Slide 1: First quarter 2020 - Earnings presentation
First quarter 2020 - Earnings presentation 15 May 2020
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been produced by poLight ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. Further to the aforementioned, this presentation is th
Slide 3: Today's agenda
Today’s agenda Presenting Dr. Øyvind Isaksen • Key events Chief Executive Officer Dr. Isaksen has been CEO of poLight since August 2014. He has • Introduction to poLight previously held several CEO positions, most recently in the publicly listed company Q-Free ASA, which he left in January 2014, aft
Slide 4: Key events
Key events • TLens used in two commercially available smartwatch phones • poLight TLens designed into a barcode product by a Tier 1 vendor • Several other customer cases progressing in Xiaomi Mi Bunny 4 Pro different market segments • Share issue carried out post Q1-20 XUN Max Pro 4
Slide 5: poLight at a glance
poLight at a glance Background and description Geographical footprint • Developer of unique photographic lens for use in the mobile, barcode, augmented reality and other Horten Norway Tampere Finland markets Lyon France Korea • Founded in 2005 and has since build state-of-the-art Shenzhen Taiwan Chi
Slide 6: poLight's products well suited for multiple uses
poLight´s products well suited for multiple uses Consumer Industrial Medical Automotive 6
Slide 7: Operations and market review
Operations and market review
Slide 8: Commercial breakthrough in smartwatch phone segment
Commercial breakthrough in smartwatch phone segment • First smartwatch phones with advanced autofocus functionality based on poLight TLens • Children’s smartwatch phone with two cameras designed for the Chinese market • The main camera used to take pictures uses advanced AF delivered by poLight • Se
Slide 9: Market for smartwatch phones for kids expected to grow
Market for smartwatch phones for kids expected to grow • Follow-up order was received during the quarter • Anticipate sales impacted by the corona virus • Schools in process of restarting - will most likely increase sales • May be released in other markets over time • AF for screen camera is under c
Slide 10: Strong value proposition for smartwatch phone
Strong value proposition for smartwatch phone • Key poLight selling points: • Small size • Low power consumption • No gravity impact fundamental when person is moving • Constant field of view enabling improved video-call function • A growing and maturing market • Features set to increase – app usage
Slide 11: AR: TLens used for main cameras and longer term tuning laser display
AR: TLens used for main cameras and longer term tuning laser display • TLens being considered by several market participants • AR market at early stage, low volumes today • Potentially the next “big thing” in the consumer market • Key selling points • power consumption, speed, compactness, no gravit
Slide 12: Smartphone: Increased interaction during the quarter
Smartphone: Increased interaction during the quarter • Engage with the smartphone eco-system for various applications based on advanced new design concepts; • Advanced integration of TLens (existing product) realising AF function for an under the screen front-facing camera • Using poLight technology
Slide 13: TLens designed into a barcode product by a Tier 1 vendor
TLens designed into a barcode product by a Tier 1 vendor • Received an order of 0,5 million NOK • Support final development, product qualification and mass production preparation • Planned market release in third-quarter 2020, dependent on successful testing and other external factors • Proves that
Slide 14: Progress within several market segments
Progress within several market segments Ongoing supply Project Completed PoC Ongoing PoC Planning PoC Consumer 2 7 8 9 Industrial 1 2 7 1 Other (e.g. medical / automobile) 5 1 2 1 9 20 11 14
Slide 15: Financial review
© poLlight Financial review
Slide 16: Key financials
Key financials Income statement Balance sheet summary (in NOK million) Q1 2020 Q1 2019 FY 2019 (in NOK million) Q1 2020 Q1 2019 FY 2019 Revenue 0.5 0.0 3.0 Intangible assets 51.4 77.1 53.9 Cost of sales -0.1 0.0 -2.1 Cash and cash equivalents 50.9 107.5 73.5 Research and development expenses -5.5 -5
Slide 17: Cash Flow
Cash Flow • Q1 cash used in operations was NOK 22.2 million, Q1 2020 cash flow development compared with NOK 18.3 million in Q1 2019. Net (NOK million) Working Capital increased with NOK 7.2 million in Q1 73,5 • Q1 cash used in investing activities was NOK 0.2 million 50,9 -22,2 • Q1 cash used in fi
Slide 18: Outlook
© poLlight
Slide 19: Outlook
Outlook • Commercialisations of TLens in early 2020 serves as proof-of-concept and supports new customer cases - both in the same and other market segments • The smartwatch market is growing and will eventually represent a significant volume potential • Serves as a relevant reference for smartphone
Slide 20: Next events
Next events: AGM - 28 May 2020 Q2-20 - 21 August 2020
Slide 21: Appendix
Appendix Oy Instant focus a Small X and Y 21 a Constant field ba of view Allin focus Touch & re-Focus High performance front facing camera R=6B 4 High optical axis stability No gravity impact Low power consumption Smart implementation of dual camera IG No magnetic interference & potight
Slide 22: 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
Slide 23: Board of Directors
Board of Directors Eivind Bergsmyr – Chairman, independent (from March-2020) Mr. Bergsmyr has been a partner at Viking Venture since 2009, and serves on the boards of several Viking Venture portfolio companies. He is the current chair of Xait AS, DinERP AS, Tamigo ApS, Flowbox AB, Humly Edtech AB an
Slide 24: Interim consolidated statement of income (unaudited)
Interim consolidated statement of income (unaudited) NOK 000 Note Q1 2020 Q1 2019 FY 2019 Revenue 536 30 2 988 Cost of sales -61 -4 -2 075 Gross profit 475 26 913 Research and development expenses 7 -5 507 -5 600 -19 874 Sales and marketing expenses -2 264 -2 388 -8 729 Administrative expenses -5 32
Slide 25: Balance sheet (unaudited)
Balance sheet (unaudited) NOK 000 Note Q1 2020 Q1 2019 FY 2019 ASSETS Property, plant and equipment 1 209 1 297 1 235 Intangible assets 8 51 365 77 123 53 936 Right-of-use assets 1 625 1 618 1 923 Total non-current assets 54 199 80 038 57 094 Inventories 8 967 9 500 7 728 Trade and other receivables
Slide 26: Cash flow (unaudited)
Cash flow (unaudited) NOK 000 Note Q1 2020 Q1 2019 FY 2019 Operating activities Profit before tax -19 269 -14 718 -77 740 Non-cash adjustment to reconcile profit before tax to net cash flows: Depreciation and impairment of property, plant and equipment 481 619 1 895 Amortisation and impairment of in