Bars: NEXT OTC: NXTBF
Slide 2: Disclaimer
Disclaimer This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projec
Slide 3: Business Highlights Q2-2019
Business Highlights Q2-2019 Government ID: • Increased market activity and continued customer progress in India • Additional PO’s for India received and revenue expected to accelerate in H2-2019 Smart Card: • Signed agreement with ABCorp for commercialization of biometric smart cards Notebook: • All
Slide 4: Key Financials Q2-2019
Key Financials Q2-2019 Revenue of NOK 30.1 million, up 18% from Q2-2018 and 10% vs. Q1-2019 Gross margin of 32% compared with 26% in Q2-2018 and 34% in Q1-2019 Cost reduction program on track with positive impact in Q2-2019 EBITDA ex options improved to NOK -30.5 million www.nextbiometrics.com 4
Slide 5: Experienced Management with Strong Technology Background
Experienced Management with Strong Technology Background Magnus Mandersson – Chairman of the Board of Directors Dan Cronin - Interim CEO, COO • Appointed in 2018 • Joined NEXT as COO in 2017 • 30+ years of experience in management roles and on company boards • Master`s degree in Electrical Engineeri
Slide 6: Advanced, Secure, Large-Area Fingerprint Sensors
Advanced, Secure, Large-Area Fingerprint Sensors Unique technology LTPS* advantages Sensor technology with unmatched cost & size advantages Proven supplier to global tier 1 customers Product roadmap aligned with new high-growth • Fully flexible applications • Doesn’t break at larger size Rigid
Slide 7: Flexibility and Proliferation
Flexibility and Proliferation Foundation Multiple solutions for multiple NEXT Biometrics offering Key challenges facing Sensor + Electronics = Module markets competing solutions Government ID Optical sensors • Reliable • Primarily a competition in Gov ID • Thin form factor and access control • Cost
Slide 8: Leveraging NEXT's Large Size, Cost Benefit in Four Target Markets
Leveraging NEXT’s Large Size, Cost Benefit in Four Target Markets Smart Card Government ID #1 priority Win market share Notebook Access Control Be relevant and Leverage existing Stay strong portfolio through distribution channels www.nextbiometrics.com 8
Slide 9: Smart Card – Building Momentum with Large-Size Sensors
Smart Card – Building Momentum with Large-Size Sensors Achievements Agreement with ABCorp for the commercialization of biometric smart card solution Delivered sample cards and enrolment solution to signed partners for customer promotion Pipeline 2019 • Additional tier-2 card manufacturers • Tech
Slide 10: Government ID India – Ramp-up Started
Government ID India – Ramp-up Started India Pipeline Achievements Thousand sensors Signed all 4 agreements forecasted in January Customer Contract Status Agreement with customer D closed, first order received, further AqTronics (A) volume expected in August and Q4 Digitsecure (B) Design-in
Slide 11: NEXT Technology in Real-Life Government ID Use
NEXT Technology in Real-Life Government ID Use Delhi Traffic Police • Use Case: Real-time ID verification of drivers & fingerprint authentication for payment of fines • Device: Biometric POS terminals from MobiOcean incorporating NEXT sensor technology • Status: Initial pilot of 1000 units deployed
Slide 12: Government ID RoW – Starting to Deploy One Touch ID FAP20
Government ID RoW – Starting to Deploy One Touch ID FAP20 Achievements Started design-in with Newland following agreement signed in May Design-in with POS vendor SUNMI for both India-specific sensors and ROW with One Touch ID FAP20 Signed LOI with WizarPOS (China) for One Touch ID FAP20 Sign
Slide 13: Access Control – Tier-1 Device Makers on Board
Access Control – Tier-1 Device Makers on Board Achievements Signed LOI with one of the leading access control solution provider worldwide for the design-in of One Touch ID FAP20 Signed LOI with Digent (Korea) for One Touch ID FAP20 Pipeline 2019 • Finalize additional distribution agreements in K
Slide 14: Targeting the High-Security Commercial Rugged Notebook Market
Targeting the High-Security Commercial Rugged Notebook Market Achievements Strongest quarter to date with Fujitsu as volume and revenue ramp according to plan Priorities • Develop Fujitsu relationship to access other business lines • Close design-in agreements with additional notebook manufacturer
Slide 15: Key Figures Q2-2019
Key Figures Q2-2019 Profit and loss Revenue of NOK 30.1 million, up from Q2 Q3 Q4 Q1 Q2 NOK 27.5 million in Q1-2019 NOK million 2018 2018 2018 2019 2019 2018 • Increased notebook volumes the main driver Revenue 25.6 30.2 29.3 27.5 30.1 108.4 • Announced pilot projects and design wins to take full ef
Slide 16: Reduced OPEX and R&D Investments
Reduced OPEX and R&D Investments R&D related vs non-R&D related OPEX1 NOK million (excl. cost of options ) 60 Non-R&D R&D OPEX down following cost initiatives 50 R&D focused on Smart Card and Government ID 40 • Projects on track for expected volume market take off 31 28 30 27 29 27 23 Cost reduction
Slide 17: EBITDA and Cash Flow Performance
EBITDA and Cash Flow Performance MNOK EBITDA ex options 0 -5 EBITDA: -10 -15 • Q2-2019 adjusted EBITDA-loss of NOK 30.5 -20 million, down from NOK 35 million in Q1-2019 -25 (31) -30 (35) (37) (36) (35) (35) -35 (37) (38) -40 (41) -45 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18* Q1-19** Q2-19 MNOK Cash
Slide 18: Balance Sheet & Cash Flow Development
Balance Sheet & Cash Flow Development Balance sheet Cash flow development NOK million NOK million Liabilities* 38 (25) 0 0 164 Cash 189 222 163 Equity Receivables 23 Inventory 24 Non-current* 49 *) Included the effect of the implantation of IFRS16 - Leases Cash at period start Operations Investing F
Slide 19: Summary
Summary • Successfully executing shift to multi-product, multi-market business model from a single product, single market approach • Market roll-out underway from diverse, mass-production ready product platforms Smart Card Government ID • Pace of design-in agreements #1 priority Win market and compl
Slide 20: Key Business Steps 2019
Key Business Steps 2019 • Ramp India sales and capitalize contracts and order backlog • Global commercialization and volume production start of FAP20 sensor • Continued increase of sensor module shipments to Fujitsu • Further expand smart card ecosystem partnerships and network • Demonstration and s
Slide 21: NEXT Biometrics
NEXT BIOMETRICS One Touch. One You. NEXT Biometrics www.nextbiometrics.com 21
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